Category Archives: Mount Kisco

Mortgage rates average 4.02% | Mt. Kisco Real Estate

Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing the 30-year fixed mortgage rate remaining around four percent for the fifth consecutive week.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 4.02 percent with an average 0.5 point for the week ending May 18, 2017, down from last week when it averaged 4.05 percent. A year ago at this time, the 30-year FRM averaged 3.58 percent.
  • 15-year FRM this week averaged 3.27 percent with an average 0.5 point, down from last week when it averaged 3.29 percent. A year ago at this time, the 15-year FRM averaged 2.81 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.13 percent this week with an average 0.5 point, down from last week when it averaged 3.14 percent. A year ago at this time, the 5-year ARM averaged 2.80 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 3 basis points this week to 4.02 percent. However, this week’s survey closed prior to Wednesday’s flight to quality. The delayed impact of the associated decline in Treasury yields may push mortgage rates lower in next week’s survey.”

Price it right and they will come | Mt Kisco Real Estate

No, that’s not a typo: Douglas Elliman’s profits dipped to just $100,000 during the first quarter of 2017, down from $7.1 million during the same period last year, parent company Vector Group reported Friday. The paltry sum was attributed to fewer closings at new development projects, Vector executives said.

Elliman closed sales worth $5.6 billion during the first quarter, compared to last year’s $5.7 billion, the company said. That resulted in $155.5 million in first-quarter revenue, down slightly from $157.6 million last year.

“There were less new development closings. That’s a higher-margin business so that hurt us,” said Douglas Elliman CEO Howard Lorber, during an earnings call Friday.

While the firm’s net income for the quarter was $100,000, its adjusted EBITDA (earnings before interest, tax, depreciation and amortization) was $1.8 million, compared to $9.1 million in 2016’s first quarter.

Overall, Vector’s first-quarter revenue was $415.2 million, up from $380.8 million in 2016’s first quarter. Vector reported a net loss of $4.2 million compared with net income of $19.3 million during the first quarter of last year.

Lorber told investors that New Valley, the real estate investment vehicle of Vector, would continue to take an “opportunistic” approach. “If there’s something that makes sense, that’s an opportunistic type of investment or a troubled project where we think we can add value, we’re interested,” he said.

In general, he said, the New York market has picked up — a sentiment shared by others in recent weeks.

Real estate conglomerate Realogy Holdings Corp., which reported its first-quarter results on Thursday, generated $1.2 billion in revenue for the quarter, a 6 percent improvement from the prior year, the company said. New Jersey-based Realogy had an adjusted net loss of $23 million compared to an adjusted loss of $17 million in 2016’s first quarter — both attributed to low seasonal transaction volume.

During an earnings call Thursday, Realogy CEO Richard Smith said there are “early signs of stabilization” in the luxury market, with sales in the $2.5 million-and-up segment up 10 percent from this time last year. “New product in New York City continues to be particularly strong,” he said.

NRT — the division that owns the Corcoran Group, Sotheby’s International Realty and Citi Habitats — saw revenue jump seven percent year-over-year to $897 million for the first quarter.

But Smith cautioned that there isn’t enough inventory on the low end of the market, and he described a recent bidding war for a $1 million New York City apartment as an example. Some 200 people showed up at the open house, 25 of them made bids and the apartment sold for 20 percent above the asking price, he said. “Listen, we don’t see that play out in every market,” he said. “The good news is, when something is priced right… it’s selling.”

 

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https://therealdeal.com/2017/05/05/elliman-only-made-100k-in-profits-in-q1/?utm_source=The+Real+Deal+E-Lerts&utm_campaign=5e50cfa7fe-New_York_Weekend_Update_10.18.2015&utm_medium=email&utm_term=0_6e806bb87a-5e50cfa7fe-385733629

Rental Apartment Absorption Flat While Condominium Absorption Jumps | Mt Kisco Real Estate

The US Census Bureau, in collaboration with the US Department of Housing and Urban Development, releases data on completions and absorption rates for multifamily buildings with at least 5 apartments. The most recent release shows that completions of nonsubsidized, unfurnished, rental apartments amounted to 73,800 in the third quarter of 2016. This is 11,700 more than the second quarter of 2016, but 9,800 fewer than the third quarter of 2015 (Figure 1).

The absorption rate (apartments rented within 3 months of completion) for rental apartments completed in the third quarter of 2016 stood at 61 percent. This is 4 percentage points higher than the second quarter of 2016 (57 percent), but essentially unchanged compared to the rate from the third quarter of 2015 (60 percent) (Figure 1).

The release also revealed that the median asking rent of apartments completed in the third quarter of 2016 was $1,507. This is a significant increase compared to the median asking rent from the third quarter of 2015: $1,346.

