real estate market
As US consumer markets evolve and grow, multicultural marketing has become increasingly critical to a business’s prospects for success. It’s obvious that the demographic tide is turning. Businesses that take the traditional approach and ignore these changes now risk alienating the very ethnic segments that will drive sales in coming years. read more…
San Diego homeownership
While conventional wisdom holds that single adults prefer to live in urban areas, a national real estate company survey finds that a majority of single homeowners (52 percent) choose to live in the suburbs. The study finds that a majority of single homeowners (53) percent) said they bought a home because it was more cost-effective than renting, while 35 percent said they wanted more independence. What’s more, singles prove to be practical: More than two-thirds of single homeowners surveyed (68 percent) purchased a home that was below their price range rather than choosing to buy the most expensive home they could afford.
San Diego DUI defense
American homeownership is at 67% and falling.
Government started 20 year mortgage during the depression to help homeowners.
In 1948, the term was extended to 30 years. The 30 yr fixed mortgage meant low payments and affordability for most working Americans. The introduction of the 30 yr mortgage lead to a home buying boom because after the depression everyone was eager to finally be a homeowner and it was now more affordable than ever. Hence, the suburbs were born around this time.
Today, economists believe the 30 yr mortgage is outdated.
U.S. leads world in using the 30 yr mortgage, but not in home ownership:
U.S. vs. the world
| % fixed | Homeownership % | |
| Spain | <1% | 85% |
| U.S. | 90% | 67% |
| Japan | 21% | 60% |
| Canada | 10% | 69% |
In the U.S., people spend more and don’t necessarily get a good bang for their buck.
Also, America is nearly alone in not charging a fee for not paying mortgages early
America is also liberal in making money put towards mortgage interest, tax deductible.
Relative to the rest of the world, Americans have a sweet deal when it comes to buying their homes.
The government is the one who picks up the tab and accommodates this homebuying structure.
If we take the government out of housing, buyers will face shorter loans, higher interest rates, higher payments, and less affordability.
the 30 year mortgage = affordability. Without it, will Americans be able to buy homes?
The big question: Can we have the 30 yr mortgage without the government guarantee behind it?
The Canadian structure is very different, should we model our system after them?
San Diego defense attorney
Obama home mortgage give-away
What do you do if the majority of your ideas (to help the housing market were colossal failures? See my 6-27-10 post: Modified Mortgage Default Rate is Sky-High.
Well, way not use taxpayer money for a massive give-away? The latest rumor says president Obama is considering ordering Fannie Mae and Freddie Mac to perform major mortgage forgiveness as a way to buy votes for the November election. read more…
The commercial and industrial real estate sector is continuing its own struggle this summer. The lack of jobs, and funding for new businesses are expected to contribute to another long, stagnant year for commercial property.
Commercial real estate buyers are looking for leases rather than buying. Plus, a lot of them are just looking and don’t want to do anything for another six months or so.
Houston bail bonds
home mortgages
Today the Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, increased 1.3 percent in the week ended July 30.This increase was the third week in a row that the average was higher.
The four-week moving average of mortgage applications, was up 0.3 percent. Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 4.60 percent, down 0.09 percentage point from the previous week, the MBA said.
