Category Archives: Waccabuc NY

Mortgage rates average 4.09% | Waccabuc Real Estate

Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average mortgage rates moving lower for the third consecutive week.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 4.09 percent with an average 0.5 point for the week ending Jan. 19, 2017, down from last week when it averaged 4.12 percent. A year ago at this time, the 30-year FRM averaged 3.81 percent.
  • 15-year FRM this week averaged 3.34 percent with an average 0.5 point, down from last week when it averaged 3.37 percent. A year ago at this time, the 15-year FRM averaged 3.10 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.21 percent this week with an average 0.4 point, down from last week when it averaged 3.23 percent. A year ago, the 5-year ARM averaged 2.91 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 link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.

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

“After trending down for most of the week, the 10-year Treasury yield rose following the release of the CPI report. In contrast, the 30-year mortgage rate fell three basis points to 4.09 percent, the third straight week of declines.”

Homebuilder Sentiment Hits 18-Year High | Waccabuc Real Estate

Confidence among U.S. homebuilders jumped in December to the highest level since July 1999, exceeding all analyst estimates, as a growing economy boosts housing demand, according to data Monday from the National Association of Home Builders/Wells Fargo.

Highlights of Homebuilder Sentiment (December)
  • Housing market index rose to 74 from a downwardly revised 69 in Nov.; median est. was 70, with forecasts ranging from 68 to 72
  • Current sales gauge increased to 81, highest since 1999, from 77; future sales index rose to 79, highest since 2005, from 76
  • Regional index for the Midwest surged 11 points to 76, highest in data back to 2004

Key Takeaways

The surprisingly strong reading shows developers expect demand to advance amid steady economic growth and a tightening job market. Mortgage rates remain close to record lows, making borrowing attractive for prospective buyers, while the homebuilders also cited easier regulation under President Donald Trump as helping the housing market.

Demand for properties is rising, with a gauge of homebuyer traffic rallying to a 19-year high, according to the survey. A host of data this week will give a fuller picture of the housing market, including sales of new and existing homes, as well as groundbreakings and building permits.

Officials’ Views

“Housing market conditions are improving partially because of new policies aimed at providing regulatory relief to the business community,” NAHB Chairman Granger MacDonald, a homebuilder and developer from Kerrville, Texas, said in a statement.

“With low unemployment rates, favorable demographics and a tight supply of existing home inventory, we can expect continued upward movement of the single-family construction sector next year,” NAHB Chief Economist Robert Dietz said in the same statement.

 

 

read more…

 

https://www.newsmax.com/finance/streettalk/homebuilder-sentiment-construction-housing/2017/12/18/id/832331/

 

Serious Delinquency Rates Improve Across Most Household Debts | Waccabuc Real Estate

A recent release by the Federal Reserve Bank of New York indicates that, in aggregate, 90 or more day delinquency rates are falling on most household debt products. However, serious delinquency on student loans remains elevated while a greater portion of auto debt held by households with low credit scores is entering serious delinquency. The results indicate that household balance sheets are likely improving on balance but some concerns persist.

As the figure below illustrates, the majority of consumer loan types have seen the share of balances 90 or more days delinquent fall from their cycle peaks. The proportion of credit card debt 90 or more days past due has dropped to 7.1 percent 6.6 percentage points below its peak in 2010, 13.7 percent. The percentage of mortgage debt has dived 7.3 percentage points to 1.6 percent while the portion of 90 or more days late home equity lines of credit has fallen from 4.9 percent to 2.0 percent.

presentation1

Although credit card debt, mortgages, and home equity lines of credit have trended downward since reaching their cycle peaks, the share of student loan debt 90 or more days delinquent jumped in 2012 to 11.7 percent and has remained near this level in subsequent years.

Interestingly, the 90 or more day delinquency rate on auto debt followed the same pattern as credit card and mortgage debt, declining in the years immediately after reaching its peak. However, since 2014, the proportion of auto loan debt 90 or more days delinquent has held steady. More precisely, the percent of auto loans 90 or more days delinquent has trended up slightly since the middle of 2014.

