Bill Rapp here with the Heartfelt and Hot in Houston Blog, and this is our newest segment: Why the real estate boom could keep going for years!

Even after reaching all-time high average prices and sales numbers not seen since the height of the 2000s boom, the housing market still has lots of room to run, experts say. Why the real estate boom could keep going for years!

What’s happening: There were fears in late 2019 and early this year that price levels had outpaced income growth and become unsustainable — but record-low mortgage rates and promises by the Fed to keep U.S. interest rates at zero through at least 2023 have lit a new fire under the market.

Where it stands: Home prices rose 4.8% nationally in July, according to the latest Case-Shiller Home Price Index.

* Existing home prices hit a record high average of $310,600, up 11.4% year over year, and the overall U.S. home price average was a record $319,178 in August, a 13% gain over 2019.

* New homes sales broke the 1 million mark for the first time since 2006 last month, rising 43.2% from last year and up 4.8% from July.

“Weekly home price data show that sellers are raising asking prices at a double-digit pace, and surprisingly, eager buyers are willing to give them what they’re looking for,” says Danielle Hale, chief economist for Realtor.com.

The big picture: It’s not just low rates. There are a few big factors that could buoy the housing market for years to come, says Jonathan Woloshin, head of U.S. real estate at UBS Global Wealth Management.

* Older millennials, a historically large generation, are reaching their late 30s — an important marker, as there has been a persistent 20-percentage point gap between the percentage of homeowners under 35 and those 35–44.

* Homebuilders have been slow to erect new housing since the global financial crisis, limiting supply.

And yes, “COVID put some extra juice in the market,” Woloshin tells Axios.

* But what’s really driving things is a new “migration” out of major population hubs like New York and San Francisco and into lower-cost suburban areas and smaller, more affordable cities like Phoenix, Salt Lake City, Las Vegas and Boise, he says.

The bottom line: Even though prices have risen, the record-low mortgage rates have brought down the monthly bill new buyers will see in many cases, Tendayi Kapfidze, chief economist at LendingTree, tells Axios. Why the real estate boom could keep going for years!

The inspiration for today’s edition came from this original article: https://www.axios.com/real-estate-market-819e3c85-3765-4014-91c0-b545be6d5935.html

If you are seriously considering moving right now you need to take action right now and talk to a reputable Real Estate & Mortgage Broker today, please call 281-222-0433 or visit:

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Bill Rapp here with the Heartfelt and Hot in Houston Blog, and this is our newest segment: The 2020 Housing Boom Is A Perilous Economic Signal!

Back in the 1980s, the long-forgotten “classified ads” for cars used to specify whether or not the auto for sale had AM/FM radio. If a tape deck, this was prominently noted. Hard as it is to imagine now, the tape deck that would signal an ancient car today was a sign of luxurious modernity in the 1980s. How things change. The 2020 Housing Boom Is A Perilous Economic Signal!

As Andy Kessler has pointed out, your ownership of an Amazon AMZN +0.1% Echo combined with a monthly, $4.99 subscription to Amazon Music AMZN +0.1% gives you access to unlimited amounts of music worth billions of dollars. Nowadays Alexa is available in cars. Imagine that. While the well-to-do used to thrill at a tape deck that they could use to fast forward and rewind to get to favorite songs on one cassette tape, nowadays anyone can request nearly all the music ever recorded by voice command in their cars. Kessler would quip that “you’re a billionaire now.”

So how did we get here? How did the luxury that was an in-car tape deck so quickly come to signify relative antiquity? How is it that almost literally anyone can command the world’s music in their car without touching or looking at their stereo?

It’s all about savings. Paraphrasing John Stuart Mill, progress is the remuneration of abstinence. Entrepreneurs power progress, but they’re quite simply not entrepreneurs without access to savings. Entrepreneurs require those with means to do without, to delay consumption, so that they can rush the future into the present.

 

Think about it. Why did a retailer in Amazon create the Echo, as opposed to a communications company like AT&T? Why did Netflix NFLX 0.0% revolutionize how we watch movies at home, as opposed to now defunct Blockbuster? Why are Amazon and Netflix increasingly the most powerful players in television and movie content creation? It’s all about savings yet again. Wealth that goes unconsumed is sometimes matched with different thinkers looking to reshape how we live, work, listen, and watch.

Which brings us to a recent column by CNN markets reporter, Paul La Monica. He wrote of housing as an “undeniable bright spot” that’s “holding up” the U.S. economy. La Monica gets it backwards.

