Demand For New Homes Moves To 18-Year High // Today’s Mortgage News – Growella

Another wave of housing data signals higher home prices ahead This is Dan on your inside team at Growella with today’s Mortgage Minute-and-a-Half

Last week, the National Association of Home Builders and the US Census Bureau released their respective flagship housing report, The Housing Market Index from the home builder group The Housing Market Index measures the confidence that home builders have in US housing’s future, and the Census report measures the pace at which new homes are getting built

Both reports show growth According to the National Housing Index, builders are scheduling the highest numbers of showings for a January since nineteen ninety-nine, and selling homes at the highest annualized pace in thirty years And, that’s amazing considering how harsh the weather’s been this year in so many places so far this year And, meanwhile, from the Census Bureau, data shows boom in permits to build new homes but a lag in getting them finished because too few laborers are available to finish the homes quickly Supply in other words can’t keep up with demand and prices are rising because of it

So, for renters whose plans for two-thousand eighteen include buying a new home, consider moving up your timeframe The prices of homes are expected to increase Mortgage rates are unchanged this morning For loans with no points, conforming 30-year rates are near four point one two five percent, FHA mortgage rates are near four percent, and VA and USDA mortgage rates, which are often the lowest of the government-backed rates, pricing is near three-point-eight-seven-five percent Now your rate will vary based on your loan size, your credit score, and where you live

And what you do with closing costs affects your rate, too Opt to pay discount points or closing costs and you’ll get access to lower rates overall Take your lender’s zero-closing cost option and your rates will be slightly higher Also, rates vary among lenders so talk two or more and find the rate-and-fee combination that works best for you Mortgage guidelines are the official checklists lenders use to approve a request for a loan

A loan’s guidelines include checkboxes for things like whether a person’s credit score meets minimum standards, whether their size of their loan size is within range of allowable sizes, and whether the applicant has verifiable sources of income Guidelines also include boxes related to your home — how many units is it, what kind of acreage does it have, and was it built before 1978, because homes from before that time used lead paint, which is poisonous But the thing about mortgage guidelines is that each lender uses its own, personalized version There are minimum checkbox standards set forth by the various government entities — the FHA, the VA, Fannie Mae and Freddie Mac, as examples — but each mortgage lender puts its own spin on these programs and what they will or won’t allow So, even though the FHA says there’s no official credit score requirement to get FHA-approved, lenders will often use one anyway

Some set minimum scores at six-sixty, some set them at six-forty, and others use a minimum FHA credit score of five-eighty Same loan, different guidelines The same is true for work history When you’re self-employed, some lenders want to see a two-year history of income and others only care for the last six months These restrictions that lenders put in place are known as “investor overlays” and investor overlays are why it’s good to talk to two or more lenders about your loan

That first lender might turn your loan down, but a different lender, using different investor overlays, might think your look looks great So for a second opinion on the loan you need done today, click the link in the description For mortgage rates and personal finance news, visit Growellacom Sound off in the comments, give us a like, and don’t forget to subscribe