Author Archives: Robert Paul

About Robert Paul

Robert is a realtor in Bedford NY. He has been successfully working with buyers and sellers for years. His local area of expertise includes Bedford, Pound Ridge, Armonk, Lewisboro, Chappaqua and Katonah. When you have a local real estate question please call 914-325-5758.

Best US mountain towns | Waccabuc Real Estate

Magnificent natural beauty and unbeatable scenery abounds in America’s legendary mountain ranges. But if you’re not into backcountry camping or roughing it, accessing this country’s towering terrain can be puzzling. Lucky for you, there are plenty of mountain towns chock-full of character and class that make visiting some of the United States’ most stunning regions a breeze.

From the obvious to the underrated, these are the best mountain towns in America.

Telluride, Colorado

Credit:Adventure_Photo/iStock

Boasting world-class ski slopes sprawling across more than 2,000 acres, it’s no wonder Telluride and its ski resort top our list of best mountain towns in America. It was also ranked as the number one Best Small Town to Visit according to U.S. News and World Report. The town of roughly 2,500 residents is nestled in a steep valley dominated by the San Juan Mountains. Come in winter and choose from nearly 150 uncrowded ski trails. Visit in summer and the same terrain becomes an epic hiking range. History buffs will enjoy poking around this former gold mining town and visiting the Telluride Historical Museum and even non-skiers will love soaking up the atmospheric Mountain Village.

McCall, Idaho

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Lesser known, but no less enticing, McCall is a perfectly-situated resort town offering a host of activities in every season. Payette Lake, a glassy glacier lake framed by the snow-dusted peaks of the Payette National Forest, booms in the summertime. Brundage Mountain’s mixture of groomed trails and backcountry terrain draws skiers and snowboarders throughout the long winters. Top off a chilly day on the slope with a dip in the Gold Fork Hot Springs, just 30 miles south of town. And if you visit in winter, the renowned McCall Winter Carnival is a must.

Taos, New Mexico

Credit:JacobH/iStock

It’s usually deserts, not mountains, that come to mind when you think of the American Southwest. But you can find the best of both worlds in Taos, a spirited town full of culture and tradition that also happens to be wrapped in the Sangre de Cristo Mountains. Taos is best known for Taos Ski Valley, a rugged and untamed resort with beginner to advanced trails. But the town also houses the only Native American community that’s designated both a UNESCO site and National Historic Landmark. Taos Pueblo showcases 1,000 years of history in its iconic mud and straw dwellings. Combine the slopes and the deep-rooted history with the town’s natural beauty and its appeal becomes undeniably clear.

Helen, Georgia

Credit:SeanPavonePhoto/iStock

Sitting on the cusp of the Blue Ridge Mountains (a segment of the Appalachians) in northeast Georgia, Helen oozes charm. With cobblestone streets, mountain cabins, and painted buildings, you’ll feel like you stepped out of Georgia and into a European alpine village. Its location makes it a desirable year-round destination. The Chattahoochee National Forest flows right into Helen’s state parks, veiling numerous waterfalls, hundreds of miles of hiking trails, multiple beaches, and countless fishing spots. Designated Georgia’s Outdoor Adventure Destination, Helen also offers tubing in the Chattahoochee River, camping, mountain biking and kayaking. In between adventures, dive into the dozens of specialty shops packed into the town’s two square miles. Helen’s got everything you might want – and more.

Jackson Hole, Wyoming

Credit: gary yim/Shutterstock

Located on the southern border of two heavy-hitting national parks and surrounded by the almighty Teton Mountain Range, Jackson Hole is far from an unknown mountain town. The town’s claim to fame is undoubtedly the world-renowned Jackson Hole Mountain Resort which is more like its own self-operating village. Hotels and restaurants pepper Rendezvous Mountain, but it’s the world-class ski slopes spread over 2,500 acres and the 400 inches of annual snowfall that make the resort a destination in itself. Not being a snow bunny isn’t an excuse to avoid Jackson Hole. There are still plenty of other activities to enjoy, like exploring Grand Teton National Park, catching a show at the historic Jackson Hole Playhouse and taking a dip in the exquisite Granite Hot Springs.

