The Accunet Mortgage Show (6/23/19 Episode)

This week on the Accunet Mortgage and Realty Show, Brian and David discuss May sales and cover key information for 2019’s peak homebuying season.

The Accunet Mortgage and Realty Show, February 10th, 2019

This week on the Accunet Radio Show:

Join Brian and David as they walk you through May 2019 home sales compared to 2018, discuss applying for a mortgage with child support, and share insights on the current mortgage rate forecast.

This week’s highlights

  • Mortgage rates continue to be surprisingly low — but don’t wait for rates to go lower! The best time to buy is right now. Click here to check the latest rates!
  • Right now, the maximum allowable income for a loan from Fannie Mae or Freddie Mac is $77,300. In late July, it’ll shrink to $62,000.
  • Compared to May 2018, home sales are down 1.1%.

Home sales in May 2019

The National Association of Realtors has said that home sales are up 2.5% — but they neglected to mention what they used as a comparison.

The actual numbers show that home sales are down 1.1% in SE Wisconsin compared to May 2018.

May housing market quick facts

  • The median sales price of a single-family townhome, condo or co-op is $277,700 (up 5% year-over-year)
  • Townhomes, condos and co-ops are at a 4.3 months supply, which qualifies them as a neutral market.
  • 2,253 single-family homes and condos have been sold, which is the same exact number as last year at this time.
  • The median sales price has experienced a 13.6% appreciation in homes and condos compared to a year ago.
Home PriceMonths of InventoryMarket Type
$50,000 – $399,999<2Seller’s Market
$400,000 – $449,9993.2Balanced Market (barely)
$450,000 – $500,0004.4Balanced Market
$500,000 – $750,0006Between Balanced & Buyers

 

AreaListings

Listings w/o

an Accepted Offer

Waukesha County1,535841
Waukesha (City of)202114
Brookfield19896
Menomonee Falls13671
Oconomowoc11863

How are mortgage rates looking?

Following recent trends, mortgage rates continue to be unprecedentedly low. The reason: Words, not actions.

On Wednesday, the Federal Reserve Open Market Committee (FOMC) changed their statement on future rate changes to remove the word “patient” — meaning changes may be coming sooner rather than later.

What’s the likelihood of another rate cut?

In July, it’s almost guaranteed that something is going to happen with rates.

There’s a 75% chance of a quarter cut.

There’s a 28% chance of a half cut.

Does this match Fannie Mae’s rate forecast?

Nope! Fannie Mae’s forecast for 30-year fixed-rate loans came out in December 2018 and predicted that we’d be at 4.8% for all of 2019 and 2020. But we’re at 3.99%! Why is this?

Well, the idea is that, by keeping rates low, the government will stimulate consumer and business spending.

How does child support & maintenance (alimony) affect my mortgage qualification?

This is a pretty common question. Most people aren’t even aware that there is an effect on their home loan application — but depending on the amount payable, it can make a pretty big difference.

When push comes to shove, it’s better for your loan application if you’re paying maintenance rather than child support. The reason: Mortgage lenders count child support payments the same way we could car payments. Before we give you the loan, we calculate a debt-to-income ratio to help us determine if you’re a qualified borrower, and child support payments direct affect that ratio. Maintenance doesn’t.

For example, let’s say there’s someone who makes $10,000/month. She has a $1,700 child support payment to make every month. So before she makes a single house payment, we calculate she has a 17% debt-to-income ratio.

But if that same person paid $1,7000 in maintenance instead of child support, she’d be making $8,300/month ($10,000-$1,700) in our eyes, with no debt-to-income ratio.

Can I use the income from maintenance or child support to apply for a mortgage?

Yes, you can — but you’ll need a few things first.

  • 6 months of consistent receipts
  • The payments to continue for at least 3 years