Rent or Buy? 5 Questions Consumers Should Ask First

WASHINGTON - During American Housing Month in June, the American Bankers Associationis reminding consumers that their local banker can help navigate challenges associated with choosing a home, including deciding what is affordable and whether to rent or buy.

"Bankers understand the dynamics of their local housing markets in a way that can benefit their customers," said Frank Keating, ABA president and CEO. "They can help customers understand available housing options in the context of their individual financial situations and long-term financial goals."

Before pursuing a rental or homeownership opportunity, ABA recommends consumers consider the following questions:

• How much money do you have saved up? Start with an evaluation of your financial health. Figure out how much money you have for a down payment or deposit on a rental. Down payments are typically 5 to 20 percent of the price of the home. Security deposits on rentals are usually about one month of rent and more if you have a pet. But be sure to keep enough in savings for an emergency fund. It's a good idea to have three to six months of living expenses to cover unexpected costs.
• How much debt do you have? Consider all of your current and expected financial obligations like your car payment and insurance, credit card debt and student loans. Make sure you will be able to make all the payments in addition to the cost of your new home. Aim to keep total rent or mortgage payments plus utilities to less than 25 to 30 percent of your gross monthly income. Recent regulatory changes limit debt to income (DTI) ratio on most mortgage loans to 43 percent.
• What is your credit score? A high credit score indicates strong creditworthiness. Both renters and homebuyers can expect to have their credit history examined. A low credit score can keep you from qualifying for the rental you want or a low interest rate on your mortgage loan. If your credit score is low, you may want to delay moving and take steps to raise your score. For tips on improving your credit score, visit aba.com/consumers.
• Have you factored in all the costs? Create a hypothetical budget for your new home. Find the average cost of utilities in your area, factor in gas, electricity, water and cable. Find out if you will have to pay for parking or trash pickup. Consider the cost of yard maintenance and other basic maintenance costs like replacing the air filter every three months. If you are planning to buy a home, factor in real estate taxes, mortgage insurance and possibly a home owner association fee. Renters should consider the cost of rental insurance.
• How long will you stay? Generally, the longer you plan to live someplace, the more it makes sense to buy. Over time, you can build equity in your home. On the other hand, renters have greater flexibility to move and fewer maintenance costs. Carefully consider your current life and work situation and think about how long you want to stay in your new home.

Easier Commutes and Cheaper Housing are Increasing as Main Reasons for Moving, Census Bureau Reports

WASHINGTON 

-- Among the 36 million people 1 year and over who moved between 2012 and 2013, 5 percent said the most important reason for moving was to be closer to work or for an easier commute, while another 8 percent cited the desire for cheaper housing, according to a report released today by the U.S. Census Bureau. The most common reasons for moving in 2013 were "wanted new or better home/apartment," "other housing reason" and "other family reason."

The report, Reason for Moving: 2012 to 2013, presents an in-depth look at 19 reasons why people changed residences during the previous year and is the Census Bureau's first on this topic since 2001.

The Current Population Survey began asking a comparable version of this question in 1999. Today's report compares how these reasons have changed over time. In 1999, 3 percent moved to be closer to work or for an easier commute and 6 percent wanted cheaper housing while 21 percent of respondents "wanted [a] new or better home/apartment." This reason declined to 15 percent in 2013 and was not statistically different from the "other family" reason. 

"We asked people to select the reason that contributed most to their decision to move. Picking one reason can be difficult as moves are often motivated by many different, and oftentimes competing, factors," said the report's author, David Ihrke, a demographer in the Census Bureau's Journey to Work and Migration Statistics Branch. "For instance, if one's primary reason for moving is to be closer to work or having an easier commute, they may have to sacrifice other preferences. This could include forgoing cheaper housing options or settling for a different neighborhood. If they mainly want cheaper housing, they may have to deal with a longer commute."

In addition to presenting the specific reasons for moving, the report combines these reasons into four collapsed categories: housing-related (48 percent); family-related, such as a change in marital status or establishing one's own household (30 percent); job-related (19 percent); and other (2 percent).

For people who moved from one county to another, moving because of a job-related reason rose with the distance of the move: 23 percent of moves less than 50 miles and 48 percent of those 500 miles or more. Moving for housing-related reasons showed change in the opposite direction, comprising 42 percent of shorter distance moves and 18 percent of longer distance ones.