Additional analysis by the Federal Reserve Bank of New York indicates that, after declines from their cycle peaks, the flow of auto debt into 90 or more day delinquency has been generally flat for households with a 620 and above. However, as shown in the figure below which was reproduced from the blog post linked to above, the flow of auto loans into 90 or more day delinquency has increased noticeably for consumers with a credit score below a 620.

presentation2

More precisely, the flow of auto debt flowing into 90 or more day delinquency for those with a credit score between 620 and 659 rose a bit in 2014 before returning in 2015. In addition, there has been a very slight upward trend in the flow of auto debt into 90 or more day delinquency by borrowers with a credit score between 660 and 719 and a small uptick over 2016 in the flow for consumers with a score between 720 and 759.

 

read more…

 

http://eyeonhousing.org/2016/12/serious-delinquency-rates-improve-across-most-household-debts/

Are Trophy Homes Losing their Lustre? | Waccabuc Real Estate

Leave a reply
Are Trophy Homes Losing their Lustre?

With pressure on the homebuilding industry to build fewer trophy homes and concentrate on filling the demand for affordable housing, the data does not bode well for builders.

Median prices of new homes have risen steadily during the recession. In September, the median sold price of a new home hit $313,500, 5.5 percent higher than last year’s median of $296,400 and 25.2 percent higher than the median price for existing homes in September.

Even so, over the past two years super expensive homes priced at one million or more are on the decline, according to data from the Census Bureau’s Survey of Construction.  In 2015, a total of 1,762 homes were started for sale with a price of $1 million or more and new homes started for sale with a price of $1 million or more decreased as a share in absolute number in 2015. That number was significantly lower than in 2013 (3,347 homes) and 2014 (3,019).

 

2016-11-16_14-05-42

In percentage terms, these expensive homes represented 1.06 percent of all new homes started for sale in 2015, from a peak of 1.26 percent in 2014 but about the same as in 2013 (0.99 percent). This represents a much higher percent share compared to other years. For instance, from 2008 to 2012 the percent share of $1 million or more homes started for sale was less than 0.50 percent, while it was at most 0.66 percent during the boom period, reported the National Association of Home Builders’ Eye on Housing blog.

To put things in perspective, Trulia reported in May that since 2012 the share of all million dollar homes in the United States has increased from 1.6 percent to 3 percent, but many metros and neighborhoods have seen a much larger increase.

read more…

http://www.realestateeconomywatch.com/2016/11/are-trophy-homes-losing-their-lustre/

Garages in New Homes: 2015 Data | Waccabuc Real Estate

Leave a reply

A majority of new homes that completed construction in 2015 included two-car garages, according to NAHB analysis of Census Bureau Survey of Construction data gathered from garage door repair  and installation companies and homeowners.

For new single-family completions in 2015, 61% of homes offered a two-car garage that had Commercial Overhead Door Installation on them. Another 24% of homes possessed a garage large enough to hold three or more cars. Just 6% of newly-built homes had a one-car garage, and only 1% possessed a carport. Another 9% of new homes had no garage or carport. The ADSAutomaticDoorSpecialists, provide best garage door services to homeowners. The term garage door repair also includes replacements of major parts and even renovation. It can be performed through the use of simple hand tools, through the help of professionals and through the services of people expert on the job of repairs for garage. Simple repairs on a garage can be done through the use of household tools. Screws that have already loosened, for example, can be quickly repaired by simply tightening them up using screw drivers. Loose screws in the doors are commonly seen on the hinges and if they are not repaired right away, they may even cause accidents. Another simple repair on the garage that the resident handy man can do is changing the batteries for the remote controls of the garage opener. Very often, people get stressed out by door malfunctions or unresponsiveness to the controller without even realizing that the problem is very simple. In fact, they can be considered as not a problem at all. All that one has to do is to check the remote controller first. He can see if the thing is really not working or the batteries have just worn out and are already calling for replacements. A basic thing like this should not be worried about and is actually just a minor repair.

There are times, however, that simple remedies and the use of household tools are not enough to make the necessary repair. On such occasions, seeking the help of professionals is not a bad idea. One example of this is getting help from the locksmith. The lock of the garage door is one of those parts that worn out first due to frequent, and sometimes, wrongful use. It is very impractical to change the whole thing just because of a problematic part. Still, it is also impractical to raid the supermarkets for locks that one is not even sure of, particularly in terms appropriateness, installation and the security that the device provides. As such, the help of an expert locksmith will come in very handy. He can identify the device appropriate for the door, install it for the owner and guarantee as to the security that the device will provide.