Housing is consumption. It’s the opposite of abstinence. Nothing against putting a roof over one’s head, but the simple truth is that housing is not investment. The purchase of a house isn’t going to help hatch the next Microsoft MSFT -2.8%, or the next Grail meant to discover cancer well before it spreads.

While the act of saving expands the capital base for entrepreneurs eager to change how we do things, the purchase of housing logically shrinks it. When we buy a house we consume, as opposed to save, thus limiting the amount of resources that entrepreneurs can potentially access. Progress stalled.

So what’s driving the economy-sapping rush into consumption over investment? An obvious clue would be the dollar. The dollar is weak. When it’s in decline there’s a natural rush into the consumption of hard assets least vulnerable to the dollar’s decline.

Considering the weak dollar in terms of actual saving and investment, the latter is the act whereby we delay consumption of dollars now in the hope that our investing will result in more dollars to spend in the future. But if the currency is weak such that future dollar returns may not buy much more, if at all, why delay consumption now?

Some plainly aren’t, as evidenced by the booming housing market. We’re scarily seeing a repeat of the 1970s and 2000s when a falling dollar made housing the top asset class. Worse is that top realty executives are starting to exhibit hubris. Recently one exulted that housing supply at present is like the supply of “toilet paper” back when the lockdowns began. Oh dear….

Those in the realty business mistakenly believe that housing consumption drives the economy. So does La Monica. Both are incorrect.

Consumption doesn’t power economic growth; rather it’s a consequence of it. Think about it. Savings and investment are what boost productivity, and it’s obviously our production that enables consumption. Call consumption the harvesting of past economic growth.

Looking into the future, a booming one will be a consequence of relentless information creation born of even more relentless experimentation. Most of that experimentation will result in the proverbial dry hole, which is the point. It’s one Bezos understands well. So did Bill Gates. So does Elon Musk. Nearly everything they try or tried comes up short. But the commercial leaps set the stage for the proverbial gushers. Wild consumption of wealth that already exists slows the experimentation.

It’s something to think about now. Nothing against housing. It’s an essential market good. We must have roofs over our heads. But the consumption of what shelters us will not rush the future into the present. Housing’s exuberance is a perilous sign, not a positive one. The 2020 Housing Boom Is A Perilous Economic Signal!

 

The inspiration for today’s edition came from this original article: https://www.forbes.com/sites/johntamny/2020/09/20/the-2020-housing-boom-is-a-perilous-economic-signal/#7b8b18242952

 

If you are seriously considering moving right now you need to take action right now and talk to a reputable Real Estate & Mortgage Broker today, please call 281-222-0433 or visit:

https://www.zillow.com/lender-profile/BillRappMortgageViking
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https://www.youtube.com/channel/UCsF3Rh4Akd1OAOAgTmzgqQg

Bill Rapp here with the Heartfelt and Hot in Houston Blog, and this is our newest segment: The refinancing boom is just getting started!

Even with refinancings driving a record $1.1 trillion in originations in the second quarter and testing the limits of lenders’ capacity, LOs, mortgage executives and economists say all the conditions are right for a string of even bigger quarters.

According to a report this week by data and analytics firm Black Knight, there are over 19 million high-quality refinance candidates in America, representing 43% of all 30-year mortgage holders. (There were about 11.7 million eligible homeowners this time last year.) The refinancing boom is just getting started!

Black Knight defines “high-quality” refinance candidates as those with credit scores of 720 or higher, who hold at least 20% equity in their homes, are current on their mortgage payments, and could shave at least 0.75% off their first rate lien by refinancing.

If all 19.3 million candidates were to refinance, the average savings would amount to $299 a month, an aggregate of $5.3 billion, the data firm’s researchers found. More than 7 million could save at least $300 a month, while 2.5 million could save $500 a month or more, Black Knight said.

“Even with everything going on in the broader economy, we’re still seeing record levels of refinancings out there, simply because rates are sitting at 2.86%,” said Andy Walden, director of market research at Black Knight.

Locks on refinance loans that are expected to close in the third quarter (assuming a 45-day lock-to-close timeline) are up 20% from Q2, per Black Knight, suggesting that Q3 2020 refi volumes could eclipse the record-setting second quarter.

“With rates near historic lows, millions of consumers have an opportunity to find savings by refinancing and, in many cases, significantly lowering their interest rate and monthly payments,” said Will Pendleton, senior managing director of third party originations at Home Point Financial. “We feel that the low-rate environment is likely to persist well into 2021, and a great amount of focus in the lending community is on building capacity to meet the explosion of consumer demand.”