      Other highlights:

• Men were more likely than women to move for job-related reasons.
• Better-educated people were more likely to move for job-related reasons than those with lower levels of education.
• Married respondents were the least likely to move for family-related reasons.
• Moves within the same county were typically for housing-related reasons, while intercounty moves and moves from abroad were more for job-related reasons.
• Several individual reasons, such as "change of climate," "health reasons" and "natural disaster," were each cited as the main reason for moving by fewer than 1 percent of householders.

The data are analyzed by a range of demographic characteristics, including age, sex, race, Hispanic origin, educational attainment, marital status, labor force status, type of move and distance moved. These national-level data were collected by the 2013 Current Population Survey's Annual Social and Economic Supplement.

For people who are seeking to move, dwellr, a new Census Bureau app powered by American Community Survey statistics, can pull up a list of U.S. locations that matches users' preferences for such variables as city size, geographic region and job type.

Beware Of Summer Vacation Rental Scams

AARP Fraud Watch Network Alerts Consumers: Don't let your Summer Turn into a Nightmare

CHICAGO -- Americans planning their summer vacations need to be aware of con artists who use the Internet to lure consumers into summer rental scams. Con artists use the Internet to post fake rental opportunities for beach houses or mountain cabins only to steal money from unsuspecting consumers who wire money for security deposits. AARP's Fraud Watch Network is constantly receiving information about ongoing online frauds and alerting consumers through useful tips designed to protect their money.

"The last thing you want to hear is that the dream beach house or mountain cabin you rented for you and your family doesn't even exist, especially after you have already paid for the rent or the security deposit," said AARP Illinois State Director Bob Gallo. "You've worked hard all year –you deserve to spend a fun, relaxing vacation with your loved ones away from home. AARP's Fraud Watch Network is giving you some tools that will help you protect your money and enjoy your vacation."

Recognize the signs

• Fake ads – Con artists will lift a legitimate ad from Craigslist or another website, attract attention by adding a bargain-basement rental price, include a fake email address, and then ask prospective renters to wire money or send a prepaid debit card for a security deposit.
• The reel-in – With budget rates attached to a too-good-to-be-true listing, scammers try to get your money before you find out the property just doesn't exist.
• Too good to be true – In more advanced scams, scammers create entire websites highlighting a variety of rental properties around the world at attractive prices. The sites come complete with detailed photos and descriptions of the properties, information on local attractions, renter testimonials, and even currency exchange calculators.

Protect yourself

• Use a reputable website, travel agency, or online broker to find your rental.
• Do your research: check that the person offering the rental is the actual owner, and verify that the address is real. You can use Google image search to see if the photos in the listing match the reality, and search for the actual address.
• Never wire money. Paying with PayPal or a credit card can offer some extra security.
• Beware of below-market rental offers. Con artists go after consumers tempted to quickly take advantage of a "great deal."
• Be wary when a property owner claims to be outside of the U.S.
• Try to get referrals from friends who might have some vacation properties they can recommend and are familiar with.
• Never respond to emails coffering vacation rentals to avoid common phishing schemes.

If you've been scammed, notify local law enforcement and your Attorney General. Go here to find out where to report fraud and be sure to warn others by telling your story on our Fraud Watch map.

If you or someone you know has been a victim of identity theft or fraud, contact the AARP Foundation Fraud Fighter Center at 877-908-3360.

You can also sign up to AARP's Fraud Watch Network and receive alerts about cons and scams going on in your own state. For additional information and resources, follow Terri Worman's and Sid Kirchheimer's AARP blogs on frauds, scams, and consumer protections.

Bankrate: Mortgage Rates Climb Higher

NEW YORK -- Mortgage rates reversed course this week, with the benchmark 30-year fixed mortgage rate jumping to 4.32 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.34 discount and origination points.

To see mortgage rates in your area, go to http://www.bankrate.com/funnel/mortgages/.

The average 15-year fixed mortgage rate climbed to 3.41 percent, while the larger jumbo 30-year fixed mortgage rate rose to 4.35 percent. Adjustable rate mortgages were also higher this week, with the 5-year ARM rising to 3.31 percent, the 7-year ARM stepping up to 3.53 percent.

