Category Archives: Mortgage

More young families opt to rent instead of buy

More young families chose to rent instead of buy in the 10-year span from 2006-2016, according to a study by RENTCafé.

Likely influenced by rising home prices, tough lending rules and a lack of entry-level homes, the number of families with minor children that owned a home decreased by 3.6 million during this time, while rentals for this group increased by 1.9 million.

Using data from the U.S. Census Bureau, RENTCafé noted that during this 10-year period, the number of families with children living in rentals increased by 16%, while homeownership rates for the same demographic fell 14%.

The study states that this trend is apparent nationwide.

“The rise of renting and the decline of ownership among families with children is not only confirmed in all 30 largest U.S. metropolitan areas, but it’s also very prominent in many of them,” RENTCafé wrote. “At the confluence of forces that prevent families from buying homes and compel them to rent, the cost of housing is probably the strongest force.”

The report states that the national median price of a single-family home has increased 35% in the past five years, increasing at a rate that is 75% greater than rents.

Southern cities saw the highest increase in families that were living in rentals, according to the report, with Atlanta, Phoenix, Houston, Miami and Charlotte, North Carolina topping the list.

The greater Charlotte area experienced the most significant jump with a 73% increase in families with kids who were renting their home. The Atlanta area came in second with a 51% jump in the number of renting families.

The metro areas that lost the most homeowner families were Detroit, Miami, Las Vegas, Los Angeles and Riverside, California, which all registered decreases of more than 20%, according to the report.

“These statistics show the tremendous effects of this relatively short but eventful period of time on American families,” the report stated. “These 3.6 million fewer owner households are families who lost their homes in foreclosures or otherwise, they are young families who are unable to overcome the current financial barriers to become homeowners, and they are also homeowners whose children grew up and no longer fall into this category.

Article source: https://www.housingwire.com/articles/46079-more-young-families-opt-to-rent-instead-of-buy

Toronto leads Canada’s biggest benefit in home sales this year

Canadian home sales rose in Jun during a fastest gait this year, led by a 17% swell in Toronto, a pointer a marketplace might be convalescent strength.

Transactions climbed 4.1% from May after touching a five-year low, a Canadian Real Estate Association reported Monday from Ottawa. Benchmark prices fell 0.1% on a month and modernized 0.9% from a year earlier.

Home sales had declined by many of 2018 after a supervision done it some-more formidable to get a debt and a executive bank lifted seductiveness rates. Both measures compelled buyers, causing pointy declines in sales quite for a most-expensive properties.

The marketplace seems to be by a misfortune of that adjustment, during slightest for now. Bank of Canada process makers pronounced final week a housing marketplace appears to be stabilizing.

Toronto

The news is “in line” with what process makers would wish to see, that is “the marketplace recalibrating, if we will, and relocating gradually higher,” Dawn Desjardins, partner arch economist during Royal Bank of Canada, pronounced by phone from Toronto. The clever pursuit marketplace is ancillary demand, she said, yet sales for 2018 will still decrease since of debility early in a year.

Sales increasing in about 60% of markets tracked by CREA, including a 1% benefit in Montreal, Canada’s second-most populous city. Vancouver sales fell 1.3%. Toronto’s sales benefit was a biggest in 14 years on a seasonally practiced basis, according to a Bank of Montreal.

“The inhabitant boost in Jun home sales suggests activity might indeed be starting to spin a corner,” Gregory Klump, CREA’s arch economist, pronounced in a report. “Looking ahead, home sales activity and cost gains will expected be hold in check by aloft seductiveness rates.”

The inhabitant normal sale cost fell 1.3% in Jun from a year progressing to C$495,797 ($377,319), a smallest such decrease in a final 5 months.

Sales forsaken 11% from a year earlier, and a sum was 7% next June’s 10-year average.

Bloomberg News

Article source: http://www.nationalmortgagenews.com/articles/toronto-leads-canadas-biggest-gain-in-home-sales-this-year

Bank of America debt prolongation falls notwithstanding digital sales gains

Bank of America’s residential debt fad volume fell brief of final year’s in a second-quarter benefit notwithstanding gains from digital sales and anniversary home buying, and broader consumer lending strength.

The bank generated roughly $11.7 billion in sum initial debt production, down from some-more than $13.2 billion during a second entertain of 2017, though adult from some-more than $9.4 billion in a initial entertain of this year.

The company’s weekly debt volume from digital sales some-more than quadrupled from a start of a new record beginning launched in Apr to quarter-end, rising to $22.2 million from $4.8 million.

Bank of America residential debt fad volume

The company’s sum home equity volume during a second entertain was scarcely $4.1 billion, down from roughly $4.8 billion during a same duration final year though adult from some-more than $3.7 billion in initial entertain 2018.

Most repository debt lenders are producing lower loan volume than a year ago notwithstanding anniversary consecutive-quarter gains.

But Bank of America’s sum consumer lending has been stronger than a peers, and continued to minister to an altogether year-to-year benefit in net income during a company.

“We grew consumer and blurb loans, we grew deposits, we grew resources within a Merrill Edge business, we generated some-more net new households in Merrill Lynch, and we upheld some-more institutional customer activity — all of this while we continued to deposit in a businesses and began an additional $500 million record investment, that we intend to spend over a subsequent several quarters, due to a advantages we perceived from taxation reform. Even while creation investments in people, technology, new markets and genuine estate, we managed to reduce losses again this period,” CEO Brian Moynihan pronounced in a company’s benefit release.

Bank of America’s net income rose to $6.8 billion from $5.1 billion a year ago, though was down somewhat from $6.9 billion in a initial quarter.

Article source: http://www.nationalmortgagenews.com/news/bank-of-america-mortgage-production-falls-despite-digital-sales-gains

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