87% of properties qualify for down payment assistance
Source: HousingWire
Joint analysis presented in a new report by RealtyTrac and Down Payment Resource has examined the
availability of down payment programs across the country. Overall, it was found that 87 percent of U.S.
homes qualify for down payment help.
Making sense of the story

In examining 2,290 down payment programs from Down Payment Resource’s Homeownership
Program Index, it was found that out of more than 78 million U.S. single-family homes and
condos in 1,792 counties with sufficient home value data, more than 68 million (87 percent)
would qualify for a down payment program available in the county.

Rob Chrane, president and CEO of Down Payment Resource, commented, many homebuyers,
especially millennials, haven’t fully investigated their home financing options because they are
pessimistic about qualifying for a mortgage. Our Homeownership Program Index highlights the
wide range and availability of down payment programs available to today’s homebuyers. In fact,
91 percent of the 2,290 programs in our registry have funds available to lend to eligible buyers.

Among the 10 U.S. counties with the most homes qualifying for down payment help, Wayne
County, Mich., in the Detroit metro area had the highest percentage of homes qualifying at 94.37
percent, followed by Dallas County and Harris County (Houston) in Texas, both with nearly 93
percent of homes qualifying, and Clark County, Nev., in the Las Vegas metro area with more than
92 percent of homes qualifying.

Among these 10 counties, Los Angeles County had the lowest percentage of homes qualifying for
down payment help with just over 78 percent, followed by Miami-Dade and Broward counties in
Florida with 82 percent and 83 percent of homes qualifying, respectively.

Among counties with a population of at least 100,000, those with the highest percentage of homes
qualifying for down payment assistance were counties in Mississippi, California, Illinois,
Pennsylvania, Maryland, New York, Texas, Ohio, and Delaware.

Daren Blomquist, vice president at RealtyTrac, commented, “Prospective buyers — or their
agents — willing to put in a few minutes of time to find out what programs are available to them
will put themselves in a much better position to successfully purchase a home.”

The average amount of down payment assistance across all counties is $11,565. At least one
down payment program is available in all 3,143 U.S. counties, and more than 2,000 counties have
more than 10 down payment programs available to prospective homebuyers.
Read the full story
http://www.housingwire.com/articles/32818-of-properties-qualify-for-down-payment-assistance
In other news …
A third of mortgage holders don't know their rate
Source: CNBC
While the mortgage interest rate governs Americans’ single-largest monthly expense, more than a third
don’t know the rate that they’re paying. Bankrate.com surveyed a national sample of 1,000 adults and
found that 35 percent did not know their mortgage interest rate. One in seven mortgage holders were
either "not too confident," "not at all confident," or had no idea about their rate. Most borrowers know the
general range, but a half and a quarter percentage point variance can translate into meaningful savings,
especially in today's changing lending environment.
Read the full story
http://www.cnbc.com/id/102389180
U.S. Homeownership Rate Falls to 20-Year Low
Source: Wall St. Journal
At the end of 2014, the U.S. homeownership rate fell to its lowest level in 20 years. According to the
Commerce Department, some 63.9 percent of U.S. households owned their homes in the fourth quarter, a
level last recorded in the third quarter of 1994. The homeownership rate hasn’t fallen below that level
since 1988. Just last year the homeownership rate stood at 65.1%. Data shows that household formation
increased by 1.66 million from a year earlier, with 2 million more renter households and 350,000 fewer
owner households. The homeownership rate was at its highest in 2005, when it peaked at 69.2%.
Read the full story
http://blogs.wsj.com/economics/2015/01/29/u-s-homeownership-rate-falls-to-20-year-low/
Overseer of Fannie and Freddie Takes Cautious Steps to Strengthen
Housing
Source: New York Times
Mel Watt, director of the Federal Housing Finance Agency, gave his first on-the-record meeting with
reporters and indicated that he would not seek any major transformation in the government’s role in the
housing economy. He deflected criticism of a plan that allows down payments as low as 3 percent of the
purchase price for buyers who are short on cash by noting that credit counseling and other measures
would keep buyers on track with payments. In light of expectations that the plan will attract only a small
number of people, the New York Times describes his other ideas for helping homeowners as “similarly
modest.”
Read the full story
http://www.nytimes.com/2015/02/05/business/overseer-of-fannie-and-freddie-takes-cautious-steps-tostrengthen-housing-market.html?_r=0
It's a great time to buy a home: Fannie Mae
Source: Yahoo! Finance
The 2015 housing outlook from Fannie Mae forecasts a 5.8 percent increase in home sales for 2015. Its
economists revised previous GDP estimates to 3.1%, up from 2.7%, and said that the economy would
“drag housing higher,” meaning that both the economy and housing will pick up speed this year, but the
economy will improve at a greater pace. According to Fannie Mae’s chief economist, 2015 will only be a
breakout year if millennials feel that their incomes are secure enough and mobility is less of an issue.
Read the full story
http://finance.yahoo.com/news/there-s-no-better-time-to-buy-a-house-than-today--fannie-mae120236472.html
Starbucks could jolt home values
Source: Union-Tribune San Diego
Homes located near a Starbucks appreciate much faster than homes farther away from the coffee giant,
according to new analysis from Zillow. In the online portal’s new book Zillow Talk, it is noted that the
average home near a Starbucks appreciated from $137,000 in 1997 to $269,000 in 2014, a 96 percent
gain. Homes not near a Starbucks were up 65 percent over that same time period to $168,000. However,
some critics of this thesis say the appreciation has more to do with where Starbucks chooses to locate, in
up-and-coming neighborhoods.
Read the full story
http://www.utsandiego.com/news/2015/jan/30/starbucks-zillow-home-price-appreciation/
Urban Institute: 3 predictions for mortgage lending
Source: HousingWire
The Urban Institute and CoreLogic hosted a panel of four experts from the government, private, and nonprofit sectors to address a range of issues related to mortgages, and three predictions were made during
the discussion. One, the new rules for Private Mortgage Insurers (PMIs) won’t raise mortgage insurance
prices much. Secondly, the guarantee-fees charged by Fannie Mae and Freddie Mac could be reduced.
Thirdly, whatever the resolution on remaining issues, borrowers should benefit as the FHA, the GSEs,
and PMIs recalibrate as they try to find the new industry equilibrium over the coming months.
Read the full story
http://www.housingwire.com/articles/32797-urban-institute-3-predictions-for-mortgage-lending
Talking Points …

The nation’s biggest public home builders are telling investors that new-home sales picked up
during the second half of January, reflecting rising consumer confidence, low interest rates and an
improving economy.

For example, Taylor Morrison Home Corp., a builder in five states, on Wednesday reported a
30% increase in its January sales from a year earlier, following its 24% gain in the fourth quarter.
Other builders like PulteGroup Inc., Ryland Group Inc., and Beazer Homes USA Inc. have
reported that January sales exceeded their year-ago tallies.

Builders, home sellers, and economists are hoping for a strong spring season after home sales
largely disappointed in 2014. Analysts and builders now point to several factors buoying buyer
confidence, including job growth and because the interest rate on a 30-year, fixed-rate mortgage
was 3.66% last week, down from 4.32% a year earlier.