Caps Removed for VA Loan Limits – Based on the Blue Water Navy Veterans Act of 2019, veterans may be eligible to buy larger homes in pricier communities still without a down payment starting next year. Those taking out Veteran Affairs–backed mortgages will find caps removed on what they can spend in 2020. But military members on active duty and veterans will still need to qualify for the mortgage and verify they can afford the monthly payments. “It gives the veterans the opportunity to buy homes in the areas they want to buy in,” Kyle Reed, a real estate pro with Pauly Presley Realty in Austin, Texas, told realtor.com®. “It opens up some areas in cities to VA loans that maybe veterans didn’t have access to before without putting a bunch of money down.”
Source and link to the full article: “Bye, Bye, VA Loan Limits: What This Means for Veterans Buying a Home,” realtor.com® (Dec. 4, 2019)
Low Inventory, Rate Uptick Slow Pending Sales – According to the National Association of REALTORS® report recently, after two months of increases, pending home sales eased slightly in October, driven by a decline in inventory and a small increase in mortgage rates. NAR’s Pending Home Sales Index, a forward-looking indicator based on contract signings, dipped by 1.7% to 106.7 in October. (An index reading of 100 is equal to the level of contract activity in 2001.) Year-over-year contract signings, however, jumped 4.4%. Regionally, the Northeast reported a gain, while the other major U.S. regions saw declines in activity. “While contract signings have decreased, the overall economic landscape remains favorable,” said NAR Chief Economist Lawrence Yun. “Mortgage rates continue to be low, still below 4%, which will attract buyers. Employment levels are strong, and many recession claims have dissipated.”
© National Association of REALTORS®
Source and link to the full article: REALTOR® Magazine Online
FHFA Raises Conforming Loan Limits for 2020 – Based on the Federal Housing Finance Agency announcement, they will approve a higher conforming loan limit that will take effect January 1, 2020. The cap on loans purchased or acquired by Fannie Mae and Freddie Mac during 2020 will increase to $510,400. That marks an increase over the $484,350 limit for 2019. This is the fourth consecutive year that the FHFA has raised conforming loan limits. Conforming loan limits can stretch even higher in areas with high median home values. High-cost areas will be capped at $765,600, or 150% of $510,400, starting in January. The maximum conforming loan limit will be higher in 2020, except for 43 counties in the U.S.
Gen Z May Value Ownership More Than Millennials Do – According to a Freddie Mac survey, Generation Z, which comprises the youngest potential consumers in the housing market, is bullish on homeownership. Freddie Mac researchers conducted a survey of consumers ages 14 to 23 and found they tend to have more positive perceptions of what it means to be a homeowner than millennials did at that same age. Eighty-six percent of Gen Zers say they want to own a home someday. They also hope to purchase sooner in their lives than millennials did. Gen Z survey respondents say they plan to own a home by the time they turn 30, which is three years younger than the current median age of first-time buyers. The homeownership desires of Gen Z center on having more privacy, control, and independence than renting offers, Freddie Mac’s research shows.
Source and link to the full article: Freddie Mac