Ascending equity, rate retreat & the cost of kids

12-21-2018

EQUITY ESCALATES

Homeowner equity reached $15.2 trillion in the second quarter this year according to the U.S. Federal Reserve. The new high is approximately 13% higher than the previous peak of $13.4 trillion in 2006. The Mortgage Bankers Association credits home price growth, a healthy job market, contextually low interest rates and efforts by homeowners to reduce their mortgage principal balances.

SENIOR STRIDES

Continued home price appreciation fueled a 1.4% increase in housing wealth for homeowners age 62 and older according to the Risk/Span Reverse Mortgage Market Index (RMMI). Seniors gained $97 billion dollars in home equity for Q3 according to the RMMI, for a new index high of 251.57. The National Reverse Mortgage Lenders Association has been publishing the index since 2000.

REMEMBER SEPTEMBER

Rates for a 30-year fixed rate mortgage retreated to the lowest point since September according to Freddie Mac’s Primary Mortgage Market Survey for the week ending December 13. Rates have been trending downward or flat for the last five weeks.

COSTLY KIDS?

Children have a huge impact on home-buying preference and purchase power according to the National Association of Realtors’® (NAR) 2018 Moving with Kids report. Buyers with child care expenses said they compromised on size, price, style and condition of homes, while 27% said care costs delayed their home purchases.

*The views, articles, postings and other information listed on this website are personal and do not necessarily represent the opinion or the position of American Pacific Mortgage Corporation.

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.