Garage or Backyard? Here’s What First-Time House Buyers Want
More than two-thirds of potential first-time homebuyers want a house in move-in condition, and 43 percent are looking for a place in the burbs.
Beyond that, first-time buyers are most interested in a home with a backyard or pool, striking design, and smart or energy efficient technology, according to the TD Bank First-Time Home Buyer Pulse.
“It’s encouraging to see interest from the first-time homebuyers who have been cautious for much of the housing recovery,” TD Bank Head of Pricing and Secondary Markets Scott Haymore said in a statement. “Consumers are gaining confidence in the economy and many are looking to enter the housing market within the next two years.”
Related: Why First-Time Home Buyers Are Flocking to Tennessee
Last year, first-time homebuyers comprised 38 percent of the market, according to the National Association of Realtors.
Among those surveyed, 62 percent want to make a down payment of at least 20 percent, but nearly two-thirds said they were still saving up for it. Almost half said they needed to pay down debt before they could buy a house.
The average down payment in the first quarter of 2015 was $57,710, reports RealtyTrac. Entry-level buyers usually put down less money than repeat buyers, and are more likely to take advantage of Federal Housing Administration loans, which allow down payments of as little as 3 percent for those who qualify.
Those who can’t get an FHA loan can still put down less than 20 percent by buying private mortgage insurance, with annual premiums of between 0.5 percent and 1 percent of the loan amount.
Map of the Day: Navigating the IRS
The Taxpayer Advocate Service – an independent organization within the IRS whose roughly 1,800 employees both assist taxpayers in resolving problems with the tax collection agency and recommend changes aimed at improving the system – released a “subway map” that shows the “the stages of a taxpayer’s journey.” The colorful diagram includes the steps a typical taxpayer takes to prepare and file their tax forms, as well as the many “stations” a tax return can pass through, including processing, audits, appeals and litigation. Not surprisingly, the map is quite complicated. Click here to review a larger version on the taxpayer advocate’s site.
A Surprise Government Spending Slowdown
Economists expected federal spending to boost growth in 2019, but some of the fiscal stimulus provided by the 2018 budget deal has failed to show up this year, according to Kate Davidson of The Wall Street Journal.
Defense spending has come in as expected, but nondefense spending has lagged, and it’s unlikely to catch up to projections even if it accelerates in the coming months. Lower spending on disaster relief, the government shutdown earlier this year, and federal agencies spending less than they have been given by Congress all appear to be playing a role in the spending slowdown, Davidson said.
Number of the Day: $203,500
The Wall Street Journal’s Catherine Lucey reports that acting White House Chief of Staff Mick Mulvaney is making a bit more than his predecessors: “The latest annual report to Congress on White House personnel shows that President Trump’s third chief of staff is getting an annual salary of $203,500, compared with Reince Priebus and John Kelly, each of whom earned $179,700.” The difference is the result of Mulvaney still technically occupying the role of director of the White House Office of Management and Budget, where his salary level is set by law.
The White House told the Journal that if Mulvaney is made permanent chief of staff his salary would be adjusted to the current salary for an assistant to the president, $183,000.
The Census Affects Nearly $1 Trillion in Spending
The 2020 census faces possible delay as the Supreme Court sorts out the legality of a controversial citizenship question added by the Trump administration. Tracy Gordon of the Tax Policy Center notes that in addition to the basic issue of political representation, the decennial population count affects roughly $900 billion in federal spending, ranging from Medicaid assistance funds to Section 8 housing vouchers. Here’s a look at the top 10 programs affected by the census:
Chart of the Day: Offshore Profits Continue to Rise
Brad Setser, a former U.S. Treasury economist now with the Council on Foreign Relations, added another detail to his assessment of the foreign provisions of the Tax Cuts and Jobs Act: “A bit more evidence that Trump's tax reform didn't change incentives to offshore profits: the enormous profits that U.S. firms report in low tax jurisdictions continues to rise,” Setser wrote. “In fact, there was a bit of a jump up over the course of 2018.”
