Experts: 2018 set to be best economic year since housing crisis

Although December’s job report numbers disappointed experts’ expectations, many explained that the end-of-year increase in construction jobs is just what the housing market needed. This is down from November’s upwardly revised increase of 252,000 jobs. “Wage growth remains low, but did tick up slightly to 2.5%,” Long said. “December’s increase in construction labor is a hopeful reminder that things will eventually get better for our severely depleted housing market,” realtor.com Senior Economist Joseph Kirchner said. “Jobs drive housing demand and with the unemployment rate remaining at its lowest level of the millennium, it's only going to pick up.” Another expert agreed, saying the increase in construction jobs was the one bright spot in Friday’s employment report. One expert explained this increase marked the highest point in construction jobs in seven years. “Construction employment increased by 210,000 in 2017, compared with a gain of 155,000 in 2016.” And while one expert said it’s important not to read too much into economic activity in December, the construction jobs increase, she said, is worth highlighting. “However, the late-year surge in construction jobs is worth highlighting.” “Construction jobs increased by 30,000 last month, ending 2017 with a total of 35% more jobs added than in the year before,” Richardson said. “As to the supply of homes, construction workers are needed,” said Lawrence Yun, National Association of Realtors chief economist. “In 2017, a net 190,000 new workers were employed in the construction industry, and that also marks a decelerating trend, as the prior three years averaged 284,000 annual additions.” “With the unemployment rate in the construction industry having fallen from over 20% in 2010 to 5.9% at the year-end of 2017, there could be a little growth to home construction despite the on-going housing shortage,” Yun said.

How To Make Money From Other People’s Mortgages

As interest rates likely rise over the next five years, lending rates are expected to increase as well. Unlike equity REITs, mortgage REITs generally don’t own properties. Instead, they invest in debt by originating or buying mortgage securities that they manage in a loan portfolio. Almost 90% of the 56 loans in the $3.6 billion loan portfolio are at floating rates, positioning the company for higher interest rates. Estimated earnings of $2.54 per share in 2017 give a 98% payout ratio. If we see a volatile equity market, their portfolio of mortgage-backed securities should provide steady income to support the $1.20 dividend that is covered by earnings. True, the company must continue to navigate a more volatile interest rate environment that could include an even flatter yield curve, but management generally has proven adept thus far, supporting the dividend, while buying back stock at favorable times — such as when it trades below book value. Mortgage guarantee losses typically peak 3-6 years into the mortgage and Essent’s rapid growth means its average mortgage has been in force for only 18 months. Essent has a broadly diversified, low-risk investment portfolio, which is 99.6% investment grade. Essent Group’s growth should be augmented by its rising market share.

What the Heck is Mortgage “Note” Investing? The Start of a Journey

Have you ever heard of people talking about note investing? Probably not! It is not a topic that you are discussing over coffee or at a social event.  Would you be...

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Home Buying for Beginners What You Should Expect

This will help walk you through the basics of home buying so you get a solid understanding of what it takes to complete the purchase process. Furthermore, this ties in with your mortgage commitment – as well as how much the lender is willing to offer you. By doing so, you’ll have a true estimate of what you can afford and what’s way beyond your price range. Plenty of buyers overstep their financial boundaries and find themselves in a predicament down the line. Once you have a good understanding of your budget, it’s time to think about the down payment that you’re going to make. Take a Look At Your Mortgage Options If you’re for the entirety of your home upfront in cash, you’ll likely be pulling out a mortgage. Both have their pros and cons, so speak with your mortgage lender about the what’s best for you and your financial situation. Leave No “Stone” Unturned You’ve finally reached the point where you get to shop around for homes.But wait, before you start submitting offers, one thing you might want to consider is conducting a home inspection. The only thing left on your list would be to choose a reputable moving company. Take the time to research the company before you commit to the contract.