Market Matters

Americans Shut Out of Housing as FHA Fees Jump Source: Bloomberg For many buyers seeking a mortgage backed by the Federal Housing Administration, homeownership may no longer be attainable with increases in mortgage insurance fees, especially at a time when housing affordability remains a challenge for many Americans. The new FHA fees can tack on a couple hundred extra dollars every month, which experts argue has contributed to the decline in first-time buyers. Read the full story

Are Student Loans Really Killing the Housing Market? Source: The Atlantic   Derek Thompson of the Atlantic points out that student debt is destroying demand among first-time buyers, but it's not affecting their share of the market. Examining the statistics, he argues, “First-time home buyers make up a historically normal share of new homeowner families, but a historically small share of new home buyers, because a big slice of the housing market is owned by big institutional investors who aren't living in the homes they buy.” He concludes that student loans are indeed depressing demand for homes, but only slightly more than the overall market for homes is already depressed. Read the full story

One in Three SoCal homes paid for with cash: Who's buying? Source: KPCC Around 33 percent of all home purchases in California were paid in cash in the first quarter, the highest level since 2011, according to RealtyTrac. Beverly Hills, Arcadia, and San Marino were areas with a high percentage of home sales paid in cash, with many all cash buyers coming from overseas. Read the full story