Tag Archives: Bedford NY Luxury Homes

Mortgage rates increase as the 10-year bond sells off | Bedford NY Real Estate

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Mortgage rates are the lifeblood of the housing market, which is why Bernanke and the Fed began conducting quantitative easing (or QE) in the first place. Lower rates allow homeowners to refinance, which increases their disposable income and helps stimulate economic growth. Lower rates enable first-time homebuyers to move out of an apartment and into a house, which means higher consumption (and good things for home improvement retailers like Home Depot and Lowe’s). Consumption accounts for some 70% of the U.S. economy, and consumption has been depressed since the housing bubble burst. The Federal Reserve would prefer to keep rates as low as possible for as long as possible.

 

Mortgage rates rise as the ten-year bond sells off

The average 30-year fixed-rate mortgage rose 11 basis points as the ten-year yield rose 9 basis points, and TBAs rallied. With the refinance boom over, originators are overstaffed and cutting prices to drive business. We’ve seen a number of small originators go out of business, as they found themselves unable to compete in a purchase-driven mortgage market. The purchase market is fundamentally different from the refinance market in that it’s driven by relationships and not price. Last week, we heard from the biggest banks in the mortgage business, and every one reported drops in origination activity of 30% to 40%. Margins are getting squeezed as bankers compete for business.

The confirmation of Mel Watt as FHFA Chairman might give originators a break, as he’s expected to endorse further government homeowner assistance, which could mean an extension of HARP (Home Affordable Refinance Program) eligibility dates. This could trigger a new refinance boom.

Recently, the FHFA issued new loan level pricing adjustments for conforming loans. Loans with FICO scores above 680 and loan-to-value ratios above 80% will see higher rates. Not only that, but the FHFA also increased the guarantee fee for conforming loans by 10 basis points. Mel Watt put these increases on hold.

 

http://finance.yahoo.com/news/mortgage-rates-increase-10-bond-170020962.html

Should I Use a Mortgage Broker or a Bank? | Bedford Real Estate

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This week’s reader question is about who to approach when you’re looking for mortgage money. Here it is:

I am going through the mortgage process the second time. The first mortgage was for a very low amount, so I didn’t really learn much about the process. My question is what is the difference between using a mortgage broker and a bank to secure financing? What are the advantages and disadvantages of both? – John

Before we get to John’s answer, check out a video I did a couple of years ago about mortgage shopping.

Now let’s get to John’s answer, starting with what the term “broker” means and what they do.

What brokers do

Whether you’re talking real estate broker, stockbroker, insurance broker, mortgage broker or pawnbroker, they all have one thing in common: They’re middlemen who get paid to facilitate a transaction.

Logic would suggest that leaving out the middleman and dealing directly would allow for a less expensive transaction. But if brokers didn’t routinely save more than enough to offset their expense, they wouldn’t exist.

Stockbrokers have relationships with several exchanges, so they can get you the best price when you buy or sell stocks. Insurance brokers have relationships with multiple insurance companies, so they can get you the best price when you buy insurance.

http://finance.yahoo.com/news/ask-stacy-mortgage-broker-bank-150040816.html

Something is out of whack for housing | Bedford Real Estate

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It is hard to look at the falling snow across much of the mid-Atlantic on Monday and not blame the weather for sluggish home sales this winter. For anyone east of Nevada, this has seemed like one of the coldest and snowiest winters in a very long time, and it is. While Americans hunker down in their homes, the prospect of house hunting is less enticing.

Home sales numbers so far back that up, but some claim the lackluster sales are not due to the weather but to the seasons, or specifically, seasonal adjustments that are out of whack.

The housing market has been abnormal in many respects over the past few years. Analysts at Goldman Sachs point to an elevated level of distressed sales, the first-time homebuyer tax credit in 2009 and 2010, and significant investor activity in 2012 and 2013.

“Now that the housing market is normalizing with fewer distressed sales and less investor activity, applying these unusual seasonal factors may distort housing indicators,” the analysts wrote in a report.

 

http://www.cnbc.com/id/101460942?__source=yahoo%7Cfinance%7Cheadline%7Cheadline%7Cstory&par=yahoo&doc=101460942%7CWhat%20is%20out%20of%20whack%20with

Monthly Home Prices Are On the Rise | Bedford NY Homes by Robert Paul

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Are higher monthly mortgage payments a good or bad trend for the economy?