Asheville, North Carolina

Credit:Sean Pavone/iStock

Asheville marches to the beat of its own drum (literally) and offers no apologies. Littered with breweries, hipster hang-outs, and live music venues, Asheville is a quirky mountain town with a ton of flair. Tucked into the Blue Ridge Mountains, Asheville sits a mere 130 miles northeast of our Helen, Georgia but embodies its own drastically-different character. Scenic drives, hiking and picnicking top our list of favorite pastimes in Asheville. When it’s time to let loose, hit up the downtown for a generous helping of live music bars, worldly cuisine, craft breweries and off-beat entertainment options – dinner and a belly dance, anyone?

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https://www.thediscoverer.com/blog/the-best-mountain-towns-in-america/

15 Year mortgage hits 1.875% | Cross River Real Estate

New head-turner for mortgage rates: 15-year loans at under 2%
New head-turner for mortgage rates: 15-year loans at under 2%

Remember all the excitement when 30-year mortgage rates started dipping below 3% for the very first time a few weeks ago? Just as those low-cost loans are almost starting to become ho-hum, one of the nation’s largest home lenders is out with a shorter-term mortgage that takes rates into a whole new universe.

United Wholesale Mortgage — a company that earlier this year announced 30-year fixed mortgage rates as low as 2.5% and VA loans for veterans and service members at just 2.25% — has just introduced a 15-year loan with rates under 2%.

Rates that are way below average

Mortgage rates have been plummeting to record lows in 2020 as the coronavirus crisis has shaken up financial markets and caused the Federal Reserve to slash interest rates to the bone.

UWM’s new 15-year fixed-rate mortgages come with rates as low as 1.875%. That’s unprecedented — and way down from the national average for those loans, currently 2.54% according to mortgage company Freddie Mac.

A 15-year home mortgage “is a great vehicle for refinancing. A lot of people look at it as a way to cut years off their mortgage,” says Mat Ishbia, president and CEO of United Wholesale Mortgage.

A homeowner who’s had a 30-year mortgage for a number of years can refi into a 15-year loan and avoid stretching out interest costs for additional decades.

Mortgage rates with shorter terms tend to have lower rates but much stiffer monthly payments. The rate on the UWM 15-year loan is so low that some refinancers may not find a major difference in their mortgage payments when switching out from a 30-year loan.

The math on a low-cost mortgage

Portrait of Black girl writing solution of sums on white board at school.
Rido / Shutterstock

Here’s how that works: Let’s say you took out a 30-year, $250,000 mortgage five years ago at 5%. (Clearly you didn’t do enough comparison shopping, because rates were averaging about 4% in the summer of 2015.)

You’ve been paying $1,342 in principal and interest each month and have close to $230,000 left on your loan.

Refinancing that balance into a 15-year mortgage at 1.875% would give you a monthly payment of $1,466, just $124 more than you’re currently paying. And your interest savings would be huge.

The 15-year loan comes with lifetime interest costs of about $34,000. If you refinanced into a new $230,000, 30-year loan at, say, 3% and stayed with the mortgage through the end of its term, you’d pay total interest costs of $119,000. The difference is massive.

Then again, the new 30-year fixed-rate mortgage would have a monthly payment of just $969, substantially less than the 15-year option.

Are all the numbers starting to make your head spin? Think of it this way: The sharply lower interest costs make the 15-year loan a good refinance choice if you plan to stay in the house for the long haul. A 30-year refi loan, with its lower monthly payment, is better if you might be moving on in a few years.

How to get a dirt-cheap 15-year mortgage

The new low-rate 15-year mortgages are part of UWM’s Conquest program, same as the lender’s ultra-cheap 30-year conventional and VA loans.

“Over 90% of our loans are in the 1% or 2% percent range and we’ve had a massive response for both purchases and refinances since we launched the Conquest program back in May,” says Ishbia.

