Latest news with #homebuying
Yahoo
5 hours ago
- Business
- Yahoo
This is an 'opportunistic' housing market
The housing market has been hit by high mortgage rates and low inventory, creating confusion for consumers who want to know whether or not now is the time to buy. In the video above, Bank of America head of consumer lending Matt Vernon shares the results of the latest Bank of America Homebuyer Insights Report and explains why, for some buyers, it could be an "opportunistic" market. To watch more expert insights and analysis on the latest market action, check out more Wealth here. Housing market uncertainty. It is at a three-year high, according to the Bank of America Home Buyer Inside Report. 60% of home buyers and home owners can't tell whether now is a good or bad time to buy a new home. For more, I want to bring in Matt Vernon, Bank of America head of consumer lending. Matt, good to have you here with us. Just take us into this survey. It was conducted back in March and April. Do you think that uncertainty remains high? Hey, I think our respondent and Brad, good to see you. I think our respondents have have told us very clearly that they are a little bit confused right now and uncertain on whether it is a good time to buy with all of the different factors that are occurring from home prices and rates and volatility in the market. That said, 52% of our respondents are actually more optimistic that the housing market is heading in the right direction, up from a year year ago at less than 45%. So the movement is there. And then importantly, 75% of our respondents are absolutely interested in buying a home and they're ready to act as soon as they see some signs that rates are coming down or prices are coming down. They're going to jump right in and be very optimistic. And so, do you think this will affect the current home buying season, the sentiment, at least as evidenced through the survey data? Yeah, I think certainly we're off to a bit of a slower start. All the data shows that than we've traditionally seen in the spring market. That being said, the word opportunistic is probably the word of the day, right? Because folks are waiting for something to incentiv them to get back into the market. So right now, if we were to see rates come down like we've seen, and go up by the way, over the last, call it four months, when it comes down, I would expect folks that have prepared for home ownership, have found that property, have worked with a professional to jump back in and capitalize on that opportunity. And so we know that mortgage rates continue to remain lower than one year ago, more inventory for buyers to choose from in the last few years as Freddie Mac's chief economist also remarked in the recent rates that were released. So, how are you seeing some of the buyer propensity in comparison to years past at this point in the season where we know people are checking their list, they're getting out there, and they're trying to figure out what's going to sit within their price point and whether that be on the existing or the new home side? Yeah, I think it's it's an opportunistic market as I spoke to just a few moments ago. Rates are now in this new normal trading range of call it low sixes to the upper sixes and yet they move in there. So for those prospective home buyers who've done their research, that have saved, have prepared their credit, and they've found that home, when they see something that is going to again incentivize them to go do it, they're going to jump on it because if not, there's someone else more than likely that's looking at that same property. So having a pre-approval and getting out there with a real estate professional and making that offer when the when the rates are good or the prices come down is going to be incredibly important in this competitive market. What are you seeing in some of the generational differences? Members of Gen Z, even, maybe financing their home purchases. Yeah, interestingly enough, right? The Gen Z and the millennials still believe that home ownership is an achievement in life and it builds long-term wealth. And ultimately, they're doing the things that I would say past generations have done to achieve dream that dream of home ownership, whether that's taking out an extra job to save for a down payment, whether that's um really considering moving in with siblings. We've saw some good data on that or even asking mom and dad for a loan to get into that in addition to some of that 529 work that are previous your previous uh individual was chatting about. A study, we know, by the National Association of Realtors found that the average first-time home buyer was 38 years old last year. Do you think that number could retreat or go down in the near term? You know, it has certainly been increasing over the last call it five years to the number that you talked about that 38. I would not frankly be surprised if it moves a little bit here in the interim, but then I really do think it's going to flatten out as this new normal environment kind of takes place and we begin to see inventory come online and the market begins to function a little better than it has here recently and more closely to how it has historically. I told myself I would own a home by age 32 when I was graduating college. Boy, did I have a lot of learning to do. Matt, thanks so much for taking the time. My pleasure, Brad. Thanks. Sign in to access your portfolio
Yahoo
5 hours ago
- Business
- Yahoo
Is Dave Ramsey's Home Buying Advice Realistic For The Average Homeowner?
