Posts Tagged ‘investment’

Senior Home Equity Hits All-Time High

Posted on August 03, 2017 by Laura Lam

Senior homeowners saw an increase in their home equity in the first quarter of 2017, according to a report from the National Reverse Mortgage Lenders Association (NRMLA).  The report showed homeowners aged 62 and older saw their home equity increase by 3.1% to $6.3 trillion in the first quarter. This is up from $6.13 trillion from the fourth quarter. This growth in housing wealth for seniors was driven by an estimated 2.6%, or $199.3 billion, increase in senior home values, and was offset by a 0.6% increase in senior-held mortgage debt which totaled $9.2 billion. The NRMLA/RiskSpan Reverse Mortgage Market Index, a…

Negative Equity Continues Slow & Steady Decline

Posted on July 31, 2017 by Laura Lam

The U.S. negative equity rate – the share of all homeowners with a mortgage that are underwater, owing more on their home than it is worth – fell to 10.4% in the first quarter of 2017, the 20th straight quarterly decline. But the speed at which negative equity is falling has slowed dramatically. The national negative equity rate fell from 10.5% at the end of 2016 and 12.7% in Q1 2016, leaving slightly more than 5 million Americans with a mortgage underwater. The rate is down substantially from its peak of 31.4% in Q1 2012, when more than 15.7 million Americans…

Home Flipping Volume Rises to 9-Year High

Posted on June 19, 2017 by Laura Lam

ATTOM Data Solutions’ Q1 2017 U.S. Home Flipping Report revealed that 43,615 single family homes and condos were flipped during Q1 2017, which was an 8% decrease from the previous quarter and a 6% decrease from a year ago. Home flips in Q1 2017 accounted for 6.7% of all single family home and condo sales during the quarter, up from 5.8% in the previous quarter and unchanged from a year ago. A home flip is defined as a property that is sold in an arms-length sale for the second time within a 12-month period.  One-third (33.3%) of all single family…

Flipping Out: House Flips Reach Highest Level Since 2006

Posted on February 28, 2017 by Laura Lam

A tactic that helped define the height of homebuying madness in the U.S. in the years before the market collapsed is rearing its head again.  Home flippers, who buy homes as a speculative bet on short-term price appreciation, accounted for 6.1% of U.S. home sales in 2016, according to Trulia, which defines a flip as a property sold twice in a 12-month period in arm’s-length transactions. That’s the highest share since 2006, when flips accounted for 7.3% of sales. Flipping has made a strong comeback in cities that were battered by the foreclosure crisis. That includes Las Vegas, where 10.5%…

Why are Cities and States Reluctant to Borrow?

Posted on August 26, 2016 by Laura Lam

Wall Street is urging governments to invest in big-ticket infrastructure projects. Voters and public officials have a different message: not so fast.  Plunging global interest rates have made borrowing cheaper than ever. But instead of spending on aging roads, bridges and buildings, many state and local governments are scaling back. New government-bond issues have dropped to levels not seen in the past 20 years. Municipal borrowers issued about $140 billion in bonds for new projects last year. Adjusted for inflation, that is 53% lower than in 2006 and 21% lower than in 1996. So far this year, municipalities have borrowed…

Raising Rich (Unspoiled) Kids

Posted on June 24, 2016 by Laura Lam

Ever wonder how to set you your kids to be financially successful adults without spoiling them?  The financial advisors at the Daily Worth have put together the lessons they’ve learned through life as well as additional strategies that can make an even bigger difference. Start Early – The sooner kids learn the value of money and how to manage it, the better. An allowance is a good teaching tool, but it can also be pointless if you don’t have a plan and clear rules.  Try one of these tactics: Give your children a certain amount each week (something reasonable for…

Banks Neglect Seniors in Digital Push

Posted on May 20, 2016 by Laura Lam

According to a 2016 mobile banking study from the Federal Reserve, only 18% of seniors use mobile banking services, versus a whopping 67% of millennials.  Seniors have been laggards in shifting to mobile banking. But banks’ inability as an industry to design websites and apps that respond to the seniors’ needs contributes to the lack of use.  Despite research from Nielsen Norman Group on seniors’ challenges in using the web, developers are still not adequately taking into account older customers’ challenges in when designing digital interfaces. Not only are these customers generally less versed in the mobile environment, but designers…

Consumers Increase Savings But Carry Credit Card Balances

Posted on May 16, 2016 by Laura Lam

Consumers are increasing the balances of their personal savings accounts, but at the same time there is an increase in those who rollover their monthly credit card balances, according to results of the 2016 Consumer Financial Literacy Survey.  Overall, 40% of respondents to the survey said they have a budget and closely monitor their spending, according to the survey. The percentage of adults with the same amount of personal, non-retirement savings as in 2015 increased slightly to 58% while those who reported saving more than last year increased from 24 to 26%. However, survey respondents’ progress on personal savings could be…

Low-Priced Homes Still Struggle With Negative Equity

Posted on April 05, 2016 by Laura Lam

While the percentage of properties with negative equity decreased during 2015, the lowest-priced homes continued to struggle to regain value, according to Black Knight Financial Services.  The number of underwater borrowers dropped by 31%, or 1.5 million homeowners, but there are still a total of 3.2 million borrowers in negative equity positions, representing $126 billion in underwater first- and second-lien housing debt, Black Knight said in its year-to-year Mortgage Monitor Report for February. As negative equity rates continue to improve on the national level and are now at 6.5%, for homes in the lowest-price tier they are at 16.2%, revealing…

2015 Top-Performing U.S. Small Banks Announced

Posted on November 04, 2015 by Saldutti

During the pre-crisis boom years, the nation’s best-performing community banks generally hailed from locales such as Florida, Georgia, Arizona and Nevada – warm-weather states where new-home construction boomed and populations soared.  After the housing market tanked, historically slower-growth areas like the Northeast served as home to the star performers among smaller banks.  But now, geography hardly seems to matter when it comes to the performance of publicly traded community banks. According to Sandler O’Neill’s annual roster of Bank Sm-All-stars, the 2015 class is spread out among 19 states covering every corner of the country. By contrast, just 12 states were represented…