Category Archives: Katonah

#Mortgage rates rise | #Katonah Real Estate

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Freddie today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates rising amid market expectations of possible rate increase by the Federal Reserve.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 3.87 percent with an average 0.6 point for the week ending November 5, 2015, up from last week when it averaged 3.76 percent. A year ago at this time, the 30-year FRM averaged 4.02 percent.
  • 15-year FRM this week averaged 3.09 percent with an average 0.6 point, up from last week when it averaged 2.98 percent. A year ago at this time, the 15-year FRM averaged 3.21 percent.
  • 1-year Treasury-indexed ARM averaged 2.62 percent this week with an average 0.2 point, up from 2.54 percent last week. At this time last year, the 1-year ARM averaged 2.45 percent.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following links for theRegional and National Mortgage Rate Details and Definitions. Borrowers may still pay closing costs which are not included in the survey.

Quote
Attributed to Sean Becketti, chief economist, Freddie Mac.

“Treasury yields climbed nearly 20 basis points over the past week, capturing the market movement following last week’s FOMC meeting. In response, the 30-year mortgage rate experienced its largest increase since June, up 11 basis points to 3.87 percent. Recent commentary suggests interest rates may rise in the near future. Janet Yellen referred to a December rate hike as a ‘live possibility’ if incoming information supports it. The October jobs report to be released this Friday will be one crucial factor influencing the FOMC’s decision.”

 

 

New Home sales shrink 11.5% | Katonah Real Estate

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Sales of new single-family houses in the United States shrank 11.5 percent to a seasonally adjusted annual rate of 468,000 in September of 2015, the lowest since November last year. The stock of new houses for sale increased to its highest since March of 2010. New Home Sales in the United States averaged 654.25 Thousand from 1963 until 2015, reaching an all time high of 1389 Thousand in July of 2005 and a record low of 270 Thousand in February of 2011. New Home Sales in the United States is reported by the U.S. Census Bureau.

 

United States New Home Sales

 

ActualPreviousHighestLowestDatesUnitFrequency
468.00522.001389.00270.001963 – 2015ThousandMonthly
Volume, SA
A sale of the new house occurs with the signing of a sales contract or the acceptance of a deposit. The house can be in any stage of construction: not yet started, under construction, or already completed. This page provides the latest reported value for – United States New Home Sales – plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Content for – United States New Home Sales – was last refreshed on Monday, October 26, 2015.
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http://www.tradingeconomics.com/united-states/new-home-sales

US Mortgage Apps surge 25% | Katonah Real Estate

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Applications for U.S. house mortgages surged 25.5 percent in the week ended October 2nd, 2015, rebounding from a 6.7 percent fall in the previous period and posting the highest gain since-mid January as many applications were filled prior to the TILA-RESPA regulation took effect on October 3rd, introducing changes to the mortgage process. In addition, fixed 30-year mortgage rates averaged 3.99 percent, the lowest in five months. Refinancing applications soared 24.2 percent and purchase applications went up 27.4 percent. Mortgage Applications in the United States averaged 0.54 percent from 2007 until 2015, reaching an all time high of 49.10 percent in January of 2015 and a record low of -38.80 percent in January of 2009. Mortgage Applications in the United States is reported by the Mortgage Bankers Association of America.

 

ActualPreviousHighestLowestDatesUnitFrequency
25.50-6.7049.10-38.802007 – 2015percentWeekly
SA
Mortgage Applications measure the change in the number of new applications for mortgages backed by the Mortgage Bankers Association during the reported week. Mortgage applications include both refinancing and home purchasing. This page provides – United States MBA Mortgage Applications – actual values, historical data, forecast, chart, statistics, economic calendar and news. Content for – United States MBA Mortgage Applications – was last refreshed on Wednesday, October 7, 2015.
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http://www.tradingeconomics.com/united-states/mortgage-applications

Used homes sales fall | #Katonah Real Estate

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Contract signings to purchase previously owned U.S. homes unexpectedly declined in August for just the second time this year, signaling residential real estate might have difficulty building on recent momentum.

An index of pending home sales decreased 1.4 percent after a 0.5 percent advance in July, the National Association of Realtors said Monday. The median projection in a Bloomberg survey of economists called for the gauge to climb 0.4 percent.

A scant supply of homes for sale that’s keeping prices elevated is hampering demand. At the same time, historically low mortgage rates and steady employment gains should help underpin the market as the broader U.S. economy battles headwinds from dollar appreciation and slower overseas growth.

“Pending sales have leveled off since mid-summer, with buyers being bounded by rising prices and few available and affordable properties within their budget,” NAR chief economist Lawrence Yun said in a statement.

Estimates in the Bloomberg survey of 37 economists ranged from a decrease of 4.2 percent to an advance of 1.5 percent.

Purchase contracts increased 6.7 percent in the 12 months ended in August after a 7.2 percent annual gain in July on an unadjusted basis, the NAR report showed.

The pending sales index was 109.4 on a seasonally adjusted basis. A reading of 100 corresponds to the average level of contract activity in 2001, or “historically healthy” home-buying traffic, according to the NAR.