Like the name says, United Wholesale Mortgage is a wholesaler, so you can’t get a mortgage directly from UWM. The loans are offered only through independent mortgage brokers, to both homebuyers and refinancers.

The program has a stipulation that a borrower cannot have taken out a UWM loan within the last 18 months.

As always, you’ll find the best mortgage rate based on your credit score and situation by shopping around throroughly for your loan.

Be sure to take a similar approach when you buy or renew your homeowners insurance. Get quotes from several insurers and look at them side by side, to find the right coverage at the lowest price.

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https://finance.yahoo.com/news/head-turner-mortgage-rates

Housing Share of GDP Climbs to 13-Year High | Katonah Real Estate

Housing will lead the economic recovery. Due to low mortgage interest rates, a renewed focus on the importance of home, and a lack of for-sale inventory, housing data has been a relative bright spot as the overall economy struggles to establish a rebound.

Due to this broader weakness (GDP declined at a -32.9% rate for the second quarter) and gains for residential-related economic activity, housing’s share of GDP reached its highest mark since the third quarter of 2007, increasing to 16.2% during the second quarter of 2020. The home building and remodeling component – residential fixed investment – held at 3.3% of GDP.

Housing gains will continue as the consequences of the virus crisis are likely to lead to a reversal for declining home size trends and a greater need for additional home office space. For these and other reasons, home building and remodeling have demand-side potential that can help fuel a recovery in the labor market, given the widespread impact that construction has on the economy in terms of jobs and state/local tax revenue.

Housing-related activities contribute to GDP in two basic ways.

The first is through residential fixed investment (RFI). RFI is effectively the measure of the home building, multifamily development, and remodeling contributions to GDP. It includes construction of new single-family and multifamily structures, residential remodeling, production of manufactured homes and brokers’ fees.

For the second quarter, RFI was 3.3% of the economy, recording a $564 billion seasonally adjusted annual pace (measured in inflation adjusted 2012 dollars). This did represent a decline from the first quarter, which recorded a post-Great Recession high pace of $638 billion.

The second impact of housing on GDP is the measure of housing services, which includes gross rents (including utilities) paid by renters, and owners’ imputed rent (an estimate of how much it would cost to rent owner-occupied units) and utility payments. The inclusion of owners’ imputed rent is necessary from a national income accounting approach, because without this measure, increases in homeownership would result in declines for GDP.

For the second quarter, housing services represented 12.9% of the economy or $2.2 trillion on seasonally adjusted annual basis.

Taken together, housing’s share of GDP was 16.2% for the quarter.

Historically, RFI has averaged roughly 5% of GDP while housing services have averaged between 12% and 13%, for a combined 17% to 18% of GDP. These shares tend to vary over the business cycle. However, the housing share of GDP lagged during the post-Great Recession period due to underbuilding, particularly for the single-family sector.

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eyeonhousing.org/2020/07/

Mortgage rates average 2.88% | Pound Ridge Real Estate

Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing that the 30-year fixed-rate mortgage (FRM) averaged 2.88 percent, the lowest rate in the survey’s history dating back to 1971.

“The resilience of the housing market continues as mortgage rates hit another all-time low, giving potential buyers more purchasing power and strengthening demand,” said Sam Khater, Freddie Mac’s Chief Economist. “We expect rates to stay low and continue to propel the purchase market forward. However, the main barrier to rising demand remains the lack of inventory, especially for entry-level homes.”

News Facts

  • 30-year fixed-rate mortgage averaged 2.88 percent with an average 0.8 point for the week ending August 6, 2020, down from last week when it averaged 2.99 percent. A year ago at this time, the 30-year FRM averaged 3.60 percent.  
  • 15-year fixed-rate mortgage averaged 2.44 percent with an average 0.8 point, down from last week when it averaged 2.51 percent. A year ago at this time, the 15-year FRM averaged 3.05 percent.  
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.90 percent with an average 0.4 point, down from last week when it averaged 2.94 percent. A year ago at this time, the 5-year ARM averaged 3.36 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.

