Monthly Archives: March 2019

Millenials favor remodeling | Mt Kisco Real Estate

Millennials are finding it increasingly difficult to become first-time buyers. Even for those that have managed to find (albeit shaky) footing on the housing market, it’s not easy. Moving to a bigger and better house is often out of the question, for example. But millennials are a crafty lot; if moving isn’t an option, why not remodel? In fact, over 25% of millennials are choosing to do just that and to get the job done they are taking out rehab loans. In this article, we focus on what they decide to focus their remodeling energies on. 

SIZE MATTERS 

As we’ve already mentioned, millennials are either choosing or being forced to stay in their homes. With moving an impossibility, even with growing families, millennials have had to get creative with maximizing space: 

  • Function first. Style is important, but if space comes at a premium, then function is the first thing on the millennial’s mind. If looking to build additions or expand you will want to contact a structural engineering services company to help you with your structural questions.
  • Storage everywhere. Hooks against kitchen walls to hang pots and pans. Drawers under the couch. Pull-out closets. Cabinets against the ceiling. You get the drill. 
  • Natural light. Sometimes it’s impossible to create extra space. So why not the next best thing? Adding a window or skylight can give you the illusion of a bigger home. 

ENJOYING OUTDOOR SPACE 

Millennials are massively investing in their gardens. In fact, it’s becoming kinda cool, with millennials now spending more on average than their parents. Growing vegetables is definitely becoming a thing, with millennials liking growing their own organic food. It’s tastier, better for the environment, and it’s a fun project to get involved in. 

Millennials don’t tend to live in homes with a lot of outdoor space. Gardens are like gold dust, so it’s no surprise that if they manage to get their hands on one, millennials take care of it.They spend a lot of time researching sustainable designs and plants to occupy it.

LOW MAINTENANCE BEATS STYLE 

Millennials are big on homes that don’t really take much effort to maintain. They want practical homes built with eco-friendly products. Homes that are built with cheap and sturdy materials, rather than the stylish but overpriced stuff. Here are two examples of what we’re talking about: 

  • Hard flooring, not carpet. Carpets are expensive, get stained easily, will only be in decent condition for a few years tops (less if you have kids!), and it doesn’t look as cool as engineered flooring. 
  • Metal roof. Tiles have the traditional vibe going for them, but they’re more annoying to maintain than metal roofing. And it doesn’t have to look worse either; many of the newer metal roof varieties are modern and slick. 

SMART TECHNOLOGY IS THE SMART CHOICE 

Millennials are huge on tech, so it’s no surprise that many of them are turning to smart technology to transform their homes. And it’s not just buying an Amazon Echo. These are some remodelling upgrades that help millennials smarten up their homes: 

  • USB outlets. Power outlets aren’t enough these days. 
  • Built-in speaker systems. When it’s challenging to find space in smaller homes, solutions like built-in speaker systems are a cool way to solve the problem. 
  • Motion sensors. Security is important, especially for millennials living in the big cities where break-ins are a little more common. 
  • Smart thermostats. Not only to save bills, but these also help the environment by limiting your energy usage to when you actually need it. 

read more…

Millennials Are Big On Remodeling

Mortgage rates drop for third week | North Salem Real Estate

Mortgage rates remained unchanged in the week ending 28th February. The stall in the downward trend came off the back of 3 consecutive weeks of decline. 30-year fixed rates remained unchanged at 4.35%, holding at the lowest level since 7th February’s 4.32%. The figures were released by Freddie Mac.

30-year fixed rates have fallen by 59 basis points since mid-November of last year, the most recent peak.

The pause in rates came as concerns over the global and U.S economic outlook continued to linger. Mixed sentiment towards progress on trade talks between the U.S and China led to a mid-week hiccup. The North Korea Summit also ended abruptly, which was not the outcome that the markets were looking for.

Economic Data from the Week

Economic data released through the week included December housing sector numbers and consumer confidence figures on Tuesday. December factory orders and January pending home sales on Wednesday that came ahead of 4th quarter GDP numbers on Thursday.

On the housing front, house price growth slowed further in December, according to the S&P / CS HPI Composite figures. Coupled with falling mortgage rates, the slower growth in house prices will be welcomed news for prospective home buyers.

Building permits continued its upward trend in December, following a 5% jump in November. In contrast, housing starts slumped by 11.2%, though this could be more to do with the weather than market conditions.

