Posts Tagged ‘housing boom’

Housing Affordability Still Strong Despite Price Increases

Posted on November 14, 2017 by Laura Lam

Home prices continue to increase, yet affordability actually improved since July, according to the latest Mortgage Monitor report from Black Knight.  As of September, the average homeowner needed 21.4% of their median income to purchase a home. This is actually down from July’s post-recession peak of 21.7% and low by historical standards.  For comparison, an average 24.2% of the median income was required to purchase a home from 1995 to 1999. That increased to 26.2% in the years before the housing boom from 2000 to 2003. Interest rates declined about 40 basis points over the past 6 months, offering the opportunity…

Are Some Cities Close to a Housing Bubble?

Posted on November 07, 2017 by Laura Lam

According to a recent report released by the Urban Institute, with home prices on the rise, some cities are inching closer to a housing bubble.  The Urban Institute explained that in order to determine if the U.S. is in a housing bubble, knowing the reason for the price growth is critical. In order to determine the reason for the price growth, Urban Institute utilized its housing affordability index.  Overall, housing in the U.S. remains very much in the affordable range. The median household can afford a house that is $70,000 more expensive than the median home price today. In 2006,…

HELOCs Making a Rebound

Posted on September 14, 2016 by Laura Lam

Home equity line of credit originations are in the midst of a comeback, fueled by the rise in home prices, according to a white paper released by Experian.  As of the fourth quarter of 2015, HELOC originations were at $43.03 billion, 111% higher than 5 years earlier, Experian recently reported.  Meanwhile, only 0.49% of consumers with an open HELOC were between 90 and 180 days past due, in line with pre-recession levels. Experian also estimated that roughly $29 billion in HELOC debt originated between 2005 and 2008 has been paid down over the past year, a reflection of the fact…

Strategic Default: By the Numbers

Posted on February 10, 2016 by Laura Lam

The rate of home price recovery during the 7 years that a foreclosure remains on a consumer’s credit report is one measure of whether borrowers who strategically defaulted made the right choice by walking away.  But the results vary, depending on when, where and in what price tier that borrowers defaulted.   After dropping more than 30% from the April 2006 peak, average national home prices are down by only about 7%, according to CoreLogic’s latest home price index data. Lower priced homes generally recovered less on average. Zillow’s Breakeven Horizon stud, found that although most consumers who bought at the…