There are some people who have not purchased homes because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize,
July 2024 Vol. 7
The Hyde Report features up to the minute real estate news & trends along with articles designed to help improve your real estate IQ.
This July, we celebrate the history and significance of the 4th of July in my monthly video greeting.
Dive into the complexities of our changing climate in our featured video, “Weathering the Storm: How Climate Change is Shaping Home Insurance and the U.S. Housing Market.”
In our news section, we tackle pressing issues such as the deepening affordability crisis with California home prices hitting a new high of $908,040, and the upcoming vote on a permanent half-cent sales tax for homeless services in LA County.
To keep you inspired, we end with a motivational quote from Marianne Williamson.
Join me as I explore these topics and more, enhancing your real estate IQ and helping you navigate the ever-evolving real estate market.
"July: Celebrating Freedom and Fun"
"Affordability Crisis Deepens as California Home Prices Hit New High of $908,040"
In May, the median price for existing, single-family homes in California reached a record high of $908,040, marking a 9% increase from the previous year and a 56% rise from the 2018-19 average.
With elevated mortgage rates around 7%, home affordability remains a challenge, with top earners able to afford only 61% of the typical home.
Statewide sales have declined, with May’s annual rate at 272,410, a 6% drop from the previous year and 32% below the 2018-19 average.
Limited housing inventory, which was down 24% from the previous year, has contributed to the high prices. The average home stayed on the market for just 16 days, reflecting quick sales in a tight market.
"LA County Voters to Decide on Permanent Half-Cent Sales Tax for Homeless Services This November"
Affordable housing and homeless services has qualified for the November ballot. Known as the Affordable Housing, Homelessness Solutions and Prevention Now measure, it would replace the existing Measure H quarter-cent sales tax approved in 2017, which is set to expire in 2027.
Proponents argue the new measure would expand programs addressing the root causes of homelessness and focus on prevention.
Over 410,000 signatures were collected to qualify the measure for the ballot, surpassing the required 238,922. The measure aims to enhance accountability by requiring service providers to meet performance goals, report spending, and undergo audits.
However, the Los Angeles County Business Federation has expressed concerns about the permanence of the new tax, calling it “rushed” given that Measure H still has three years remaining.
Read More Here
Mixed messages on interest rate surveys, but Treasuries have improved
The average 30-year fixed-rate mortgage published by Freddie Mac dipped to 6.86% last week—marking its 4th consecutive decline after rising above 7% for April and much of May. However, Mortgage News Daily has rates tracking roughly sideways over the past two weeks with a jump reported the first day of July. One is backward looking and the other is based on future expectations, but both are inherently driving by the market for Treasuries. Fortunately, 10-year yields have shown more consistent movement in the right direction as rates have dipped from 4.7% following strong job and inflation reports for April and May to 4.3% last week. This is expected to keep mortgage rates stable over the near term and remains consistent with gradually falling mortgage rates in the latter half of the year.
"Weathering the Storm: How Climate Change is Shaping Home Insurance and the U.S. Housing Market"
As the effects of climate change continue to intensify, the repercussions are reverberating throughout various sectors, including the home insurance industry and the broader U.S. housing market. With each passing year, extreme weather events fueled by climate change are leaving an indelible mark on the affordability and availability of home and fire insurance across the nation.
Mortgage Brokers vs. Mortgage Bankers: Which is Right for You?
Navigating the world of home financing can be complex, especially when deciding between a mortgage broker and a mortgage banker. Understanding the distinctions between the two can help you make an informed choice that best suits your financial needs and goals.
What is the difference between a mortgage banker and a mortgage broker?
Simply put, a mortgage banker is a lender, while a mortgage broker represents multiple lending institutions, serving as a liaison between the lender and the borrower.
Which is better?
The answer is subjective, depending on your specific needs. Let’s explore the benefits of working with each to help you decide.
Mortgage Brokers
According to the National Association of Mortgage Brokers, a mortgage broker is an “independent real estate financing professional who specializes in the origination of residential and/or commercial mortgages.”
Advantages of Mortgage Brokers:
- Personalized Service: Brokers work closely with borrowers, collecting information, documentation, and verification to process loan applications.
- Wide Range of Options: Independent brokers have the flexibility to search for loans based on their clients’ needs rather than being tied to a single institution. This means they can shop around for the best rates and terms.