In the third quarter of 2016, condominium completions rose considerably to 6,100, which is 2,800 units more than in the second quarter of 2016 and 1,800 higher than completions in the third quarter of 2015. The condominium absorption rate also posted an increase to 74 percent, which is 10 percentage points higher than the second quarter of 2016 and 23 percentage points higher compared to the third quarter of 2015 (Figure 2).

Figure 3 displays subsidized and tax credit unit completions as a share of total apartment completions. In the third quarter of 2016, subsidized or tax credit units represented approximately 6 percent (5,200 units) of total apartment completions. This is about the same share seen in the second quarter of 2016 (7 percent). It important to note that starting in 2010, the share of these units completed surged, but started to decrease significantly starting in 2014.

 

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http://eyeonhousing.org/2017/03/rental-apartment-absorption-flat-while-condominium-absorption-jumps/

Home Price Gains Continue | Mt Kisco Real Estate

The Case-Shiller (CS) National Home Price Index, released by S&P Dow Jones Indices, continued to rise in October. The CS Home Price Index rose at a seasonally adjusted annual growth rate of 10.7%, up from 10.1% last month. Due to tight inventory and high demand, house prices have accelerated since May and reached the pre-recession peak of 2006.

Along with the increases in national home prices, local home prices also increased in varying degrees in October. Figure 2 shows the annual growth rate of home prices for 20 major U.S. metropolitan areas.

All of the 20 metro areas had positive home price appreciation, ranging from 3.5% to 18.3%. Atlanta had the highest home price appreciation at 18.3%, while Chicago had the lowest but still positive growth at 3.5%. Home price appreciation in seven of the 20 metro areas was higher than the national level of 10.7%. Those markets are Atlanta (18.3%), Cleveland (16.7%), Tampa (15.1%), Dallas (12.6%), San Francisco (12.4%), Washington DC (11.4%) and Boston (11.1%).

 

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Are Starter Homes Going the Way of the Station Wagon? | Mt Kisco Real Estate

The millennial generation’s slow start in adulthood is still causing aftershocks in the housing economy.  Unemployment, underemployment and student debt have delayed their household formation beyond the timeframe of earlier generations.  Low interest rates and low down payment programs were enough to get millions of potential buyers into affordable homes before prices soared. Now it looks like an icon of the homeownership experience—the starter home—may be on the chopping block, soon to follow past icons of young family hood like station wagons and cloth diapers into obsolescence. Young buyers—Gen Xers as well as Millennials— are bypassing the traditional first rung of the housing ladder, the starter home and buying up. With inventories of affordable housing chronically slim and overpriced, especially the metros where they want to live, young prospective buyers are renting a year or two longer until they can afford a larger home that will meet their needs for many years to come.  That may be one reason buyers today are saying intending to stay at least 15 years in their new homes (see Americans Move Less and Impact the Economy. Some 14 million single family rentals, a number that swelled during the foreclosure crisis and continues to grow with the popularity of real estate investing, make the transition from rental to ownership easier for young families by providing a rental option that’s almost like ownership.

2016-11-14_15-27-12Source: Bank of America

The first alarms that starter homes may be on their way out were sounded last March when Bank of America released its first Homebuyer Insights Report, which found that:

  • Seventy-five percent of first-time buyers would prefer to bypass the starter home and purchase a place that will meet their future needs, even if that means waiting to save more. Thirty-five percent want to retire there.

 

  • More Gen Xers than Millennials have put off purchasing their first home because of debt.

 

  • Young buyers’ goals are not urban hot spots by family-friendly suburbs. More than half (54 percent) of buyers are looking for a home in the suburbs, including 52 percent of first-time buyers.

Now the new Zillow Group Report on Consumer Housing Trends, which was released on Halloween, confirms the Bank of America findings. “When Millennials do become homeowners, they leapfrog the traditional “starter home” and jump into the higher end of the market by choosing larger properties with higher prices, similar to homes bought by older buyers. They pay a median price of $217,000 for a home—more than Baby Boomers, and just 11 percent less than Generation X. The Millennial median home size is 1,800 square feet, similar in size to what older generations buy,” Zillow found. At $217,99p per property that has a 1,800-foot floor plan, the youngest generation is paying almost the median price for a median-sized home today, far from the definition of a starter home.

 

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http://www.realestateeconomywatch.com/2016/11/are-starter-homes-going-the-way-of-the-station-wagon/

Home builder confidence ends the year at highest point since 2005 | Mt Kisco Real Estate

Home builders saw a significant boost in confidence after President-elect Donald Trump won the election, according to the National Association of Home Builders/Wells Fargo Housing Market Index.

