Tag Archives: Cross River NY Homes

Gen Xers more likely than Millennials or Boomers to buy a home | Cross River Real Estate

MCLEAN, VA–(Marketwired – Nov 18, 2015) – Freddie Mac

  • Gen Xers more likely than Millennials or Boomers to buy a home
  • Millennials more likely to save for short- and long-term goals
  • Renters offset rent hikes by spending less on essentials and are considering getting a roommate

Renters indicate they still feel challenged with their finances and 66 percent are carrying debt each month, according to a recent Freddie Mac (OTCQB: FMCC) survey. Yet, the majority of renters (56 percent) are optimistic about managing their debt. Renters are also saving money for numerous priorities and a down payment on a home is not at the top of their list. In addition, Gen Xers are more likely than Millennials or Boomers to buy a home in the next three years.

For the Freddie Mac quarterly online survey, conducted in October on its behalf by Harris Poll, renters currently saving for all listed goals place a higher priority on saving money for an emergency/unexpected expense (59 percent), retirement (51 percent) and children’s education (50 percent) than a down payment on a home (39 percent) or a vacation (26 percent). They also indicate that they are behind in saving for those things.

Looking across generations, Millennial renters are more likely to be saving for short- and long-term goals than Boomer and Gen X renters. For example, Millennial renters are more likely to be saving for a major purchase (92 percent) and a vacation (94 percent), when compared to Boomers (82 percent and 81 percent respectively) and Gen Xers (77 percent and 75 percent respectively).

“We know rents are rising faster than incomes and now we have data to show that many renters don’t have enough to pay all their debts each month, which is forcing them to make tradeoffs, such as cutting spending on other items,” said David Brickman, Freddie Mac executive vice president of Multifamily. “Despite this, some renters feel optimistic about managing their debt.”

Brickman added, “Growth in the renter segment will most likely occur through multifamily properties as more than half of those currently renting single-family properties are planning to become homeowners in the near future. The data shows single-family renters are increasingly more dissatisfied than multifamily renters.”

Ways to Offset a Rent Hike

The many ways in which renters are making adjustments due to rent increases include:

  • 51 percent are spending less on essentials, the same as last quarter.
  • 52 percent put off plans to purchase a home, compared to 44 percent in June.
  • 35 percent are contemplating getting a roommate, up from 29 percent in June.
  • 26 percent say they need to move into a smaller rental property, compared to 20 percent in June.

The Future Homebuyer

When broken out by generations, 58 percent of Gen X renters expect to purchase a home in the next three years, compared to 42 percent of Millennials and 33 percent of Baby Boomers.

Overall, almost half (48 percent) of renters in single-family properties are dissatisfied with renting, and are more likely to purchase a home in the next three years than multifamily renters (57 percent vs. 28 percent).

Satisfaction with Rental Experience

The satisfaction rates from the March, October and June surveys this year are virtually unchanged, with a third of renters being very satisfied with their rental experience and almost a third (30 percent) indicating they are moderately satisfied. In the October survey,

  • 70 percent of satisfied renters are likely to continue renting for the next three years, up slightly from 68 percent in the previous quarter.
  • 30 percent of satisfied renters indicate they are more likely to buy a home, compared to 32 percent in the previous quarter.

In addition, the top favorable factors for renting remain about the same and are freedom from home maintenance (79 percent), more flexibility over where you live (74 percent) and protection against declines in home prices (68 percent).

Additional details about the survey, including charts, are on the Freddie Mac website.

Mortgage Rates average 3.94% | Cross River Realtor

Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates reversing course and nudging higher for the first time in four weeks.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 3.94 percent with an average 0.6 point for the week ending August 13, 2015, up from last week when it averaged 3.91 percent. A year ago at this time, the 30-year FRM averaged 4.12 percent.
  • 15-year FRM this week averaged 3.17 percent with an average 0.6 point, up from last week when it averaged 3.13 percent. A year ago at this time, the 15-year FRM averaged 3.24 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.93 percent this week with an average 0.5 point, down from last week when it averaged 2.95 percent. A year ago, the 5-year ARM averaged 2.97 percent.
  • 1-year Treasury-indexed ARM averaged 2.62 percent this week with an average 0.3 point, up from last week when it averaged 2.54 percent. At this time last year, the 1-year ARM averaged 2.36 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 links for theRegional and National Mortgage Rate Details and Definitions. Borrowers may still pay closing costs which are not included in the survey.

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

“The jobs report for July showed that the economy added 215,000 jobs, in line with expectations. Wage growth remains modest at 2.1 percent compared to the same time last year, and another solid if not stellar employment report leaves a potential Fed rate hike on the table for September. However, this year’s theme of overseas economic turbulence continues with the focus shifting east to China. Over the past few days the Chinese Yuan has fallen sharply. In the midst of these mixed data mortgage rates inched up, increasing 3 basis points to 3.94 percent. Headed into the fall, we’ll likely see continued interest rate tension, with dollar appreciation weighing against possible Fed rate hikes leaving the rate outlook clouded.”

