The U.S. Metros With the Best

And the Most Miserable—Commutes
The realtor.com® data team jumped into the driver's seat to separate the best metros for commuting from the ones that make you fantasize about telecommuting—or moving.  

Best metros for commuters
Some metros have clear roadways and transit options that whisk caffeine-fueled and -deprived commuters to work. Others are all about punishing traffic, buses that never show up, and trains that arrive about as often as presidential apologies.

So what makes a metro a great place for commuters? Consistent travel times, mostly, says Joseph L. Schofer, professor of civil and environmental engineering at Northwestern University. “That comes from well-managed road networks, limited congestion, quick incident-clearance times, and [bus and rail] transit [options],” he says.
The realtor.com data team looked at a variety of criteria in the 150 largest metros, to find the best and worst places for commuters. We analyzed:*                   
                                                                                               Worst metros for commuters

• Average commute time for drivers, carpoolers, and public transportation riders
• Average number of hours spent in traffic congestion
• Percentage of roads in “good” or “fair” condition
• Percentage of bridges that are “structurally deficient”

So grab your morning joe and hop in! First, let's head over to the places where commuters are at peace. 
Now that you know the best places, let's run you through the worst. There are three staples in these cities: death, taxes, and traffic jams.

The Three Big Mortgage Trends of 2018

 The lowest mortgage loan delinquency rates since 2005, a reduction in the share of refinanced mortgages, and the return of home equity line of credit (HELOCs) are trends to look for in the mortgage industry in the next year according to

TransUnion’s 2018 consumer credit forecast released on Wednesday.

Trend 1: Serious mortgage delinquency rates to fall
According to the forecast, the mortgage delinquency rate is expected to drop to 1.65 percent by the end of 2018, the lowest observed since 2005, down from a rate of 1.91 percent for Q3 2017.

“From a credit performance standpoint, mortgage loan delinquency rates are the biggest story and are expected to decline next year driven primarily by strong employment and rising home prices,” Matt Komos, VP of Research and Consulting at TransUnion said.
The forecast states that increases to the labor participation rate, median household income, and home equity levels are additional factors impacting lower mortgage delinquency rates.

Trend 2: Rising rates and refinancing
With interest rate increases expected in 2018, the forecast has projected continued reduction in the share of refinanced mortgages as a percentage of all mortgages. Industry forecasts have refinancing share dropping from 35 percent in 2017 to 28 percent in 2018.

“Many existing homeowners already having refinanced into a low-interest rate mortgage may be unwilling or unable to move up due to how expensive housing has become. That lack of mobility can put pressure on the supply of entry-level housing,” Joe Mellman, SVP and TransUnion’s mortgage line of business leader said.

Trend 3: Return of HELOCs
Home equity line of credit is set to make a comeback in 2018 with TransUnion forecasting approximately 1.6 million HELOC originations in 2018. That stands in stark contrast to the previous five-year period when less than half that number were originated. According to the forecast, as rising home prices see many more homeowners tapping into their home equity, the three largest uses for HELOCs will be:

• Debt consolidation to a lower interest rate
• Financing a large expense such as home improvement
• Refinancing an existing HELOC or Home Equity Loan

For more about the 2018 TransUnion Forecast, click here.

January 2018 Rent: New Year, New Trends?

Despite Renter Population Decrease, Prices Jumped 2.4%

For the first time since 2004, the renter population decreased, according to

the Annual Rent Report from ABODO, an apartment listing service. Still, renters continue to outpace owners, according to the report.

There are about 43 million renters in the U.S., which is more than a third of U.S. households, according to a report from Harvard University’s Joint Center for Housing Studies.

With the recent JHCS report predicting that the past decade of rapid growth in renting households might be coming to an end, we might be on the cusp of an new rental landscape.

In 2017, we saw about eight months of slow declines in rent prices, followed by four months of increases that more than made up for the early year rents. What does 2018 have in store?

Despite the decrease in renters in 2017, landlords continue to raise rent prices. The national median rent for a one-bedroom rose 2.4 percent in 2017 to $1,040. Rents for two-bedroom apartments rose 3 percent from January to December 2017 to $1,252.

Rent prices varied by region. Rents rose in 28 states last year as well as the District of Columbia; rents ped in 21 states. South Dakota saw rental costs stay the same in 2017.

Best Reasons to Buy a Home in 2018

(but You'd Better Hurry)

Figuring out when to plunge into the real estate market can be quite intimidating—especially when prices are high, choices are limited, and history urges restraint. 

New predictions for 2018 forecast more moderate gains in home prices and rising inventory levels, while low unemployment and record levels of consumer confidence mean more buyers are feeling good about their finances. A lot depends on where you live (and how much you plan to finance), but these factors combined could mean 2018 will be your year to take the buying plunge. 

1. Rates are going up

After years of record-low interest rates (hello, 3%!), the Fed is finally making some noticeable increases: The rate for a 30-year fixed mortgage broke the 4% mark last year. And with economic growth continuing to carry momentum, Vivas predicts we'll see at least two to four more rate increases throughout 2018. Rates are anticipated to hit 5% by the end of the year.

'The big story there is that those increases will further constrict affordability,' Vivas says. 'The more buyers wait, the more expensive it will get to buy—not just because of home prices, but because of inflationary pressure.' In other words, if you want in on the American dream, now might be the time.

2. Prices are climbing, but not crazily fast

Home prices have soared over the past few years, pricing otherwise well-positioned buyers out of high-cost areas and leading some experts to cry 'bubble'. But in 2018, price increases are expected to moderate.