 

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http://www.bloomberg.com/news/articles/2015-09-28/pending-sales-of-previously-owned-u-s-homes-unexpectedly-fall

Condo prices struggling | Katonah Real Estate

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Appreciating home values in the bottom third of the market helped pull more homeowners out of negative equity in the second quarter of 2015, but condos were more likely than houses to be underwater , according to the Zillow® Negative Equity Report.

•             The U.S. rate of negative equity among mortgaged homeowners continued to drop in the second quarter of 2015, to 14.4 percent– the first time the rate has been below 15 percent since the real estate bubble burst.

•             The improvement was spurred by value growth in the least valuable third of the housing stock, which are far more likely to be underwater than other homes.

•             Condos are more likely to be underwater than single-family homes. Nearly 20 percent of all condos with a mortgage are upside down.

Condo-owners were in far worse shape than single-family homeowners in Chicago, Orlando and Las Vegas. And in only three markets – Detroit, Memphis, and Pittsburgh –single-family homeowners were more likely to be underwater than condo-owners.

A high rate of homeowners who owe more on their mortgages than their homes are worth is a lingering effect of the real estate crisis. At its worst, more than 15 million homeowners were upside down on their homes. Foreclosures, short sales and rapidly rising home values freed nearly half of those homeowners, leaving 7.4 million homeowners upside down at the end of Q2 2015.

The continued decline of the overall negative equity rate was fueled in the first half of the year by strong appreciation for the least valuable third of homes. The least valuable homes are much more likely to be underwater than more valuable homes

In the Atlanta market, for example, nearly 43 percent of the least valuable homes are in negative equity, while only 9.4 percent of high-end homes are underwater. Annual home value appreciation among the least valuable homes in Atlanta had slowed for 12 straight months through June 2015 months. However, low-end homes have been appreciating annually more than more valuable homes.  Since June 2014, annual appreciation in the bottom tier outpaced home value appreciation among all Atlanta homes, likely helping drive negative equity down there from 29 percent to 21 percent year-over-year.

Similar trends played out in Sacramento, Riverside, and Phoenix, all places that have struggled with high rates of negative equity.

 

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http://www.realestateeconomywatch.com/2015/09/

 

Brad Pitt Brings the Tiny Home Trend to New Orleans | Katonah Real Estate

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The tiny home trend has taken off in recent years, and is now being championed by of one of Hollywood’s biggest stars: Brad Pitt. The actor-producer’s Make it Right foundation is partnering with FYI’s Tiny House Nation to build the organization’s very first tiny home to mark the 10th anniversary of Hurricane Katrina. This most recent enterprise will be the organization’s 109th home built in New Orleans’ Lower Ninth Ward, the neighborhood hardest hit by Hurricane Katrina in 2005.

Pitt founded the Make it Right foundation in 2007 to provide residences for communities in need of affordable and sustainable housing. Make it Right seeks to fulfill its vision of having people all around the world “living in healthy communities and affordable, high-quality, environmentally sustainable homes.” All housing built by Make it Right follows the “Cradle to Cradle” philosophy, which was created by architect William McDonough and chemist Dr. Michael Braungart.

For a quick rundown of what exactly Cradle to Cradle entails, the organization’s website provides this helpful list:

• Materials are defined as biological and/or technical nutrients for safe use and reuse
• Products are designed for disassembly/recovery
• Uses renewable energy
• Maintains and enhances water quality
• Honors social fairness and human dignity
• Improvement is continuous and aspirational

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https://www.yahoo.com/makers/brad-pitt-brings-the-tiny-c1239214805033014.html

Las Vegas housing prices dip | Katonah Real Estate

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Las Vegas housing resale prices dipped in July but remained higher than they were a year ago, while sales volume continued to climb, according to a new report.

The median sales price of single-family homes sold in Southern Nevada last month was $218,000, down 0.9 percent from June but up 9 percent from July 2014, according to the Greater Las Vegas Association of Realtors.

Buyers picked up 3,180 single-family homes last month, up 4 percent from June and 20.4 percent from July 2014.

The number of ignored listings, however, also rose. There were 7,636 single-family homes on the market without offers by the end of July, up 2.7 percent from June and 5 percent from a year ago, the GLVAR reported.

The trade association reports data from its listing service, which largely comprises previously owned homes.

In the report, GLVAR President Keith Lynam said he likes to compare the housing market to a marriage: “It’s a good thing when it’s stable.”

“For the most part, that’s what we’ve seen so far this year,” he said.

Prices are rising at a much slower pace than in recent years. After the economy tanked, investors gobbled up cheap homes to turn into rentals and pushed up housing values at one of the fastest rates nationally, raising fears of another bubble. However, the housing marketcooled considerably last year as investors, faced with higher prices, backed out.

 

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http://vegasinc.com/business/2015/aug/10/Las-Vegas-housing-prices-dip-July/

Condos gaining popularity in Greenwich real estate market | Katonah Real Estate

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Greenwich is traditionally known for its sprawling multi-million dollar estates and a community that provides escape from the compact living associated with nearby Manhattan.

But what happens when those expansive single-family homes are no longer the preferred abode for Greenwich elite?