Employment Situation in June for Housing | Cross River Real Estate

Strong job gains in April and May were revised downward by 60 thousand and the unemployment rate fell 0.2 percentage points based on a reversal of the labor market expansion in May. Overall, the employment situation in June was decent, but the recovery from the weakness in March was less vibrant than originally estimated.

The Bureau of Labor Statistics (BLS) reported that payroll employment expanded by 223 thousand in June. This brings average monthly payroll gains to 208 thousand in the first half of 2015 compared to 239 thousand in the first half of 2014 and 260 thousand for all of 2014. The unemployment rate dropped to 5.3% in June from 5.5% in May despite a decline in employed persons in the household survey and based on a reduction in the labor force of 432 thousand. The labor force expanded by 397 thousand in May.

blog emp 2015_06

 

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http://eyeonhousing.org/2015/07/

Mortgage rates move higher for third week in a row | Cross River Real Estate

Average fixed mortgage rates followed 10-year Treasury yields higher and rose for the third consecutive week, according to Freddie Mac.

At 3.85%, the average 30-year fixed-rate mortgage is just below the high for 2015.

“Mortgage rates rose for the third consecutive week as 10-year Treasury yields continued to climb,” said Len Kiefer, deputy chief economist for Freddie Mac.

“The labor market continues to improve with U.S. economy adding 223,000 jobs in April, a solid rebound from merely 85,000 job gains in March. Also, the unemployment rate dipped to 5.4% in April as the participation rate ticked up to 62.8% and jobless claims were far less than expected.”

The 30-year fixed-rate mortgage averaged 3.85% with an average 0.6 point for the week ending May 14, 2015, up from last week when it averaged 3.80%. A year ago at this time, the 30-year FRM averaged 4.20%.

The 15-year FRM this week averaged 3.07% with an average 0.6 point, up from last week when it averaged 3.02%. A year ago at this time, the 15-year FRM averaged 3.29%.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.89% this week with an average 0.5 point, down from last week when it averaged 2.90%. A year ago, the 5-year ARM averaged 3.01%.

The 1-year Treasury-indexed ARM averaged 2.48% this week with an average 0.4 point, up from last week when it averaged 2.46%. At this time last year, the 1-year ARM averaged 2.43%.

 

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http://www.housingwire.com/articles/33891-mortgage-rates-move-higher-for-third-week-in-a-row

 

Mega-Treehouse is an Entire Apartment Building | Cross River Real Estate

Whoever designed this delightful apartment complex in Turin, Italy, really must have loved building tree houses in their backyard as a kid. The housing development features a bold, tree-heavy design that turns the typical urban jungle into a unique-looking urban forest.

Called “25 Verde,” the site includes 150 mature trees, plus another 40 in the courtyard, and a roof garden on the building’s top floor. According to 25 Verde’s website, the trees aren’t there just for decoration: they clean the air of pollutants, muffle the city street noise, and help keep the apartments cool in the summer and warm in the winter.

The 63-unit complex is designed to be as close to a living, breathing forest as possible. It even harvests rainwater to irrigate the trees.

Designed by Italian architect Luciano Pia, 25 Verde aims to “combine architectural innovation, environmental quality, and energy performance.” It’s described as “the houses children dream of.” It’s also the dream of anyone who wants to live in an environmentally-friendly forest environment without sacrificing the comforts and conveniences of the city.

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https://www.yahoo.com/makers/mega-treehouse-is-an-entire-c1426187466613.html

U.S. Housing Stability Improves for Fourth Consecutive Month | Cross River Real Estate

Freddie Mac today released its newly updated Multi-Indicator Market Index® (MiMi®) showing the U.S. housing market continuing to stabilize at the national level for the fourth consecutive month. Thirty-eight of the 50 states, plus the District of Columbia, and 40 of the 50 metros, are now showing an improving three month trend. Three additional metros entered their benchmarked stable ranges of housing activity including Buffalo, Boston and Nashville.