- Guidance Throughout the Process: After matching a client with a lender, brokers guide the paperwork through final approval, escrow deposits, and loan funding.
- Fee Structure: Brokers’ fees are typically paid by the lending institution, not the borrower. Most banks allow brokers to charge up to 1% of the loan amount for their services. This compensation structure benefits both the broker and the client, as it incentivizes brokers to find the best deals.
Mortgage Bankers
The Mortgage Bankers Association of America defines a mortgage banker as an “individual, firm, or corporation that originates, sells, and/or services loans secured by mortgages on real property.”
Advantages of Mortgage Bankers:
- Direct Lending: Mortgage bankers are direct lenders, eliminating the middleman. This can simplify the process and potentially speed up loan approval.
- In-House Approval: Unlike brokers who need final approval from lenders, mortgage bankers can approve or reject loans directly. They often use automated underwriting systems, making the process faster and more efficient.
- Financial Stability: Mortgage bankers usually have substantial net worth, ensuring they can support and service loans effectively. Brokers, on the other hand, may only need a storefront and a phone to set up shop.
- Competitive Rates: Competing with other bankers and brokers, mortgage bankers strive to offer competitive rates, which can be beneficial for borrowers looking for favorable loan terms.
Making Your Choice
Both mortgage brokers and mortgage bankers offer unique advantages. Your decision should be based on your personal circumstances, preferences, and financial goals. If you value personalized service and a broad range of loan options, a mortgage broker may be the right choice. If you prefer a more direct and potentially quicker process, a mortgage banker might better meet your needs.
Understanding these differences can help you navigate the home financing process with confidence, ensuring you find the best fit for your mortgage needs.
Motivational Moments
“Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure.
It is our light, not our darkness that most frightens us.
We ask ourselves, ‘Who am I to be brilliant, gorgeous, talented, fabulous?’
Actually, who are you not to be? You are a child of God.
Your playing small does not serve the world.
There is nothing enlightened about shrinking so that other people won’t feel insecure around you.
We are all meant to shine, as children do.
We were born to make manifest the glory of God that is within us.
It’s not just in some of us; it’s in everyone. And as we let our own light shine, we unconsciously give other people permission to do the same.
As we are liberated from our own fear, our presence automatically liberates others.”
Unleash Your Inner Light: Embrace Your Potential and Inspire Others
Marianne Williamson’s quote challenges the common belief that our greatest fear is inadequacy. Instead, she suggests that we are most afraid of our own immense potential.
It’s our brilliance, not our flaws, that intimidates us. Williamson argues that everyone has the right to be brilliant, talented, and fabulous, as we are all children of God.
By playing small, we don’t help others; we should shine brightly, revealing the divine glory within us.
This light isn’t exclusive; it’s universal. When we embrace our potential and let our light shine, we inspire others to do the same, liberating them from their fears as well.
Thank you for checking out this July issue of The Hyde Report. Remember, as we embrace our full potential and let our light shine, we not only elevate ourselves but also inspire those around us. Let’s continue to shine brilliantly and achieve great things together.
Warmest Regards
Lamont Hyde
DRE 01863312 / NMLS 1478632
Real Estate Blog
If you’re considering buying a home in a community governed by a Homeowners Association (HOA), you’re not alone. HOAs are common, offering a structured community environment with shared amenities and well-maintained surroundings. However, navigating life with an HOA can come with its own set of challenges and benefits. Here’s a handy guide to help you make the most of your HOA experience.
Navigating the world of home financing can be complex, especially when deciding between a mortgage broker and a mortgage banker. Understanding the distinctions between the two can help you make an informed choice that best suits your financial needs and goals.
As the effects of climate change continue to intensify, the repercussions are reverberating throughout various sectors, including the home insurance industry and the broader U.S. housing market. With each passing year, extreme weather events fueled by climate change are leaving an indelible mark on the affordability and availability of home and fire insurance across the nation.
Local Market Reports
Whittier
Los Angeles
Orange County
I met Mr Hyde in 2017 while searching for someone to help my sister in law who was in a financially challenging position
I was referred to Lamont Hyde from a neighbor of mine who had used him to purchase her home a few years back. My mother had past away a few months
My wife & I never thought we could afford to own our home. We were currently living with my mother since being married 8 years ago.
