What really bothers your real estate agent

Plus, the mortgages that are harder to qualify for

͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌  February 18, 2023 | Issue #80

Good morning! This week we’re talking housing affordability, mortgage qualifications and Boomer dads. This issue of Money Moves was written by Aly J. Yale.   An all-time low Getty Images When 2022 closed out, housing affordability was at an all-time low. No, seriously. In the last quarter of the year, a mere 38% of homes were “affordable” for locals, meaning they cost 28% or less than the median monthly income in the area. That was the lowest point on record and a notable drop from the previous quarter, when 42% of homes were considered affordable. Fortunately, a lot has changed since then. Mortgage rates have come down about 80 points since November, and in some cities, home prices have dropped as well. Even homebuilders are feeling more confident. If these trends continue (and many expect they will), conditions could look very different as we get further into 2023. As Alicia Huey, chairman of the National Association of Home Builders, said in a recent news release about the data, “We’re anticipating a better affordability climate in the months ahead.” Let’s hope she’s right. For more: Housing Affordability Just Hit a Record Low — but That Should Change Soon Where you can find a deal: The 10 Cities Where It's Easiest to Find a Home Under $200,000   From our sponsor Chances are, we have a lower rate for you. You’ve got a quote on a mortgage rate but down deep wonder whether it’s really the best one. You can stop wondering: It probably isn’t. AmeriSave Mortgage can help you lock in a competitively low mortgage rate for 90 days, so you can shop for a home with confidence. Plus, you can get credit approval in just 3 minutes. Talk to our lending professionals and make home happen.   Can you still qualify? The affordability crunch might be easing, but getting a mortgage? Not so much. A Federal Reserve survey of senior loan officers shows that banks are tightening their credit standards, meaning they’re requiring higher credit scores to qualify for a mortgage. The tightening is largely focused on non-QM loans (those designed for non-traditional workers like freelancers or self-employed people) and jumbo loans (which are used for higher-priced purchases). HELOCs, or home equity lines of credit, are getting harder to qualify for, too. On the bright side, conventional loans and government-backed mortgages, like FHA, USDA and VA loans, appear to be a safer bet, with only a small portion reporting any tightening.   Moving out Money; Getty Images Just a few years ago, Americans were fleeing pricy cities and settling in the suburbs — seeking more space and a lower cost of living. Now, it seems, many are reversing course. As reporter Adam Hardy put it, “Earlier in the pandemic, when many employees got their first taste of remote-work freedom, lots of them fled major expensive cities like New York, Chicago, San Francisco and Seattle in favor of the suburbs or cheaper metros… That dynamic is starting to change, and workers are beginning to leave smaller towns in favor of some of those very same cities that saw an exodus.” Check out Adam’s latest to find out what cities they’re leaving and where they’re headed. For more: Workers Are Moving to These 5 U.S. Cities More Than Anywhere Else Good news for renters: Rents Are Primed to Fall 'Nearly Everywhere in the Country,' Says Housing Expert   OK Boomer Getty Images I consult my dad on just about every major decision I make in life. He’s a CPA-turned-home inspector, so he’s generally got great advice for just about every situation. Best IRA for this self-employed gal? He knows it. Tax help? Ask dad. Broken sprinkler system? He’s on his way. And you better believe I had him weigh in on my home purchase a few years ago. He even inspected the property. Apparently, though, this is a major househunting faux pas — at least according to a report from Curbed. “Boomer Dads are Driving Real Estate Agents Nuts,” it reads. The piece delves into countless stories of clients — buyers and sellers from all over — consulting dear old dad, only to make some less-than-ideal decisions. Like the one who low-balled an offer at dad’s behest and lost his dream home. A year later, he and his agent are still on the hunt. “I can’t get that time back,” the agent says.   Happy hunting, P.S. Spot a weird or unique home listing? Share it with me on Twitter, where I’m @alyjwriter, or via email at alyjyale@gmail.com. P.P.S. Have a friend who loves real estate or is looking for a home of their own? Please forward them this email or send them to the Money Moves subscription page.   Money’s Essential Home Buying Resources: Winter 2023 On the hunt? Check out Money’s Mortgage Calculator, list of The Best Mortgage Lenders and look at the latest mortgage rates. Thinking of refinancing? Our list of The Best Mortgage Refinance Companies can help. You can also use our Mortgage Refinance Calculator or these refi tips. Key question: How much house can I afford?   This newsletter is free because Money earns a commission when you click or make purchases from the links in this email and on our site. We also receive compensation for some of the products and services featured in this message. Offers may be subject to change without notice. Learn more about how we make money. AmeriSave Mortgage Corporation (www.amerisave.com/licensing), NMLS ID #1168. Licensed in 49 states and DC. Not licensed in NY. Some people portrayed are professional models. Equal Housing Lender. For licensing information, go to www.nmlsconsumeraccess.org. Privacy Policy • Advertise With Us • We're Hiring! 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