Several mortgage executives and LOs told HousingWire that some lenders don’t have the infrastructure to handle the existing pipeline, and could struggle to process a greater number of applications in the ensuing quarters.

“I think it’s going to be busy well into next year, if not longer,” said Stan Middleman, the CEO of Freedom Mortgage. “The protracted level of interest rates being low would seem to indicate that it will be a while until the refis play out. One of the reasons it was only $1.1 trillion last quarter was that the industry was not built out to the appropriate capacity necessary.” The refinancing boom is just getting started!

The inspiration for today’s edition came from this original article: https://www.housingwire.com/articles/the-refinancing-boom-is-just-getting-started/

If you are seriously considering moving right now you need to take action right now and talk to a reputable Real Estate & Mortgage Broker today, please call 281-222-0433 or visit:

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https://www.youtube.com/channel/UCsF3Rh4Akd1OAOAgTmzgqQg

Bill Rapp here with the Heartfelt and Hot in Houston Blog, and this is our newest segment: Eviction Moratorium Leaves Landlords In Limbo!

An eviction moratorium issued Tuesday by the Centers for Disease Control and Prevention is drawing a chorus of disapproval from rental housing advocates who say the action is overly burdensome and interferes with their own obligations to provide safe and affordable housing. Eviction Moratorium Leaves Landlords In Limbo!

The moratorium halts evictions for renters who expect to earn less than $99,000 this year on their own or less than $198,000 if they file jointly. It also applies to any renter who did not report income in 2019 or received a stimulus check earlier this year.

To qualify, tenants must provide a sworn declaration that states an eviction would leave them homeless or force them into “close quarters in a new congregate or shared living setting,” and they must affirm that they have used “best efforts to obtain all available government assistance for rent or housing.”

Unless the CDC order is extended, changed or ended, the order prevents tenants from being evicted or removed from where they are living through December 31. Tenants are still required to pay accrued rent and could be evicted for reasons other than not paying rent.

Bob Pinnegar, president and CEO of the National Apartment Association, said its members are deeply concerned with the CDC order because of “the potential to decimate the rental housing industry.”

“Without direct rental assistance, rents cannot be paid, and owners face a financial crisis of their own by not being able to maintain properties and pay their mortgages or property taxes,” he explained. “This action risks creating a cascade that will further harm the economy, amplify the housing affordability crisis and destroy the rental housing industry. This global housing crisis cannot be blamed on the rental housing industry, nor can the industry bear the brunt of the pandemic alone. We need balanced, reasonable solutions for all Americans.”

Pinnegar said the government has unilaterally enacted a moratorium until the end of the year and could use similar authority to extend it further into 2021.

“Forcing an entire industry to subsidize its residents could lead to extensive foreclosures, which will cost people jobs, homes and retirements,” he said. “It could affect millions of Americans in a very negative way.”

The National Rental Home Council said the eviction ban leaves landlords with two grim options — go deeper into debt or sell.

“America needs sensible, well-constructed rental assistance programs that provide immediate relief to both renters and landlords,” NRHC stated. “That’s the only way to bring any sense of certainty to the rental housing market.”

“This moratorium also capitalizes on the false narrative that landlords are lining up at the courthouse to file eviction notices,” said the trade association, adding that “the exact opposite is true.”

“Many landlords have created flexible payment plans, allowed tenants to access security deposits and waived fees,” according to NRHC. “It’s not quite clear how the administration expects these landlords to cover their mortgage payments, property taxes, community fees and maintenance costs. With no corresponding ban on foreclosures, mortgage holders still can and will foreclose on landlords who can’t meet their financial obligations.”

Jarred Kessler, CEO of residential sale-leaseback company EasyKnock, believes the eviction ban will have many unintended consequences.

“Firstly, most single-family landlords are not institutions and depend on the income from renters,” he said. “This means that they will have the same challenges as a renter. Delaying the problem for another four months only creates a false sense of confidence for Americans. Once January hits, penalties and evictions will become possible again. Tenants need help with rent, not a temporary ban. On the flip side, landlords should get a relief for what the ban is causing to their business.”

A study in July by the National Association of Hispanic Real Estate Professionals found that 39% of landlords with fewer than 20 units were worried about being able to cover their operating costs over the next quarter.

Congress has yet to adopt a new aid package that would provide broad economic relief for Americans hurt by the coronavirus pandemic.