The good news was a combined jump in consumer confidence and pending home sales. Activity in the spring could deliver a much-needed boost to the sector.

Finally, the 4th quarter GDP numbers were in line with expectations. While growth was significantly slower than the 3rd quarter, it could have been far worse. Nonetheless, slower growth and FED Chair Powell’s testimony contributed to the steady mortgage rate figures.

Freddie Mac Rates

The weekly average rates for new mortgages as of 28th February were quoted by Freddie Mac to be:

  • 30-year fixed rates held steady at 4.35% in the week. Rates were down from 4.43% from a year ago. The average fee also remained unchanged at 0.5 points.
  • 15-year fixed rates fell by 1 basis points to 3.77% in the week. Rates were down from 3.90% from a year ago. The average fee increased from 0.4 points to 0.5 points.
  • 5-year fixed rates also remained unchanged at 3.84% in the week. Rates increased by 22 basis points from last year’s 3.62%. The average fee held steady at 0.3 points.

Mortgage Bankers’ Association Rates

For the week ending 22nd February, rates were quoted to be:

  • Average interest rates for 30-year fixed, backed by the FHA, decreased from 4.68% to 4.64%. Points decreased from 0.58 to 0.48 (incl. origination fee) for 80% LTV loans.
  • Average interest rates for 30-year fixed with conforming loan balances decreased from 4.66% to 4.65%. Points remained unchanged at 0.42 (incl. origination fee) for 80% LTV loans.
  • Average 30-year rates for jumbo loan balances decreased from 4.56% to 4.40%, the lowest level since January 2018. Points increased from 0.23 to 0.29 (incl. origination fee) for 80% LTV loans.

Weekly figures released by the Mortgage Bankers Association showed that the Market Composite Index, which is a measure of mortgage loan application volume, surged by 5.3% in the week ending 22nd February. The increase follows on from a 3.6% rise from the previous week.

The Refinance Index rose by 5% in the week ending 22nd February. The rise follows on from a 6% jump in the previous week.

The share of refinance mortgages decreased from 41.7% to 40.4%, following a fall from 41.8% to 41.7% in the week prior.

According to the MBA, home buyers responded favorably to the shift in the mortgage rate environment. Purchase applications for both conventional and government loans were reported to have risen in the reporting week. The upward trend in refinance application volume saw the index hit its highest level in a month.

For the week ahead

It’s a particularly busy week ahead. On the data front, February’s service sector PMI and December new home sales figures will provide direction on Tuesday. Service sector activity will need to impress to ease any immediate concerns over the economic outlook.

Trade figures and February’s ADP nonfarm employment change figures will influence Treasury yields on Wednesday.

Economic data out of the U.S on Thursday includes 4th quarter nonfarm productivity and unit labor costs, which will be released alongside the weekly jobless claims figures. Barring a material deviation from forecast, the numbers will unlikely have a material impact.

Outside of the numbers, there are plenty of factors that will influence Treasury yields and ultimately mortgage rates. Trade talks between China and the U.S, Brexit, and China’s trade data are just a number of drivers ahead of Freddie Mac’s mortgage rates, which will be released on Thursday.

read more…

https://www.fxempire.com/news/article/u-s-mortgages-mortgage-rates-hold-as-applications-continue-to-climb-555590

Lower rates should boost spring sales | South Salem Real Estate

The steady mortgage-rate decline is making purchasing a home more affordable just as the spring buying season heats up.

According to the latest data released Thursday by Freddie Mac, the 30-year fixed-rate average dipped to 4.35 percent with an average 0.5 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 4.37 percent a week ago and 4.40 percent a year ago. The 30-year fixed rate has fallen 16 basis points since the first of the year. (A basis point is 0.01 percentage point.)

The 15-year fixed-rate average slipped to 3.78 percent with an average 0.4 point. It was 3.81 percent a week ago and 3.85 percent a year ago. The five-year adjustable rate average dropped to 3.84 percent with an average 0.3 point. It was 3.88 percent a week ago and 3.65 percent a year ago.

