They may have watched the value of their parents’ homes soar then crash. And, chances are, they know someone who is losing their home to foreclosure. Still, the hope of homeownership is alive among people who rent and want to buy, according to a recent survey by PulteGroup.

The home builder’s survey results showed that 60% of renters who say they want to buy a home in the future have increased their intent to buy compared to a year ago. And 61% of that group says they plan to purchase a home within the next two years.

It also indicates that homeownership continues to be as much an emotional desire as a practical one. Nearly half said they wanted to own a home because they would like being able to call themselves homeowners.

At the same time, 44% still said they thought buying a home is a good investment. And then there were the practical respondents, 36%, who said they wanted to own a home for more space. The percentages were similar across the country.

The results mirrored PulteGroup’s on-the-ground anecdotal information. “We are seeing a renewed sense of optimism, especially from young professionals and young families visiting our communities nationwide,” Deborah Meyer, PulteGroup senior vice president, said in a news release of the results. “In fact, in the first quarter of this year, sales and traffic for our Centex homes, which cater to the value-conscious and first-time buyer, saw a significant improvement over last year—yet another sign of an improving housing market.”

But the survey, which PulteGroup conducted with Russell Research, also identified deterrents to buying that these want-to-be owners say they face. The first is an age-old problem that pre-dates the housing recession. Just over half, 54%, said they don’t have enough money for the down payment.

A few other perceived barriers to buying a home also showed up in the survey. Just over a fourth thinks that renting is cheaper than buying, and just under a fourth are still worrying about their jobs.

The research company conducted online surveys for two groups, one that focused on current renters only and another completely random sample of people that included both renters and homeowners.

The results were similar in the two groups. In the random survey group, 65% of the renters said they plan to buy a home in the future and, of that 65%, 61% plan to buy in the next two years.

Teresa Burney is a senior editor for Builder magazine.

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Fixed mortgage rates hit new all-time lows this week as anemic economic growth and inflation took rates to unheard depths.

The Freddie Mac survey showed the 30-year, FRM averaged 3.84% for the week ending Thursday — the lowest rate ever recorded — inching down from the prior week’s average of 3.88%. Last year at this time, the 30-year FRM averaged 4.71%.

The rate’s previous all-time record was 3.87%, registering on February 9.

The 15-year FRM, a popular refinancing choice, averaged 3.07%, slightly falling from last week when it averaged 3.12%. A year ago, the average rate for a 15-year FRM was 3.89%.

This rate’s former all-time low was 3.11%, registering on April 12.

Five-year, Treasury-indexed hybrid adjustable-rate mortgages averaged 2.85%, up from 2.78% the prior week and down from 3.15% a year earlier.

And one-year, Treasury-indexed ARMs averaged 2.85%, unchanged from last week and down from 3.14% last year. This rate is also a new low.

“Signs of slowing economic growth and inflation remaining subdued allowed yields on Treasury bonds to ease somewhat and brought most mortgage rates to new all-time record lows this week,” Freddie Chief Economist Frank Nothaft said in response to the new rate depths.

Gross domestic product rose at an annualized rate of 2.2% in the first quarter, down from the previous quarter of 3% and below the market consensus forecast of 2.5%.

Home loan analytics firm Bankrate, which surveys large banks, reported the 30-year FRM slipped to 4.05% from 4.09%, while the 15-year FRM fell to 3.25% from 3.28%. The 5/1 ARM also fell to 3.02% from 3.03%.

jhilley@housingwire.com

@JustinHilley

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It’s that time of year again! Follow the steps below to prepare your pool for splashing good times.

Clean the pool deck area: Don’t even think about removing the pool cover until debris left on the pool deck is swept clean. Use a hose and broom to remove debris.

Remove and clean the pool cover: Remove the pool cover from the pool and lay it out as much as possible on the pool deck. Use a mild detergent to scrub off any stuck-on dirt, then simply hose off the pool cover till clean.

Inspect the pool shell: Look for cracks in the pool plaster and around the waterline. You can choose to repair minor cracks yourself, but for more severe cracks, call a professional.

Fill up with water: Usually some water evaporates into the air while the pool is not in use. When it comes to filling the swimming pool, allow the water level to reach the middle of the pool tile.