Pending sales up 16.6% | Bedford Hills Real Estate

Pending home sales soared again in June, although the liftoff was relatively shallow compared to the 43 percent increase in May. The National Association of Realtors’® (NAR’s) Pending Home Sales Index (PHSI). The index, a forward-looking indicator based on contracts to purchase existing homes, rose 16.6 percent compared to May, and increased year-over-year by 6.3 percent. The index is now at 116.1.

The two months of improving activity have brought the index back from its April level of 69.0 where it landed after falling by more than 20 percent in both that month and in March as much of the nation was shut down by the COVID-19 pandemic.

The gains were above even the best guesses by analysts polled by Econoday. Their predictions ranged from a 10 percent downturn to gains of 15.6 percent. The consensus was an increase of 5.2 percent.

Lawrence Yun, cheif economist says, “Consumers are taking advantage of record-low mortgage rates resulting from the Federal Reserve’s maximum liquidity monetary policy.”

In light of the apparent housing market turnaround, NAR has raised its forecast for the home sales market. For all of 2020, existing-home sales are expected to decline by only 3 percent and should be at an annual rate of 5.6 million by the fourth quarter. The same percentage increase is expected for new home sales.

Yun says he expects that the GDP will grow 4.0 percent in 2021 and that, along with mortgage rates that are anticipated to stay at near 3 percent over the next 18 months, should boost home sales. He projects a 7 percent growth in existing sales and 16 percent in new home sales in 2021. Home prices will likely appreciate 4 percent this year then moderate to 3 percent next year as more new supply comes to market.

Each of the four major regions experienced a second month of growth in month-over-month pending home sales transactions. The Northeast, which saw a 54.4 percent gain from May was the only region that did not move higher on an annual basis. Its PHSI is now at 95.4, down 0.9 percent from June 2019.

Pending home sales in the South increased 11.9 percent to an index of 140.3, 10.3 percent above a year earlier. The index in the West improved by 11.7 percent to 99.6, a 4.7 percent annual gain.

“The Northeast’s strong bounce back comes after a lengthier lockdown, while the South has consistently outperformed the rest of the country,” Yun said. “These remarkable rebounds speak to exceptionally high buyer demand.”

Yun says that as house hunters seek homes away from bigger cites – likely to avoid the coronavirus – properties that were once an afterthought for potential buyers are now growing in popularity.

“While the outlook is promising, sharply rising lumber prices are concerning,” Yun said. “A reduction in tariffs – even if temporary – would help increase home building and thereby spur faster economic growth.”

The PHSI is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months. Existing-Home Sales for July will be reported August 21.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined. By coincidence, the volume of existing-home sales in 2001 fell within the range of 5.0 to 5.5 million, which is considered normal for the current U.S. population.

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http://www.mortgagenewsdaily.com/07292020_pending_sales.asp

New Home sales jump 14% | Bedford Real Estate

New single-family home sales jumped in June, as housing demand was supported by low interest rates, a renewed consumer focus on the importance of housing, and rising demand in lower-density markets like suburbs and exurbs.

Census and HUD estimated new home sales in June at a 776,000 seasonally adjusted annual pace, a 14% gain over May and the strongest seasonally adjusted annual rate since the Great Recession. The April data (571,000 annualized pace) marks the low point of sales for the current recession. The April rate was 26% lower than the prior peak, pre-recession rate set in January.

The gains for new home sales are consistent with the NAHB/Wells Fargo HMI,  which returned to pre-recession highs and demonstrates that housing will be a leading sector in an emerging economic recovery. Consider that despite double-digit unemployment, new home sales are estimated to be 3.2% higher through for the first half of 2020, compared to the first half of 2019.

Moreover, pricing firmed in June, with median new home price expanding to $329,200. However, headwinds remain, including elevated unemployment and surging lumber prices, which exceeded their 2018 peak this week.

Sales-adjusted inventory levels declined again, falling to a 4.7 months’ supply in June, the lowest since 2016. This factor points to additional construction gains ahead. The count of completed, ready-to-occupy new homes is just 69,000 homes nationwide. Inventory (including homes available for sale that have not started construction or are under construction) is 7% lower than a year ago.