“Today’s news from Freddie Mac should give buyers some optimism this spring as mortgage rates remain at one-year lows,” said Danielle Hale, chief economist at Realtor.com. “But this spring won’t be without its challenges. Most markets are continuing to see rising home prices, which means many buyers will have to make some trade-offs in order to close this year.”6

The National Association of Realtors said Thursday that sales of existing homes declined 1.2 percent to a seasonally adjusted annual rate of 4.94 million last month, the slowest sales rate since November 2015.

During the past 12 months, sales have plunged 8.5 percent. Would-be home buyers are increasingly priced out of the market as years of climbing prices and strained inventories have made ownership too costly. Declining mortgage rates could aid buyers.

The Federal Reserve released the minutes from its January meeting this week, which showed central bank officials unsure about the need for interest rate increases in 2019. Although the Fed doesn’t set mortgage rates, its decisions influence them.

“Wednesday’s release of the minutes from January’s (Federal Open Market Committee) meeting paints a picture of a more muted outlook for interest rates over the next year,” said Aaron Terrazas, Zillow senior economist. “All eyes are on a string of Fed speakers over the coming week, when we will also see a slew of housing market data, which was a soft spot in the economy at the end of last year. However, the January data are unlikely to provide a definitive judgment on the underlying health of the economy. The market signal in January home sales and permits is likely blurred by the partial federal government shutdown and the polar vortex that hit much of the country mid-month.”

Mixed economic news is putting a damper on rates. More than 84 percent of purchase borrowers and 81 percent of refinance borrowers were offered rates below 5 percent last week, according to LendingTree’s weekly mortgage comparison shopping report.

Bankrate.com, which puts out a weekly mortgage rate trend index, found nearly two-thirds of the experts it surveyed say rates will remain relatively stable in the coming week. Michael Becker, branch manager at Sierra Pacific Mortgage, is one who predicts rates will hold steady.

“Mortgage rates follow the 10-year Treasury and have similarly been consolidating with small differences in rates on a day-to-day and week-to-week basis,” Becker said. “At some point, rates will break out of this tight range and we will see either a spike or drop in rates. If global economic concerns dominate markets, then we will see a drop in rates. If optimism based on progress on trade wars or central bank dovishness prevails in the markets, then there will be a spike in rates. For now, I think rates continue their consolidation pattern and that mortgage rates will be flat in the coming week.”

Meanwhile, mortgage applications have finally started to pick up, according to the latest data from the Mortgage Bankers Association. The market composite index — a measure of total loan application volume — increased 3.6 percent from a week earlier. The refinance index rose 6 percent from the previous week, while the purchase index grew 2 percent.

The refinance share of mortgage activity accounted for 41.7 percent of all applications.

“After slumping over the past month, purchase mortgage applications reversed course, rising nearly 2 percent over the past week and 2.5 percent from a year ago,” said Bob Broeksmit, MBA president and CEO. “With mortgage rates lower than in previous months and holding steady, lenders are indicating that prospective buyers may be eager to start their home search before the spring buying season gets underway.”

read more…

https://www.chicagotribune.com/business/ct-biz-mortgage-rates-keep-falling-20190221-story.html

Existing sales fall again | Cross River Real Estate

U.S. home sales fell in January to their lowest level in more than three years and house prices rose only modestly, suggesting a further loss of momentum in the housing market.

The National Association of Realtors said on Thursday existing home sales dropped 1.2 percent to a seasonally adjusted annual rate of 4.94 million units last month.

That was the lowest level since November 2015 and well below analysts’ expectations of a rate of 5.0 million units. December’s sales pace was revised slightly higher.

The drop in January came after months of weakness in the U.S. housing market. Existing home sales were down 8.5 percent from a year ago.

The U.S. housing market has been stymied by a sharp rise in mortgage rates since 2016 as well as land and labor shortages. That has led to tight inventory and more expensive homes.

At the same time, the 30-year fixed mortgage rate has dipped in recent months and house price inflation is slowing.

The median existing house price increased 2.8 percent from a year ago to $247,500 in January. That was the smallest increase since February 2012.

Last month, existing home sales fell in three of the country’s four major regions, rising only in the Northeast.

There were 1.59 million previously owned homes on the market in January, up from 1.53 million in December.

At January’s sales pace, it would take 3.9 months to exhaust the current inventory, up from 3.7 months in December. A supply of six to seven months is viewed as a healthy balance between supply and demand.

read more…

https://www.cnbc.com/2019/02/21/existing-home-sales-january.html