Pool tile cleaning: Use this opportunity to remove any stains or scale from the pool tile with a household tile cleaner.

Continue preparing the pool water as necessary to make sure it’s clean, sanitary and free of bacteria and algae. Run the pool filter for a good 24 hours or more to complete cleaning the pool and water.

Jump in and ENJOY!!!

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The 62% of Americans who say they own their own home marks a new low since Gallup began tracking self-reported homeownership in 2001.

It’s down from 68% in 2011.

But those surveyed also said they thought it was a good time to buy and that they thought prices would rise this year.

While the recession and financial crisis took place in 2008-2009, homeownership rates didn’t begin to reflect the bursting of the housing bubble until 2010, when 65% of Americans reported owning their own home — the lowest level recorded before this year.

Fifty-three percent of Americans believe their house is worth more today than when they bought it, down significantly from 80% in 2008 and 92% in 2006.

Still, 70% of Americans surveyed said it’s a good time to buy a house.

Americans are also much more positive about the direction of housing prices this year than they were last year.

Thirty-three percent expect houses in their neighborhood to rise in price. Last year, only 28% expected prices to rise.

Results were based on telephone interviews conducted April 9-12 with a random sample of 1,016 adults in all 50 states.

kcurry@housingwire.com

@communicatorKLC

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Costco ($89.10 1.02%), the one-stop-bulk-shop haven, offers everything you need in a home: Furniture, flooring, groceries and 60-roll toilet paper packs. Now Costco is going to help you finance your home, too.

Contrary to your first reaction (which I assume was “Wait, seriously?”), getting a mortgage in what would otherwise be just an ordinary bulk food warehouse (Why, again, did I need 45 bananas?) is actually not that far fetched.

Wal-Mart ($59.08 0.13%) started kicking around the idea of doing mortgages in 2007 and has since spread them throughout the U.S., Canada and Mexico. It has hinted at also moving the practice to the U.K., but overseas rival Tesco already has a wholly owned banking franchise that can lend you money for just about anything.

Kroger ($23.29 0%) has Kroger Personal Finance through a partnership with the Royal Bank of Scotland ($7.96 0.24%) that offers everything from mortgages to pet insurance and identity theft insurance.

In Canada, Loblaw Cos. Limited — the country’s largest food retailer — offers President’s Choice Financial, an almost completely automated service that provides most standard banking services, including mortgages. ICA Banken in Sweden does functionally the same thing and is run out of the retail chain ICA AB. It is estimated to have about 200,000 customers (1 in every 47 Swedes).

So, if anything, Costco is a bit late to the ballgame.

And while grocery store banking is certainly convenient (car loan with your granola bar, anyone?) there are definitely some drawbacks. Namely, the complete lack of personal service. Costco’s mortgage services, like PCF’s, are almost totally automated. Customers go online to figure things out for themselves.

And while some of the banks that Costco uses will send representatives to visit their new customers, the customers still have to do — and presumably completely understand — most everything on their own. Which, if you hadn’t guessed, can lead to some boneheaded financial decisions.

For instance, in this article on CNN Money, a man chose the refinance his $170,000, 15-year fixed-rate mortgage carrying 4.25% interest to a 30-year mortgage at 4%. While he did decrease his monthly payments by about $500 a month, which I assume was the reason for the decision, I wonder if he knew he was going to be paying more than $60,000 more in interest over the life of his loan.

While the man would have paid about $62,000 in interest before, he is now paying over $125,000 in interest for that $170,000 mortgage. While he could feasibly refinance again into a shorter term, I wonder if he knows that.

Given the impersonal nature of automated loans, it’s quite possible he doesn’t — even though, in his case, the bank came to his home to sign the paperwork.

That $125,000 could buy a heck of a lot of toilet paper at Costco. If you want me to be specific, and I’m sure you do, you could by 127,551 rolls of Cottonelle. And if this guy (who calculated his average usage per year) is right, then that’s enough toilet paper to last you about 2,600 years (On a side note, did you think you were going to get mortgage expressed in rolls of toilet paper today — or ever? I bet not!).

All of this to say, sometimes convenience cheats you out of a bit of financial security — even if you are saving a lot of money on dog food at the same time.

jhuseman@housingwire.com
@JessicaHuseman

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