A new banking bill won’t just impact the big banks like Chase and Wells Fargo — if it becomes law, it will impact most Americans too.
The Senate approved a bill last week that will roll back some aspects of the Dodd-Frank banking reform bill, which was passed in 2010 after the financial crisis. It will make many small and midsize banks exempt from parts of Dodd-Frank. The bill was sponsored by Mike Crapo, a Republican senator from Idaho. It will now move to the House, where it could be amended further.
While they worry about affording the down payment, a survey of homeowners and buyers finds Millennial first-timers more eager to buy a house. The homeowners they might buy from, however, aren't so sure they can themselves.
According to ValueInsured’s latest quarterly results, 7% of all millennials first-time homebuyers, if given the option to choose, hope to put down zero percent down; another 26% ideally wish to put down 3-5%. In other words, 1 in 3 (33%) believe their ideal down payment is up to 5%. Most cite the eagerness to buy immediately as their motive, and express an understanding that they could potentially be paying a higher interest rate and will pay higher monthly mortgage payment after having a lower down payment commitment. To 1 in 3 next-gen homebuyers, that is considered the ideal trade off.
American Financial Network, Inc. (AFN) today introduced AFN Protection+, an innovative mortgage product that protects a homebuyer’s down payment and is available immediately on all applicable AFN mortgages. AFN Protection+ will include +Plus SM down payment protection by ValueInsured SM embedded directly into homebuyers’ mortgages.
More than one-third of Millennials looking to purchase their first home say they plan to rely on a loan or a gift from a relative to cover a key portion of their down payment, according to a recent survey.
DALLAS, March 6, 2018 – On the heels of the most recent Case-Shiller report, which again showed home prices on an upswing, ValueInsured’s latest quarterly Modern Homebuyer Survey finds that confidence among current American homeowners has decreased for two consecutive quarters and is starkly juxtaposed by an increase in new homebuyer confidence.
On the heels of the latest Case-Shiller report which once again showed home prices on an upswing, our latest housing sentiment survey - the quarterly ValueInsured Modern Homebuyer Survey - indicates homeowners’ and homebuyers’ housing confidence are trending in opposite directions, but the patterns may surprise many.
Most homeowners believe that low mortgage rates are a thing of the past. The ValueInsured survey indicated that 72 percent of existing homeowners believed the era of historically low rates and affordable mortgages was coming to an end. This sentiment was particularly acute among homeowners of expensive homes, with 95 percent of those who reported owning a home valued at $1 million or more expecting the end of low mortgage rates in their lifetime.
The general consensus is that interest rates are going up this year - perhaps quite a bit. Interestingly, this appears to be something existing homeowners are a lot more in tune with. One would think homeowner hopefuls – Americans who are in the market for a home and desire to buy in the near future – would also be more aware of upcoming rate increases, after all it could have certain implications on their budget and buying timeline. However, according to ValueInsured’s latest quarterly Modern Homebuyer Survey, non-homeowners who wish to buy in the next three year report to have a lower awareness of upcoming rate hikes, or they are more optimistic that a rate hike way not happen.
In the latest ValueInsured Modern Homebuyer Survey, majority of Americans and Millennials believe more people will relocate to less expensive housing areas if home prices in their hometown continue to go up. Other factors are also causing them to consider fleeing hot markets.
While both have been effective wealth builders for Americans over the long term, neither stock nor home prices has historically gone up in an ascending straight line. The events in the past week were once again a reminder. As if flipping a switch, a strong equities market turned into a volatile, uncertain market overnight.
The same could happen to the housing industry. Up until now, the bullish stock and housing market were both in large part propelled by historically low interest rates. With more rate hikes on the horizon, the stock market got spooked. One could argue rising interest rates should have even stronger effects on the real estate market, after all, home prices are already high and considered "overvalued" in many major markets; rising interest rates could further strain affordability issues already plaguing homebuyers.
Most of us have heard this data point: more Millennials are now living at home with their parents than in any other living arrangements, or in any other time in modern history. Last year, the US Census estimated that one in three Millennials – or 24 million 18- to 34-year-olds – live in their parents’ home.
It’s fair to say Millennials’ parents have been generous with them. And that generosity extends beyond sharing their home well into a child’s adulthood. Sometimes, parents help their adult child buy a home by providing financial assistance. In ValueInsured’s latest (Q4 2017) Modern Homebuyer Survey, 17% of all surveyed Millennial homebuyers say they plan to rely on a loan or a gift from family member(s) to fund the majority of their down payment. It was recently reported that nearly 1 in 4 (23%) of all purchase loan originations in the U.S. now require a non-spouse co-borrower(s)’ – in most cases a parent’s – credit to afford the loan approved.