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New home sales mostly unchanged ASSOCIATED PRESS CHARLOTTE, N.C. — Sales of new homes remained steady in October to a seasonally adjusted rate of 999,000 units. While the Commerce Department said October new home sales were down 0.3% from September, the government revised up its September marginally. In all, the figures did not change much from the previous month, a sign that sales of new homes is remaining steady despite the home-buying season now entering the fall. Sales of new homes are up 41.5% from the same period a year earlier, reflecting record low mortgage rates and a pandemic-induced push to the suburbs has made the housing market a bright spot despite the recession. The median price of a new home sold was $330,600, the report said.
US mortgage rates stay at record low 2.72% for 30 years ASSOCIATED PRESS WASHINGTON — U.S. long-term mortgage rates remained at record lows this week as the coronavirus pandemic continues to threaten the economy. Mortgage finance giant Freddie Mac reported Wednesday that the average rate on the 30-year fixedrate home loan was unchanged this week from a record low 2.72%. A year ago, the benchmark rate was 3.68%. The rate on 15-year fixed-rate loans stayed at 2.28%. It was 3.15% a year ago. Interest rates have fallen this year as the virus batters the economy and the Federal Reserve pours money into the financial system to support a recovery. Low rates have encouraged Americans to buy homes or refinance existing mortgages.
THE GARDEN ISLAND
Friday, November 27, 2020 Page 3
Real estate is booming lenders look for a DTI of 36% or lower. If your DTI is high, see if you can decrease your debt by paying some down and/or increase your income (perhaps with a part-time job). Apply with a number of lenders - some will give you better rates than others. Before applying, ask what information and documents you (and your co-borrower, if there is one) will need. This will include proof of employment and income, plus previous tax returns. Also, be sure to apply to all the lenders within a span of two weeks. That way, only one “credit inquiry” will impact your VantageScore credit score.
Thinking of jumping in? Do your homework first BRANDPOINT Over the past several months, everyone’s lives have been upended, with consequences nobody predicted. One unexpected result of the pandemic? A real estate boom. With so many more people working from home, people are re-evaluating their living spaces, including those who need to factor in homeschooling. Some families are realizing they need more bedrooms, larger yards or just more space in general. Others who have suffered financial setbacks may be looking to downsize. And many city dwellers are trying to move away from congested areas to smaller towns or suburbs. All of these changes, plus the low mortgage rates, have resulted in plenty of activity in the housing market. If you’re one of the many Americans considering a move, here are some tips to navigating the process successfully right now.
itGuide from American Express. The VantageScore model, widely used by lenders, helps both consumers and lenders by providing a more accurate representation of the risk for someone to default on a payment on his/ her loan. It also provides more consistent scores regardless of which national credit reporting company provides your score, Check your credit Long before you make any large which is helpful especially for first-time home buyers. purchase, whether it’s a car or a If your credit score is not up to home, you should check your par, improve it by: credit score and your credit reZ Making timely payments on port. bills, especially credit cards, and Before you even start scoping pay more than the minimum when out neighborhoods, visit Annualyou can. CreditReport.com, a site where Z Reducing the percentage of reyou can access for free your credit volving credit you’re using by payreport - these days, on a weekly ing down some of your cards. basis. Also be sure to review the Under 30% of the maximum credit report to ensure there are no errors. You can also check your Van- available is optimal. Z Asking for your credit limits to tageScore credit score for free at be increased. If you increase the websites like CreditKarma.com, MyLendingTree.com and MyCred- credit limit but don’t charge more
on your card, you’ll be using a smaller percentage of your limit. Z Keeping a neglected credit account active by making a small purchase on it that you can quickly pay off. No matter which strategies you use, allow a few months for your improved credit habits to show up on your report before applying for a mortgage.
Take advantage of virtual home tours Save time and stay safe by touring homes virtually while you’re in the initial stages of house-hunting. Once you’ve narrowed down your choices, you can ask about visiting properties in person, following safety protocols.
Leave your emotions at the door Whether you’re buying and/or selling, don’t let the emotions of the moment push you into making Get pre-qualified a hasty decision. Make sure you for a mortgage Being pre-qualified makes you a know your budget and the acceptable terms or conditions for the much more attractive buyer. purchase (or sale). If the seller (or The first step in getting buyer) suddenly changes somepre-qualified is checking your thing about the deal - from the credit score (see above). closing date to the offer or asking Next, crunch some numbers. price - don’t make a snap deciYou’ll need to figure out your sion. Tell them you’ll think about debt-to-income ratio (DTI) based it overnight and discuss it with on the anticipated mortgage your real estate agent. Weigh the monthly payment: How much pros and cons before agreeing. (percentage) of your gross For more financial tips and inmonthly income goes toward debt formation about credit, visit www. (student loans, credit cards, car payments, etc.)? Most mortgage yourvantagescore.com.
Price gains accelerate as pandemic shakes up housing ASSOCIATED PRESS WASHINGTON — U.S. home prices jumped in September as strong demand, low interest rates and the smallest number of available homes on record combined to push up housing costs. The S&P CoreLogic Case-Shiller 20-city home price index, released Tuesday, showed that home prices rose 6.6% in September from a year earlier, much higher than its 5.3% increase in August. That is the biggest increase since April 2018. The viral pandemic disrupted the spring home buying season, pushing many sales into the late summer and fall. Home sales jumped to the highest level in 14 years in September, a sign that the increased ability of some Americans to work from home and the desire for more space is spurring greater demand. Prices skyrocketed 11.4% in Phoenix compared with a year earlier, the biggest gain nationwide. Seattle reported the second highest increase, at 10.1%, followed by San Diego at 9.5%. The number of homes for sale sank in September to the lowest level since records began in 1982, according to the National Association of Realtors. And last week mortgage rates fell to a record low of 2.72%, according to mortgage buyer Freddie Mac. Home prices are rising broadly across the country. In September, 19 cities in the S&P 20-city index reported bigger price gains compared with a year ago than in August. The 20th city, Detroit, has reported delays at its recording office because of the pandemic and did not have enough data to calculate price changes.
Is now the right time to refinance your mortgage? Consolidate your debt with a lower payment. You can get some of the lowest rates in the state, plus your money stays on Kaua‘i.
Visit us online at www.kgefcu.org to learn more. Anyone can be eligible for membership with KGEFCU