Garage or Backyard? Here’s What First-Time House Buyers Want
More than two-thirds of potential first-time homebuyers want a house in move-in condition, and 43 percent are looking for a place in the burbs.
Beyond that, first-time buyers are most interested in a home with a backyard or pool, striking design, and smart or energy efficient technology, according to the TD Bank First-Time Home Buyer Pulse.
“It’s encouraging to see interest from the first-time homebuyers who have been cautious for much of the housing recovery,” TD Bank Head of Pricing and Secondary Markets Scott Haymore said in a statement. “Consumers are gaining confidence in the economy and many are looking to enter the housing market within the next two years.”
Related: Why First-Time Home Buyers Are Flocking to Tennessee
Last year, first-time homebuyers comprised 38 percent of the market, according to the National Association of Realtors.
Among those surveyed, 62 percent want to make a down payment of at least 20 percent, but nearly two-thirds said they were still saving up for it. Almost half said they needed to pay down debt before they could buy a house.
The average down payment in the first quarter of 2015 was $57,710, reports RealtyTrac. Entry-level buyers usually put down less money than repeat buyers, and are more likely to take advantage of Federal Housing Administration loans, which allow down payments of as little as 3 percent for those who qualify.
Those who can’t get an FHA loan can still put down less than 20 percent by buying private mortgage insurance, with annual premiums of between 0.5 percent and 1 percent of the loan amount.
It’s Official: No Government Shutdown – for Now
President Trump signed a short-term continuing resolution today to fund the federal government through Friday, December 22.
Bloomberg called the maneuver “a monumental piece of can kicking,” which is no doubt the case, but at least you’ll be able to visit your favorite national park over the weekend.
Here's to small victories!
Greenspan Has a Warning About the GOP Tax Plan
The Republican tax cuts won’t do much for economic growth, former Federal Reserve Chair Alan Greenspan told CNBC Wednesday, but they will damage the country’s fiscal situation while creating the threat of stagflation. "This is a terrible fiscal situation we've got ourselves into," Greenspan said. "The administration is doing tax cuts and a spending decrease, but he's doing them in the wrong order. What we need right now is to focus totally on reducing the debt."
The US Economy Hits a Sweet Spot
“The U.S. economy is running at its full potential for the first time in a decade, a new milestone for an expansion now in its ninth year,” The Wall Street Journal reports. But the milestone was reached, in part, because the Congressional Budget Office has, over the last 10 years, downgraded its estimate of the economy’s potential output. “Some economists think more slack remains in the job market than October’s 4.1% unemployment rate would suggest. Also, economic output is still well below its potential level based on estimates produced a decade ago by the CBO.”
The New York Times Drums Up Opposition to the Tax Bill
The New York Times editorial board took to Twitter Wednesday “to urge the Senate to reject a tax bill that hurts the middle class & the nation's fiscal health.”
Using the hashtag #thetaxbillshurts, the NYT Opinion account posted phone numbers for Sens. Susan Collins, Bob Corker, Jeff Flake, James Lankford, John McCain, Lisa Murkowski and Jerry Moran. It urged readers to call the senators and encourage them to oppose the bill.
In an editorial published Tuesday night, the Times wrote that “Republican senators have a choice. They can follow the will of their donors and vote to take money from the middle class and give it to the wealthiest people in the world. Or they can vote no, to protect the public and the financial health of the government.”
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Can Trump Succeed Where Mnuchin and Cohn Have Flopped?
President Trump met with members of the Senate Finance Committee Monday and is scheduled to attend Senate Republicans’ weekly policy lunch and make a personal push for the tax plan on Tuesday. Will he be a more effective salesman than surrogates in his administration?
Politico’s Annie Karni and Eliana Johnson report that both Democrats and Republicans say Mnuchin and chief economic adviser Gary Cohn have repeatedly botched their tax pitches, “in part due to their own backgrounds” as wealthy Goldman Sachs alums. “House Speaker Paul Ryan earlier this month asked the White House not to send Mnuchin to the Hill to talk with Republican lawmakers about the bill, according to two people familiar with the discussions — though Ryan has praised the Treasury secretary’s ability to improve the legislation itself,” Karni and Johnson write.