Thus far in 2020, new home sales are higher in all regions. Sales on a year-to-date basis are 0.2% higher in the South, 3.1% in the West, 12.6% in the Midwest, and 22% higher in the Northeast.

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eyeonhousing.org/2020/07/

How to use digital marketing to sell your home!

Alt: Different words that describe how to use digital marketing to sell your home, circled with a red marker.

With the COVID-19 global outbreak seriously hindering the real estate industry, people all over the world are looking for effective ways to advertise and sell their homes. One of the best strategies for now proved to be digital marketing. With that in mind, let’s see how to use digital marketing to sell your home!

Hiring a real estate agent

You must be asking what a real estate agent has to do with digital marketing. Well, they are using websites, right? Advertising your home online is the best way of finding a buyer. And, with mortgage rates going down, buyers will look to hire real estate agents.

Building your own website

A more personal way of using digital marketing to sell your home is to build your own website. Today, you can quickly set up a webpage at affordable prices, and this is a fantastic way to offer potential buyers more personal information. You can attach videos of online house tours, add photos, write notes about the place, and have a 1-on-1 conversation with a potential buyer.

Caption: By using a website and social media platforms, you are easily getting connected with people all around the world.

Alt: A girl standing and holding a laptop, surrounded with icons of different social media platforms.

Even though this website option might seem like too much of an effort for selling a place, there are other advantages to it.

Running a blog

If you start a blog on a real estate topic and post quality content, you will soon get readers. And, if you have well-written articles, the numbers will only go up. Articles are a fantastic way to advertise, and you never know if a reader might be a potential buyer.

Social media campaign

It is a fact that social media changed the world forever. Be it for the better or for worse, that is yet to be decided. Nevertheless, many people run businesses solely on social media.

Since it has a wide reach, you can use various profiles to post ads about selling your place.

Ways that realtors use digital marketing to sell homes

Besides trying to sell a home on your own, which is an admirable feat, by far the best way to sell a home is through hiring a real estate agent. They use many digital marketing strategies to quickly sell a place, so let’s see what is their approach.

Pay-Per-Click advertising

Many professionals use Pay-Per-Click advertising to generate new leads. Many people earn money by clicking on ads, and this is a proven strategy to find potential buyers.

Getting in touch with a real estate agent is the best way to quickly get in touch with a lot of buyers.

Webinars for buyers

Many real estate agents host webinars about real estate. Both buyers and sellers attend these webinars to learn more about the industry and get in touch with potential clients.

You can even search for similar events in a nearby area and attend it. It might just happen you will meet the next owner of your house!

E-mail campaigns

E-mail campaigns are another strong tool that can help you sell your place. If we look at any real estate agency, they have thousands of clients, both looking to sell or buy. Each client has specific needs, but they can be grouped depending on different categories.

For example, all single people will look for smaller apartments, while families with children often look for a house.

Real estate agents can start e-mail campaigns where they can inform targeted groups of buyers if a new home that fits their requirements popped up on the market.

Stages of a digital marketing campaign for selling a home

Now that you familiarized yourself with different digital marketing channels you can use to sell your home, let’s talk about the structural composition of a digital marketing campaign.

Caption: Understanding how digital marketing works will help you to sell your home faster.

Alt: A poster saying INTERNET MARKETING in the middle, surrounded with words that represent various digital marketing components.

If we follow examples of professional digital marketing companies like Digital Dot New York, we can see a pattern of success. The main components of a digital marketing campaign are:

  • identifying your targeted group of clients
  • setting clear goals
  • working only with trusted partners
  • always value the quality of the service over the quantity

Identifying targeted groups of buyers

In order to create a successful digital marketing campaign to sell your home, first identify your potential buyers.

What kind of home do you have? How many rooms? Is it a house, or an apartment? Does it have a garage? If it is in a building, is there an elevator?

There are so many questions you can ask yourself, and each of these questions is important in identifying who your buyers are. As an example, if you live in a building and there is no elevator, you should not target families with babies.

