LOW DOWN PAYMENTS
Despite the current lack of inventory in the housing market, homebuyers can still successfully close on a house with a low down payment, according to a survey of more than 800 Redfin real estate agents. The survey found half of agents reported that the typical down payment for successful buyers in their market was less than 20%, even though competition is extremely fierce. Although 20% down still ranks as the typical downpayment, 3% to 5% down payments are the second top option for successful buyers.
SPRING HOME BUYING MARKET
The spring home buying season seemed to start early this year as 42% of homes sold in February were listed for less than a month, according to the National Association of Realtors. And the rest of the season will follow the same pattern. In fact, CoreLogic’s Home Price Index Forecast predicted this spring home-buying season is shaping up to be the strongest in recent memory despite ever-increasing home prices and dwindling housing inventory.
HISPANIC HOMEOWNERSHIP
Hispanic homeownership is the driving force of U.S. homeownership growth, according to a report released at the National Association of Hispanic Real Estate Professionals Policy Conference in the nation’s capital. The Hispanic homeownership rate accounted for 74.9% of the net growth in overall U.S. homeownership in 2016. The Hispanic rate of homeownership increased from 45.6% in 2015 to 46% in 2016. On the other hand, the nation’s overall homeownership rate decreased from 63.7% to 63.4%, a 51-year low.
PLYWOOD
Fannie Mae announced it's moving away from plywood entirely. In a bulletin to servicers, Fannie said it “no longer accepts plywood boards as an acceptable boarding solution on windows of its properties." Servicers are now required to replace plywood boarded windows on homes in pre-foreclosure with clear boarding or a replacement window. The new rule doesn’t apply to homes in REO status, but for pre-foreclosures, plywood is allowed only in specific circumstances: if the home is “severely fire damaged” or in pre-demolition.
REFINANCES
The share of mortgage applications for refinances has dropped to a level not seen since October 2008, data from the Mortgage Bankers Association shows. And, after a final surge of homeowners who waited until the last minute, refinances have been falling consistently since mortgage rates began their upward climb. Now, as the Federal Reserve begins making good on their plan for at least three rate hikes in 2017, refinances will continue to fall throughout the year.
WELLS FARGO’S FAIR LENDING
According to a new Community Reinvestment Act review from the Office of the Comptroller of the Currency, Wells Fargo's overall CRA rating is being dropped two notches, from Outstanding to Needs to Improve. In its review, the OCC said the downgrade is due, in part, to “the extent and egregious nature of the evidence of discriminatory and illegal credit practices.” It also said Wells Fargo demonstrated an “extensive and pervasive pattern and practice of violations across multiple lines of business within the bank,” resulting in “significant harm to large numbers of consumers.”
