Category Archives: Bedford

Mortgage rates average 3.88% | Bedford Real Estate

Freddie Mac (OTCQBFMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing the 30-year fixed mortgage rate dropping to a new 2017 low.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 3.88 percent with an average 0.5 point for the week ending June 29, 2017, down from last week when it averaged 3.90 percent. A year ago at this time, the 30-year FRM averaged 3.48 percent.
  • 15-year FRM this week averaged 3.17 percent with an average 0.5 point, the same as last week. A year ago at this time, the 15-year FRM averaged 2.78 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.17 percent this week with an average 0.5 point, up from last week when it averaged 3.14 percent. A year ago at this time, the 5-year ARM averaged 2.70 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.

Quote
Attributed to Sean Becketti, chief economist, Freddie Mac.
“The 30-year mortgage rate fell 2 basis points to 3.88 percent this week. However, the majority of our survey was conducted prior to Tuesday’s sell-off in the bond market which drove Treasury yields higher. Mortgage rates may increase in next week’s survey if Treasury yields continue to rise.”

Why homeownership is near 50-year low | Bedford Real Estate

The job market continues to show improvement, and interest rates remain historically low, yet the homeownership rate in the U.S. remains near a 50-year low.

The National Association of Realtors released a new white paper titled, “Hurdles to Homeownership: Understanding the Barriers” which lays out five reasons for the low homeownership rate. NAR released its paper in recognition of National Homeownership month at the Sustainable Homeownership Conference at the University of California, Berkeley.

“The decline and stagnation in the homeownership rate is a trend that’s pointing in the wrong direction, and must be reversed given the many benefits of homeownership to individuals, communities and the nation’s economy,” NAR President William Brown said. “Those who are financially capable and willing to assume the responsibilities of owning a home should have the opportunity to pursue that dream.”

The research, commissioned by NAR, was prepared by Rosen Consulting Group, and jointly released by the Fisher Center for Real Estate and Urban Economics at the University of California, Berkeley Haas School of Business.

“Low mortgage rates and a healthy job market for college-educated adults should have translated to more home sales and upward movement in the homeownership rate in recent years,” NAR Chief Economist Lawrence Yun said. “Sadly, this has not been the case.”

“Obtaining a mortgage has been tough for those with good credit, savings for a down payment are instead going towards steeper rents and student loans, and first-time buyers are finding that listings in their price range are severely inadequate,” Yun said.

Here are what NAR says are the five main barriers to homeownership:

Post-foreclosure stress disorder:

There are long-lasting psychological changes in financial decision-making, including housing tenure choice, for the 9 million homeowners who experienced foreclosure, the 8.7 million people who lost their jobs and the young adults who witnessed the hardships of their family and friends, NAR explained.

Mortgage availability:

Credit standards did not normalize after the Great Recession, NAR’s study showed. Borrowers with good-to-excellent credit scores are not getting approved at the rate they were in 2003, prior to the period of excessively lax lending standards.

The growing burden of student loan debt:

Young households are repaying an increasing level of student loan debt that makes it extremely difficult to save for a down payment, qualify for a mortgage and afford a mortgage payment, especially in areas with high rents and home prices. NAR found in a survey released last year, student loan debt is delaying purchases from Millennials and over half expect to be delayed by at least five years.

Single-family housing affordability:

Lack of inventory, higher rents and home prices, difficulty saving for a down payment and investors weighing on supply levels by scooping up single-family homes have all lead to many markets experiencing decaying affordability conditions, the study showed. Unless these challenges subside, RCG forecasts that affordability will fall by an average of nearly nine percentage points across all 75 major markets between 2016 and 2019, with approximately 5 million fewer households able to afford the local median-priced home by 2019.

Single-family housing supply shortages:

Fewer property lots at higher prices, difficulty finding skilled labor and higher construction costs are among the reasons cited by RCG for why housing starts are not ramping up to meet the growing demand for new supply.

read more…

https://www.housingwire.com/articles/40385-nar-here-are-5-reasons-for-low-homeownership-rate?eid=311691494&bid=1783075

Home prices jumped the most in these 10 housing markets | Bedford Real Estate

Home prices increased in March to a new peak, according to the latest Home Prices Index from Black Knight Financial Services.