This increase brought builder sentiment up seven points to a level of 70, the index’s highest point since July 2005.

Just before the election, builder confidence held steady, holding the HMI level at 63.

“This notable rise in builder sentiment is largely attributable to a post-election bounce, as builders are hopeful that President-elect Trump will follow through on his pledge to cut burdensome regulations that are harming small businesses and housing affordability,” said NAHB Chairman Ed Brady, a home builder and developer.  “This is particularly important, given that a recent NAHB study shows that regulatory costs for home building have increased 29% in the past five years.”

Perhaps this is just the increase the industry needs to boost new home development for first-time buyers, something that First American Chief Economist Mark Fleming said will be a key player in 2017’s housing market.

“Though this significant increase in builder confidence could be considered an outlier, the fact remains that the economic fundamentals continue to look good for housing,” NAHB Chief Economist Robert Dietz said.

“The rise in the HMI is consistent with recent gains for the stock market and consumer confidence,” Dietz said. “At the same time, builders remain sensitive to rising mortgage rates and continue to deal with shortages of lots and labor.”

Derived from a monthly survey that NAHB has been conducting for 30 years, the 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.

 

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http://www.housingwire.com/articles/38764-home-builder-confidence-ends-the-year-at-highest-point-since-2005?eid=311691494&bid=1616756

Holiday Credit Tips from North Shore Advisory | Mt Kisco Real Estate

 
  The Christmas & Holiday season is a time full of joy, laughter, and time spent with loved ones.

But, if you have ever stepped into a department store this time of year, you know that it’s also a hectic and stressful time. It’s easy to get caught up in all the parties and shopping, the last thing on your mind are account due dates and closing dates.

Here are a few tips:

  1. Double-check that credit card bill/payment alerts are activated.
  2. Auto-pay – a great way to make sure bills are paid on time. (Get a confirmation number!)
  3. Avoid paying late, it had the power to drop FICO score’s 100’s of points depending on your scores prior to the delinquency.
  • For instance, if John has a 780 FICO score he is a very low risk borrower. Let’s say he forgets to pay his bill on time this month, his score can drop down to 650, which is far from excellent. If John had delinquencies already appearing with a score of 660 prior to a new late payment he may experience a drop of 30-50 points. Since he is already a higher risk borrower his score does not have to drop much to show his new risk level.

Safeguard your credit score this Holiday season, especially if you are planning to go for a mortgage or loan within the next year or two – with the new trending credit data, lenders are looking at your revolving payment history dating back two year in order to assess the borrowers risk level.

If you have any questions or would like us to review reports, reach out to our Expert Credit Team!

Happy Holidays!

 
 
 
Tracy A. Becker, President

FICO Certified Professional

Expert Credit Witness Certified

Author “Credit Score Power”

 
North Shore Advisory Credit Repair
 
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Rates Steady as Increases Expected | Mt Kisco Real Estate

Nationally, the contract interest rate on conventional mortgages for home purchase held steady in October 2016. Over the month, the rate on conventional mortgages for home purchase was unchanged at 3.60%, according to data released by the Federal Housing Finance Agency (FHFA). Rates on the purchase of previously occupied homes ticked up 1 basis point to 3.62% while rates on new homes fell 2 basis points to 3.54%.

presentation3

The lack of change in mortgage rates overall reported by the FHFA does contrast with the increase in mortgage rates over the month of October in the Mortgage Bankers’ Association’s Mortgage Applications Survey (MAS). This Survey indicates that the contract rate on conventional mortgages rose 5 basis points to 3.72% over the month*. However, the FHFA release more closely parallels results from Freddie Mac’s Primary Mortgage Market Survey (PMMS). The commitment rate on conventional mortgages ticked up 1 basis point to 3.47% over the month of October*.

Despite some divergence, over the longer term, these 3 series track each other fairly closely. Between 1990 and 2000, the trend in the 3 series matched, although the rates reported by MBA’s MAS and Freddie Mac’s PMMS were more similar while FHFA’s MIRS was often a bit lower. Since 2000, the three series have been in near unison both in its point estimate and the overall trend.

presentation4

The monthly data covers the month of October, but the weekly mortgage rate data for November indicates that rates have clearly begun to rise. As shown by the figure below, between October 28th and November 25th, the contract mortgage rate calculated by the PMMS rose from 3.47% to 4.03%. Over the same period, the MAS increased from 3.75% to 4.23%. Further, mortgage rates are expected to continue climbing in the near term. In its most recent forecast, dated October 28th, NAHB expects the rate on a 30 year fixed rate mortgage to climb in each of 2017 and 2018.

