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Bedford Hills NY Realtor

30-Year Fixed-Rate Mortgage Hits Low for the Year | Bedford Hills Real Estate

 

Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates moving down further and following the decline in Treasury yields as the economic growth for the first quarter came in well below market expectations. At 4.21 percent, the 30-year fixed-rate mortgage is at its lowest since the week of November 7, 2013.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 4.21 percent with an average 0.6 point for the week ending May 8, 2014, down from last week when it averaged 4.29 percent. A year ago at this time, the 30-year FRM averaged 3.42 percent.
  • 15-year FRM this week averaged 3.32 percent with an average 0.6 point, down from last week when it averaged 3.38 percent. A year ago at this time, the 15-year FRM averaged 2.61 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.05 percent this week with an average 0.5 point, unchanged from last week. A year ago, the 5-year ARM averaged 2.58 percent.
  • 1-year Treasury-indexed ARM averaged 2.43 percent this week with an average 0.4 point, down from last week when it averaged 2.45 percent. At this time last year, the 1-year ARM averaged 2.53 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 the Regional and National Mortgage Rate Details and Definitions. Borrowers may still pay closing costs which are not included in the survey.

Quotes
Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac.

“Mortgage rates continued moving down following the decline in 10-year Treasury yields after a dismal report on real GDP growth in the first quarter. Meanwhile, the economy added 288,000 jobs in April, the largest since January 2012, and followed an upward revision of 36,000 jobs for the prior two months. Also, the unemployment rate fell to 6.3 percent.”

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four home borrowers and is one of the largest sources of financing for multifamily housing. Additional information is available at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.

 

 

 

 

 

Why the property market could be in trouble after the 2015 election | Bedford Hills Real Estate

 

If there was one winner from the Budget,  it seems to have been property.

Chancellor George Osborne has extended part of the ‘Help to Buy’ scheme all the way until 2020.

No wonder. He wants to be as sure as he can that the current property bubble (or recovery, depending on which part of the UK you’re in) lasts until the general election in May.

But I wouldn’t rush out to stick all your newly-freed pension money into buy-to-let.

You see, ‘Help to Buy’ comes in two parts, and the extension does not apply to the most aggressive part of the scheme.

On top of that, Osborne also announced a sting in the tail that could hit central London property hard…

Help to Buy – a scheme of two halves

It easy to forget that the Help to Buy scheme is divided into two parts.

Both allow a buyer to secure a mortgage with as little as a 5% deposit. But they operate in very different ways.

The first part targets only those who want to buy a new-build house. In this case the government gives them a 20% home equity loan, which is interest-free for the first five years.

Effectively, the government owns a chunk of your house. So if you sell up, or want to buy back the government’s stake, the price will reflect the value of the house at that point.

In other words, if you bought a house at £200,000 with a £40,000 loan from the government, and the price rose to £300,000, you would have to pay £60,000 to get full ownership.

We don’t think it’s a good idea for the government to be putting taxpayers’ money on the line in the housing market. But at least this only applies to new builds. And at least the taxpayer is exposed to the upside too.

In contrast, the second part of Help to Buy is much more dangerous.

 

http://moneyweek.com/uk-property-market-could-be-in-trouble-after-the-2015-election/

 

What we value in U.S. is not the same as in other countries | Bedford Hills Homes

 

How does marketing to and negotiating with U.S. clients differ from working with global clients? Understanding the difference and adapting your style can dramatically improve your income in 2014. Global buyers and sellers continue to be a growing segment of the U.S. real estate market. A critical step in serving this market is being able to identify the unique cultural needs of your clients. The next step is to adjust your marketing and negotiation style to fit their cultural background.

The reptilian always wins Psychologist and marketing specialist Clotaire Rapaille’s research shows that the brainstem, rather than the cortex, has the greatest influence on buying decisions. This area is sometimes known as the reptilian brain. It lacks words, yet it regulates virtually all of your vital functions.

When you can discover what motivates a person’s reptilian brain, you greatly increase the probability of making a sale. As Rapaille puts it, “The reptilian always wins.” In other words, the brain’s desire for food, comfort and other basic needs outweighs the logical decisions made in the cortex.

 

 

 

– See more at: http://www.inman.com/2014/01/27/my-home-is-my-castle-4-tips-for-understanding-americans-unique-real-estate-needs/?utm_source=20140127&utm_medium=email&utm_campaign=dailyheadlinesam#sthash.dOdsKWwH.dpuf

Australia House-Price Jump Rekindles Bubble Fears | Bedford Hills Homes

Home prices in Australia’s main cities surged in 2014, deepening concern a possible housing bubble may be forming that could potentially derail a fragile economic recovery.