It’s probably bad, but either way, rising home payments are increasingly a fact of life for new homeowners, as house payments for U.S. homebuyers rose by 21% in the fourth quarter of 2013.

The hike in monthly payments is forged from two separate real estate trends — rising median prices and higher interest rates, reports RealtyTrac, the Irvine, Calif., housing data provider.

The firm says that, in the last quarter of 2013, median home prices rose by 10% and interest rates rose by 33%, on average, in 325 counties.

The monthly payment hike covers the full gamut of homeownership expenses for an average three-bedroom home — data reached by combining mortgage, insurance, taxes and maintenance and by subtracting the estimated income tax benefit, RealtyTrac reports.

So that 21% figure is surprisingly high, especially as higher home prices significantly outpace household incomes, which are virtually stagnant.

“A potent combination of rapidly rising home prices and the often-overlooked but significant uptick in interest rates in the second half of 2013 caused the monthly cost of owning a home using traditional financing to jump substantially in many markets over the last year,” says Daren Blomquist, vice president at RealtyTrac.

“The monthly cost of owning a home is still less than renting in the majority of markets, but the cost of financed homeownership is becoming dangerously disconnected with still-stagnant median incomes, driven not by shoddy underwriting practices this time around but by investors and other cash buyers who are not tethered to the typical affordability constraints,” he adds.

 

 

http://www.mainstreet.com/article/real-estate/buying/monthly-home-prices-are-rise?puc=yahoo&cm_ven=YAHOO

How to Encourage Google+ Fans to Share Your Content | Bedford NY Realtor

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Are you using Google+ to promote your brand or content?

Do you want to find Google+ fans who love what you do and will share it with others?

When people share your stories, campaigns or products with their friends, they’re giving it their stamp of approval and their friends take notice.

This word-of-mouth marketing is invaluable, but how do you find these super-fans?

In this article, I’ll show you how to use Google+ to find the evangelists who want to tell the world about you.

How Do You Find Your Best Fans?

As a marketer, you want to find people who engage with your message and amplify it, spreading it on to others. These loyal fans, your brand evangelists, fall in love with your company and tell the world.

Google+ can help you find and engage with your evangelists, and lead you to a wider pool of potential clients. The process includes finding potential candidates, seeing which of those actually engage with your campaigns, and finally, those who share your campaigns with others (your true evangelists).

Prepare for Your Search

Before you start your search, create three empty Google+ circles to help you keep track of your evangelist candidates.

  • Potential candidates
  • People who engage
  • My 100 brand evangelists

 

http://www.socialmediaexaminer.com/encourage-google-fans-share-content/

January metro home sales down, but prices are up | Bedford NY Real Estate

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January’s chilly weather put a bit of a freeze on the Twin Cities housing market, as the number of pending and closed sales dropped with the temperature.

But while the volume of sales was lower, sellers still were able to command higher prices. Median prices were up 12.4 percent compared with January 2013, with the median in the 13-county area now at $179,900.

The Twin Cities real estate market typically slows down in December and January, as prospective house hunters are hunkered down and enjoying the holidays. That trend was apparent this year, as pending sales were down 16 percent in January and closed sales were down 12.8 percent. The sales data was included in a report released Wednesday by the Minneapolis and St. Paul Associations of Realtors.

The uptick in median housing prices in January included a 14.4 percent bump in Ramsey County, from $138,000 a year ago to $157,900 last month. In Hennepin County, the median rose to $189,000 from $167,500.

New residential home construction did pick up last year in the Twin Cities, and is expected to carry over into 2014. More than 10,000 residential units were permitted for construction in 2013, the first time that level’s been reached since 2006, according to the Builders Association of the Twin Cities. About half of the permits were issued for multi-family dwellings, such as townhouses.

In December, Minneapolis led the way among area cities with 371 units permitted for construction. Edina was second with 253, followed by Maple Grove with 38 and Woodbury with 31.

 

http://www.twincities.com/business/ci_25123028/january-metro-home-sales-down-but-prices-are