Category Archives: Waccabuc NY

Swiss Housing Market Bubble Looms Closer | Waccabuc NY Real Estate

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Switzerland’s property market is at greater risk of overheating, raising the question as to whether authorities have done enough to curtail the boom.

The UBS Swiss Real Estate Bubble Index rose to 1.23 points in the fourth quarter from 1.2 points in the third, according to a statement from UBS AG (UBSN) today.  A reading above 2 indicates a bubble.

“The potential for correction has increased further,”Matthias Holzhey and Claudio Saputelli at UBS in Zurich said.

The Swiss National Bank (SNBN)’s policy of zero rates, in place since August 2011, has kept down the cost of taking out a mortgage. Coupled with high immigration from neighboring European countries that has fueled a strong increase in real estate prices in Switzerland.

Growth in mortgages has exceeded that of economic output since 2009, and last year price gains of homes and apartments outstripped advances in incomes, according to the central bank.

Concerned Switzerland could fall victim to a real estate crisis similar to that of the 1990s, the government last year forced banks to build up a countercyclical buffer of 1 percent of mortgage-related assets. After that failed to prevent a further deterioration of the mortgage market, it last month doubled the requirement to 2 percent. Even so, it refrained from raising it to the maximum 2.5 percent. Banks have until June 30 to comply.

 

 

http://www.bloomberg.com/news/2014-02-05/swiss-housing-market-bubble-looms-closer-ubs-says.html

One thing you should do before refinancing | Waccabuc NY Real Estate

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Thinking about refinancing? Before you do, put some time and effort — and some money too — into sprucing up.

For anyone selling a home, sprucing up is a no-brainer. Repairs, upgrades, painting and landscaping can raise the sales price. But homeowners who are staying put and refinancing often don’t bother with these improvements. If you’re not looking for a buyer and have years to get around to these things, why bother?

Because the home’s condition will be reflected in the lender’s appraisal, which will determine whether you get the new mortgage and how large it can be.

 

http://realestate.msn.com/blogs/listed-homerefinancing.aspx?post=8b61048d-904f-4407-add8-695be3ff8d74

US banks under pressure to step up new mortgage business | Waccabuc NY Homes

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Pressure is mounting at the mortgage banking divisions of  the biggest US  banks.

As refinancing activity has plummeted, banks are trying to step up their new  home loan books, in an attempt to offset the dramatic revenue drag on overall  bank earnings. There are few easy ways to boost new purchase originations, but  one of the starkest battles is playing out in the bidding war for hotshot  mortgage loan officers.

“People are fighting over a smaller pie,” said Franklin  Codel, head of mortgage production at Wells Fargo, the biggest US home lender. “The  competition for quality loan officers is very high.”

Up to now, the focus has been on thousands  of job cuts in the mortgage divisions of US banks – many of which came in  the refinancing call centres as higher interest rates deterred borrowers from  refinancing their mortgages.

But as credit quality improves the banks have begun vying for a slice of the  new purchase market and have started an intense competition for experienced  mortgage bankers with existing client relationships.

The role of government-backed entities such as Fannie Mae and Freddie Mac means that US banks tend to offer  similar mortgage products so it is harder for them to stand out in this area  than in credit cards, where their benefits packages differ.

http://www.ft.com/intl/cms/s/0/ef5d1b9e-8377-11e3-86c9-00144feab7de.html#axzz2sIQ3eQmw

Hybrid ARMs are Hot | Waccabuc NY Real Estate

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Hybrid ARMs continued to be the most popular loan product offered by lenders and chosen by ARM borrowers according to Freddie Mac’s 30th Annual Adjustable-Rate Mortgage (ARM) Survey of prime loan offerings, which was conducted January 6 to January 10,

Hybrid ARMs have an extended initial fixed-rate period — generally three to ten years — and then adjust annually thereafter. Nearly all of the ARM lenders participating in the survey offered a hybrid. The 5/1 hybrid (a five-year fixed-rate initial period before the rate resets annually) was by far the most common, followed by the 3/1, 7/1 and 10/1. Far less common were ARMs where the re-pricing frequency was fixed for the life of loan, such as a one-year adjustable, a 3/3 ARM (which adjusts once every three years), or a 5/5 ARM (which adjusts every fifth year).

Among the 106 ARM lenders surveyed, 84 offered Treasury-indexed ARMs and 22 London Interbank Offered Rate (LIBOR)-indexed ARMs; generally, community and regional lenders were more likely to offer Treasury-indexed ARMs while large, national lenders offered LIBOR-based ARMs. Thus, even though offered by fewer lenders, the LIBOR-based product accounted for more than one-half of ARM originations. LIBOR-indexed ARMs generally had a lower margin (about 0.5 percentage points lower) than Treasury-indexed ARMs, a similar initial interest rate, but a higher index rate (about 0.5 percent-age points higher).

