Household debt climbed to $12.58 trillion by the end of 2016, nearly breaking 2008’s record high, the article stated. In fact, if it continues at this rate, household debt could break the high of $12.68 trillion sometime in 2017.
Household debt to hit new record in 2017
Household debt climbed to $12.58 trillion by the end of 2016, nearly breaking 2008’s record high, the article stated. In fact, if it continues at this rate, household debt could break the high of $12.68 trillion sometime in 2017… Read more at Housingwire.com
The Federal Reserve Bank of New York reported last week that US household debt reached a new all-time high in the 1Q of this year. The new report also included some troubling internal metrics, not only on the overall household debt levels but also with regard to the level of delinquencies. I’ll give you the details below.
Household Debt Hits New Record High, Stocks Stumble
The New York Fed reported that US household debt and credit hit a new all-time high in the 1Q, despite the fact that the economy continues to recover (albeit slowly), the unemployment rate continues to fall and business investment has increased. The Fed reported that household debt climbed to a record $12.73 trillion at the end of the 1Q, up $149 billion from the 4Q of last year. Gains in mortgage debt, auto debt and student loan debt were all cited as reasons for the… Read more at Valuewalk.com
U.S. Household Debt: A New, Alarming Milestone
U.S. debt is on the rise and could reach a milestone level sometime in 2017. Student debt has risen for 18 consecutive years, and subprime loans are a growing worry in another sector… Watch here
The average consumer is predicting that there will be much higher mortagage rates in 2017, but this does not keep them from buying a new home. Higher rental rates are making the relative cost of owning a new home lower each day.
3-In-5 Consumers Now Predict Higher Mortgage Rates In 2017
Most recent National Housing Survey, 60 percent of consumers think the era of rates in the 3s is firmly in the past. The survey, which covers 1,000 households, measures changing consumer attitudes toward mortgages and housing nationwide.Attitudes have shifted surprisingly since a few months ago. In October 2016, “only” half of… Read more at The Mortgage Reports
Economists forecasts that mortgage rates will continue to go up in 2017, just one of the trends that suggest that this year will be a challenging year for people who will be purchasing homes.
Higher mortgage rates seen in 2017
Smoke predicts mortgage rates will reach 4.5 percent in 2017. Other economists expect rates to remain above 4 percent but not to go beyond 5 percent this year. That range would mean mortgage rates that would be low compared with the past decade. Average long-term mortgage rates were above 6 percent during the height of the last housing boom, and they hadn’t hit 5 percent before 2008. So someone looking to buy a home in the… Read more at Business Mirror
HOW THE FED’s INTEREST RATE INCREASE CAN AFFECT YOU 2017
Because the rate has been close to zero since 2008, as part of the Fed’s strategy to bring the nation out of a recession, there’s hardly anywhere for it to go but up. As the economy improves and President-elect Donald J. Trump unveils his stimulus package, economists expect rates to rise steadily over a period of years… Watch here
Home Depot proved there is definitely still demand for home improvement. The company announced on Tuesday that its revenue climbed 5.8% to $22.2 billion in the fourth quarter, beating earnings estimates. The largest home-improvement retailer is benefiting from a yearslong rebound in housing prices that has made homeowners more willing to spend on their properties because they see them as a sound investment.
Home Depot beats earnings estimates as revenue surges to $22B
Home Depot recorded a strong fourth quarter in 2016, thanks to homeowners continuing to value spending money on their properties, according to an article in Bloomberg by Matthew Townsend. The home improvement store’s profits increased to $1.44 a share last quarter… Read more at Housingwire.com
Home Depot said it plans to funnel more cash back to shareholders. The board boosted the company’s quarterly dividend 29 percent to 89 cents a share. The company increased its targeted dividend-payout ratio to 55 percent of net earnings, up from 50 percent.
Home Depot Profit Tops Estimates As Fix-up Spending Marches On
The largest home-improvement retailer is benefiting from a yearslong rebound in housing prices that has made homeowners more willing to spend on their properties because they see them as a sound investment. That’s helped Home Depot avoid the malaise that has spread across much of retail, where… Read more at SentinelSource.com
Profit increased to $1.44 a share last quarter, the Atlanta-based company said Tuesday. That topped analysts’ estimates and came along with strong sales and a plan to return more cash to shareholders… Watch here
Purchasing your first home is hardly simple for anyone, but exploring and learning the whole process can be particularly very challenging for young and single home buyers, who only have their sole income to rely on to pay all the expenses.
