Blog – Page 107 – Racheli Refael

24 Sep 2019

Expanding Opportunities For Home-Buying In ‘Opportunity Zones’

Mortgage

Opportunity Zones were created by the 2017 Tax Cuts and Jobs Act to encourage investors with capital gains on other investments to invest that money in low-income and undercapitalized communities. They get a reward of deferring capital gains tax. They avoid a portion of it altogether if they keep the investment for five years or longer. What started with a trickle of a few Opportunity Zones scattered around the country is now a deluge with over 3,000 approved Opportunity Zones approved in just about every part of America. 4,700 more areas may also qualify. Opportunity Zones Expanded Dramatically The very generous definition of Opportunity Zones not only includes poorer areas but…

23 Sep 2019

By Mortgage Blog Content

What’s Ahead For Mortgage Rates This Week – September 23rd, 2019

Financial Reports

Last week’s economic reports included readings from the National Association of Home Builders on housing market conditions, Commerce Department reports on Housing starts and building permits issued and the National Association of Realtors® report on sales of previously owned homes. The Fed reduced its key interest rate and weekly reports on mortgage rates and first-time jobless claims were also released. Builder Confidence in Housing Market Improves, Sales of Pre-Owned Homes Rise The National Association of Home Builders Housing Market Index rose one point to an index reading of 68 in September. August’s reading was adjusted to 67 from an initial reading of 66. September’s reading matched the highest reading posted year-over-year.…

20 Sep 2019

By Mortgage Blog Content

How To Crowdfund A Renovation Project

Mortgage

Crowdfunding came into prominence with the Jumpstart Our Business Startups (JOBS) Act that President Obama signed into law during 2012 and subsequent enhancements. The JOBS Act made it easier for startups to raise money and for the first time allowed the legal ability to advertise the investments and accept small investors. Innovate And Renovate Crowdfunding is useful for many projects. The method raises money to create new products, make documentary films, and for many kinds of fashion items. Crowdfunding successfully raises money for real estate transactions. Smaller investors participate in real estate projects that they would otherwise not have enough investment money to create on their own. They may invest a…

19 Sep 2019

By Mortgage Blog Content

Fed Policymakers Cut Key Rate Range by .25 Percent

Market Outlook

The Federal Reserve's Federal Open Market Committee reduced its key short-term interest rate range one-quarter percent to 1.75 to 2.00 percent during it's September meeting. While FOMC members had mixed opinions on reducing the benchmark rate range for short term loans, the post-meeting statement suggested that reducing the federal funds rate was a hedge against inflation. The federal funds rate impacts short-term consumer loan rates for autos and adjustable rate mortgages, but does not impact fixed mortgage rates. FOMC monetary policy decisions are governed by the Federal Reserve's dual mandate of maintaining price stability and an inflation rate of 2.00 percent. FOMC Members Facing Conflicted Opinions On Rate Cuts Policymakers consider…

18 Sep 2019

By Mortgage Blog Content

NAHB: Home Builders Remain Confident

Market Outlook

The National Association of Home Builders Housing Market Index shows steady builder confidence in housing market conditions. September's index reading of 68 was one point higher than August's reading. Any reading over 50 indicates that most home builders surveyed view housing market conditions as favorable. August's original index reading was adjusted upward by one point. Component readings for the Housing Market Index were mixed. Builder confidence in current market conditions rose two points to index reading of 75; this was the highest reading year-over-year. Builder confidence in home sales over the next six months fell by one point to 70. The gauge of buyer traffic in single-family housing developments held steady…

17 Sep 2019

By Mortgage Blog Content

New Home Prices Going Down Making Them More Affordable

Real Estate

Residential real estate developers in America are responding to a national slowdown in new home construction by building smaller homes that are more modestly priced. The demand for smaller, less expensive homes is growing, while the overall demand for new custom homes is declining. Prices decreased slightly, by about one-half percent, from the price levels in 2018 for newly-constructed homes. Lower Profits For Builders The median price for a newly-constructed home in America is $372,900. The median sales price of an existing home is $309,700. American construction companies are feeling the pressure to build lower-priced homes along with the increased costs for imported building materials due to the tariffs and a…