“An eviction moratorium, especially one that encompasses nearly all renters, is overreaching,” said Pinnegar. “Our members have been working with their residents on payment plans and connecting them with organizations that provide rental assistance, but some residents will view an eviction moratorium as a rent holiday and reduce the industry’s ability to provide that assistance.”

He added, “Rental housing providers don’t want to evict anyone. It is an action of last resort. However, an extended moratorium will force many to operate housing at a deficit. Owners will have to find ways to cut costs, which means delaying maintenance when possible, potentially laying off the staff that keeps properties running and, in some cases, being unable to pay the mortgage or property taxes.”

“We realize that not all residents are not going to pay, but this is not a high-margin business,” explained Pinnegar. “If they lose 10% to 15% of their revenue through people not paying, it is going to wreak havoc on the industry.”

Phillip Kash, a partner at urban planning firm HR&A Advisors, and his colleagues have worked on housing eviction prevention efforts across the country.

For example, in Wake County, North Carolina, the local government collaborated with HR&A Advisors on an intervention program. The three-step program offers eviction prevention, which aims to provide financial assistance to tenants and landlords to cover rent shortfalls resulting from a loss of income; eviction mediation services, which provide pro bono legal support through a partnership with Legal Aid of North Carolina for tenants who need legal counsel to negotiate settlements with their landlords; and relocation assistance, which will provide transitional services and relocation support to residents whose housing could not be stabilized through the interventions.

Unlike similar programs that some local and state governments have pursued elsewhere, the Wake County program asks landlords to share in the cost of recovery by forgiving a portion of rent owed. In this way, the program asks renters to contribute a portion of their reduced income and distributes the remaining rental costs between their landlords and the county’s emergency rental assistance funds. This also reduces the total public funds needed to prevent eviction, allowing the county to serve more households.

In New Haven, Connecticut, city officials estimate 8,000 to 10,000 families could be subject to some form of housing insecurity given their precarious financial state related to COVID-19-connected job losses.

“It will be one of the most significant things we face as a city and a state over the course of the fall and the winter, dealing with families who are facing true economic crisis,”  Michael Piscitelli, economic development administrator, told the New Haven Register.

The city has announced it will use $800,000 of its federal CARES funding to help about 300 families and homeowners resolve back rent and mortgage issues. Eviction Moratorium Leaves Landlords In Limbo!

The inspiration for today’s edition came from this original article: https://www.forbes.com/sites/brendarichardson/2020/09/03/new-national-eviction-moratorium–leaves-landlords-in-limbo/

If you are seriously considering moving right now you need to take action right now and talk to a reputable Real Estate & Mortgage Broker today, please call 281-222-0433 or visit:

https://www.zillow.com/lender-profile/BillRappMortgageViking
https://www.blink.mortgage/app/signup/p/nexamortgageh/MortgageViking?campaign=MortgageViking
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https://www.youtube.com/channel/UCsF3Rh4Akd1OAOAgTmzgqQg

Bill Rapp here with the Heartfelt and Hot in Houston Blog, and this is our newest segment: Rentvesting: A Milenial REI Trend!

It’s no secret that millennials aren’t buying homes at the same pace as previous generations. With the average undergraduate student loan debt at 29,200 (not including specialized or advanced degrees), the high cost of living in major cities, and tightened lending criteria, many millennials have prolonged buying their first home. Rentvesting: A Milenial REI Trend!

As we continue to see renting become more popular among the younger generation, the question of how these renters will be able to save up for their first home becomes an area of concern.

One way some millennials have been able to circumnavigate this issue is through a strategy called, rentvesting.

Through rentvesting, you start by renting a home for you to live in. For most rentvestors, this tends to be in a major city that’s close to your job, friends, social and nightlife. After you rent out a home, you then go and buy a rental property in an up-and-coming area that you can afford, but perhaps, do not care to live in. So through this strategy, you are able to afford to live in an area of your choosing while building equity with your rental property elsewhere. You can sell the rental property in 5-10 years and use that money and any saving accumulated over the years to purchase your first home, possibly your dream home.

Although, this method may not suit all investors as there are some factors to consider. In order to make this a smart investment in your future, you need to study location and appreciation to hopefully ensure that the property will most likely make money over the long haul. You also need to take into account the cost of renovating your rental property and if you are willing to or have the time to undergo this process.

There are also the issues that arise with being a landlord and making sure you have the time and money to make repairs on the home, visit the property, and find suitable tenants to live there.

If you feel that rentvesting may be a good investment solution for you, consider looking on online marketplaces for your investment property.