Evidence that economic growth is accelerating after a dismal start to the year helped push mortgage rates slightly higher from the lowest levels in nearly a year. Comments from some members of the Federal Reserve's Open Market Committee about the need to curtail the Fed's easy money policy also underscored this week's upward movement in bond yields and mortgage rates. Mortgage rates are closely related to yields on long-term government bonds, both of which would be at higher levels in an environment of a less accommodative Fed and more robust economy. Some bond traders are positioning themselves accordingly ahead of the upcoming employment report. Any disappointments on the job front could easily unwind this week's increase.

As 2013 came to a close, the average 30-year fixed mortgage rate was 4.69 percent. At that time, a $200,000 loan would have carried a monthly payment of $1,036.07. After drifting lower for much of the first five months of 2014, the average rate is now 4.32 percent, and the monthly payment for the same size loan would be $992.09, a savings of nearly $44 per month for anyone that waited.

SURVEY RESULTS

30-year fixed: 4.32% -- up from 4.25% last week (avg. points: 0.34)
15-year fixed: 3.41% -- up from 3.35% last week (avg. points: 0.21)
5/1 ARM: 3.31% -- up from 3.24% last week (avg. points: 0.22)

Home Field Advantage: Steve Garvey, LA Dodgers

Former Los Angeles Dodger first baseman (1969-1982) and his wife Candace share their secret for keeping the family together at home. Take a sneak peek into the Garvey household on this edition of Coldwell Banker Home Field Advantage. 

Survey Says Father's Day Sales Offer Best Time To Find Tool Deals

BELOIT, Wis., -- FatWallet.com, the one-stop resource for online coupons and deals with cash back savings, announced results from its Tools Shopping Survey* (TNS Global). Of 1,000 American adults surveyed online, more than 8 in 10 said they buy tools every year, with nearly 4 in 10 saying Father's Day is the best time to find deals on tools (compared to 18% on Black Friday). Lawn and garden tools were most in demand this year (38%) over combination power tool kits (20%), while Craftsman leads the way as most popular tool brand (38%) over Black & Decker (26%) and DeWalt (19%).

Overall home improvement spending is expected to grow 6.8% this coming year to nearly $313 billion in 2014 (Home Improvement Research Institute). FatWallet's tools shopping survey also reveals that 87% of those that buy tools will spend up to $250 on tools this year (13% will spend more than $250).

Key Results from Tools Shopping Survey:

• How Often: 81% purchase tools at least once this year, 40% more than once (50% under the age of 40). 20% buy tools 3-4 times a year (25% for those w/children). 19% have "never" purchased tools (13% of males).

• Best Time to Buy: 39% say Father's Day is best time to find deals on tools, more than Black Friday (18%), Cyber Monday (1%) and December Holiday (12%) combined. 30% said Spring Sales offered the best tool deals.

• Tool Spend, or Not: 1/3 of males said the only thing to stop them from buying tools is if they "run out of money". 58% will spend less than $100 while 29% will spend between $100 - $249 (36% under the age of 40). 13% will spend $250+. On the contrary, 1 in 4 said they either have way too many tools or are too busy to take on home projects and 1 in 5 admit they have tools they've never used before.

• High Demand: Lawn and garden tools are most coveted (38%), especially for females (46%) and those w/children (44%). Cordless-combo power tool kits and hand tools (20%) are next followed by power drills (15%), tool box/storage (13%) and circular saws. Note: 2/3 of respondents say Quality/Durability most important feature for power tools.

• Top Brands: 4 in 10 choose Craftsman as their most desired tool brand, while 26% like Black & Decker, 19% go for DeWalt, and 5% or less would choose either Makita, Ryobi, Bosch or Milwaukee.

Poor Dad! Fewer Consumers Buy Gifts for Pops on Father's Day than for Mom on Mother's Day

-- Nearly half (48%) of consumers surveyed believe that people spend more on Mother's Day gifts than on Father's Day gifts

-- 20% of consumers surveyed admit they are more creative with gifts for their mom on Mother's Day than for their dad on Father's Day

-- Gift cards (17%) and quality time with the family (17%) top dads' Father's Day wish lists this year

AUSTIN, Texas - Don't let another year go by without giving dad his due! RetailMeNot (www.retailmenot.com), the largest digital offers destination in the United States, conducted a survey with The Omnibus Company (www.omnibus.com) that finds dads may continue to get the short end of the stick this year, as more people buy Mother's Day gifts for mom than Father's Day gifts for dad (86%* vs. 77%). This gift buying behavior is consistent with findings from the 2013 Father's Day Shoppers Trend Report, which revealed more than half (58%) of dads feel they spend more money on their partners for Mother's Daythan their significant others typically spend on them for Father's Day.

