Daily Archives: March 6, 2014

Freddie Mac Weekly Rate Report Lagging Reality | Bedford Corners Real Estate

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The venerable Freddie Mac Primary Mortgage Market Survey (PMMS™) is a cornerstone of mortgage rate data.  It is both longstanding and highly accurate in capturing week-over-week movement.  The only problem is that it is unavoidably backward-looking due to its methodology.  There’s no scandal here and Freddie does a good job of convey that methodology, saying

“The survey is collected from Monday through Wednesday and the results are released on Thursdays at 10 a.m. ET. Survey reminder emails are sent out on Mondays and lenders are asked to  respond by close of business Wednesday. If we have received no response  on Tuesday, we follow-up with a reminder email on Wednesday morning.”

There’s no harm in this if one of two conditions are met.  Either rates need to be flat enough so that there’s a minimal discrepancy between Thursday morning’s rates and Freddie’s (which will be most similar to Monday or Tuesday’s rates) or mortgage rate watchers must be familiar enough with the methodology that they know it’s backward-looking.  The latter isn’t going to happen on a broad scale and the former is hit and miss.

This week is a miss.

The very best rates of the week (close to the best in more than 3 months!) were seen on Monday.  There would be no issues with today’s PMMS had it not been for the abrupt increase in rates over the past 2 days.  As it happens, the 0.09% drop reported is more like a 0.14% increase.  This is based on the average of actual lender rate sheets (not quotes that lenders subjectively report to Freddie) from last Thursday morning to this morning.

Mortgage News Daily’s “daily mortgage rate” is updated every day and adjusted for changes in closing costs that aren’t necessarily large enough to prompt a change in the actual “note rate.”  These typically move in .125% increments and rates typically don’t move that much in a day–many times even in a week!

This week they did.  Last Thursday morning, we calculated an adjusted “Best-Execution” rate of 4.35%, meaning that most borrowers would be quoted 4.375% with minimal closing costs and that some would be seeing 4.25%.  Apart from this Monday, that’s the closest we’ve been to 4.25% since February 10th.

Today’s calculated rate is all the way up to 4.49%!  It’s still early in the day for a final calculation as lenders may undergo price changes in the middle of the day, but as of right now, the true difference in cost–expressed in terms of interest rate–is indeed 0.14%.  That means that most borrowers will be at least .125% higher in actual note rate (i.e. a quote of 4.375% last Thursday is likely going to be 4.5% with minimal differences in closing costs.  4.25% would be 4.375%).

U.S. 30-Year Mortgage Rates Decline for First Time in Four Weeks | Pound Ridge Real Estate

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U.S. mortgage rates for 30-year loans fell for the first time in four weeks, decreasing borrowing costs for homebuyers as the recovery in prices stretched into 2014.

The average rate for a 30-year fixed mortgage was 4.28 percent this week, down from 4.37 percent, Freddie Mac said today. The average 15-year rate slipped to 3.32 percent from 3.39 percent, the McLean, Virginia-based mortgage-finance company said.

U.S. home values continue to rise as buyers compete for a limited supply of properties for sale. Prices climbed 12 percent in January from a year earlier, the 23rd consecutive gain, Irvine, California-based CoreLogic Inc. said this week.

“Prices are still growing at very high rates because the markets are still tight,” Patrick Newport, an economist with IHS Global Insight in Lexington, Massachusetts, said in an interview yesterday. “We haven’t been building enough homes at high enough rates for five or six years.”

Rising prices and tougher credit standards have shut out some first-time buyers, slowing the pace of the housing recovery. First-timers accounted for 26 percent of purchases in January, down from 30 percent a year earlier and the smallest share in more than five years of data-keeping, according to the National Association of Realtors.

 

 

http://www.businessweek.com/news/2014-03-06/u-dot-s-dot-30-year-mortgage-rates-decline-for-first-time-in-four-weeks

How Many Homeowners Are Still Underwater? | Bedford Hills NY Homes

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With the help of low inventory levels and unprecedented actions by the Federal Reserve, higher home prices have been a life preserver to the real estate market. Millions of Americans are no longer underwater on their mortgages, but millions of homeowners are still struggling in the wake of the housing bubble.