Roofstock is a property investment platform that specializes in single-family rentals. Roofstock even inspects all the properties listed on their site to ensure buyer confidence.

They offer a variety of listings in areas such as California, Michigan, New Jersey, North Carolina, Texas, Tennesse and others.

The platform also provides you with an estimated appreciation rate over a 5-year period. Roofstock even provides a rental income guarantee. If no tenant has moved in within 45 days, Roofstock will pay 75% of the market rate rent. Their rental guarantee is perfect for new investors who fear the risk of not finding tenants.

Rentvesting has been a trend among millennials for a few years and while it may not be the investment strategy for everyone, it is an investment strategy that may allow more millennials to purchase their first home. Rentvesting: A Milenial REI Trend!

The inspiration for today’s edition came from this original article: https://www.cnbc.com/select/which-credit-score-used-when-applying-for-mortgage/

If you are seriously considering moving right now you need to take action right now and talk to a reputable Real Estate & Mortgage Broker today, please call 281-222-0433 or visit:

https://www.zillow.com/lender-profile/BillRappMortgageViking
https://www.blink.mortgage/app/signup/p/nexamortgageh/MortgageViking?campaign=MortgageViking
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https://www.houstonrealestatebrokerage.com/
https://www.youtube.com/channel/UCsF3Rh4Akd1OAOAgTmzgqQg

Bill Rapp here with the Heartfelt and Hot in Houston Blog, and this is our newest segment: This is the credit score lenders use when you apply for a mortgage!

Your credit score is a three-digit number that indicates your creditworthiness in a nutshell. It’s not a complete snapshot of your overall financial picture, but lenders look at it when evaluating you for credit cards, loans and mortgages.

But like all things in the financial world, credit scores are nuanced. There are actually multiple versions of your credit score, and they all mean different things to lenders. This is the credit score lenders use when you apply for a mortgage!

For the majority of general lending decisions, such as personal loans and credit cards, lenders use your FICO Score. Your FICO Score is calculated by the data analytics company Fair Isaac Corporation, and it’s based on data from your credit reports. VantageScore, another scoring model, is a well-known alternative.

If you’re planning to apply for a mortgage, be aware that the credit score you see on your application might differ slightly from the one you’re used to. It might even be different than what comes up when you monitor your credit, or even when you apply for a car loan.

Banks use a slightly different credit score model when evaluating mortgage applicants. Below, we go over what you need to know about credit scores you’re looking to buy a home.

The scoring model used in mortgage applications

While the FICO® 8 model is the most widely used scoring model for general lending decisions, banks use the following FICO scores when you apply for a mortgage:

* FICO® Score 2 (Experian)

* FICO® Score 5 (Equifax)

* FICO® Score 4 (TransUnion)

As you can see, each of the three main credit bureaus (Equifax, Experian and TransUnion) use a slightly different version of the industry-specific FICO Score. That’s because FICO tweaks and tailors its scoring model to best predict the creditworthiness for different industries and bureaus. You’re still evaluated on the same core factors (payment history, credit use, credit mix and age of your accounts), but the categories are weighed a little bit differently.

It makes sense: Borrowing and paying off a mortgage arguably requires a different mindset than keeping track of credit card balances and using a credit card responsibly.

The FICO 8 model is known for being more critical of high balances on revolving credit lines. Since revolving credit is less of a factor when it comes to mortgages, the FICO 2, 4 and 5 models, which put less emphasis on credit utilization, have proven to be reliable when evaluating good candidates for a mortgage.

Mortgage lenders pull all three reports, but only use this one

According to Darrin Q. English, a senior community development loan officer at Quontic Bank, mortgage lenders pull your FICO score from all three bureaus, but they only use one when making their final decision.

“A bank will use all three bureaus,” tells CNBC Select. “It’s called a tri-merge.”

If all three of your scores are the same, then their choice is simple. But what if your scores are different?

“We’ll use that median score as the qualifying credit score,” says English. “Not the highest or lowest.”

If two of the three scores are the same, lenders use that one, regardless of whether it’s higher or lower than the other one.

And if you are applying for a mortgage with another person, such as your spouse or partner, each applicant’s FICO 2, 4 and 5 scores are pulled. The bank identifies the median score for both parties, then uses the lowest of the final two.

How your credit score affects your interest rates

Knowing your credit score is the first step in getting the best rates on your mortgage. While mortgage interest rates are currently at an all-time low, they drop even lower when your credit score is above 760.

According to FICO, the current interest rate for a 30-year fixed mortgage is 2.377% APR for a 760+ borrower, and 3.966% for a borrower with a score between 620 and 639 (which is considered subprime).