Are we phoning it in for our fathers?

According to the 2014 Father's Day edition of the RetailMeNot Shoppers Trend Report, not only do more people buy gifts for mom on her big day, but they also put more effort into making her gifts special. In fact, 20% of people admit they are more creative with gifts for their mom on Mother's Day than their dad on Father's Day.

To pour salt on the wound for dear old dad, more than 11% of people surveyed admit they have forgotten to wish their dad a HappyFather's Day in the past. Additionally, 20% of respondents think it's acceptable to wish dad a Happy Father's Day via text or email.

One in 10 survey respondents feel that if they see their dad on Father's Day, they don't need to get him a gift; only 6%* feel the same way about Mother's Day.

Is perception reality?

Year after year, dads seem to get less attention than moms on their respective holidays. Nearly half (48%) of those surveyed believe people spend more on moms for Mother's Day than on dads for Father's Day. According to the survey, however, the average spend on both parents isn't too far apart: Survey respondents say they spend $61 on Father's Day gifts and $68 on Mother's Day gifts.

According to the survey, on average, shoppers buy their dad a Father's Day gift two weeks in advance of the holiday.** Of those who buy gifts, more than 6 in 10 (63%) make these purchases in-store – far fewer buy gifts online (21%) or make them (14%). Nearly 2 in 10 (17%) consumers look for coupons, discounts or sale-priced items when purchasing a gift for their dad on Father's Day.

Dad's most-desired gifts

According to the survey, the items at the top of dads' Father's Day wish lists this year are gift cards (17%) and quality time spent with family (17%). Last year, quality time with family beat out gift cards for the top spot (26% quality time vs. 20% gift cards).***

Far fewer dads are hoping to receive home improvement products (3%), video game systems or games (3%) or sports lessons (1%) this year.

Is he a gadget guy?

Over half (56%) of consumers surveyed say their dad is interested in technology products. The top technology product brand consumers think dad is most interested in is Apple (33%), beating out Windows (29%), Android (26%), and budget-friendly brands like Insignia (25%) and Samsung (24%).

When it comes to new technologies, dads surveyed say they are most excited about smart TVs, automotive technologies found in connected cars and vehicles with park assist and wireless sound systems for the home.

The top descriptors survey respondents use to describe their dads are "outdoorsy" (15%), "sports fanatic" (14%), "intellectual" (11%) and "grill master" (11%). They are far less likely to describe their dad as being "fashionable" (4%).

"Shopping for a guy who says he just wants to spend quality time together may prove to be a tiny bit difficult," says Katie Linendoll, tech-expert and contributor for The Real Deal by RetailMeNot. "This year I encourage you to kick it up a notch by putting a little extra thought and effort into giving dad a gift that really connects with his interests." 

June is National Dairy Month!

This is National Dairy Month, observed since 1937 when it was called National Milk Month. The makers of butter, cheese and ice cream wanted some recognition, so it shortly changed to its current name and promotes the quality and nutritional benefits of refrigerated dairy products. Americans eat more dairy products than any other food group except fruits and vegetables, averaging 612 pounds each annually. This includes nearly 36 pounds of various cheeses, 21 pounds of ice cream, sherbet and other frozen products, and 195 pounds of milk. About 130,000 people work in America's dairy manufacturing industry, one that ships products valued at over $75 billion annually. 

SOURCE U.S. Census Bureau

CoreLogic Reports 46,000 Completed Foreclosures in April

Foreclosure inventory down 35 percent nationally from a year ago

IRVINE, Calif. — CoreLogic® (NYSE: CLGX), a leading global property information, analytics and data-enabled services provider, today released its April National Foreclosure Report, which provides data on completed U.S. foreclosures and foreclosure inventory. According to CoreLogic, for the month of April 2014, there were 46,000 completed foreclosures nationally, down from 56,000 in April 2013, a year-over-year decrease of 18 percent. On a month-over-month basis, completed foreclosures were down slightly, by 0.4 percent, from the 47,000* reported in March 2014. As a basis of comparison, before the decline in the housing market in 2007, completed foreclosures averaged 21,000 per month nationwide between 2000 and 2006.