In early January 2014, the interest rate savings for the 5/1 hybrid ARM with a 30-year term — the most common ARM offered in today’s market — compared to the 30-year fixed-rate mortgage amounted to about 1.36 percentage points. For a $250,000 loan, the monthly principal and interest payment on a 5/1 hybrid would be about $194 less than on the 30-year fixed-rate loan over the first five years of the loan.

 

 

http://www.realestateeconomywatch.com/2014/01/hybrid-arms-are-hot/

Pending homes plunge, surprising economists | Waccabuc NY Real Estate

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Signed contracts to buy existing homes dropped 8.7 percent in December as abnormally cold weather hit much of the U.S., according to a new report from the National Association of Realtors.

The plunge caught economists by surprise. Economists polled by Reuters had forecast pending home sales would tick up 0.3 percent.

 

  This pending home sales index fell to 92.4 from a downwardly revised 101.2 in November. These signed contracts are an indicator of sales in January and February, and are at the lowest level since October 2011.

“Home prices rising faster than income is also giving pause to some potential buyers, while at the same time a lack of inventory means insufficient choice. Although it could take several months for us to get a clearer read on market momentum, job growth and pent-up demand are positive factors,” said the association’s chief economist, Lawrence Yun.

 

 

http://www.cnbc.com/id/101377134

Sharp Drop In December Pending Home Sales | Waccabuc NY Real Estate

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The number of U.S. homes in contract fell to the lowest point in 20 months last month. Unseasonably cold weather and low home inventory may have temporarily slowed housing growth nationwide.

For home buyers, the drop may present an opportunity. Homes had sold quickly through most of 2013 so the rapid, year-end slowdown may help give buyers leverage. Plus, mortgage rates have been dropping. Today’s rates are their lowest in more than 10 weeks.

The spring market looks ripe to rebound. The best deals of this year, then, may be the ones you find today.

Pending Home Sales Index : A “Future” Housing Indicator

The Pending Home Sales Index (PHSI) is a monthly report, published by the National Association of Realtors® (NAR). It measures homes under contract, and not yet closed.

The Pending Home Sales Index is unique among the “common” housing market metrics. Whereas most metrics report on how the housing market did perform, the Pending Home Sales Index reports on how the housing market will perform. The index is “forward-looking”.

This is because, according to the National Association of Realtors®, 80% of homes under contract “close” within 2 months.

In this way, the Pending Home Sales Index is correlated to the Existing Home Sales report. Homes under contract become homes sold. We should expect the February Existing Home Sales report, then, to show a similar drop-off as last month’s Pending Home Sales Index.

In December, the Pending Home Sales Index slipped 9% to reach 92.4. The drop marks the largest one-month change since May 2010, which was the month after the end of that year’s federal home buyer tax credit.

 

http://themortgagereports.com/14334/pending-home-sales-index-buyer-opportunity

Should I Update the Flooring in My Entry Hall? | Waccabuc NY Real Estate

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Q. The floors in our home are mostly hardwood except for the entry hall, which is dated tile. Is it worth replacing?

A. “If you and your broker notice it as a flaw and something that needs to be updated, you can be sure the buyer will, too,” said Aimee Scher, a real estate sales representative at Douglas Elliman Real Estate in Manhattan. So in most cases, she said, it is probably a good idea to replace the tile.

But you should consider the condition of the rest of the home, and your asking price. If other parts of your home require work, and you plan to set the asking price below similar properties, it may make sense to leave it as is.

“Some people would be willing to buy it with that flaw,” Ms. Scher said, “and then rip it out and replace it themselves.”

If the rest of your home is in pristine condition, though, and you plan to set your asking price at the high end of the range for similar properties, you should deal with the problem.

Ms. Scher said, “A $10,000 fix that might add $30,000 or $40,000 to your purchase price is something worth doing.”

http://www.nytimes.com/2014/01/30/garden/should-i-update-the-flooring-in-my-entry-hall.html?hpw&rref=garden

30-Year Fixed Mortgage Rate Declines Slightly | Waccabuc NY Homes

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Mortgage rates for 30-year fixed mortgages fell this week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace 4.18 percent, down from 4.23 percent at this same time last week.

The 30-year fixed mortgage rate remained stable for the majority of the week, peaking on Wednesday at 4.26 percent before dropping to the current rate over the weekend.

“Last week, rates dipped abruptly after China’s lackluster manufacturing report triggered concerns about the health of the global economy,” said Erin Lantz, director of mortgages at Zillow. “This week, markets will look to Wednesday’s Fed announcement about unwinding its stimulus program and Thursday’s GDP numbers as indicators of whether the U.S. economy can continue to improve. Mortgage rates could be affected by either or both.”

Additionally, the 15-year fixed mortgage rate this morning was 3.18 percent and for 5/1 ARMs, the rate was 2.80 percent.

What are the interest rates right now? Check Zillow Mortgage Marketplace for mortgage rate trends and up-to-the-minute mortgage rates for your state.

 

 

http://homes.yahoo.com/news/30-fixed-mortgage-rate-declines-slightly-190915610.html