This 1.589% savings in APR may seem negligible. But it means saving about $260 per month on your mortgage, or $3,120 per year and roughly $93,600 over the lifetime of the loan.

If you currently have a mortgage and are interested in seeing if you can switch to a better rate, look into the pros and cons of refinancing your home.

How to monitor your credit reports

Since the mortgage industry looks at all three credit reports and scores, you may want to consider a paid credit monitoring service that pulls more comprehensive data than a free version would.

The best credit monitoring services offer triple-bureau protection, looking at your information across all three credit bureaus. This is the credit score lenders use when you apply for a mortgage!

The inspiration for today’s edition came from this original article: https://www.cnbc.com/select/which-credit-score-used-when-applying-for-mortgage/

If you are seriously considering moving right now you need to take action right now and talk to a reputable Real Estate & Mortgage Broker today, please call 281-222-0433 or visit:

https://www.zillow.com/lender-profile/BillRappMortgageViking
https://www.blink.mortgage/app/signup/p/nexamortgageh/MortgageViking?campaign=MortgageViking
http://BillRapp.joinnexa.com
http://www.homesforheroes.com/affiliate/bill-rapp-1
https://www.billrapponline.com/
https://twitter.com/BillRappRE
https://mortgageviking.billrapponline.com
https://highcostarea.billrapponline.com
https://commercial.billrapponline.com
https://doctorvideo.billrapponline.com
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Bill Rapp here with the Heartfelt and Hot in Houston Blog, and this is our newest segment: How Often Do Credit Scores Update?

The question is often asked, “should I pull my borrower’s credit report after the first of the month to see the most updated credit scores?”  The assumption being that credit reports update during the first part of the month…actually this is far from accurate. How Often Do Credit Scores Update?

Credit reports are constantly changing. Every time a creditor reports to the bureaus the report, and thus the scores, can change. There is no set time of the month that a creditor has to report. While some do report at the beginning of each month, not all report at the same time. Some may report in the middle or the end of the month. Some may report two or three times a month and some may report just after the billing cycle. Credit scores are fluid, so they are constantly changing with any update.

Scores are usually different with each bureau as well. Rarely will the scores with Experian, Trans Union and Equifax all be the same or even close to the same in some instances. A lot of creditors do not report to all the bureaus at the same time. They may report to Experian one week, Equifax the next week and Trans Union the week after that. So, if a borrower has paid down a credit card with the hopes of increasing a score, it could be 30-45 days before the update is reflected with all the bureaus. It is important that loan officers (especially when looking at a merged credit report) look at the raw date from each bureau as each bureau could be reporting something completely different.

Also, it is important to know that creditors are not actually required to report to the bureaus at all. For example, there are some small banks and credit unions that may only report to one bureau or may not report at all. There are also some collection agencies that only report to one bureau. Let’s say a report is pulled and the borrower has a 760 with Experian, a 730 with Trans Union and a 640 with Equifax. Chances are the borrower has a collection that is only reporting to Equifax or a late payment on an account, but the late payment is only reporting on one bureau.

How quickly a report changes also depends on the method a creditor uses to report. Before reporting software came along creditors used a form called a “Universal Data From” that was manually filled out and sent to the bureaus, so updates took longer. While these forms still exist, they are rarely used except by a few collection agencies. There are several different reporting software systems most creditors now use. Some produce quicker results than others. With some systems as soon as the information is transmitted to the bureaus the updates take place. With others there can be a lag time of several hours to several days.

Because of the different times and ways information can be reported scores can, in some cases, change daily.  How much will the scores change? That depends on the update. Did revolving balances go up or down? Is there new credit? Were accounts closed? Are there any new late payments? There are dozens of factors that can play into how much a score does or does not change.

While there may not be a certain time during the month that is the best time to pull credit, what is certain is that credit reports and scores are constantly changing depending on borrower behavior and the timing of the reporting. Credit scores are a snapshot in that moment. Because of the fluidity of scores, a person could retrieve their credit report in the morning and another in the evening and just in the time things could have changed and the scores could be different.

The important thing for consumers to know is to not focus on the short-term changes but rather focus on the long term. Focus on the things they can do consistently to help their long-term credit score goals. How Often Do Credit Scores Update?