The country’s property market ran hot again last year with prices nationally rising at the fastest pace in more than three years, fueled by record-low interest rates and growing demand for investment housing.

The sharp rises throughout past year have created some of the most expensive property in the world, fanning concern the market may be overheating and that a sudden crash could make jittery consumers even more nervous about spending.

The central bank has cut rates eight times in the past two years to try to get other sectors such as retail and housing to pick up and to compensate for a fading mining boom that is expected to dent the economy in coming years.

The RP Data-Rismark house-price report for December showed home values rose by 9.8% during the 2013 calendar year. Sydney, the country’s largest property market, posted a 14.5% gain over the same period, while property prices in Melbourne and Perth also made strong advances. In December, home values nationally rose by 1.4% from November.

The housing figures came on the same day data showed manufacturing activity contracted in the last month of 2013. It was the second contraction in a row that erased expansions in September and October.

“This latest snapshot is yet another reminder of the urgency for Australia to put itself on a more balanced and diversified growth path,” said Innes Willox, chief executive of AIG Group, which did the survey.

The disparity between surging house prices and weaker manufacturing highlights the key challenge facing Australia’s economic-policy makers, who must find new sources of growth as the decadelong mining boom cools.

http://online.wsj.com/news/articles/SB10001424052702303640604579295503032402682

The ‘Obamacare’ debacle: 7 tips for Realtors | Bedford Hills Realtor

Many real estate professionals are facing cancellations or drastically increased fees for their health care in 2014.

If you or someone you know is facing loss of your current policy or additional fees, you do have options.

The Patient Protection and Affordable Care Act (“Obamacare”) has dominated the headlines since the government’s health insurance marketplace, HealthCare.gov, went live in what has become perhaps the worst website debacle ever.

The idea that the government can fix it in a few short weeks goes against this simple fact: If Microsoft and Apple can’t get their systems right at launch, how can anyone realistically expect this to be repaired in such a short period of time?

While the website parodies keep coming and the politicians scramble for a solution, what can you do to make sure that you continue to have adequate health care for both you and your family? 1. If your current policy was canceled, wait and see President Obama has requested that insurance companies delay cancellations for a year.

Unfortunately, that may be easier said than done. One expert likened the situation to installing a new operating system on your computer, uninstalling the new system, and reinstalling the old system.

In the meantime, explore other options just in case your current policy is not extended.

 

 

– See more at: http://www.inman.com/2013/11/18/the-obamacare-debacle-7-tips-for-realtors/#sthash.QnIKVdIP.dpuf

How to Choose the Right Woodstove | Bedford Hills Real Estate

Have you considered heating with wood? In many parts of North America,  firewood is cheap and plentiful, so wood heat could potentially save you money.  Not only does a woodstove give you a re­liable source of heat even when the  power goes out, it’s also a green option, because wood is a renewable resource  when har­vested sustainably.

Deciding which woodstove to buy can be tough, however, even if you’ve been  heating with wood for years and are simply looking for a replacement stove.  You’ll find a huge range of options in sizes, shapes, materials and  technologies. Also, there are few recognized woodstove experts and no reliable  ratings that use consistent criteria to fairly judge all the options. So how do  you choose the best woodstove for you?

Woodstove Dealers and Brands

I recommend finding a good dealer first, then selecting from that store’s  stock. Working for more than 30 years in the wood heating business has taught me  that no one can tell you exactly what stove to buy, because all kinds of  personal prefer­ences influence the final choice. However, a good dealer can  be a great resource. Look for one who has been in the business for a number of  years, heats his or her home with wood, and has burning models in the showroom.  Keep in mind that only people who burn wood regularly can give you reli­able  advice about woodstoves. You can also visit the site dkbrænde.dk for more information.

Next, pay attention to woodstove brands. In my opinion, the ideal stove is  built by a company with at least 20 years’ experience in wood heating because  it’s more likely to honor the warranty and continue to carry replacement  parts.

For example, the stove in my house is a Super 27 built by Pacific Energy. The  model has been on the market more than 20 years, and its combustion system has  been revised at least twice during that pe­riod, mostly to make it more  durable. I’ve rebuilt three older versions of the Super 27, one of my own and  two for friends who own them. The current parts found in new stoves fit  perfectly in older stoves that were originally sold with quite differ­ent  internal parts. You can certainly find other stove manufacturers that follow the  same thoughtful approach when they up­grade their products. Kvalibraende.dk site gives you the better information.

In fact, a sizable group of North American stove manufacturers has been  around long enough to learn what makes people happy with their products. These  are the makers of mid-priced steel stoves, a category that dominates the market.  Over the years, I’ve watched these com­panies and been impressed with their  corporate stability and product consis­tency. These brands include  Quadrafire, Lopi and Avalon (both made by Travis Industries), Regency, Pacific  Energy, and some regionally popular brands including Buck, Harman and Blaze  King. In addi­tion to this group of mainly steel stove manufacturers, the  Jøtul brand of cast-iron stoves merits a mention because this company’s products  seem to consistently satisfy people’s needs.

