By Editor
February 2, 2016
Happy Groundhog Day, everyone! Yesterday, as I was writing about the impact winter weather had on the housing market, I ended up wondering how much winter we really were likely to have left, and so naturally, my thoughts turned to the groundhog. Sadly, it turns out that groundhogs are not very good predictors (37% accuracy, and 33% accuracy would be by chance). You’re better off with The Farmer’s Almanac, which comes in at about 51% accurate. And actually, given the failure of the groundhog, and the fact that the Almanac’s predicting a year in advance, I think that’s pretty impressive. Still, if you really want to know what’s going on with the weather, your best bet is almost certainly NOAA.
By Editor
February 1, 2016
The housing market did excitingly well in December, at least in part (possibly primarily) because of the weather. U.S. News sees a bumpy 2016 ahead, but it’s not that clear from my perspective. To be sure, I expect January reports to be unusually bad, for the same reason that the December reports were good. And depending on what the groundhog says tomorrow, February might be particularly bad, too. But I don’t know that either of those will be enough to make all of 2016 a bumpy ride.
By Editor
January 29, 2016
Although we don’t generally think about it, it’s fair to say that, somewhere in the back of our minds, we all know that there are lots of microscopic organisms running around that we’d just as soon (and do) forget about. Well, it turns out, not only do we have lots, we have more than anyone imagined. In the first ever census of arthropods (bugs) in American homes, a team of etymologists found that homes carried between 32 and 211 different species! Thankfully, most of them are either harmless, or even helpful. But, don’t go looking at your carpeting under a microscope.
By Editor
January 28, 2016
The same forces that are making the U.S. housing market look good, as we covered in yesterday’s post, are also increasing the strength of the dollar. The problem is that a strong dollar means cheaper imports, which ultimately puts a drain on U.S. manufacturing and the economy as a whole, which reduces people’s ability to purchase homes at the higher rates reported yesterday. Bottom line: very few economic changes are one-sided, and if you get all excited about one piece of news, you’re probably missing the piece on the other side of the balance scale. Ignore the news, buy the right house for you at the right time for you, not at the right time according to the news.
By Editor
January 27, 2016
U.S. housing data is making the economy look better, even as other parts lag. And it’s true, the housing market, as we’ve covered for the last several quarters, is doing really well — and the recent Fed rate hike appears to have had little, if any, effect on that. However, as we’ve also pointed out before, we live in a global world, where everything is connected to everything else. As you’ll see in tomorrow’s article, the same news that is good for the U.S. economy is bad for the U.S. economy.
By Editor
January 25, 2016
That’s the average mortgage balance across the U.S.: $157,154. Of course, whether you’re over or under that number doesn’t really say anything useful at all — it depends on so many factors, from where your home is, to whether it’s a first or second home, to how long you’ve owned the home, and so on and so on. But it’s a good point to start a conversation, and The Motley Fool brings up the number in the context of discussing “good” vs. “bad” debt, and how to make a mortgage work in your favor Check it out.
By Editor
January 13, 2016
We’ve covered the Fannie/Freddie issue before — the institutions are still precariously balanced, there’s broad support to overhaul them, but there’s huge debate on exactly how to overhaul them. Housingwire has a blog post that proposes one way to fix the problems, and asserts that it is not, in fact, too late to fix them. This particular proposal comes from The Housing Policy Council, and the blog post does a decent job of summarizing both the problem and their proposed solution. It’s worth a read, just to understand what is being proposed.
By Editor
January 11, 2016
Surely, for most Americans, the idea of lying on any official form, let alone something as significant as a mortgage application, would be nearly unthinkable. It probably wouldn’t even cross your mind. But, as this article from South Florida indicates, it happens more frequently than one might think. If the thought does ever cross your mind, discard it immediately. You may not realize it, but providing false information on a mortgage application can be considered fraud, and the criminal penalties can be stiff.