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Many Renters Not Ready to Buy

By now, it’s no secret that the rental market nationwide is skyrocketing, with more people renting than ever before – and rental prices soaring to new heights.

But despite the rising costs, most tenants are largely satisfied to keep renting and have no plans to buy a home any time soon.

According to a new report released by Freddie Mac late last week, 55 percent of renters plan to continue doing so over the next three years, while the remaining 45 percent would consider buying in that time frame.

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Wells Fargo Adding More Car Loan Branches Nationwide

Wells Fargo revealed to Reuters on Tuesday that it has begun creating more branches devoted to car loans and financing for auto dealers as a way to increase its auto lending business in a relatively low-risk environment.

According to the news source, Wells Fargo currently operates 56 branches for car and dealer financing, with the most recent one having just opened in Cherry Hill, N.J.

“It’s a differentiator for us,” Dawn Martin Harp, head of dealer services, said. Wells Fargo’s chief executive John Shrewsberry, meanwhile, added that the sector is “providing a big opportunity because so many cars are being sold.”

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New Report Uncovers Why Many Americans Wait to Buy First Home

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According to a new report released by the Associated Press on Monday, Americans are waiting longer than ever before to buy their first homes – and it’s due to a shortage of cash and unsettled careers.

The news source – referencing data from Zillow – revealed that the typical first-time homebuyer now rents for six years before purchasing their first property. That number is up from 2.6 years in the early 1970s.

Millennials are “still very interested in buying a house, but they’re delaying that decision,” explained Svenja Gudell, chief economist at Zillow. “Once they start having kids, they begin looking for homes. We’re also finding that – given how much rental rates are currently rising – a lot of folks are having a hard time saving for a down payment and qualifying for a mortgage.”

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New Report Shows Where Inflation Is Most Prevalent

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Although much of the country is currently enjoying a drop in gasoline prices and certain other commodities, inflation has most certainly not gone away.

According to CNBC, there are several areas where the cost of goods and services has skyrocketed recently, with construction prices leading the way.

“We forget about this (services) component but it is nearly two-thirds of producer costs,” said economist Joel Naroff. “Trade, transportation, warehousing and government services all posted gains. This portion of the economy should provide a base for inflation.”

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Tenants Spending Record-High Shares of Income on Rent

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As rent prices continue to increase nationwide, the Wall Street Journal confirmed on Thursday that tenants are now spending a higher share of their income on housing than ever before.

According to the paper, most renters can expect to pay at least 30 percent of their income on rent, which is the highest number we’ve seen since Zillow began collecting data in 1979.

“Our research found that unaffordable rents are making it hard for people to save for a down payment and retirement, and that people whose rent is unaffordable are more likely to skip out on their own health care,” said Svenja Gudell, Zillow’s chief economist.

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Borrowing Increases – But Barely – for U.S. Households in Q2

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The New York Fed revealed on Thursday that the amount of borrowing increased for households nationwide in the second quarter of 2015 – but just barely.

According to Bloomberg, “increases in auto loan debt and credit card balances offset a decline in mortgage debt to leave total borrowing of U.S. households roughly unchanged.”

The small increase – which measured in at 0.02 percent – works out to about an extra $2 billion worth of borrowing.

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Wells Fargo Mortgage Chief Mike Heid Announces Retirement

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Wells Fargo announced on Wednesday that its mortgage chief, Mike Heid, is preparing to retire after 28 years with the bank.

“Over a distinguished career spanning three decades, Mike has helped our company and the entire housing industry navigate unprecedented challenges,” Chief Executive Officer John Stumpf said in a statement. “His impact will be felt for many years to come.”

Following in Heid’s footsteps will be Franklin Codel, who is currently the head of mortgage production. He will begin his role as mortgage chief on Oct. 1.

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New Report Shows Auto Insurance is More Affordable for Teens on Parents’ Plans

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A new study conducted by InsuranceQuotes.com found that 18-year-olds pay an average of 18 percent more for car insurance when they sign up for individual plans than they do when they remain on their parents’ policies.

The report, which was just published earlier this week, also noted in some states, like Pennsylvania, that number rockets as high as 24.94 percent.

“In most states, individual policies significantly add to the already high cost of insuring a teen driver,” says Laura Adams, InsuranceQuotes.com’s senior analyst. “Parents with an 18-year-old on their policy pay an average of 77% more than they would without the teen. While this certainly isn’t cheap, it’s usually much better than the individual policy option. Parents who wish to foster financial independence can still ask their child to pay for all or at least some of the increase.”

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Housing Attitude Reverse Course in New Survey

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After several months in a row of overall positivity in regard to the status of the U.S. housing market, the American public seems to have done an about-face in July.

According to Mortgage News Daily, the percentage of respondents who believe now is a good time to sell a house dropped by a huge 7 percent. Similarly, those who believe it is a good time to buy dropped to an all-time low of 61 percent.

“Consumer attitudes toward housing slid back this month,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “The share of consumers who think it’s a good time to sell a home posted a sizable decrease from a record high in the prior month, even as home price change expectations strengthened. Deteriorating consumer assessments of income growth over the past year as well as increased caution around the direction of the economy and personal financial expectations may be contributing to the pullback in sentiment. Still, it is premature to read too much into this month’s results as the survey was taken around the time of increased global turmoil, including Greece’s potential default and China’s stock market plunge, which has receded somewhat. Most of our key indicators are as strong or stronger than they were at this time last year, which is indicative of an improving housing market this year.”

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Miami Housing Market Heats Up This Summer

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Although the summertime is usually a slow period for the Miami housing market, the opposite has held true so far this year.

According to CNBC financial reporter Diana Olick, the city had 1,390 sales in June, which is an 8.6 percent jump from the same period last year.

“An improving jobs market, historic low mortgages rates, and Miami’s reputation as a world-class global city continue to attract domestic and international homebuyers who want to live, work, and play in one of America’s most dynamic areas,” said Christopher Zoller, residential president of the Miami Association of Realtors.

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