Once you know who your customers are, you can find ways to advertise your place.

Set clear goals

While the main goal is to sell your home, you should think outside of the box when it comes to setting goals. If you have a simplified approach you might lose a lot of buyers.

The real estate market is huge, and there is a lot of competition. If you wish to sell your place quickly, you must find a way to make your home stand out in the crowd. And that’s what your goal should be!

Caption: Have a clearly set structure of goals in front of you, that is the best way to create a good digital advertisement for selling your home.

Alt: A structural tree showing various components of digital marketing.

Outline all the good elements of your place, but do it from a distance. Do not be too pushy, or you might drive clients away.

Work with people you trust

There are many real estate agencies on the market. However, not everyone will create a good offer for you. With that in mind, always look for recommendations and read reviews.

The same applies when looking for professionals to help you start a digital marketing campaign. If you apply this strategy, you will show that you are focusing on the quality and experience, instead of just looking for a cheaper agent.

That’s how to use digital marketing to sell your home As you can see, there are many different approaches if you wish to use digital marketing to sell your home. In the end, it all depends on what strategy will show as the most efficient one. Nevertheless, there is no reason why you should not try multiple strategies at the same time. Only by combining these elements you can find the right buyer quickly, and make a good deal. Good luck!

Biden’s plan for Westchester | Pound Ridge Real Estate

Biden's plan to destroy American suburbs

A home in suburban Scarsdale, New York

If you live in the suburbs or you’re a city dweller eyeing a move to a quiet cul-de-sac where your kids can play outside, you need to know about Joe Biden’s plan for a federal takeover of local zoning laws.

The ex-veep wants to ramp up an Obama-era social engineering scheme called Affirmatively Furthering Fair Housing that mercifully barely got underway before President Trump took office, vowing to stop it.

Biden’s plan is to force suburban towns with single-family homes and minimum lot sizes to build high-density affordable housing smack in the middle of their leafy neighborhoods — local preferences and local control be damned.

Starting in 2015, President Barack Obama’s Department of Housing and Urban Development floated a cookie-cutter requirement for “balanced housing” in every suburb. “Balanced” meant affordable even for people who need federal vouchers. Towns were obligated to “do more than simply not discriminate,” as a 2013 HUD proposal explained. Rather, towns had to make it possible for low-income minorities to choose suburban living and provide “adequate support to make their choices possible.”

Had the rule been implemented nationwide, towns everywhere would have had to scrap zoning, build bigger water and sewer lines to support high-density living, expand schools and social services and add mass transit. All pushing up local taxes. Towns that refused would lose their federal aid.

The rule was one of the worst abuses of the Obama-Biden administration — a raw power grab masquerading as racial justice.

In Westchester, County Executive Rob Astorino battled the Obama-Biden administration for years, successfully resisting the baseless smear of racism. Zoning laws limit what can be built in a neighborhood in neutral fashion, Astorino explained, not who can live there.

To be absolutely clear, denying anyone the chance to rent or buy a home because of their race is abhorrent and illegal. It should be prosecuted whenever it still happens.

African Americans have been steadily leaving inner cities and choosing suburban lifestyles, according to Brookings Institution data. Many families — of all races — want the peace of mind of letting their kids ride bikes around quiet neighborhood streets. That’s what zoning laws provide.

The real barrier to suburban living is money. Living in the ’burbs isn’t cheap. HUD Secretary Ben Carson told a House committee last May that “people can only afford to live in certain places.” It’s “not because George Wallace is blocking the door.”

Biden and the equality warriors are using accusations of racism to accomplish something different. Their message is: You worked and saved to move to the suburbs, but you can’t have that way of life unless everyone else can, too.

Count on Trump to make Biden’s war on the suburbs a key issue in the election. In his Rose Garden news conference Thursday, the president came out swinging, warning that Biden would “totally destroy the beautiful suburbs” by “placing far-left Washington bureaucrats in charge of local zoning.”