In the fourth quarter of 2013, the national negative equity rate declined to 19.4 percent of all homeowners with a mortgage, according to Zillow’s latest Negative Equity Report. The reduction comes after the previous quarter witnessed the fastest decline on record. In comparison, 27.5 percent of homeowners with a mortgage were underwater one year earlier. The peak was made in the first quarter of 2012, at 31.4 percent.

The national negative equity rate has now declined for six consecutive years. In fact, this is the first time in years that the rate dipped below 20 percent. Almost 3.9 million homeowners were freed from negative equity during the final three months of 2013. While this is a significant improvement, many people are still underwater, especially in certain states. Nevada leads the nation with 34 percent of borrowers owing more than their homes are worth, followed by Georgia at 32 percent.

 

http://wallstcheatsheet.com/politics/economy/how-many-homeowners-are-still-underwater.html/?ref=YF

Katonah Hardware Reports $50,000 Stolen; Employee Suspected | Katonah NY Homes

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A Katonah hardware store reported to police that an employee stole about $50,000 in cash during a four-month period, Bedford police said.

The employee is unknown and police are investigating the matter.

Katonah Hardware, on Katonah Avenue, reported the thefts on Feb. 20. They told police the thefts happened between October 2013 and February 2014.

Because the investigation is ongoing, few details are available

 

http://bedford.dailyvoice.com/news/katonah-hardware-reports-50000-stolen-employee-suspected

Craigslist real estate listings can help agents keep deals in-house | Katonah Real Estate

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Craigslist is the grandfather of listing sites.

So like grandfathers everywhere, it’s associated with the past, not the future. As a result, some agents may neglect the old-timer, seeking to harvest leads using cutting-edge tools instead.

But while some might consider Craigslist a bit of an old fogey, agents who shun it are passing up a marketing opportunity that remains a fertile (and typically free) source of high-quality leads, according to Amy Gerrish, leader of The Phoenix Metro Group, an agent team part of Phoenix-based HomeSmart.

As a resource for buyer leads, Gerrish — the latest winner of Inman News’ #madREskillz contest — says Craigslist seems to offer a better return on investment than advertising on listing portals or Facebook.

The leads she’s picked up from those sites seem to be of about equal quality to those she gets from Craigslist, which have translated into six sales for her team in the last year, she said.

“If they’re the same quality, then I just want the ones that you don’t have to pay for,” she said.

– See more at: http://www.inman.com/2014/03/05/craigslist-real-estate-listings-can-help-agents-keep-deals-in-house/?utm_source=20140305&utm_medium=email&utm_campaign=dailyheadlinespm#sthash.i2Zmr3w0.dpuf

Fully Reno’d ‘House of the Day After Tomorrow’ Asks $5.5M | South Salem Homes

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Location: Lake Forest, Ill.
Price: $5,499,000
The Skinny: When George Fred Keck designed a forward-looking sequel to his 1933 World’s Fair “House of Tomorrow” (inevitably, if unfortunately, dubbed the “House of the Day After Tomorrow”) there’s little chance that he could have foreseen what the the actual future had in store for his speculative creation. Originally built in 1936, the home received an extensive 1990s “renovation” which, according to a recent profile of the place in the Journal, added a second story and ballooned the floorplan to a whopping 15,400 square feet. Which begs the question: how much of a home can you drastically change while still attributing its design to the original architect? A look inside provides an answer, of sorts, where the etched glass, water feature, and recessed lighting scream “I come from the ’90s!” and the only remaining design aspect that can be attributed to Keck is its energy efficiency. The seven-bedroom, nine-and-three-tenths-bathroom manse (what exactly constitutes three-tenths of bathroom? A closet with a sink?) is asking $5.499M.

 

http://curbed.com/archives/2014/03/05/fully-renod-house-of-the-day-after-tomorrow-asks-55m.php

Restaurateur Michael White takes over at Bedford Post Inn | Bedford Real Estate

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Amid reports of a split between Richard Gere and Carey Lowell, the restaurants at the Bedford Post Inn are changing hands. Chef Michael White, owner of Altamarea Restaurant Group, has signed a long term lease for the Bedford restaurant, previously operated by the famous couple.