Vivas forecasts a home price increase of 3.2% year over year, after finishing 2017 with a 5.5% year-over-year increase. Existing-home sale prices are predicted to increase 2.5% year over year.

Of course, it all depends on where you live. While red-hot markets such as San Francisco are predicted to finally lose some steam, sales numbers and home prices are poised to climb in Southern states such as Texas and Florida, where economic momentum continues chugging along and new construction is happening in the right price points.

So what does that mean? Basically, home prices will still increase, but not at the same pace as they have over the past few years.

3. Inventory levels will begin to increase

An inventory shortage has plagued the U.S. housing market since 2015, forcing some buyers to settle

 (a tiny house with linoleum floors for $1 million, anyone?) and keeping others out of the buying game entirely. But by fall 2018, the tides will begin to turn, with markets such as Boston; Detroit; and Nashville, TN, recovering first.

New home construction is also expected to expand. But that will happen slowly, thanks to a constricted labor market, limitations on the amount of lots and land that's available, tight bank financing for building loans, and a run-up in building material prices, says National Association of Home Builders chief economist Robert Dietz.

But there's a bright spot: Builder confidence is at its highest level since 1999, according to the NAHB. And that means hope is on the horizon.

'As we head into 2019 and beyond, we expect to see the inventory increases take hold and provide relief for first-timers and drive sales growth,' Vivas says.

Biggest Surprises for Homebuilders

“Cost Increases Top 2017 Housing Market

Homebuilders say larger-than-expected cost increases topped their list of biggest market surprises in 2017, according to a survey of more than 300 homebuilding executives conducted by John Burns Real Estate Consulting. While builders say they anticipated cost increases, 40 percent of builders surveyed say the increases in 2017 were more than what they expected.

The biggest surprises of 2017 for homebuilders were:

• Bigger cost increases: 40%
• Stronger demand: 23%
• Worse weather: 12%
• Worse construction/entitlement delays: 11%
• Other: 10%
• Lennar/Cal Atlantic merger: 4%

Builders also say labor costs continue to rise. Stronger-than-expected sales had many builders facing a shortage of workers to keep up with the rising demand in 2017.

Further, material costs—particularly lumber, drywall, and concrete—saw price increases in 2017, which translated to higher costs for builders.

Weather played a big impact in homebuilding in 2017. Hurricane Harvey in Texas and Hurricane Irma in Florida caused unexpected delays in construction projects, builders say.

Builders expect many challenges to continue in 2018.

“We do not expect the broad-based labor shortages and related cost increases and delays [to] resolve in the near future,” according to a report by John Burns Real Estate Consulting. “We also do not anticipate regulatory approval hurdles to ease, jurisdictions to add sufficient staff to handle bottlenecks, or lot and land prices to decline.

All of these factors contribute to new home prices remaining high and thus construction volumes staying well below historical levels.”

Source: John Burns Real Estate Consulting (Dec. 28, 2017)

Mortgage Rates Move Higher

(Marketwired - Dec 28, 2017) - Freddie Mac(OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS^®), showing average mortgage rates continuing to inch higher at the end of 2017.

 News Facts

• 30-year fixed-rate mortgage (FRM) averaged 3.99 percent with an average 0.5 point for the week ending December 28, 2017, up from last week when it averaged 3.94 percent. A year ago at this time, the 30-year FRM averaged 4.32 percent. 

• 15-year FRM this week averaged 3.44 percent with an average 0.5 point, up from last week when it averaged 3.38 percent. A year ago at this time, the 15-year FRM averaged 3.55 percent. 
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.47 percent this week with an average 0.3 point, up from last week when it averaged 3.39 percent. A year ago at this time, the 5-year ARM averaged 3.30 percent.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.
Quote
'As we expected, mortgage rates felt the effect of last week's surge in long-term interest rates in the final, shortened week of 2017. The 30-year fixed mortgage rate increased 5 basis points to 3.99 percent in this week's survey. Although this week's survey rate represents a five-month high, 30-year fixed mortgage rates are still below the levels we saw at the end of last year and early part of 2017. Mortgage rates have remained relatively low all year.'

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we've made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders and taxpayers. 

2018 Conforming Loan Limits
Loan Limits for Calendar Year 2018 -- All Counties
[XLS], [PDF]​

The Right Fit

The chicken? Or the egg? Which came first continues to fuel debates. But when it comes to home buying, which should come first? The house or the mortgage?

Experts agree you should fit your mortgage to your finances, not to a house.

Understanding how much you can afford is key. It will not only help you determine your price limit, but it will also help you understand if your budget can cover a new roof or furnace in the home you may be considering.

You also need to understand whether or not you are financially prepared to cover monthly expenses for general upkeep and utilities, which can run hundreds of dollars per month.

Start by getting a handle on your finances. What do you earn? What do you spend? How much do you have in savings? Answering these questions will help you learn whether you are financially ready for a mortgage. Make a budget and use free online tools and calculators to determine how much you can afford.

Once you understand how much you can afford, the next fit you'll have to assess is the right home for your budget and your lifestyle. 

That's all about location, location, location. It's a key factor in determining how much you can afford, how long your commute will be, and if you'll be near good schools. Some points to consider: suburban or urban? How close is it to your job? And is it near good schools and public transportation? Size also matters.  

Remember, getting pre–approved before you start shopping can help you act fast and make a confident offer so talk to your lender. Other tips for making an offer include, acting fast, making a solid offer and being prepared to negotiate.