Top Mortgage News this Week
Owners are Spending Less on Housing
According to a report from the U.S. Census Bureau, the number of renters spending 30 percent or more of their total yearly salary on household-related expenses rose 1.5 percent in 2009. In contrast the percentage was almost unchanged (at 37.6 percent) for home owners. Household-related expenses measured in the report included mortgage payments, taxes, utilities, and insurance. The median price of homes dropped about six percent at the same time. The two factors contributing to the housing affordability report include the decrease in average yearly household income and the increase in the average monthly housing costs.
Home-Buying Applications Rose Last Week
Last week applications for home-purchasing rose 2.4 percent compared to the previous week. This increase was motivated by a 4.5 percent rise in applications for FHA and VA loans while conventional loan applications rose 0.8 percent.
Fannie & Freddie Providing Deals
This week Fannie Mae and Freddie Mac started trying to sell off 150,000 foreclosed homes. Their
methods included offering low down payments, no mortgage insurance and a $1,500 bonus for the realtor. Fannie and Freddie have already made the biggest repairs needed to the properties.