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Forecast Shows That 2020 Will Be a Big Year for 1st Time Buyers

December 14, 2019 / Tom Bonetto

Next year should be a big one for first-time homebuyers.

I’m linking to an article by Aly J. Yale at The Mortgage Reports that shows that the 1^st time buyer market is getting bigger.

According to new data, up to 9.2 million first-time buyers will hit the market between 2020 and 2022.

A New Frontier for First Timers

Says Yale, “according to a new analysis from credit bureau TransUnion, anywhere from 8.3 million to 9.2 million first-time homebuyers will enter the housing market between 2020 and 2022.

That’s up from just 6.67 million between 2013 to 2015 and 7.64 million between 2016 to 2018.”

Joe Mellman, senior vice president at TransUnion, the next couple of years should mark a turn-around for homebuyers.

“While we’ve recently seen a boom in refi activity, actual homeownership rates are down,” he said. “Challenges have included high home prices, sluggish wage growth, and limited housing inventory, but we may be starting to see daylight as slowing home price appreciation, low unemployment, increased wage growth, and low interest rates are helping affordability. As a result, we are optimistic that first-time homebuyers will contribute more to home ownership than at any time since the start of the Great Recession.”

Survey Results

TransUnion also surveyed potential first-time homebuyers on the perceived challenges that they face.

Interestingly, their results showed that most people are interested in buying a house for more privacy or the opportunity to build wealth.

Only about a quarter said they want to buy a home due to getting married or having children.

Per Yale’s article, “more than a third said they want a more steady job before buying a house. Another third said home prices are just too high.”

Finally, the survey also found that many first-time buyers aren’t aware of their financing options.

“Many of our potential first-time homebuyer respondents don’t seem to be aware of the wide variety of financing options available to them,” Mellman said. “It suggests there’s a large opportunity for lenders to proactively identify consumers who are interested in becoming first-time homebuyers and then educating them on options they may not be aware of.”

Where to go for help

It would be my pleasure to help any first time buyers through the home buying process. Don’t hesitate to reach out to me for more information or to schedule a consultation.

Pitchers Are Made in the Off-Season

December 8, 2019 / Tom Bonetto

When planning an off-season baseball conditioning workout for pitchers, think about the nature of the work.

A pitcher completes a very explosive movement that lasts about 3 seconds and then rests for 20 seconds. The goals for pitcher conditioning should be to mimic the physical stresses of competition and train the same energy system.

Interestingly, the right kind of physical conditioning during the off-season can be as vital to a baseball pitcher as working on throwing mechanics.

I’m linking to two interesting articles regarding the best plans for pitchers in the off-season. One by Steven Ellis at BaseballPitchingTips.com, the other by Phil Wallin at Stack.com. You will notice that both are similar in scope.

Some of the similarities:

The Design of the Program

Overall, a baseball pitcher’s workouts are designed to produce desired training effects that include:

increasing pitching velocity
improving velocity endurance or “late-inning stamina”
reducing the risk of injury

Do sprint work, not distance work

As Phil Wallin says, “pitching a baseball places an explosive, intense demand on your central nervous system. Thus, you need to train in a similar manner. The perfect type of training stimulus for this is sprints—not long distance endurance running, which over time teaches your body to become slow”

Focus on the Core

Per Steven Ellis, “rather, engaging the core for pitching training involves doing anti-rotation exercises in order to strengthen the midsection. Cable anti-rotation presses, medicine ball throws and planks should be used for a pitcher’s core work.”

Do Push-Ups, not Bench Press Work

According to Wallin, “push-Ups are a great closed-chain exercise. To complete the entire movement, your entire body must remain stable. Barbell Bench Presses lock the shoulders in a susceptible position. This is a good enough reason to leave them out of your training program. Push-Ups are a much safer option for working these joints and muscles.”

Other Programs – ZB Velcoity by Jordan Zimmerman

Similarly, one of the best programs available in the greater Phoenix area is Jordan Zimmerman’s ZB Velocity Training – I’ve written extensively on Jordan’s “Velo” program and its benefits…you can find out more about that here.

I’d invite you to dig into the articles and links posted above…as I’m sure it will help you gain strength, stamina, and prevent some injuries!

Buying a Home Is the Most Affordable It’s Been in Almost 3 Years

December 7, 2019 / Tom Bonetto

Home prices have slowed a bit in some areas, but they continue to climb in the majority of markets in the U.S. Inventory is stubbornly low in many parts of the country, but even with these factors, now is actually a good time to purchase.

Believe it or not, research shows that housing has actually become more affordable this year, despite home appreciation and tight inventory. Affordable homes are possible thanks to lower mortgage rates and greater purchasing power.

“Affordability is about the best it can be compared to what it is likely to be over the next few years. So, in that sense, it’s a good time to buy right now if you have the financial means.” –Lawrence Yun, Chief Economist, National Association of Realtors

However, this positive development may not last for too much longer. That’s why it pays to hunt for homes and mortgage rates now, as waiting could prove expensive.

I’m linking to an article from Erik Martin at The Mortgage Reports – you can find the entire piece here…

What The Numbers Show

Martin highlights a Black Knight study (found here) that shows “housing affordability hit nearly a three-year high in September.” Other findings from the report include:

The drop in mortgage rates since November has been enough to amp up buying power by $46,000 while keeping monthly principal and interest (P&I) payments the same
The monthly P&I needed to buy an average-priced home is $1,122. That’s down about $124 a month from November 2018, when interest rates were near 5%
Monthly P&I payments now require only 20.7% of the national median income. That marks the second-lowest national payment-to-income ratio in 20 months

Martin writes “that last point may be the most important. For the average home buyer, month-to-month housing costs are lower than they’ve been at almost any point in the last three years.”