The inspiration for today’s edition came from this original article: https://www.recenter.tamu.edu/news/newstalk-texas/?Item=24997

If you are seriously considering moving right now you need to take action right now and talk to a reputable Real Estate & Mortgage Broker today, please call 281-222-0433 or visit:

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Bill Rapp here with the Heartfelt and Hot in Houston Blog, and this is our newest segment: Texas’ manufactured housing outlook positive, demand strong!

Texas’ manufactured housing industry continued to ramp up production in September as new orders and sales volume maintained a steady climb, according to the latest Texas Manufactured Housing Survey (TMHS). Texas’ manufactured housing outlook positive, demand strong!

“The manufactured housing industry is providing a product that is increasingly attractive to many homebuyers, especially those looking to migrate outside of urban areas,” said Real Estate Center Research Economist Dr. Harold Hunt.

Supply-chain disruptions and contractions in the labor supply, however, prevented production at full capacity and contributed to a large increase in backlogs.

A combination of robust demand and supply-side constraints have translated to higher sale prices, but the price of raw materials has also elevated in recent months. Lumber prices in particular have spiked since March and may remain elevated in the aftermath of the forest fires on the West Coast. Manufacturers, however, anticipate inflationary pressures to subside by the end of the year.

“Manufactured-home shipments generally decline in September, but the TMHS indicates that plant production expanded,” according to Rob Ripperda, vice president of operations for the Texas Manufactured Housing Association (TMHA). “That’s good news and means plants are ramping up as we move into October, typically their most productive month. Quoted deliveries are extending well into 1Q2021, so materials shortages are the most pressing concern on factory manager’s minds, but it hasn’t slowed them down yet.”

The ongoing COVID-19 pandemic has generated significant uncertainty throughout the economy, but housing manufacturers remained optimistic about business activity and the overall outlook heading into fall. This confidence has led to higher capital expenditures and preparations for further investment early next year. The Real Estate Center and the TMHA have partnered to produce a monthly survey of business conditions and expectations surrounding the manufactured housing industry. Texas’ manufactured housing outlook positive, demand strong!

The inspiration for today’s edition came from this original article: https://www.recenter.tamu.edu/news/newstalk-texas/?Item=24997

If you are seriously considering moving right now you need to take action right now and talk to a reputable Real Estate & Mortgage Broker today, please call 281-222-0433 or visit:

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Bill Rapp here with the Heartfelt and Hot in Houston Blog, and this is our newest segment: More New Homes Bought With Non-Conventional Financing in 2019!

Non-conventional lending enjoyed a substantial increase in its share of the market for financing new home purchases in 2019. The National Association of Home Builders (NAHB) says, while conventional loans continued to dominate those purchases, its share shrunk from 71.4 percent of the market in 2018 to 65.0 percent in 2019 while non-conventional mortgages increased accordingly, from 28.6 percent to 35.0 percent. More New Homes Bought With Non-Conventional Financing in 2019!

A conventional mortgage is a home loan that isn’t backed by a government agency. Non-conventional forms of financing include loans insured by the Federal Housing Administration (FHA), VA-backed loans, cash purchases and other types of financing such as the Rural Housing Service, Habitat for Humanity, loans from individuals, state or local government mortgage-backed bonds.

NerdWallet says conventional mortgages often meet the down payment and income requirements set by the GSEs Fannie Mae and Freddie Mac, and they often conform to the loan limits set by the Federal Housing Finance Administration (FHFA), the GSE regulator. Conventional loan borrowers who put at least 20 percent down don’t have to private mortgage insurance which is typically required with lower down payments or government-backed loans.

Danushka Nanayakkara-Skillington, writing in NAHB’s Eye on Housing blog says the Census Bureau’s Survey of Construction (SOC) data indicates that FHA financing was the most common form of non-conventional loans. Its share of new home purchases increased 4 percentage points from the prior year to 15 percent.  The share of cash purchases, the second most prevalent form of non-conventional financing, was at 11.0 percent nationwide in 2019. VA-backed loans accounted for 6.0 percent and other financing has a 3.0 percent market share.

The reliance on non-conventional forms of financing varied across the United States. The high was in the West South Central census division (Texas, Oklahoma, Louisiana, Arkansas) at 48.5 percent and lowest in the Middle Atlantic division (New York, New Jersey, Pennsylvania) at 15.8 percent. More New Homes Bought With Non-Conventional Financing in 2019!

