At this time last year, I predicted 2016 would be a good year to buy a home. It appears millions of Americans agreed with me. Total home sales were up 5% in the first half of 2016, and the total annual growth is expected to cap off at 4.7%. Most encouraging is the record 34% first-time homebuyers in Q3 2016, up from 29% in 2015.
For 2017, I predict a softening led by the imminent rates hikes – Fed supported or not. But there still could be opportunities for buyers and sellers alike.
DALLAS, Nov. 21, 2016 – ValueInsured, the only provider of down payment protection, submits a response to the Federal Housing Finance Agency’s (FHFA) Single-Family Credit Risk Transfer Request for Input (RFI). The RFI was issued to “assist FHFA and the Enterprises in their ongoing analysis of font-end credit risk transfer transaction structures in which a portion of the credit risk is transferred prior to Enterprise acquisition of the underlying mortgage.”
In its submission, ValueInsured outlined why down payment protection could be one of the most effective and far-reaching credit risk transfer (CRT) solutions, citing:
Down payment protection (DPP) represents an additional up-front risk transfer mechanism not currently in use;
DPP is the only upfront risk transfer mechanism designed to modify borrower behavior so as to avoid defaults;
In contrast with other CRT mechanisms that only deal with default scenarios, DDP-related loans would be de-risked before getting onto the GSE’s balance sheets;
For the period just prior to and during the housing crisis (1999 through 2008), DPP covered transactions would have provided approx. $2.2 billion of coverage toward borrower down payments on loans that ultimately went into foreclosures, and an additional $37.24 billion to cover borrowers’ home equity losses;
DPP-related loans backed by major reinsurers represent an efficient use of capital that positively impacts the cost structure of residential mortgage loans.
Prices continue to go up but the selection keeps going down
By Mark Huffman as seen on
As we head into the end of the year with an economy that remains anemic, one factor economists are closely watching is the housing market.
After crashing in 2009, housing has recovered nicely, with prices rising nearly to pre-crash levels. But one of the biggest reasons for the price rally, especially lately, is that the supply of homes hasn't kept pace with demand.
So where does it go from here, and what does it mean for the economy? The latest ValueInsured Housing Confidence Index is not overly encouraging. While home prices are rising, confidence among consumers in the housing market is about the same as it has been all summer.
Many Millennials say they want to buy a home, however they are concerned with their ability to save for a down-payment, according to the Housing Confidence Index from ValueInsured, a provider of down payment protection for homebuyers.
Pessimistic about market volatility and resistant to being “tied down,” many millennials still aren’t quite ready to purchase a home, according to the latestValueInsured Housing Confidence Index, released Thursday.
Seventy-six percent of millennials who do not yet own a home say they would like to purchase a home, according to ValueInsured.
Millennials Worry More Than Others About Home Buying, According to ValueInsured's Quarterly Index
DALLAS, Oct. 13, 2016 /PRNewswire/ -- Despite positive economic indicators like record wage growth and falling unemployment, housing confidence remained flat from June through September, according to the new ValueInsured Housing Confidence Index.
Housing confidence rose a mere 0.2 points from June through September to 68.9 on the hundred-point scale. That figure is up 1.9 points since March. A number of factors are likely to blame for the subdued confidence measure, according to Joe Melendez, CEO of ValueInsured.
There’s a stereotype that millennials are skeptical of homeownership because they saw their elders suffer after the 2008 economic meltdown. But millennials have more enthusiasm for homeownership than baby boomers have. That’s according to a survey commissioned by ValueInsured, a company that sells down payment protection.
Let’s say you don’t have a rich aunt who’s going to spot you the down payment for a home. And maybe you’ve tapped all the down payment savings hacks you can find. Still, your savings balance is so small you’ve got to squint to see it.
Can you crowdfund your down payment? Maybe get a grant? Here are some online resources to help you clear the biggest hurdle to homeownership...and how to protect your down payment.
Despite historically low interest rates and historically high housing prices, the true state of housing can be summed up in a one word: stagnant. It’s status quo. It’s a boring subject. Yet housing remains one of the largest economic drivers in our country accounting for over $1.2T in sales. It’s massive and massively important.
It might not be all low inventory and high prices. It seems Americans have a confidence problem when it comes to the housing market. They’re increasingly apprehensive to move forward, citing concerns over the economy and job security, according to the latest ValueInsured Modern Homebuyer Survey, a measure of confidence in the health of the housing market among more than 1,000 home owners and buyers.
Amid uncertainties around the global economy, national security and the national presidential campaign, Americans’ confidence in the housing market remains sturdy and, in fact, is on the rise, according to the latest ValueInsured Modern Homebuyer Survey.