Always check out the reputation of any company you are considering. Do they have the most up-to-date tools and equipment? Are their technicians highly-trained and knowledgeable? These are the people who you will be entrusting with the inspection your door, the diagnosis of the problems, and making the actual repairs. You need to feel confident that they know what they’re doing. Meet with the technician who will be working on your door personally, and assess for yourself how professionally this person behaves, how important your job is to him, and how quickly and efficiently he can assure you the repairs will be made. Once you are satisfied that the repairman meets these criteria, you can go ahead and hire him.

The company you hire should be willing to spend the time it takes to inspect your door and its hardware, give you a detailed explanation of the repairs and the costs, and answer any questions you may have. Anyone who tries to give you a rush job or who only gives you a runaround isn’t worth considering. Most likely, this person will also perform slipshod work and cosmetic fixes without dealing with the underlying causes of the problem. Instead, you want someone who is willing to give your job the individualized time and attention it needs.

parking1

Over the last two decades, there has been a shift in parking options. As home size has grown, the share of homes with a three or more car garage has grown as well. In 1992, 11% of homes had a garage for three or more cars. That share rose to a peak of 20% in 2005, before falling to 16% in 2010.

In contrast, the market share of homes with no garage or carport has been on the decline. In 1992, 15% of new single-family homes had no parking facility. That share fell to 8% in 2005, before rising slightly to 13% in 2010.

There are also clear regional differences for parking options in new homes. In the Northeast, no garage or carport is available in 18% of homes, the highest such share. In the West, that is true in only 3% of homes, the lowest Census region. The Midwest had the highest share of three or more car garages, at 42% of new homes. The Northeast had the lowest market share of three-plus car garages, with just 12% homes completed. The Northeast in contrast leads the share in one-car garages, with 16% of completed single-family homes.

read more…

http://eyeonhousing.org/2016/10/garages-in-new-homes-2015-data/

Schiller: Always reason to worry about housing prices | Waccabuc Real Estate

Leave a reply

US home price gains slowed slighting in July, as many on Wall Street are speculating that the Federal Reserve will raise rates before the end of the year. The S&P/Case-Shiller 20-City Composite Index rose 5.0% year-over-year, missing analysts’ expectations of a 5.1% increase but still above the 4.8% pace of the prior two years.

The recent surge in real estate demand has pushed home prices near their pre-crisis peak in 2006, which is making it increasingly difficult for new home buyers to enter the market. Home sales fell 0.9% in August from the previous month, according to the National Association of Realtors. That’s the second straight month of declines.

Higher home prices have begged the question by many as to whether the current pace is sustainable, or if there’s reason to fear another massive collapse in real estate.

“There’s always reason to worry [about a coming collapse],” Robert Shiller, Nobel Prize–winning economist and co-creator of the S&P/Case Shiller Index, told Yahoo Finance’s Seana Smith in the video above. But he is quick to point out one stark difference between today’s housing market and that of 2006. “We’re in a holding pattern right now … People are less excited about buying because they themselves don’t believe [home prices] will be going up a lot. Back in 2006, when the homeownership rate was setting records, people had extravagant expectations.”

His comments on Americans’ hesitation to buy echo the findings of a recent study byPulsenomics, which found that just 38% of renters surveyed think now is a good time to buy. Today, home values have reached or surpassed peak levels in about a quarter of US markets.

How rising rates could impact the housing market

While prospective buyers continue to benefit from relatively low borrowing costs, the big question is whether a series of rate hikes will increase mortgage rates and prompt a fallout in the housing sector. Fed funds futures suggests a roughly 57% chance of higher US interest rates by December, according to data from CME Group.

Shiller says it’s very difficult to forecast how the housing market will react to rising rates but is quick to point out that even in an uncertain environment, rate hikes shouldn’t be a factor for potential buyers.