The increase in mortgage rates follows the increase in the 10-year Treasury note. A rising rate on the 10-year partly reflects the desire to make progress on monetary policy normalization, which has been impeded by a series of unrelated surprises over the course of the year. However, momentum has been building and expectations of an impending increase in the federal funds rate has pushed interest rates modestly higher in the second half of the year.

A more seismic impact from a different set of rate expectations has been set in motion by the surprise outcome of the November election. Proposals for fiscal stimulus via tax cuts, government spending and regulatory reform have led to expectations of stronger economic growth, higher inflation and higher interest rates. The yield on 10-year Treasury securities has moved up over 50 basis points since November 8.

 

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http://eyeonhousing.org/2016/12/rates-steady-in-october-as-increases-expected/

Home buyer sentiment index weakens | Mt Kisco Real Estate

A home-buying sentiment index from Fannie Mae weakened for the third straight month in October, a sign the market’s momentum may be faltering.

Fannie’s home purchase sentiment index fell 1.1 percentage points to 81.7. After climbing as high as 86.5 in July, the index has fallen every month since then. It’s now 1.5 percentage points below its level from a year ago.

“Since July, more consumers, on net, have steadily expected mortgage rates to rise and home price appreciation to moderate,” said Fannie chief economist Doug Duncan in a statement. “Furthermore, consumers’ perception of their income over the past year deteriorated sharply in October to the worst showing since early 2013.”

The index includes six components from a monthly survey the mortgage buyer FNMA, +0.80%   conducts of 1,000 Americans on owning and renting a home, home and rental price changes, homeownership distress, the economy, household finances, and overall consumer confidence.

Slightly more respondents said mortgage rates would rise in the next 12 months – 50% versus 49% in September. While most economists expect the Federal Reserve to raise interest rates at its December meeting, it’s not clear how much of an impact that will have on mortgage rates, which remain near all-time lows.

And while the share of respondents expecting home prices to increase fell to 41% in October from 43%, prices seem to be defying gravity.

Respondents in Fannie’s survey expect home purchase prices to appreciate 1.9% over the next 12 months. Data provider CoreLogic forecasts home prices will rise 5.2% over the next 12 years, and many analysts and industry participants believe prices are increasing too quickly for most would-be buyers to keep up.

 

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http://www.marketwatch.com/story/housing-market-becoming-more-pessimistic-fannie-mae-survey-finds-2016-11-07?siteid=yhoof2&yptr=yahoo

2017 conforming loan limits rise across the country | Lewisboro Real Estate

For the first time since the housing crisis, the Federal Housing Finance Agency is increasing the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2017.

For much of the country, the Fannie Mae and Freddie Mac loan limit remained at $417,000 for one-unit properties (or single-family homes) in 2016, just as it had for the previous 10 years.

The FHFA announced Wednesday that for 2017, it is increasing the loan limit from $417,000 to $424,100 for single-family homes.

The conforming loan limits for Fannie and Freddie are determined by the Housing and Economic Recovery Act of 2008, which established the baseline loan limit at $417,000 and mandated that, after a period of price declines, the baseline loan limit cannot rise again until home prices return to pre-decline levels.

The FHFA noted that until this year, the average U.S. home price remained below the level achieved in the third quarter of 2007, which it designates as the pre-decline price level, and therefore the baseline loan limit had not been increased.

But as the FHFA noted earlier Wednesday, its Home Price Index for the third quarter of 2016 makes it “clear” that average home prices are now above the level of the third quarter of 2007, which means that the conforming loan limits can be increased.

According to the FHFA, the expanded-data HPI value for the third quarter of 2016 was approximately 1.7% above the value for the third quarter of 2007, meaning the baseline loan limit will increase by that same percentage.

As noted above, the conforming loan limits for much of the country will increase from $417,000 to $424,100.

Loan limits will also be increasing in what the FHFA calls “high-cost areas,” where 115% of the local median home value exceeds the baseline loan limit.

As the FHFA notes, median home values generally rose in high-cost areas during this year.

According to the FHFA, the new ceiling loan limit, which applies in areas with the most expensive homes, will be $636,150 (which is 150% of $424,100) for one-unit properties in the contiguous U.S.

According to the FHFA, there are special statutory provisions that establish different loan limit calculations for Alaska, Hawaii, Guam and the U.S. Virgin Islands.

In these areas, the baseline loan limit will be $636,150 for one-unit properties, but actual loan limits may be higher in some specific locations.

For a full list of the conforming loan limits by county, click here.

The increase in conforming loan limits is a long time coming, according to William Brown, the president of the National Association of Realtors.

 

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http://www.housingwire.com/articles/38593-fhfa-increases-conforming-loan-limits-for-first-time-since-2006?eid=311691494&bid=1597527