A whopping 83% of homeowners say they love their home according to the 2018 Consumer Housing Trends Report from the Zillow Group. Additionally, 64% describe their homes as a financial investment, while 36% say they “see their home more as a reflection of their identity.” This year’s survey was conducted among 3,116 homeowners between April 25 and June 10.
The rate for a 30-year fixed rate mortgage reached its highest point since April 2011 according to the Freddie Mac Primary Mortgage Market Survey. The survey began tracking rates in 1971, and notes that while rising prices and rates are quelling demand, “the monthly payment remains affordable due to the still low mortgage rate environment.”
Miami is the most overvalued real estate market in the U.S. according to the latest CoreLogic HPI Forecast Validation Report. The Irvine, California-based property data provider lists Austin, TX in the number two spot and Fort Myers, FL came in third. On the other end of the scale, Connecticut has the top two most undervalued real estate markets nationwide – Bridgeport and Hartford, with Detroit, MI at number three.
Economist Elliot Eisenberg analyzed all recessions in the seven largest democracies since 1960 and found the following: Monetary policy was to blame 26% of the time, bursting of a credit bubble was the next largest cause at 17%, oil price shock or the bursting of a housing bubble were next at 12% each, and banking crises were the cause in 10%. Eisenberg predicts that monetary policy will bring on the next U.S. economic slowdown, but notes, “Good times lead to overly optimistic forecasts and loosening of credit standards, which leads to risk mispricing and increasingly risky financial behavior, which sets the stage for the next recession.”
*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.