Mortgage demand at lowest level in 22 years
To find the last time mortgage demand was this low, you’d have to put on your Y2K glasses. For the week ending June 3, the Mortgage Bankers Association’s index measuring mortgage loan application volume dropped 6.5 percent from the week before, sinking to its lowest level in 22 years. Driving the decline are increases in mortgage rates and home prices and a paucity of homes for sale. Rates have been rising all year, predating the Federal Reserve’s efforts to slow the economy, although the average 30-year fixed rate for conventional loans did edge down for three straight weeks before jumping 7 basis points to 5.40 percent last week. The increased rates led to drops in the MBA’s refinancing and purchasing indices. “While rates were still lower than they were four weeks ago, they remain high enough to still suppress refinance activity,” said Joel Kan, an MBA associate vice president, in a statement. The refinance index dropped 6 percent from the previous week and is down 75 percent year-over-year. The purchase index, which tracks mortgage applications to buy homes, plunged 18 percent from the previous week and is 21 percent lower than a year ago. “The purchase market has suffered from persistently low housing inventory and the jump in mortgage rates over the past months,” Kan said, noting the particular difficulties for first-time buyers. Points rose to 0.51 from 0.60 (including origination fee) for loans with a 20 percent down payment. The share of total applications through the FHA — reflecting buyers seeking to make a small down payment — increased from 10.8 percent to 11.3 percent from a week earlier, while the share of Veterans Administration applications also increased, from 10.2 percent to 11.4 percent. The USDA share of applications remained at 0.5 percent, or 1 out of every 200 loans. While mortgage rates are still lower than they were before the pandemic, buyers are feeling some sticker shock after growing accustomed to rates in the neighborhood of 3 percent. In the first week of this year, the average rate for a 30-year fixed-rate loan was 3.22 percent. In early 2021, it was 2.65 percent. Rising mortgage rates and hefty price increases across the country have some wondering if this is the last call for the country’s housing boom. Photo: Mortgage Bankers Association’s Joel Kan (LinkedIn, iStock) The post Mortgage demand at lowest level in 22 years appeared first on The Real Deal South Florida.
Miami Shores Neighborhood Tour
A neighborhood armed with a hundred-year-old history, Miami Shores is a lush residential village and a great bastion of art deco architecture. Ladies and gentlemen, welcome to "The Village Beautiful." A mile south of North Miami and six miles north of Miami proper, Miami Shores is right in the middle of everything metropolitan, albeit most say there's nothing big city about it. The village has a total area of 3.75 square miles, situated just west of Interstate 95, giving guests and locals easy north-south access to many South Florida communities and attractions. Miami Shores Village is also a proud home to the esteemed Barry University, one of the largest Catholic universities in the Southeast. It is home to 10,026 residents as of the latest US Census. Officially established in 1932, Miami Shores is one of the oldest neighborhoods (if not THE oldest) in Miami-Dade County. The area boasts a distinct small-town charm, despite its more-than-ideal location in the middle of Magic City. In fact, you'll hardly even feel like you're right smack in the metro, with the village's bayfront vistas, quaint churches, and wide, tree-lined streets. Further to this, due to its quiet way of life and small-town atmosphere, it's not surprising that most South Miami visitors overlook the village when choosing their next travel destination. Though there are parks, schools, churches, marinas, and a country club within the neighborhood, there's not much in the way of shopping or dining — but twenty minutes in any direction delivers you to the hustle and bustle of elegant South Florida living. Of course, this is not to disregard the array of tourist attractions offered throughout the village. There are still several sought-after spots in Miami Shores a traveler can't miss, including its revitalized downtown shopping area and neighborhood parks and tot-lots. For one, Miami Shores Aquatic Center is the perfect summer retreat for locals and tourists looking for a nearby escapade for their families. The center's Shipwreck Cove is a kid's wonderland and features six slides of varying heights and some pool areas – one of which is zero-depth and reserved for toddlers and their parents. Its children's portion is decorated in a cool pirate theme, and there are also playgrounds, water cannons, and dump buckets within the vicinity. Another must-visit Miami Shores spot is the Miami Shores Country Club. The famous golf course spreads over more than 120 scenic acres that include a variety of natural environments, and it boasts an 18-hole, par-71 course between 5,000 and 6,600 yards depending on which tees players choose. For many, it's considered one of Miami-Dade County's must-play courses. It's also known for its reasonable rates and amenities, like a full-service bar and restaurant, putting greens, and locker rooms. Do you feel like drinking in nature? Escape to a quiet way of life and small-town atmosphere amidst the busy metropolitan area. Miami Shores is a community that provides a welcome pause from the fast-paced South Florida lifestyle to a more leisurely and relaxed living that fits almost everyone's needs and preferences. Bayfront views, quaint churches, wide, tree-lined streets, rich nature, and an array of recreation opportunities. All of these comprise the well-loved village and are the same reasons why it's called "The Village Beautiful." And what do you know? The title fits down to a tee. Well, Miami Shores offers an array of lush parks to visit! A popular park around the village is Bayfront Park. The park features plenty of benches to relax and take in the bayfront views, a playground for the kids, a nice shady walk, enough space for exercise, and good food in the courtyard restaurants. It's an all-around nice day treat for anyone, solo or with the fam in tow! As previously mentioned, Miami Shores is also relatively close to other South Florida tourist destinations, including Amelia Earhart Park, Phillip and Patricia Frost Museum of Science, Hard Rock Stadium, and the likes. Indeed, a small and peaceful village full of exciting possibilities-- and neighboring cities to see! Thanks and credit to:Amit BhutaCOMPASSLicensed Real Estate Agent (305) 439-3031 Mobileamit.bhuta@compass.com ALLinMiami.com
How Deductions Can Backfire in Real Estate
If you’re looking to buy, think twice about your taxes this year. Today I have another critically important tip for buyers: How do you prepare to buy a home around tax time? Most of the time, people who own their own business or file with a 1099 will do as many write-offs as possible, but that can cause a problem. Over 95% of residential real estate loans are backed by the federal government, so the loan criteria typically look at your adjusted gross income, which is your gross income less your deductions. “You may be approved for more if you don’t make as many deductions.” If you don’t take the deductions, you will have a higher gross income, but you will have to pay higher taxes. If you’re planning to buy a home, you need to look at if it’s worth it to make these deductions. For example, if you have FHA financing, the lender will typically approve you for five times your adjusted gross income. If you made $100,000 but had $50,000 in deductions, you will only be approved for a $250,000 home. If you made no deductions, you would be approved for a $500,000 home. It is critically important to speak with your accountant and real estate professional. They can make sure you are taking the correct deductions and maximizing your ability to purchase the home you want. If you have any further questions, I’m here for you. Just call or email me.
Categories
Recent Posts
