Before applying for a mortgage, borrowers need to build a plan for how they are going to manage their credit both going into the process and as they go through it.
Residential Construction Spending Up
Last week's mortgage and housing-related reports began with Construction Spending for December, with a reading of 0.10 percent or a seasonally adjusted $930.5 billion.
December's reading fell short of an expected increase of 0.40 percent.
Generally when you are purchasing a home, you are buying below the appraised value and you are making a down payment. The good news is this means you have "instant equity" in your home.
According to a statement provided by the Federal Open Market Committee of the Federal Reserve, the committee has approved another reduction of the Fed's monthly asset purchases.
Last week brought mixed news; while the Department of Commerce reported a dip in new home sales, mortgage rates also fell. The Federal Reserve's FOMC statement revealed that quantitative easing would be further reduced by an additional $10 billion monthly.