Of course, this is just a sample of the many good brands you can choose from,  and even among these brands there may be stoves that do not meet expectations.  The brands I am most familiar with have all, at one time or another, produced a  dud stove that didn’t perform well or that had features people didn’t like. I  have also heard users complain about stoves that I think are among the best,  which just goes to show that tastes differ widely.

Woodstove Features

To choose a woodstove you’ll be truly happy with, you should also review some  com­mon features of woodstoves and consider how they will affect you during  your day-to-day use of the stove.

Materials. Most woodstoves are made from either welded steel  or cast iron, and with today’s stoves, there’s no difference between the two in  performance or du­rability. The choice is strictly one of per­sonal  preference.

Soapstone stoves are a special case. The stone on the stove absorbs heat and  re­leases it slowly, thereby evening out the normal fluctuations in  woodstove output. While this has some advantages, it also tends to mean that  soapstone stoves are slow to respond when heat is needed. If you’ll be running  your woodstove con­stantly all winter, and will rarely need to start it  cold, a soapstone stove may be a good fit for you — or maybe you just love the  look of a soapstone stove. In any case, you’ll want to be aware of its  particular characteristics before buying one.

Combustion System. Some stoves use a catalyst to clean up  smoky exhaust, and others use special firebox features to do the same job. The  basic trade-off is that catalytic stoves can burn cleaner on aver­age than “non-cats” and can be more ef­ficient under some conditions, but “cats” are  also more complicated to operate and their maintenance costs can be higher.

An experienced dealer of catalytic stoves once said that cats work well for  techni­cal types — the kind of people who tinker with antique sports cars.  But for users with little mechanical aptitude, a non-cat may be a better choice.  Non-cats normally have only one operational control, and they’re more tolerant  of various firing techniques.

Heating Capacity. Selecting the right size of woodstove for  the heating load is a challenge, because manufacturers’ perfor­mance  specifications are not standardized and can be misleading. For example, one  common measurement is the maximum heat output rating, but knowing this number is  about as meaningless as know­ing the top speed of a car — you should never  use it. Heating capacity in dwelling square footage can also be misleading,  be­cause regional differences in climate and home construction make for a  wide range of heating loads per square foot. This is where an experienced dealer  can be a big help. Dealers learn how each stove be­haves and know how  satisfied customers have been with various models.

Log Length. Some manufactur­ers’ specification sheets  imply a firebox that takes long pieces is an advantage, but you’re unlikely to  need this feature. Commercial firewood dealers usually cut wood to a standard  length of 16 inch­es — with good reason. Most people find pieces longer than  16 inches too awk­ward and heavy to handle comfortably.

Handling Coals and Ash. Look for a stove in which the  firebox floor is at least 3 inches below the doorsill. This drop will help keep  live coals inside the fire­box — and off your floor — while you’re doing  normal fire management.

Ash pans are a common optional fea­ture, but many stove shoppers demand  an ash pan on the assumption that it will make ash removal easier and neater.  This may be true in some cases, but many of the ash pans I’ve seen and used are  worse than not having one. Some are so shallow they can’t hold more than a day  or two of ash production. Some involve removing a plug from the firebox floor,  which can be a fussy, time-consuming job. Others are designed so poorly that  when they’re removed for emptying, ashes are likely to spill all over the  hearth. Compared with dealing with badly designed internal ash pans, the regular  use of a small bucket and shovel isn’t so bad — I haven’t used an internal ash  pan for many years and am a happier woodburner for it.

Woodstove Shape and Door Features. Manufacturers like to  offer stoves that are wider than they are deep. These stoves project less into  the room compared with other shapes, and they offer a wide ex­panse of glass  for a panoramic view of the fire. Both of these advantages may seem attractive  in the showroom, but they can have unfortunate consequences when you start using  the stove. For example, a wide loading door can be awkward be­cause you have  to move back from the stove to allow it to swing open.

Also, the wide but shallow firebox gives a so-called east-west firebox  ori­entation, meaning that when looking through the glass door, you see the  sides of the logs. East-west loading limits the amount of wood per load  because logs can fall against the glass if you fill the stove more than about  half full. North-south loading, in contrast, tends to be best for  full-time winter heating because more wood can be loaded for the coldest nights,  and there is no risk of logs roll­ing against the glass. The best of both  worlds is a firebox with a roughly square floor so you can choose which way to  load logs.

