Expectations that the Federal Reserve would raise rates to combat significant inflation have come to pass, with a modest 0.25% increase in the rate. The Federal Reserve has stated that it remains committed to restoring inflation to its 2.0% target, which will likely include further rate increases in the future. The rest of the week featured a light economic calendar with very few impactful releases, leaving the Federal Reserve’s rate decision as the primary driver of market activity.
When comparing homes, it is natural to assume that the property with the lowest price will also be the least expensive each month. But purchase price is only one piece of the housing-cost equation. Two homes with noticeably different price tags can produce surprisingly similar monthly expenses, and in some cases, the cheaper home can actually cost more to carry.
Buying a home with a partner, friend, sibling, or other person can make homeownership possible sooner and allow two people to combine their financial resources. But when two people who are not married purchase a home together, there are financial conversations worth having before they begin looking at properties. A mortgage may be shared, but income, debts, savings, credit profiles, and expectations about ownership can be very different.
You have negotiated a purchase price, your offer has been accepted, and the mortgage process is moving forward. Then the appraisal comes back lower than expected. For buyers, that can be unsettling, but a low appraisal does not automatically mean the purchase is over. What happens next depends on the contract, available funds, financing, and what the buyer and seller are willing to do.
When buyers start thinking about mortgage options, they often focus on their own finances: income, credit, debts, savings, and down payment. But there is another part of the equation that can be easy to overlook. The property itself matters. A traditional single-family home, condominium, manufactured home, multi-unit property, or unusual property may not be treated exactly the same when it comes to financing.
While CPI data has come in within expectations for current inflation, inflation remains much higher than in previous years. The rate is holding steady at 2.4%, which is above the Federal Reserve’s 2.0% target.
Mortgage underwriting can seem mysterious when you are buying a home. You submit documents, answer questions, and sometimes receive requests for additional information without knowing exactly what is happening behind the scenes. Understanding the purpose of underwriting can make this stage of the mortgage process much less intimidating.
Saving enough money for a down payment and closing costs can feel like the primary financial goal when purchasing a home. However, becoming a homeowner does not mean your need for savings disappears at closing. Keeping money available after the purchase can provide an important financial cushion as you adjust to the costs and responsibilities of homeownership.
Getting approved for a mortgage is an important milestone, but the financial review does not necessarily end once you receive an initial approval. Lenders may verify certain information again before closing, including your employment and income. If your income changes during this period, it could affect your mortgage approval, depending on the circumstances.
The Non-farm Payroll figures are a strong indicator of the job market and showed a notable increase this quarter. However, this doesn’t necessarily indicate a significant shift in the job market as a whole, as certain sectors have experienced outsized impacts compared to others. JOLTs job openings data does support the increase in openings seen over the last quarter, though it is not among the largest indicators on the broader economic scale.