The ValueInsured Housing Confidence Index was 68.7 points in June, up slightly from 67 points in March. This 1.7-point rise in confidence is consistent with improvements in the government’s June jobs report
According to ValueInsured’s newly released survey, confidence in the housing market is rising. ValueInsured reported that the ValueInsured Housing Confidence Index was 68.7 points last month, up from March's 67 points.
What is still causing homebuyers to feel anxious about purchasing their first home is the housing crisis of 2008. Of those surveyed, 63 percent of Americans and 72 percent of American Millennials said that the 2008 crisis impacted their decision in home buying. If both parties had more confidence in the housing market, more than half of those surveyed would buy or upgrade sooner, according to ValueInsured.
CONFIDENCE IN HOUSING MARKET 'STURDY' New index shows lingering post-crash anxiety but also growing confidence.
Amid uncertainties around the global economy, national security and the national presidential campaign, Americans' confidence in the housing market remains sturdy and, in fact, is on the rise, according to the latest ValueInsured Modern Home Buyer Survey.
The ValueInsured Housing Confidence Index was 68.7 points in June, up slightly from 67 points in March. This 1.7-point rise in confidence is consistent with improvements in the government's June jobs report.
Survey: housing market still suffers from 2008 hangover Economic worries now 'the new normal'
The housing market appears healthy. Despite tight inventories, sales keep rising and so do prices. The market appears to have come a long way since the depths of the 2008 financial crisis, when homes prices imploded.
But a new survey suggests the market is still suffering a hangover. The ValueInsured Modern Homebuyer Survey found there is still some nervousness influencing home buying decisions today, a condition it declares as “the new normal.” In particular, it affects Millennials.
For the first time, buyers can purchase insurance that protects their downpayment if real estate values fall. One Florida bank offers it now, but more should follow.
Developed for modern homebuyers who experienced a drop in real estate prices during the Great Recession, the downpayment protection insurance was created to give skittish buyers some peace of mind.
Amalgamated Bank, which operates in some Florida cities, currently offers the plan by ValueInsured. Going forward, buyers may have to pay for the coverage at closing depending on the bank. The coverage guarantees that they'll receive at least part of their downpayment back if real estate values fall, subject to coverage rules.
Add Amalgamated Bank to the list of financial institutions looking to gain an edge in marketing to millennials.
The New York bank has started offering down payment insurance for homebuyers. The product — offered through a third party — covers a percentage of a borrower's down payment if they have to sell their home at a loss.
Amalgamated's goal is to differentiate itself in a highly commoditized market. The coverage is designed for homebuyers, especially millennials, who are concerned about putting their life savings into a house, particularly in light of the last housing crash.
ValueInsured and Amalgamated Bank announced on Wednesday that they are teaming up to provide homebuyers with +Plus, a first-of-its-kind financial product that protects homebuyers’ down payments from decreasing market values, according to a release sent out by the companies.
Home prices are heating up this spring, and buyers are skittish, still fearful that prices could cool just as easily.
After the worst housing crisis in history, can you blame them? That concern is precisely what one company is betting on. Dallas-based ValueInsured is offering a first-of-its kind product. Called +Plus, it's a down payment protection plan — insurance for your home equity.
"Our product gives today's homebuyers control, gives them flexibility in how they consume the real estate they want to own," said Joseph Melendez, CEO of ValueInsured.
Homeownership is the new American dream, at least according to Zillow and ValueInsured. In a recent survey, Zillow reported that over half of Millennials associate homeownership with the American Dream, which should make sense as people between the ages of 18 and 34 are waiting way longer to buy their first home than ever before.
The era of white picket fences, two-story homes, and garages housing new (or almost new) cars is a thing of the past. It’s the ‘American Dream,’ a concept that has been ingrained deep into the middle class psyche over the past several generations, which more or less means that the United States is founded upon a meritocracy – that hard work and dedication will deliver what you desire. It’s built into the nation’s fabric.
More consumers are turning to mobile technologies to shop for mortgages. With new startups offering customers mortgage quotes in a matter of minutes, lenders may find themselves forced to get with the times and develop new technologies that will make it easier and faster to connect with today’s tech savvy homebuyer.
A recent survey of American homeowners and renters released by Harris Poll on behalf of ValueInsured found that while Americans embrace the dream of homeownership, the possibility of losing a hard-earned down payment is discouraging them from buying. More than half (55 percent) of renters are confident they will get their down payment back if they were to buy today and have to sell in the next 2-7 years.
Parents often come to the rescue when their adult children need help putting together enough cash for a down payment. Whether they offer financial assistance as a gift or with the expectation of repayment, parents acting from the heart might want to consider a more businesslike approach.