Appreciation Adjustments, Down Payment Denial and Monster Mortgages

March 6th, 2019

Steve Hollander – Hollander Real Estate
Jackie Doran – Capital Partners Mortgage, LLC

Price Perspective

Home appreciation is slowing, according to multiple entities. The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index released this week showed a 4.7-percent annual gain in December, down from 5.1 percent from November. The Federal Housing Finance Agency (FHFA) released its latest House Price Index (HPI) the same day and reported that home prices rose 1.1 percent in the fourth quarter of 2018. Commenting on the numbers, FHFA Supervisory Economist William Doerner said, “House prices rose throughout 2018 but at a slower rate than in recent years. In the fourth quarter, house price appreciation hit one of the lowest levels in the past four years.”

Money Misconceptions

Consumers are confused about down payment requirements, according to the 2019 NerdWallet Home Buyer Report. NerdWallet’s survey of 2,029 adults found that 62% of respondents believed that buyers must put at least 20 percent down in order to purchase a home. In reality, the average down payment is 13%, according to the National Association of Realtors’ 2018 Survey of Home Buyers and Sellers.

Still Dipping Downward

Mortgage interest rates trended downward for the third consecutive week, according to Freddie Mac’s Primary Mortgage Market Survey (PMMS) for the week ending February 21. Freddie analysts cite the latest numbers as positive indicators, saying, “Wages are growing on par with home prices for the first time in years, and with more inventory available, spring home sales should help the market begin to recover from the malaise of the last few months.”

Massive Mortgages

If you don’t find it surprising that the multi-billionaire CEO of Tesla and SpaceX would have five different California properties, the $61-million in mortgages Elon Musk took out to finance them – requiring $180-thousand in monthly payments – may be enough to induce sticker shock.

Jackie Doran

Capital Partners Mortgage, LLC
Licensed Loan Officer
NMLS # 364090
11290 Legacy Ave., Suite 140
North Palm Beach, FL 33410
(561) 716-0448
© 2019 Capital Partners Mortgage, LLC. All Rights Reserved. This communication does not constitute a commitment to lend or the guarantee of a specified interest rate. All loan programs and availability of cash proceeds are subject to credit, underwriting and property approval. Programs, rates, terms and conditions are subject to change without notice. Other restrictions apply. 1515 N. University Drive, Suite 102D, Coral Springs, FL 33071. Corp NMLS# 1084639 ( Equal Housing Lender.