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Dave Ramsey is known for his no-nonsense approach to personal finance, including bold guidelines about how — and when — to buy a home. His long-standing advice is clear: never take out more than a 15-year mortgage, and never let your mortgage payment exceed 25% of your take-home pay. But as housing prices and interest rates climb, can the average person still afford a home if they follow Ramsey's rules? Don't Miss: Hasbro, MGM, and Skechers trust this AI marketing firm — Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – TikTok user @simemedia recently laid out what Ramsey's home-buying rule looks like in today's market. Using national housing averages and ideal borrowing scenarios, he walked viewers through the numbers — and the outcome raised eyebrows. As @simemedia explains, the average U.S. home now costs around $350,000. A 15-year mortgage on that amount, assuming excellent credit – a 780+ score – would come out to just under $3,000 per month — before factoring in insurance, utilities, or maintenance. Now factor in Ramsey's second rule: the mortgage payment should be no more than 25% of take-home pay. Take-home pay is what's left after taxes, so to comfortably afford a $3,000 mortgage by Ramsey's standard, a buyer would need to take home $12,000 per month. That equates to an annual gross income of about $190,000 — putting the buyer in the top 6% of earners nationwide. Trending: This Jeff Bezos-backed startup will allow you to . To test the advice further, @simemedia ran the same scenario using Mississippi, the state with the lowest average home prices — around $180,000. That would bring the 15-year monthly mortgage payment down to roughly $1,600. Following the 25% rule, a buyer would need to take home $6,400 a month, or earn about $95,000 per year before taxes. That's still well above the national median household income of $80,610, according to the Census Bureau. In other words, even in the cheapest state in the U.S., the average household would fall short of affording a home under Ramsey's advice is rooted in avoiding financial risk. A 15-year loan saves thousands in interest compared to a 30-year one, and the 25% rule ensures homeowners don't stretch their budgets too thin. But critics like @simemedia argue that the rules, while ideal, are increasingly out of reach for many buyers, especially younger or first-time homeowners. Some financial experts recommend treating Ramsey's rules as goals rather than rigid requirements. Choosing a longer-term mortgage or targeting a more affordable home could make homeownership more achievable, while still maintaining reasonable financial safety. Ramsey's advice aims to help people build wealth responsibly, but strict adherence might not be realistic for the average homeowner in today's economy. As always, the best approach is one that reflects your personal financial situation, and if needed, includes input from a financial advisor. Read Next: Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – , which provides access to a pool of short-term loans backed by residential real estate with just a $100 minimum. Image: Shutterstock Send To MSN: 0 This article Is Dave Ramsey's Home Buying Advice Realistic For The Average Homeowner? originally appeared on Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Yahoo
8 hours ago
- Business
- Yahoo
This is an 'opportunistic' housing market
The housing market has been hit by high mortgage rates and low inventory, creating confusion for consumers who want to know whether or not now is the time to buy. In the video above, Bank of America head of consumer lending Matt Vernon shares the results of the latest Bank of America Homebuyer Insights Report and explains why, for some buyers, it could be an "opportunistic" market. To watch more expert insights and analysis on the latest market action, check out more Wealth here.
Reuters
a day ago
- Business
- Reuters
Is spring still the best time to buy or sell a home?
