January 2016

Keeping Current Matters, 1/21/16

Fannie Mae recently released their “What do consumers know about the Mortgage Qualification Criteria?” Study. The study revealed that Americans are misinformed about what is required to qualify for a mortgage when purchasing a home. Here are three takeaways:

• § 59% of Americans either don’t know (54%) or are misinformed (5%) about what FICO score is necessary
• § 86% of Americans either don’t know (59%) or are misinformed (25%) about what an appropriate Back End Debt-to-Income (DTI) ratios is
• § 76% of Americans either don’t know (40%) or are misinformed (36%) about the minimum down payment required

To help correct these misunderstandings, let’s take a look at the latest Ellie Mae Origination Insight

Jim Buchta, StarTribune 1/20/16

Minneapolis is on the cusp of getting its third major condo project since the recession.

Developer Bob Lux said Tuesday that he will build a 40-story tower with 207 condominiums in the Marcy-Holmes neighborhood just across the river from downtown Minneapolis.

The decision comes after months of speculation about whether Lux would build apartments or condos on the site at 200 Central Av., now the location for a Washburn-McReavy funeral home.

“We recognize that condominium homes are more difficult to construct and that the site would accommodate apartments nicely,” Lux said. “But city leaders and neighborhood groups have helped us recognize that this site presents a great opportunity to respond to the area’s need

Kristen Leigh Painter, StarTribune

With 2015 in the rearview mirror and the first interest rate hike in nine years still fresh, Twin Cities real estate experts say the new year should be another strong one for the local housing market. Home prices are expected to keep rising following a year when the median sale price reached its highest level since before the recession. And a higher volume of sales in the Twin Cities are anticipated, though opinions differ on precise growth.

Such predictions leave sellers wondering whether the time has come to turn a profit on their home, while buyers discern if it will be the year to make an investment. For both, the overarching question is whether the market is nearing another peak.

Most market analysts don’t