Single Homebuyer: You Can Be Young, Free, And A Homeowner
Buy a home on your own when you’re a widow or widower, or are divorced or separated, and nobody raises an eyebrow. But choose to be a single homebuyer when you’re young and unencumbered, and you’re an object of curiosity. Not in a bad way, you understand. It’s just your friends are likely to see you differently — as if you’d announced you don’t own a smart phone. Others will admire and… Read more at The Mortgage Reports
Fewer young singles are purchasing homes, thanks to compressed finances and tougher lending standards. Before you go ahead and take the plunge in buying a home, be smart and consider whether you’ll be able to handle the bills and expenses on your own.
Becoming a Homeowner At a Young Age
Is it possible to own a home right out of college? Well, it depends on your situation. It is true that a single young person will have a much harder time owning a home than a young couple with two incomes, but do not be discouraged by that. Homeownership is the American dream, and I think that everyone should be working towards owning a piece of property, or mayb even two, three, or ten pieces of property. The fact is that real estate is a… Read more at Money Crashers
The first mortgage default report is out for the year, and so far, rates have only increased slightly. The report comes off the heels of a low default rate environment in 2016, which is likely to be tested in 2017 as interest rates start to rise.
Mortgage defaults slightly rise, but no need to be concerned
Consumer credit default rates on mortgages and auto loans remain low and stable. The first mortgage default rate increased to .72 in January, compared to .71 in December, and .86 in January of last year. Similarly, the second mortgage default increased to .48, compared to .41 in December, and… Read more at HousingWire.com
From December of 2016 to January 2017, the index level for first mortgages has increased from 0.71% to only 0.72%. Second mortgages saw a similarly slight increase from 0.41 percent to 0.48 percent. Likewise, mortgage delinquency has shown signs of being stable. Delinquency rate went down by 7.3% last year, but remained unchanged in the last two quarters.
Mortgage Defaults are Holding Steady
In addition to mortgage defaults, the S&P/Experian Consumer Credit Default Indices also covered bank card defaults. As of January, bank cards saw an increase in defaults, up to 3.21 percent, the highest level since July 2013. At the same time, results from the report show that mortgage delinquency has not shown significant change… Read more at DSNews.com
Mortgage rates rise following Trump’s win
Diana Olick reports on how Trump’s presidential win is affecting mortgage rates… Watch here
Private housing starts off decreased at 2.6 percent month-over-month to 1.25 million in January 2017. This is up from December 2016’s revised estimate of 1.28 million. Yearly, this is up 10.5 percent from the January 2016’s 1.13 million.
Housing starts begin year slightly lower
The news comes after last year posted the best year for housing starts since 2007. “For the year as a whole, housing starts of 1.17 million units were the strongest since 2007 as home builders try to keep up with rising demand,” Nationwide Chief Economist David Berson said about the December housing starts report. Meanwhile, single-family housing starts in January came in at a rate of 823,000, which this is… Read more at HousingWire.com
US housing starts off choppy in recent months, but the little increase in building permits is a good sign of what’s in store in 2017. The slight drop in single-family permits isn’t particularly encouraging, but the slight drop indicates a decent number of construction projects are coming up.
Housing Starts Drop in January, Keeping Inventories Tight
The report was generally considered to be underwhelming for a real estate sector that in many parts of the country is short on available homes. With interest rates still low and mortgages relatively affordable, demand for housing in much of the country outstrips the supply of available homes for sale. This has restricted home sales in recent months and has led to price increases that are believed to be… Read more at USNews.com
U.S. home sales drop as supply tumbles to 17-year low January 24, 2017
U.S. home sales drop as supply tumbles to 17-year low January 24, 2017 U.S. home resales fell more than expected in December as the supply of houses on the market dropped to levels last seen in 1999, but the housing market recovery remained intact against the backdrop of a tightening labor market. The National Association of Realtors said on Tuesday existing home sales decreased 2.8 percent to a… Watch more