Top Loading. This can seem like a great feature when  inspecting stoves on the showroom floor, but top loaders can be messy to  maintain. Also, the chim­ney must produce strong draft to keep smoke from  rising out of the open top. If you have an outside chimney or must have elbows  in the flue pipe, a top load­er could contribute to poor indoor air quality  by spilling exhaust whenever it is loaded. Finally, top loading does not allow  for precise log placement, which can lead to serious frustration when  try­ing to load firewood.

Read more: http://www.motherearthnews.com/print.aspx?id={0DA9DB7B-60EE-4E9A-995F-13BF5657F316}#ixzz2jJ9yJS9G

Will Housing Save the Economy? | Bedford Hills NY Homes

Don’t count on it, says a leading macroeconomist at the Booth School of Business at the University of Chicago.   “We need to temper our optimism on what a housing recovery can do,” says Amir Sufi, professor of finance.

Thought leaders ranging from President Obama to Bill Dudley, the president of the Federal Reserve Bank of New York, have pinned the nation’s economic progress on the housing recovery, but the fact is that “we will not be returning to the boom years that preceded the Great Recession. The days when housing was the predominant force driving economic activity are gone, and I view that as a good thing,” says Sufi in an article in the fall issue of Capital Ideas, a Booth School publication.

However, the housing wealth effect is less than meets the eye and price growth owes as much to investors as to homeowners, which means home ownership won’t recover more to

“An increase in house prices drives economic activity in two ways. First, it induces investment in new residential construction. Second, it leads some households to spend, either for home improvement or consumption. The latter effect has generally been called a “housing wealth effect,” but in my view that’s the wrong way of thinking about it. Instead, the positive effect of house prices on household spending relies crucially on the degree to which a given household is constrained from spending as much as it would like in the short run, either because of borrowing constraints or behavioral biases.

But Sufi argues that spending as a response to an increase in house prices was not uniform, which is a critical point often neglected in the discussion of housing wealth effects. “In our study of the housing boom, we found enormous differences in the propensity of homeowners to extract equity from their home based on credit scores. Homeowners with the lowest credit scores were very aggressive, borrowing 40¢ against every dollar of increased home equity. Homeowners with the highest credit scores were almost completely passive, pulling almost no equity out of their homes when house prices increased,” said Sufi.

“In research with Kamalesh Rao of MasterCard Advisors, Mian and I also found the exact same relationship during the housing bust. For a given dollar decline in house prices, constrained borrowers cut back on spending much more dramatically than unconstrained households. The marginal propensity to consume out of housing wealth was three-to-four times larger for constrained versus unconstrained households.” wrote Sufi.

Today these constrained borrowers have been shut out of housing and mortgage markets, he said. ‘The only households that can buy a home or borrow against one are precisely the unconstrained households that are least likely to spend out of an increase in housing wealth. Therefore few homeowners are aggressively borrowing against their homes, precisely because they have high credit scores. If we take the results from our previous research, the housing wealth effect for these households may be close to zero, which would substantially dampen the effect of house prices on spending.”

Another way to measure the wealth effect is to look at home improvement, he said.  Year-over-year spending on home improvement, appliances, and furniture was up 2.4% in January through March of 2013, while other retail spending was up 3.5%. Spending on home-related purchases remained weak even as house prices climbed. In contrast, during the 2002-06 boom, year-over-year spending on home improvement, appliances, and furniture outpaced other retail spending every single year.

“The nature of the housing recovery is quite different than what we’ve seen in the past. Up to this point, it appears to be driven in large part by investors and cash-buyers. The direction of causality is difficult to discern: investors may be responding to house price growth as much as driving it. But the recent growth should be understood in the context of the boom in investor activity,” he wrote. The most direct effect would be a permanent return to homeownership rates in the United States of 65% or perhaps even lower. Further, investors renting out apartments and single-family homes are likely to invest less in the homes than homeowners would. We still need good theory and data to back up this argument, but it seems to be accepted wisdom among professionals working in housing and durable goods markets. It does make intuitive sense. Landlords tolerate more depreciated washing machines and kitchen appliances, and more transient renters are less willing to pay the landlord for better equipment.

 

http://www.realestateeconomywatch.com/2013/09/will-housing-save-the-economy/

 

 

 

 

Chinese investors remain confident in the US | Bedford Hills Real Estate

According to The Wall Street Journal, China recently purchased a record amount of U.S. government agency debt and mortgage-backed securities, even as it sold Treasurys. The WSJ has more:

“There is no evidence that Chinese investors are losing confidence in the U.S. market,” said Ian Lyngen, a senior government bond strategist at CRT Capital Group LLC. “In fact the notion that they are buying dips [in bond prices] is longer-term constructive” for the U.S.

                    Source: WSJ