Home prices rose to a median $272,000 in March, the report showed. This represents a new peak in home prices, and a rise of 2.3% from the start of the year.

And the Case-Shiller index, put out by CoreLogic and S&P Dow Jones Indices, showed home prices increased 5.8% annually in March, a pace which experts say is good news for sellers, but not so great for home buyers.

But some metropolitan areas saw home prices moving faster than others, as the fastest metro saw an increase that was double that of the national average. Month-over-month, home prices increased 1.3% nationally.

Here are the top ten housing metros with the highest increase in home prices in March, and the percent increase from the previous month. Using data from Trulia, HousingWire analyzed the median home price in each metro.

10. Bloomington, Illinois – Home prices up 2%

Median home price: $157,000

IllinoisFlagPhoto.jpg

9. Boulder, Colorado – Home prices up 2%

Median home price: $625,000

8. Sacramento, California – Home prices up 2%

Median home price: $280,000

California

7. Spokane, Washington – Home prices up 2%

Median home price: $180,325

6. Kankakee, Illinois – Home prices up 2.2%

Median home price: $86,000

5. San Francisco, California – Home prices up 2.2%

Median home price: $1,205,000

san francisco houses

4. Walla Walla, Washington – Home prices up 2.2%

Median home price: $218,750

3. Bellingham, Washington – Home prices up 2.3%

Median home price: $335,709

2. Seattle, Washington – Home prices up 2.4%

Median home price: $625,000

Side shot

1. San Jose, California – Home prices up 2.6%

Median home price: $835,000

San Jose

 

read more…

 

https://www.housingwire.com/articles/40278-home-prices-jumped-the-most-in-these-10-housing-markets?eid=311691494&bid=1771046

Decline for Single-Family Built-for-Rent Construction | Bedford Real Estate

The number of single-family homes built-for-rent fell slightly at the start of 2017, falling to 6,000 for the quarter. Over the last four quarters, total production of this type of housing was 33,000 homes.

According to data from the Census Bureau’s Quarterly Starts and Completions by Purpose and Design and NAHB analysis, the market share of single-family homes built-for-rent, as measured on a one-year moving average, stood at 4.1% of total starts as of the first quarter of 2017.

Given the small size of the market segment, the quarter-to-quarter movements are not typically statistically significant. The current market share remains higher than the historical average of 2.8% but is down from the 5.8% reading registered at the start of 2013. This class of single-family construction excludes homes that are sold to another party for rental purposes. It only includes homes built and held for rental purposes.

With the onset of the Great Recession and the ongoing declines in the homeownership rate, the share of built-for-rent homes rose. Despite the current elevated market concentration, the total number of single-family starts built-for-rent remains low in terms of the total building market.

Of course, the built-for-rent share of single-family homes is considerably smaller than the single-family home portion of the rental housing stock, which is 35% according to the 2015 American Community Survey. As homes age, they are more likely to be rented. Thus, the primary source of single-family rental homes is not construction but the existing housing stock. In fact, from 2005 to 2015, 56% of the gains in the rental housing stock were due to single-family homes.

 

read more…

 

http://eyeonhousing.org/2017/05/decline-for-single-family-built-for-rent-construction/

March Sales: New Listings Were Off to the Races | Bedford Real Estate

March buyers blew the roof off housing markets as they heeded warnings about the limited supplies of home for sale and found houses in record time.  National monthly market reports on March transactions chronicled surge of sales as the spring season kicked off and tens of thousands of new listings turned over in a matter of days.

“We expected a seasonal uptick in sales this time of year and March certainly met and somewhat exceeded that expectation,” said RE/MAX CEO Dave Liniger as the months supply in RE/MAX’s latest National Housing Report fell below 3 months in March for the first time in history.

“Calendars might say spring is only a week old but we’re already in the thick of the most frenzied home buyer season on record,” concurred realtor.com’s Javier Vivas. Redfin reported its fastest March on record for home sales since it began tracking this data in 2010.

