As the baby boomer generation hits retirement and starts to think about downsizing, it appears that demand for smaller homes is growing significantly. For many years, the trend was always in the other direction – people wanted bigger and bigger houses. The average size of a new home in 1973 was 1,660 square feet. That number increased almost every year after that, hitting 2,521 square feet in 2007. Since then, however, there has been a decline,

House prices have been increasing sharply lately – in fact, prices for existing homes in February were up an astonishing 10% over the previous year. What’s behind the increase? The main reason is simple – lack of inventory. Not many homes are on the market, which means buyers are bidding on a small number of houses, driving up the price. Lack of inventory is caused by a number of factors, including: Few new homes have been

Banks and other companies that collect mortgage payments from homeowners will have to do more to help homeowners who are having financial problems to avoid foreclosure, under new rules issued by the U.S. Consumer Financial Protection Bureau. Currently, there are no national standards for what financial institutions have to do if a borrower falls behind on payments. The new rules, which take effect next year, say that banks and loan servicers must evaluate borrowers under all

When people take out a mortgage, they’re often required to obtain homeowner’s insurance on the property. This policy protects the lender’s interest in the property as well as the owner’s. But what happens if the owner later cancels the policy, or simply stops paying the premiums? Since the housing crash a few years ago, millions of Americans have allowed their homeowner’s insurance policies to lapse. Sometimes this was inadvertent – they just forgot to pay the

One of the simplest ways to obtain a mortgage for a first-time homebuyer – or for anyone who might not have terrific credit and a big down payment – is a loan insured by the Federal Housing Administration. The FHA doesn’t make loans, but it insures them for lenders. This makes lenders much more willing to offer a mortgage, because if the borrower defaults, the FHA will be on the hook. FHA loans often require a