“The Fed raised [rates] in December just a quarter of one percent, and plausibly they’ll raise [rates] by another quarter or a half percent, and it may not be a big deal,” said Shiller. “On the other hand, it might be a big deal because we’re in this strange period of near zero interest rates, and if people see it as a major turning point, it could affect home prices … My opinion is if you want a house, go out and buy it. It’s not an extremely unusual time. There are always risks.

read more…

http://finance.yahoo.com/news/robert-shiller-theres-always-reason-to-worry-about-a-coming-collapse-in-housing-124331739.html

Mortgage rates average 3.52% | Waccabuc Real Estate

Leave a reply

Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates moving higher for the second week in a row and marking the first time the 30-year fixed-rate mortgage has risen above 3.5 percent since June.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 3.52 percent with an average 0.5 point for the week ending October 20, 2016, up from last week when they averaged 3.47 percent. A year ago at this time, the 30-year FRM averaged 3.79 percent.
  • 15-year FRM this week averaged 2.79 percent with an average 0.5 point, up from last week when they averaged 2.76 percent. A year ago at this time, the 15-year FRM averaged 2.98 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.85 percent this week with an average 0.4 point, up from last week when it averaged 2.82 percent. A year ago, the 5-year ARM averaged 2.89 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 link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.

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

“The 30-year fixed-rate mortgage moved a solid 5 basis points to 3.52 percent while the 10-year Treasury yield remained relatively flat. This is the first week in over 4 months that rates have risen above 3.50 percent. This month, mortgage rates seem to be catching up to Treasury yields and returning to pre-Brexit levels.”

U.S. housing starts fall 9% | Waccabuc Real Estate

Leave a reply

Housing starts in the United States tumbled 9 percent to a seasonally adjusted annualized rate of 1047 thousand in September from August of 2016, below market expectations of 1175 thousand. It is the lowest figure since March of 2015, due to a fall in construction of multifamily homes. In contrast, building permits rose 6.3 percent to 1225 thousand, beating expectations of 1165 thousand. Housing Starts in the United States averaged 1439.56 Thousand from 1959 until 2016, reaching an all time high of 2494 Thousand in January of 1972 and a record low of 478 Thousand in April of 2009. Housing Starts in the United States is reported by the U.S. Census Bureau.

United States Housing Starts

 

 

read more…

 

http://www.tradingeconomics.com/united-states/housing-starts

 

Home prices rise slightly less than forecast | Waccabuc Real Estate

Leave a reply

U.S. single-family home prices rose slightly less than expected on an annual basis in July, and the year-over-year gain was smaller than in the prior month, a survey showed on Tuesday.

The S&P CoreLogic Case-Shiller composite index of 20 metropolitan areas rose 5 percent in July on a year-over-year basis, retreating from the 5.1 percent climb in June and short of the estimate calling for a 5.1 percent increase from a Reuters poll of economists.

“Both the housing sector and the economy continue to expand with home prices continuing to rise at about a 5 percent annual rate,” said David M. Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices.

“There is no reason to fear that another massive collapse is around the corner.”

Prices in the 20 cities were flat in July from June on a seasonally adjusted basis, the survey showed, matching expectations.

On a non-seasonally adjusted basis, prices increased 0.6 percent from June.

Home prices in three U.S. cities, Denver, Seattle and Portland, Oregon, showed the highest year-over-year gains, the survey showed.

 

read more…

 

http://www.marketbeat.com/stories.aspx?story=http%3a%2f%2ffeeds.reuters.com%2f~r%2freuters%2fbusinessNews%2f~3%2fKc7Pyl6Zl3o%2fus-usa-economy-homes-index-idUSKCN11X1FO

Pending Sales Decline | Waccabuc Real Estate

Leave a reply

The Pending Home Sales Index decreased 2.4% in August, declining for the third time in four months, and falling 0.2% below its level for the same month a year ago. The Pending Home Sales Index (PHSI), a forward-looking indicator based on signed contracts reported by the National Association of Realtors (NAR),decreased to 108.5 in August from a downwardly revised 111.2 in July.

pending-home-sales-august-2016

The PHSI increased 1.3% in the Northeast in August, consistent with the 6.1% increase in existing sales in the Northeast reported last week. But the PHSI decreased in the remaining regions, ranging from 0.9% in the Midwest to 3.2% in the South and 5.3% in the West. Year-over-year, the PHSI was up 5.9% in the Northeast, but fell 0.6% in the West. 1.5% in the South and 1.7% in the Midwest.

NAR attributed the PHSI decline to a lack of inventory. However, builder confidence surged in September along with consumer confidence. Also, August new home sales recorded their second strongest month since the Great Recession. These reports suggest good news for new construction as the housing recovery continues to address demand among first-time buyers and broaden across a wider range of markets during the balance of 2016.

 

read more…

 

http://eyeonhousing.org/2016/09/pending-sales-decline/