Completed foreclosures are an indication of the total number of homes actually lost to foreclosure. Since the financial crisis began in September 2008, there have been approximately 5 million completed foreclosures across the country.

As of April 2014, approximately 694,000 homes in the United States were in some stage of foreclosure, known as the foreclosure inventory, compared to 1.1 million in April 2013, a year-over-year decrease of 35 percent. The foreclosure inventory as of April represented 1.8 percent of all homes with a mortgage, compared to 2.7 percent in April 2013. The foreclosure inventory was down 4.7 percent from March 2014, representing the 30th month of year-over-year declines.

“Over the last 12 months, completed foreclosures fell to 599,000, the lowest level since the Great Recession began in 2007,” said Sam Khater, deputy chief economist for CoreLogic. “At the current pace of completed foreclosures, and given the current foreclosure inventory, it will take 14 months to move all of the foreclosed inventory through the pipeline.”

“We have now registered two and a half years of continuous decreases in the number of homeowners who are in some stage of the foreclosure process. This consistent decline means fewer Americans are experiencing the distress of delinquency and default,” said Anand Nallathambi, president and CEO of CoreLogic. “The recovery may be slow, but it is steady.”

Highlights as of April 2014:

• Every state, excluding New York and the District of Columbia, posted double-digit year-over-year declines in foreclosures.
• Thirty-seven states show declines in year-over-year foreclosure inventory of greater than 30 percent with Arizona, Utah, Minnesota and California and experiencing declines greater than 50 percent.
• The five states with the highest number of completed foreclosures for the 12 months ending in April 2014 were: Florida (121,000), Michigan (46,000), Texas (38,000), California (33,000) and Georgia (32,000).These five states account for almost half of all completed foreclosures nationally.
• The five states (including the District of Columbia) with the lowest number of completed foreclosures for the 12 months ending in April 2014 were: the District of Columbia (68), North Dakota (352), West Virginia (517), Wyoming (718) and Alaska (844).
• The five states with the highest foreclosure inventory as a percentage of all mortgaged homes were: New Jersey (6.0 percent), Florida (5.4 percent), New York (4.6 percent), Hawaii (3.1 percent) and Maine (3.0 percent).
• The five states with the lowest foreclosure inventory as a percentage of all mortgaged homes were: Alaska (0.4 percent), Wyoming (0.4 percent), North Dakota (0.5 percent), Nebraska (0.5 percent) and Minnesota (0.5 percent).

Survey Of U.S. Dads Reveals: 32 Percent Forgotten On Father's Day; 53 Percent Would Return Gifts; And One Even Received A Santa Necktie

MILWAUKEE, May 28, 2014 /PRNewswire/ -- While Father's Day is meant to celebrate fatherhood and family, new data shows most American dads aren't feeling the love. This year, Harley-Davidson rides to the rescue with a list of fresh ideas for unique Father's Daygifts to let dad know how cool we think he really is.

A few lucky dads will also win upgraded gifts in exchange for sharing photos of past year's flubs on Twitter or Instagram and tagging the post with #HDGiftSwap.

The survey, commissioned by Harley-Davidson, interviewed more than 1,200 American dads about their Father's Day gifts and experiences. The findings are clear that not all dads get their due on their day -- following are a few of their confessions:

• Sadly: Nearly a third of American dads (32 percent) confess they've had family members who have completely forgotten about them on Father's Day.
• My Family Missed the Mark: More than half (57 percent of fathers) confessed to receiving a Father's Day gift they did not like.
• "Take it Back:" More than half of dads surveyed (53 percent) said they'd received gifts they wanted to return. Perhaps that's because more than half of the dads also confirmed they've received the same type of Father's Day gift more than once.
• Not All Gifts Are Created Equal: When asked about the worst gift they'd ever received, dads were pretty candid, sharing the following gifting gaffes:
  • "A painted rock."
  • "A tie with Santa Clauses on it!"
  • "A coffee mug - for the 4th year in a row."
  • And, perhaps with mixed emotions: "My 45 year old unemployed daughter moving in."

"We love our dads, but oftentimes we hit a roadblock when it comes to ideas for Father's Day gifts," said Karen Davidson, Creative Director, General Merchandise, Harley-Davidson Motor Company. "That's why we're amping up Father's Day with some great gift ideas so families can get out of the dad's day gifting rut and give him what he really wants."