All articles tagged with #home ownership
Federal Reserve governor Lisa Cook listed her contested home as a vacation property, highlighting her personal real estate details amidst ongoing discussions about her financial disclosures.
Despite rents outpacing gains in home prices, it's still more affordable to rent than own a home in nearly 90% of U.S. counties, with both options consuming more than one-third of wages in most areas. The gap between renting and owning has narrowed, but renting remains the more affordable choice in the majority of markets, especially in counties with populations of at least 1 million. However, there are exceptions, with Riverside County, California, and the Detroit, Michigan area being more affordable for owning than renting. The least affordable rental markets are largely in the South and West, while the most affordable ones are mainly in the Midwest and South.
Emmy winner Ayo Edebiri, known for her work on "The Bear," stays humble by renting her home, a decision that is also financially smart given the current real estate market. With the widening gap between buying and renting costs, Edebiri's choice to rent is sensible, especially as buying a home has become more challenging due to soaring prices and interest rates. Despite her success, Edebiri's decision reflects the financial realities many face, and she looks forward to a significant raise for her work on "The Bear."
According to a survey by the Federal Reserve, the average American family's net worth increased by 37% between 2019 and 2022, the largest three-year increase on record. The survey also revealed a narrowing of the wealth gap between rich and poor. Temporary government relief measures during the pandemic may have contributed to these gains. While median family income rose by 3%, it was concentrated among higher-income individuals. Debt levels remained stable, and the share of families filing for bankruptcy decreased. Homeownership increased, but rising home values made homes less affordable for new buyers.
The average 30-year fixed-rate mortgage rate has reached its highest level in over 20 years, according to Freddie Mac. The rate currently stands at 7.09 percent, driven by the strength of the economy and the rise of the 10-year Treasury yield. Affordability challenges and low inventory continue to impact demand and stall home sales. This week's rate is 0.13 percent higher than last week's and 1.96 percent higher than the same time last year.
A reader seeks advice on how to deal with an overzealous real estate agent who continues to contact them even after closing several deals. Despite declining invitations and asking her to stop, the agent persists, even showing up at their house uninvited. The reader is advised to keep a log of the agent's contact, continue ignoring her, and if necessary, send a firm email and block her on their phones. They are also encouraged to contact the agent's prestigious real estate company if the behavior continues. In another question, a reader asks if they should give their oldest son the same cash gift they gave their youngest son for a down payment on a home, even though it's unlikely he will buy a home. The advice is to offer the same amount of money to the eldest son, allowing him to invest it as he chooses.
Atherton, California, one of the wealthiest areas in the US, has seen a growing trend of wealthy Americans using trusts or LLCs to buy homes. About 72% of home purchases in the 94027 ZIP code, which encompasses most of Atherton, were completed last year through trusts or LLCs. Using trusts or LLCs can provide extra privacy and simplify the inheritance process. On one block in Atherton, just two of the 12 homes are actually owned by individual people, with the rest owned by trusts, LLCs, or other kinds of corporations.
The Estonian pavilion at the Venice Architecture Biennale is a rental apartment with a live-in actor who is performing daily rituals to explore the challenges of home ownership. The exhibition, titled Home Stage, challenges the contradiction of a home being both a living space and a piece of real estate. Different actors will each spend a month living in the apartment and performing to visitors. The apartment also contains a series of installations that pose different questions about the housing market, from an empty room to a bathroom fountain.
Starting May 1, people with higher credit scores will start paying higher mortgage fees, while those with lower credit scores will pay less, as part of a Biden Administration rule intended to provide equal access to home ownership and boost affordable housing. This means first-time home buyers with high credit scores between 720 and 760 will pay more under the new rule, while those with lower scores will see a drop in costs. There is a bill in Congress that would repeal the new policy.