Why Is Housing More Affordable Now?

Lawrence Yun, the chief economist for the National Association of Realtors, states that lower mortgage rates right now are helping to offset higher home prices.

“Assuming you put down 20% on a median-priced home, your monthly mortgage payment would be $1,070 at this time last year. That’s assuming a 4.7% mortgage rate at that time,” he says.

Today, your monthly payment on that same home could be down to $990 — $80 less — even though you would have paid more for the home thanks to rising real estate prices.

Will This Trend Continue?

Yun, and many other economists, believe that mortgage rates will likely remain attractive through 2020.

“But then they will rise, which will knock off many buyers from the pool of eligible purchasers,” predicts Yun.

Should You Act Now?

Please do reach out to me so we can analyze your current situation to see if a home purchase might be in your best interest. Based on the data, now is really the time to get started…and it would be my pleasure to help you.

New and improved conforming loan limits for 2020!

December 2, 2019 / Tom Bonetto

The Federal Housing Finance Agency announced last week that it is raising the conforming loan limits for Fannie Mae and Freddie Mac to more than $510,000.

In most of the U.S., the 2020 maximum conforming loan limit for one-unit properties will be $510,400, an increase from $484,350 in 2019.

What this means is that many buyers who were unable to qualify for $500,000 mortgages due to “jumbo loan” restrictions can now re-visit an application!

Data from FHFA shows that home prices increased by 5.38% on average between the third quarter of 2018 and the third quarter of 2019. So, the baseline maximum conforming loan limit in 2020 will increase by the same percentage.

As a result of generally rising home values, the increase in the baseline loan limit, and the increase in the ceiling loan limit, the maximum conforming loan limit will be higher in 2020 in all but 43 counties or county equivalents in the U.S.

Find out more from Housingwire here…

Conforming Loans – what are they?

A conforming loan gets its name because it meets or “conforms” to specific guidelines set by the two largest government-controlled loan entities — Fannie Mae and Freddie Mac. Loans that are greater than $510,400 in general are considered “jumbo” mortgages and are not controlled by Fannie Mae or Freddie Mac.

Recent History

This marks the fourth straight year that the FHFA has increased the conforming loan limits after not increasing them for an entire decade from 2006 to 2016.

In 2016, the FHFA increased the Fannie and Freddie conforming loan limit for the first time in 10 years, and since then, the loan limit has gone up by $93,400.

Back in 2016, the FHFA increased the conforming loan limits from $417,000 to $424,100. Then, the next year, the FHFA raised the loan limits from $424,100 to $453,100 for 2018. And in 2018, the FHFA increased the loan limit from $453,100 to $484,350 for 2019.

Median home values generally increased in high-cost areas in 2019, driving up the maximum loan limits in many areas. The new ceiling loan limit for one-unit properties in most high-cost areas will be $765,600 — or 150% of $510,400.

Find out More

Please do reach out to me and find out what the conforming loan limit is for your neighborhood!

Baseball Coaching Drills for Youth Teams

November 9, 2019 / Tom Bonetto

I’ve been coaching youth/club baseball with my friends Matt Palmer, Kevin Bacchus, Brian Beltramo, and Bret Prinz for many, many years. We’ve had a blast together…and we have been given the opportunity to coach some fine players.

Matt and I were talking the other day, looking back at some of the great times and great teams we’ve been fortunate enough to coach. We reminisced about how our practice plans were extremely simple – and that the skills we were instilling helped our players win more than a few ballgames.

Not to say that the practices were unscripted or easy (they were neither) – but we relied on a handful of drills to help develop proper fundamentals and simulate game situations.

Interestingly enough, in a little under 2 hours a few times a week, we essentially did the same, relatively simple team drills with all of our players.

We would take the last 45 minutes or so for batting practice and bullpens…so that left us 75 minutes for all of our defensive related drills.

We did these drills EVERY practice. Here are our 4 favorites:

Bare Handed Ground Balls

We would line the players up in either one or two lines and roll them ground ball after ground ball. Our focus was to have the players not rely on their gloves, but have soft hands, and field the ball out in front of them in a proper fielding position.

Then they would consciously watch the ball all the way into their hands, then gather the ball with their eyes still on it, and step-and-throw.

Triangle Drill

We would put one third of the kids at shortstop, a third at first, and a third behind the plate. The coach hits a ground ball to the shortstop, who fields and throws to first, and the first basemen throws to the catcher.

Each player then follows his throw to the next position (short to first, first to catcher, catcher to short).

Not only are we working on fielding, throwing, and catching – we are working on team play and endurance. Don’t underestimate the cardiovascular workout with this one!

4-Corners Drill

We would place players at all 4 bases and throw the ball around the horn – home to first, then to second, next to third, and finally to home for starters.

We would then switch directions…and the players would switch positions on the field so everyone would have a chance to play all positions.

Sometimes they would be force plays, other times, we would have them catch-and-tag.

Relay Drill

We put the players in 2 or 3 groups (depending on the number of players) – and space them out about 60 feet apart in groups, essentially two or three long lines of players from foul-pole to foul-pole. The ball would start at one end and be thrown from player to player until it reached the other end.

We worked on game simulated relays in this fashion, focusing on body positioning and feet movement.

At the end, we would hold a competition or “race” to see which team could perform the task the quickest and most effectively. If a team drops the ball, they pick it up and keep going.

As you can imagine, the most proficient team with the fewest or no drops would always win, regardless of the speed of the transition from one player to the next.

I can’t stress more strongly the need for these types of drills, especially with younger players. Our teams were fundamentally strong, for the most part, and they were able to execute team plays quite effectively…even at age 10.

If you’d like to find out more about practice planning for young players, do feel free to reach out, as I’d be happy to share more.

The Lending Coach