NEW YORK, May 30 - This was originally published in the On The Money newsletter, where we share U.S. personal finance tips and insights every other week. Sign up here to receive it for free. Spring traditionally is considered the buying and selling season for the housing market. But there has been a bit of a vibe shift. U.S. homeowners and prospective buyers are feeling uneasy, a new Bank of America survey shows, as rising mortgage rates deter buyers. Of the 2,000 respondents to BofA's poll, 60% said they could not tell whether it was a good time to buy a home, according to the report published by the nation's second-largest lender. That is up from 57% last year and 48% in 2023. Economic uncertainty is not stopping everyone from buying new homes: Sales of new U.S. single-family homes surged to more than a three-year high in April, as builders lowered prices to attract buyers. But new housing inventory is still near levels last seen in 2007. New homes are not exactly cheap, either. The median new house price was $407,200 in April. Another interesting tidbit is that new homes are getting smaller. So why aren't they more affordable, opens new tab? If you're buying a home, selling a home or wondering what to do now, I want to hear from you. Tell me about your experience. Write to me at What the current SALT tax proposal means for you I've been especially interested in tax legislation working its way through Congress, especially because the Republican-led U.S. House of Representatives passed a bill last week that would allow a deduction of up to $40,000 on federal returns for state and local taxes, known as SALT. A previous version of the bill had a cap of $30,000. If passed by the Senate, the new expanded SALT cap would benefit millions of big earners in high-tax states, including New York (where I live), New Jersey, Pennsylvania (where my parents live), Maryland, Oregon and California. Of course, bills tend to morph and change in the legislative process. As Donald Trump's so-called 'big, beautiful bill' winds its way through the Senate, it could end up looking very different. Follow the latest news here. And let me know if you stand to benefit from an expanded SALT deduction. Write to me at Read, watch and listen What's behind these big stock swings? JetBlue, United tie up to let passengers book on both websites Humanoid labor: Behind the global race for robot supremacy How the student-loan crisis will show up in the economy, opens new tab (WSJ) Trump administration axes Biden-era barrier for crypto in 401(k) plans, opens new tab (CNBC) Why Amazon's in-car software deal with Stellantis fizzled Retirees, get ready to need long-term care. Here's what to know, opens new tab (NYT) Five things I learned reading Reuters this week How do you stay informed about climate change? Reuters is surveying readers like you to find out how you get your news about climate change, and what your concerns are around the topic. It took me less than two minutes to take the survey, andyou can do so here, opens new tab.
CBS News
a day ago
- Business
- CBS News
Here are the best U.S. cities for first-time homebuyers
What to consider when buying a home with someone else With mortgage rates and housing prices still stubbornly elevated, potential homebuyers are looking for ways save wherever they can. The median sale price for a home in the first-quarter of 2025 was over $400,000, according to the Federal Reserve Bank of St. Louis. Mortgage rates, meanwhile, continue to hover around 7% — up from a record low of 2.65% in January 2021. Moody's decision to downgrade the U.S.' credit rating briefly pushed rates above the 7% threshold earlier this month. While homebuyers cannot control median home prices and mortgage rates, their choice of city or town to buy in can play a defining role in how much they end up spending on a property. Certain locales will offer more affordable listings and a wider range of options to choose from — giving buyers something to think about as they decide where to make their next investment. A recent study from SmartAsset ranks the best cities for first-time buyers — providing a cheat sheet of sorts for those on the hunt for a new home. The financial technology company looked at 180 U.S. cities and ranked their appeal for first-time buyers based on affordability, available housing inventory, demand and how much home prices are expected to shift in the area over the next year. Here is a breakdown of the cities that will give first-time homebuyers the best bang for their buck. Best place to buy overall McAllen, Texas, located on the state's southern tip, claimed the No. 1 spot on SmartAsset's list. A major selling point for the border city is that housing prices are forecast to change just 0.4% over the next year, meaning that buyers can rest assured the market won't fluctuate too wildly as they search for the right home. The median sale price for homes in McAllen — $204,499 — is about four times as much as the median local income, giving buyers more moderate wiggle room when it comes to affordability. Best in affordability When looking solely at affordability — the median sale price of a home relative to the median local income — Midwestern metro areas reign. Illinois cities Peoria and Decatur top the ranking in affordability, according to SmartAsset. Other locales house hunters may want to keep an eye on include Cedar Rapids, Iowa; Davenport, Iowa; Muncie, Indiana; Springfield, Illinois; and St. Joseph, Missouri, which are among the least expensive metro areas, according to the study. While Midwestern cities ranked higher in affordability than others, only Lawton, Oklahoma, where homes have a median sale price of $150,007, made it into SmartAsset's top 10 cities for first-time homebuyers overall. Best place for expanded inventory One of biggest issues plaguing the housing market is the limited supply of homes for sale While studies show that the inventory of available properties is rising in many markets, some metro areas are still suffering from shortages, which increases competition and prices for homebuyers. If you're looking for more robust inventory, you may want to consider heading south. Cape Coral, Florida, offers the greatest number of homes for sale per capita, according to SmartAsset, followed by Port St. Lucie, Florida.