Every report told the same story.  The plunge in days on market was breathtaking as buyers gobbled up new listings as fast as they hit MLSs. In NAR’s existing home sales report, days on market fell from 45 days in February to 34 days in March, on realtor.com from 90 to 68,, on RE/MAX from 71 to 64, on Redfin from 60 top 49.

Prices Outpace Incomes’

The three year inventory drought coupled with the spring surge in demand pushed prices even ither than

109.1 million full-time wage and salary workers were $830 in

the first quarter of 2016 (not seasonally adjusted), the U.S. Bureau of Labor Statistics reported today.

This was 2.7 percent higher than a year earlier

 

 

March Market Reports at a Glance

Source

Monthly Sales Trend

Annual Sales Trend

Monthly Price Trend

Annual Price Trend

Median Sale Price

Median Days on Market

Comments

NAR

  4.4%

5.9%

-2.18%

6.8%

$236,400

34

There was enough of a monthly increase in listings in March for sales to muster a strong gain. Sales will go up as long as inventory does.
Realtor.com

NA

NA

4%

8%

$260,000

68

The typical spring upswing in sales has come about a month earlier than usual.
Redfin

 

42.7%

 

8.9%

 

4.6%

 

7.5%

 

$273,000

 

49

Spring 2017 shapes up to be the fastest and most competitive housing market in recent years,
RE/MAX

-0.2%

6.6%

7.1%

11%

$225,000

64

Prices hit a new high due steady demand and record low inventory.
Zillow

N/A

N/A

0.4%*

6.8%*

$196,500*

N/A

Five percent fewer homes on the market now than a year ago

 

 

 

 

 

 

 

 

 

*These data are not sales but valuations for all homes based on Zillow’s AVM.

 

read more…

 

http://www.realestateeconomywatch.com/2017/05/march-sales-new-listings-were-off-to-the-races/

U.S. pending home sales surge to ten-month high | Bedford Real Estate

Contracts to buy previously owned U.S. homes jumped to a 10-month high in February, pointing to robust demand for housing ahead of the busy spring selling season.

The report on Wednesday from the National Association of Realtors suggested higher home prices and mortgage rates were having little impact on the housing market for now, underscoring the economy’s resilience despite an apparent slowdown in growth in the first quarter.

The NAR said its Pending Home Sales Index, based on contracts signed last month, surged 5.5 percent to 112.3. That was the highest reading since April and the second best showing since May 2006.

“This bodes well for home sales this spring,” said Misa Batcheller, an economic analyst at Wells Fargo Securities in Charlotte, North Carolina.

Contract signing last month was likely boosted by unseasonably warm temperatures. The gains reversed January’s 2.8 percent drop. Pending home contracts become sales after a month or two, and last month’s surge implied a pickup in home resales after they tumbled 3.7 percent in February.

Economists had forecast pending home sales rising 2.4 percent last month. Pending home sales increased 2.6 percent from a year ago.

U.S. financial markets were little moved by the data as investors assessed comments from Federal Reserve officials on further interest rate increases this year. Chicago Fed President Charles Evans, one of the U.S. central bank’s most consistent supporters of low interest rates, said he supported additional monetary policy tightening this year.

The Fed raised its benchmark overnight interest rate by a quarter percentage point earlier this month and has forecast two more rate hikes this year. The dollar was trading higher against a basket of currencies while U.S. stocks were mixed. U.S. government bond prices rose.

TIGHT INVENTORIES

Demand for housing is being driven by a strong labor market, which is generating wage increases, as it nears full employment. Sales activity, however, remains constrained by tight inventories, which are driving up home prices.

“The good news is that warm winter weather has led to a surge in construction that will hopefully result in a bloom of new homes for sale this spring,” said Joseph Kirchner, senior economist at realtor.com.

A report on Tuesday showed home prices increased 5.7 percent in January on a year-on-year basis. The NAR expects sales of previously owned homes to increase 2.3 percent this year to around 5.57 million units.

Existing homes sales increased 3.8 percent last year. Housing market strength suggests an apparent sharp slowdown in economic growth early in the first quarter is likely temporary.