Jonathan Miller, president of Miller Samuel Real Estate Appraisers and Consultants, said an influx of luxury condos on the market — and a rush of city dwellers seeking homes with little upkeep in the suburbs — is changing the way people think about Greenwich real estate.

“We’re seeing this in Westchester, we’re seeing this in the Hamptons … where the development is luxury condo products,” Miller said. “We’re seeing this city-to-suburban path where people coming from the city are used to this —not having to take care of the exterior of the property, etc. — and we’re seeing this pop up in a lot of New York City metropolitan area suburbs, including Greenwich.”

Miller prepares an independent quarterly report for real estate firm Douglas Elliman, which recently entered the Greenwich market. The Elliman Report details the changing trends in the region, particularly as it relates condominium and townhouse sales to single-family homes. The first quarter report showed the ongoing change in the Greenwich real estate market — mansions were struggling to sell while condos with less upkeep (and a lower price tag) were more popular among buyers.

 

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http://www.greenwichtime.com/business/article/Condos-gaining-popularity-in-Greenwich-real-6413253.php

New Home Sales: Growth for FHA-Backed Mortgage Share | Katonah Real Estate

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NAHB analysis of the most recent Census numbers reveals two consecutive quarters of higher market share of FHA-backed mortgages for the new home sale sector. This development comes after a reduction in FHA premiums announced at the start of 2015.

qtrly new home sales_2q15

Despite the surprising drop for the pace of new home sales in June (down 6.8%), the strong non-seasonally adjusted sales level for April (revised to 50,000 homes) pushed total sales for the second quarter of 2015 to a post-recession high of 143,000. This is according to data from the Census Bureau’s Quarterly Sales by Price and Financing and NAHB calculations.

New home sales due to FHA-backed loans increased to a quarterly count of 100,000 and a market share of 16% for the second quarter according to the Census numbers. This is higher than the approximate share of 11% from a year prior.

It is worth adopting some caution associated with these estimates. In particular, the statistical error associated with the FHA, cash, and VA sales estimates from this data set are relatively high. This reduces the reliability of measures of short-term market changes.

Mindful of this limitation, the current FHA-share estimate is lower than the 28% share determined for the first quarter of 2010 but is higher than the 10% 2002-2003 average. The FHA share has fallen as the conventional financing share recovered. However, the share increased from 10% to 16% from the end of 2014 to the start of 2015.

 

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http://eyeonhousing.org/2015/07/new-home-sales-growth-for-fha-backed-mortgage-share/

Interest Only Mortgages are back | Katonah Real Estate

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They were the villains of the housing crash. Federal regulators called them toxic. Now interest-only mortgages are making a comeback, but these are not the loans of yesteryear or yester-housing booms.

“I think it’s opening the door back to responsible lending, giving people choices,” said Mat Ishbia, president and CEO of Michigan-based United Wholesale Mortgage, the second-largest lender through brokers in the nation.

The company announced Monday it is now offering interest-only loans through brokers, with significant safeguards. Borrowers must put 20 percent down, ensuring that they have the “skin in the game” that so many did not during the heady days of the housing boom. They must have at least a 720 FICO credit score, which is well above average, and they must qualify on what the payments will be once they’re adjusted higher, not at the starter rate.

Real estate

Mike Powell | Getty Images

“These people can afford these mortgages. They’re savvy homeowners,” said Ishbia. “We’re giving them the choice. It is no more risk to us. We actually think it’s less risk.”

United Wholesale Mortgage does not hold the loans but sells them to investors. Fannie Mae and Freddie Mac, the government-backed mortgage giants, do not buy these types of loans.

The mortgage begins as a five-year adjustable-rate product. Without paying principal, a borrower using, for example, a $300,000 mortgage, would start at 4.125 percent today, the same as a 30-year fixed. Without paying principal, however, the borrower would save $420 per month.

The interest rate can then adjust higher after five years, depending on market rates, but borrowers for this product are underwritten at a rate above 6 percent to ensure they could handle that adjustment. Borrowers are also required to start making principal payments after 10 years; of course they can also refinance the loan whenever they want.

In 2013, the Consumer Financial Protection Bureau issued rules to protect consumers from what it deemed “irresponsible mortgage lending.” So-called qualified mortgages under the new regulations would give lenders certain protections, should the loans go bad. Under the QM rules, according to the news release at the time, there would be:

No toxic loan features: A qualified mortgage cannot have risky loan features, such as terms that exceed 30 years, interest-only payments, or negative-amortization payments where the principal amount increases. In the lead up to the crisis, too many consumers took on risky loans that they didn’t understand. They didn’t realize their debt or payments could increase, or that they weren’t building any equity in the home.

Interest-only loans therefore fall under the definition of a qualified mortgage. During the housing boom, they were used to help borrowers buy homes they really couldn’t afford. Now, more lenders are starting to do them again, but with much tighter restrictions. They are mostly offered to high net worth individuals in the jumbo loan category, and banks hold the loans on their balance sheets.

 

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http://www.cnbc.com/2015/07/20/interest-only-mortgages-theyre-baaack.html