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Take That Guess On U.S. Home Values, Then Double It

By Dan Green

A Fannie Mae study shows consumers under-guessing the amount of change in U.S. home prices; Mortgage rates remain jumpy and elevated across conforming, FHA, USDA, and VA loans; and, the mortgage loans single-income households use to get approved.

Home Prices Jump 2x Faster Than Consumers Predict

U.S. consumers continue to underestimate by how much home prices can rise.

Since one year ago, values are up about 6 percent overall nationwide. And, some markets — I’m looking at you, Seattle — are up 10 percent or more.

But, last year, as part of its monthly National Housing Survey, Fannie Mae went to the people and asked what they thought about the future of U.S. home prices.

A thousand people surveyed said: U.S. values will rise by about three percent.

That’s half of what actually happened.

In the same survey, Fannie Mae asked about the future of rents and consumers said they’d rise by four percent, and they were wrong about that, too.

Rents are only up about two percent since a year ago.

Consumers – I get it. Without that Gray’s Sports Almanac, it’s tough to predict the future but you’re getting it all wrong right about now.

Don’t trust your gut on these “Should I Buy or Should I Rent” decisions. Talk to a local pro who knows your market and can help you see those blind spots.

Get some stats and live your truth.

Click here for today’s mortgage rates.

Today’s Mortgage Rates

Okay, mortgage rates.

Another few days of chaos. Lenders continue to re-issue rate sheets several times per day which is making it hard for home buyers to comparison shop for the lowest-cost loan.

As of now, the more aggressive U.S. lenders are showing:

Remember that mortgage rates will vary based on lender, geography, and makeup.

Loans for condos and multi-units tend to come with higher rates; and your credit score can affect your mortgage rate, too.

Shop around. Talk to two or more lenders. But make sure to do it quick.

Rates are changing too fast to wait and see what happens.

Click to get today’s mortgage rates.

Mortgages For Single Home Buyers

It’s Valentine’s Day, or as some people call it, “Singles Awareness Day”.

And, speaking of singles, it’s an excellent time to be a single home buyer.

New loan programs aimed at helping first-time buyers and single-income households have helped reverse the slide in U.S. homeownership with huge numbers of people planning to buy a home in 2018.

One of the newer loan programs getting good action today is the HomeReady home loan, which allows for 3% down on most homes and the use of non-standard income on a mortgage application, like from side hustles or boarder rent.

A similar program is called Home Possible.

And, both loans, available to buyers with credit scores down to 620, give actual mortgage rate discounts for people with scores in the 700s.

Click below to get mortgage rate quotes for HomeReady, HomePossible, and other low down payment loans for single home buyers.

Get A Mortgage Rate Quote Now

Click For Rates!

Written by Dan Green

Dan Green is a mortgage lending expert and the founder of Growella. Prior to Growella, Dan was a six-time, top-producing loan officer; and, ranked repeatedly among the top 1% of loan officers nationwide. Dan's home buying expertise has been in print and on TV with The Wall Street Journal, NPR, Forbes, CNBC, and others.

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