Altamarea will operate all of the food and beverage operations at the Bedford Post Inn, including the Barn, the private events space, the outside grill terrace and the flagship restaurant, the Farmhouse, which will be renamed “Campagna.” The chef de cuisine will be  Devin Boyzaka, who was sous chef at The Inn at Little Washington. Richard Gere and Russell Hernandez will continue to own the inn, which has eight suites.

According to the Altamarea Grou, Campagna will serve its well-known upscale Italian cuisine, that features plenty of seasonal dishes to reflect the restaurant’s location in the Lower Hudson Valley and its abundant local produce. Other restaurants in the Altamarea group include Marea, Osteria Morni, Ai Fiori, all in Manhattan, and restaurants in New Jersey and London.

In 2007, Richard Gere and Carey Lowell brought the 1700’s era farmhouse property back to life as a gourmet destination in a country setting. Recent reports of the couple’s split are not officially confirmed.

http://food.lohudblogs.com/2014/03/04/richard-gere-turns-restaurants-bedford-post-inn/

Which housing regions sailed and which failed so far in 2014? | Waccabuc Real Estate

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Economic growth is modest and moderate but steady, according to the latest and somewhat sunny-side Beige Book, the comprehensive economic report published by the Federal Reserve that covers all 12 Fed districts — but housing markets across the 12 districts varied from poor to hopeful.

Economic conditions continued to expand from January to early February, according to the Beige Book researchers.

Fully eight districts reported modestly improved levels of activity. New York and Philadelphia experienced a decline in economic activity, which was mostly blamed on cold weather.

Growth slowed in Chicago, and Kansas City reported that conditions remained stable during the reporting period.

Nationally, residential real estate markets continued to improve in several areas but as the Fed was quick to underscore – modestly.

Boston and New York saw mixed home sales, and Philadelphia, Cleveland, Minneapolis, and Kansas City reported a definite decline in sales.  Several of the 12 fed districts cited low inventories of housing and continued home price appreciation.

Residential housing markets among the 12 districts were mixed, and the regional reports didn’t even list real estate activity as a notable industry in the Beige Book.

 

http://www.housingwire.com/articles/29197-which-housing-regions-sailed-and-which-failed-so-far-in-2014

If you want to pay off a mortgage early, should you do it gradually or all at once? | Waccabuc Real Estate

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Q: I am wondering what your opinion is about paying additional money toward my mortgage principal to pay off the balance early. Is it better to put extra money into paying off the mortgage, or should I invest that same money in another investment or 401(k)? I’d like to be able to either pay off the mortgage in 10 years at age 66 or have the funds available from other investments or my 401(k) to pay off at that time. — Tami

I’m often asked whether it’s better to prepay a mortgage or invest the difference. But you’ve put a fresh twist on it: You already know you want to pay off your mortgage early and are just looking for the best way to do that. With that goal in mind, you need to consider your own level of financial literacy and comfort with investing.

THE RISK-FREE ROUTE

Putting money into your home is a simple and safe investment. You will effectively “earn” your net interest rate. So, if your mortgage interest rate is 4.5 percent, and you don’t itemize your deductions, every dollar you prepay earns an effective interest rate of 4.5 percent – a lot better than you’ll do if you keep the cash in a savings account.

The nice thing is you won’t lose any money on this investment. It’s risk-free. And you’ll be building equity in your home. Paying off your mortgage by the time you retire means you’ll reduce your living expenses just as your income is potentially diminishing.

 

http://homes.yahoo.com/blogs/spaces/q-a–pay-down-mortgage-gradually-before-retirement–or-all-at-once-003307696.html

30-year-mortgage rate falls to 4.28% | North Salem Real Estate

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The average rate for a 30-year fixed-rate mortgage fell to 4.28% in the week that ended March 6 from 4.37% in the prior week, according to a Thursday report from federally controlled mortgage buyer Freddie Mac. A year ago, the 30-year rate was at 3.52%. The average rate for the 15-year fixed-rate mortgage fell to 3.32% in the latest week from 3.39% in the prior week. Meanwhile, the rate for a 5-year Treasury-indexed hybrid adjustable-rate mortgage declined to 3.03% from 3.05%. The rate for a 1-year Treasury-indexed ARM was unchanged at 2.52%.