The inspiration for today’s edition came from this original article: http://www.mortgagenewsdaily.com/09282020_mba_new_home_sales.asp?fbclid=IwAR2iDO1fp24t_WcW2gNcGomU_ymUnRnR1HPMo6uQf8vGH2xwgYk91QerILk

If you are seriously considering moving right now you need to take action right now and talk to a reputable Real Estate & Mortgage Broker today, please call 281-222-0433 or visit:

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Bill Rapp here with the Heartfelt and Hot in Houston Blog, and this is our newest segment: What Else Could Go Wrong for World Economy Before 2020 Is Done!

Terms of Trade is a daily newsletter that untangles a world threatened by trade wars. The world economy’s rebound from the depths of the coronavirus crisis is fading, setting up an uncertain finish to the year. The concerns are multiple. The coming northern winter may trigger another wave of the virus as the wait for a vaccine continues. Government support for furloughed workers and bank moratoriums on loan repayments are set to expire. Strains between the U.S. and China could get worse in the run-up to November’s presidential election, and undermine business confidence. What Else Could Go Wrong for World Economy Before 2020 Is Done!

“We have seen peak rebound,” Joachim Fels, global economic adviser at Pacific Investment Management Co., told Bloomberg Television. “From now on, the momentum is fading a little bit.” That sets up a delicate balancing act for governments. They’ve injected almost $20 trillion in fiscal and monetary support, in an effort to get the economy as far back to normal as is feasible in a pandemic, and can point to plenty of successes. In the U.S., unemployment fell sharply in August and the housing market has been a bright spot. China’s steady recovery is cited by optimists as a guide to where the rest of the world is headed, while Germany is posting some decent industrial data too. And emerging markets are getting a breather from the dollar’s decline.

But keeping up the momentum on all these fronts won’t be easy. It would likely require policy makers to top up their stimulus efforts, at a point when some are looking to cut back instead. And for all the scientific progress with vaccines, they won’t be available anytime soon on the scale needed to bring the virus under tight control — a key condition for business-as-usual.

Meanwhile, there are headwinds. On labor markets, for example, government aid helped to drive an initial rebound — which may have been the easy part. Next up is the long slog of retooling businesses, reallocating resources, and retraining workers in industries that are no longer viable. That kind of restructuring could play out for some time.

Already this month, some of the world’s best known industrial brands have signaled job cuts are on the way.

A.P. Moller-Maersk A/S is planning a major overhaul that’s set to affect thousands at the world’s biggest container shipping company. Ford Motor Co. is cutting about 5% of its U.S. salaried workers, and United Airlines Holdings Inc. will eliminate 16,000 jobs next month as it shrinks operations.

In China, which contained the virus months ago, consumers remain reluctant to spend and the nation’s biggest banks just posted their worst profit declines in more than a decade as bad debt ballooned.

U.S. lawmakers continue to haggle over more fiscal stimulus, which may be needed to sustain the recovery in the world’s largest economy.

Adding 1.4 million jobs in August was “a big step in the right direction,” said Ryan Sweet, head of monetary policy research at Moody’s Analytics. But the economy needs to maintain that kind of pace, he said, and “without fiscal stimulus that will be hard to do.”

In Europe, gauges of activity are fading, and factories are trying to cut costs as weak demand and price cuts squeeze profit margins. While France and Germany have extended their furlough programs, the U.K. plans to end its version in October, potentially putting millions of jobs at risk.

Japanese Prime Minister Shinzo Abe, who announced his resignation last month on health grounds, warned in a press conference that “winter is coming” and the nation will need to gird to contain the virus.

Stock markets are vulnerable to disappointment in economic numbers in the coming months amid a gradual curbing of emergency fiscal support.

“In terms of valuations, we’ve got to look beyond just what happened this week to the longer term,” said Catherine Mann, global chief economist at Citigroup Inc. “And the longer term is not looking good right now in terms of support for consumption, and therefore business investment and growth in the U.S. economy.”

Overshadowing everything is the continued spread of the virus, with flare-ups around the world.

Even when a vaccine is devised, making it available worldwide on the necessary scale is going to take time, according to Warwick McKibbin of the Brookings Institution and Australia National University. His models suggest that the virus could cost the world economy some $35 trillion through 2025.

“You have to get quite a lot of the population vaccinated before the economic costs start to come down,” he said. What Else Could Go Wrong for World Economy Before 2020 Is Done!

The inspiration for today’s edition came from this original article: https://www.bloomberg.com/news/articles/2020-09-06/what-else-could-go-wrong-for-world-economy-before-2020-is-done

If you are seriously considering moving right now you need to take action right now and talk to a reputable Real Estate & Mortgage Broker today, please call 281-222-0433 or visit:

https://www.zillow.com/lender-profile/BillRappMortgageViking
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