The Atlanta Fed is forecasting gross domestic product increasing at a 1.0 percent annualized pace in the first quarter. The economy grew at a 1.9 percent rate in the final three months of 2016.

Given labor market strength, economists expect only a modest impact from higher mortgage rates. The 30-year fixed mortgage rate is currently at 4.23 percent, below a more than 2-1/2-year high of 4.32 percent hit in December.

In a separate report on Wednesday, the Mortgage Bankers Association said applications for home purchase loans rose 1.2 percent last week from the prior week. It was the fourth increase in the past five weeks.

 

read more…

 

http://www.reuters.com/article/us-usa-economy-idUSKBN1701XS

Builder Confidence Holds Firm | Bedford Real Estate

Builder confidence in the market for newly-built single-family homes remained on firm ground in January, down two points to a level of 67 from a downwardly revised December reading of 69 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).

The solid reading is consistent with building expectations heading into the new year. NAHB expects 10 percent growth in single-family construction in 2017, adding to the gains of 2016. However, ongoing industry concerns include rising mortgage interest rates as well as a lack of lots and access to labor.

The HMI rose sharply in December as the election results raised hopes among builders that a new Congress and administration will help create a better business climate for small businesses, particularly with respect to improving regulatory costs, which increased more than 29% over the last five years.

Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

All three HMI components retreated in January. The component gauging current sales conditions fell three points to 72, the index charting sales expectations in the next six months registered a two-point decline to 76 and the component measuring buyer traffic edged one-point lower to 51.

Looking at the three-month moving averages for regional HMI scores, the Northeast rose two points to 52 and the Midwest posted a three-point gain to 64. The South and West each held steady at 67 and 79, respectively.

 

read more…

http://eyeonhousing.org/2017/01/builder-confidence-holds-firm-in-january-2/

Zillow 2017 real estate predictions | Bedford Real Estate

This year is nearly over, and 2017 will being in just a few short weeks. As the year comes to a close, predictions for next year are pouring in.

It’s hard to say what the new year will bring with the newly-elected President-elect Donald Trump. Zillow points out in its predictions how some of his policies could affect housing next year.

Here are Zillow’s six predictions for 2017:

1. Cities will focus on denser development of smaller homes close to public transit and urban centers.

2. More millennials will become homeowners, driving up the homeownership rate. Millennials are also more racially diverse, so more homeowners will be people of color, reflecting the changing demographics of the United States.

3. Rental affordability will improve as incomes rise and growth in rents slows.

4. Buyers of new homes will have to spend more as builders cover the cost of rising construction wages, driven even higher in 2017 by continued labor shortages, which could be worsened by tougher immigration policies under President-elect Trump.

5. The percentage of people who drive to work will rise for the first time in a decade as homeowners move further into the suburbs seeking affordable housing — putting them further from adequate public transit options.

6. Home values will grow 3.6 percent in 2017, according to more than 100 economic and housing experts surveyed in the latest Zillow Home Price Expectations Survey. National home values have risen 4.8 percent so far in 2016.

Mortgage rates average 4.30% | Bedford Real Estate

Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates moving higher for the eighth consecutive week.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 4.30 percent with an average 0.5 point for the week ending December 22, 2016, up from last week when it averaged 4.16 percent. A year ago at this time, the 30-year FRM averaged 3.96 percent.

  • 15-year FRM this week averaged 3.52 percent with an average 0.5 point, up from last week when it averaged 3.37 percent. A year ago at this time, the 15-year FRM averaged 3.22 percent.

  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.32 percent this week with an average 0.4 point, up from last week when it averaged 3.19 percent. A year ago, the 5-year ARM averaged 3.06 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.

Quote
Attributed to Sean Becketti, chief economist, Freddie Mac.

“A week after the only rate hike of 2016, the mortgage industry digested the Fed’s decision and this week’s survey reflects that response. Following Yellen’s speech last Wednesday, the 10-year Treasury yield rose approximately 10 basis points. The 30-year mortgage rate rose 14 basis points to 4.30 percent, reaching highs we have not seen since April 2014.”