In response, the left and its media allies played the race card. As usual. On MSNBC, Princeton University Professor Eddie Glaude Jr. said, “I hear the words of a racist.” CNN accused the president of fearmongering “white suburban voters.” But it’s CNN that is being racist — by assuming that only whites own homes in the suburbs.

Trump is talking to suburban homeowners of all ethnicities. If you buy a house in a neighborhood with quarter-acre zoning, you don’t want a high-density housing complex built at the end of the street.

The president won the suburbs in 2016, but polls show Trump trailing in the suburbs largely because of opposition from women. They need to focus on what’s at stake for their families.

Tens of thousands of New Yorkers have fled the city in the past four months, many of them spending their savings and taking out a mortgage to buy a home in the suburbs. The same dynamic is playing out in many other regions nationwide. For these transplants, the stakes are high.

The outcome of the November election will determine the value of their new home, the size of their property tax bill and the character of the town they now call home.

Betsy McCaughey is a former lieutenant governor of New York.

Mortgage rates average 3.01% | Mt Kisco Real Estate

Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing that the 30-year fixed-rate mortgage (FRM) averaged 3.01 percent.

“While housing demand continues to rebound, the month-long swoon in economic activity has caused the 10-year Treasury benchmark to drop. In the short-term, this means the demand will continue on the back of near record low mortgage rates,” said Sam Khater, Freddie Mac’s Chief Economist. “However, the most recent consumer spending data has been pointing to slow growth since mid-June. The concern is that the pause in economic activity will cause unemployment to remain elevated which will lead to longer-term labor market distress.”

News Facts

  • 30-year fixed-rate mortgage averaged 3.01 percent with an average 0.8 point for the week ending July 23, 2020, up slightly from 2.98 percent. A year ago at this time, the 30-year FRM averaged 3.75 percent.  
  • 15-year fixed-rate mortgage averaged 2.54 percent with an average 0.7 point, up from last week when it averaged 2.48 percent. A year ago at this time, the 15-year FRM averaged 3.18 percent.  
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.09 percent with an average 0.3 point, up slightly from last week when it averaged 3.06 percent. A year ago at this time, the 5-year ARM averaged 3.47 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.

June construction prices rise | Bedford Corners Real Estate

Prices paid for goods used in residential construction increased 1.9% in June (not seasonally adjusted) according to the latest Producer Price Index (PPI) report released by the Bureau of Labor Statistics. It is the second consecutive monthly increase since the index declined three months straight by a total 5.4%.

The index has decreased 3.0% year-to-date (YTD), five times the magnitude of the prior record for a June YTD decrease (-0.6% in 2009). Prices paid for goods used in residential construction have only fallen four times between January and June since 2000.Well when buying real estate it also includes important parts like garage door.Price of garage door may vary,So you might get confused which garage door to buy! Don’t worry check over here and you will able to clear all your doubts here.

The increase in prices paid for goods used in residential construction was led by a 12.9% increase in softwood lumber prices. Since decreasing 10.8% in April, softwood lumber prices have risen 16.5% and are now at the highest level since July 2018—the peak of the early- to mid-2018 runup. Although the YTD percentage increase in prices paid for softwood lumber is roughly two-thirds of the increase seen over the same period in 2018, timing of PPI data collection suggests that a recent, sharp advance in prices will be captured in the July PPI report.

Prices paid for gypsum products climbed 0.6% in June after increasing 1.5% in May (seasonally adjusted). The price index for gypsum products has risen 0.8% over the past 12 months and is 7.7% lower than the most recent peak reached in March 2018.

Even after the monthly increase, gypsum product prices have declined 2.5% YTD. Prices fell by 3.9% over the same period in 2019 and are just 4.4% higher than they were to start 2017.

Nationally, prices paid for ready-mix concrete (RMC) advanced 0.1% in June (seasonally adjusted) after no change in May.

Prices rose in the Northeast and West regions by 0.6% and 4.5%, respectively, while prices paid in the Midwest (-0.4%) and South (-2.3%) decreased month-over-month.

Other changes in indexes relevant to home building and infrastructure are shown below.

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