News Facts:

  • The national MiMi value stands at 74.9, indicating a weak housing market overall but showing a slight improvement (+0.37%) from November to December and a positive 3-month trend of (+1.09%). On a year-over-year basis, the U.S. housing market has improved (+4.41%). The nation’s all-time MiMi high of 121.7 was April 2006; its low was 57.2 in October 2010, when the housing market was at its weakest. Since that time, the housing market has made a 31 percent rebound.
  • Sixteen of the 50 states plus the District of Columbia have MiMi values in a stable range, with the District of Columbia (97.6), North Dakota (97.2), Montana (91.1), Hawaii (89.9) and Wyoming (89.1) ranking in the top five.
  • Eleven of the 50 metro areas have MiMi values in a stable range, with Los Angeles (86.4), Austin (86.3), San Jose (83.9), Houston (83.3), and Pittsburgh (83.3) ranking in the top five.
  • The most improving states month-over-month were Delaware (+1.87%), Michigan (+1.28%), North Carolina (+1.18%), Oregon (+1.18%) and Texas (+0.85%) On a year-over-year basis, the most improving states were Nevada (+19.87%), Colorado (+11.42%), Rhode Island (10.52%), Illinois (+10.14%), and Ohio (+9.27%)
  • The most improving metro areas month-over-month were Detroit (+1.40%), Tampa (+1.28), Kansas City (+1.13%), Louisville (+1.12%), and Charlotte (1.04%). On a year-over-year basis the most improving metro areas were Las Vegas (+19.76%), Denver (+12.14%), Chicago (+10.93%), Providence (+10.35%) and Columbus (+9.36%).
  • In December, 38 of the 50 states and 40 of the 50 metros were showing an improving three month trend. The same time last year, 47 states plus the District of Columbia, and 47 of the top 50 metro areas were showing an improving three month trend.

Quote attributable to Freddie Mac Deputy Chief Economist Len Kiefer:

“Housing markets are getting back on track. The national MiMi improved for the fourth consecutive month. Nearly 80 percent of the state and metro housing markets MiMi tracks are improving or in their stable range of activity. We’ve even seen the MiMi purchase application indicator increase 0.07 percent on a year-over-year basis. Low mortgage rates and moderating house price growth are helping to keep payment-to-income ratios favorable for the typical family in most of the country. In fact, Los Angeles is the only metro market with an elevated MiMi payment-to-income indicator whereas most other markets remain quite affordable. And of course, labor markets are generally improving.

“As we mentioned last month, we’re keeping an eye on markets with deep ties to energy. We’ve seen some deterioration on a month-over-month basis in some of these energy markets. For example, Louisiana has seen its state employment situation deteriorate over the last several months. A declining employment indicator has caused its MiMi score to move from 86.7 in April down to 80.2.”

The 2015 MiMi release calendar is available online. The February release of MiMi includes revisions to the Purchase Applications indicator based on the latest The Home Mortgage Disclosure Act (HMDA) data.

MiMi monitors and measures the stability of the nation’s housing market, as well as the housing markets of all 50 states, the District of Columbia, and the top 50 metro markets. MiMi combines proprietary Freddie Mac data with current local market data to assess where each single-family housing market is relative to its own long-term stable range by looking at home purchase applications, payment-to-income ratios (changes in home purchasing power based on house prices, mortgage rates and household income), proportion of on-time mortgage payments in each market, and the local employment picture. The four indicators are combined to create a composite MiMi value for each market. Monthly, MiMi uses this data to show, at a glance, where each market stands relative to its own stable range of housing activity. MiMi also indicates how each market is trending, whether it is moving closer to, or further away from, its stable range. A market can fall outside its stable range by being too weak to generate enough demand for a well-balanced housing market or by overheating to an unsustainable level of activity.

Mortgage Loan Rates Fall to 16-Month Low | Cross River Real Estate

The Mortgage Bankers Association (MBA) released its most recent report on mortgage applications Wednesday morning. It noted a week­over­week increase of 14.2% in the group’s seasonally adjusted composite index for the week ending January 16, following a rise of 49.1% for the two­ week period endingJanuary 9. Mortgage loan rates dropped on all types of loans for the third consecutive reporting period and are now at levels equal to mid­2013.

On an unadjusted basis, the composite index increased by 17% week­over­week. The seasonally adjusted purchase index decreased 3% compared to the week ended January 2. The unadjusted purchase index rose by 3% for the week and is now 3% higher year­ over ­year.

The MBA’s chief economist explained:
Mortgage application volume increased last week to its highest level since June 2013, led by a
22 percent increase in refinance application volume. This increase was largely due to mortgage
rates dropping to their lowest level since May 2013. However, the recent reduction in FHA
mortgage insurance premiums also played a role: FHA refinance applications increased 57
percent last week.
Adjustable rate mortgage loans accounted for 6.4% of all applications, up from 5.9% in the prior week.
The MBA’s refinance index increased 22% week­over­week, and the percentage of all new applications that were seeking refinancing rose from 71% in the prior week to 74%.

Conventional refinancing applications rose 21% week­over­week, while government refinancing rose 29%.
FHA refinancing applications rose 57%, raising the FHA share of all refinancings from 4.1% to 5.2%, compared with the prior week.

 

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http://247wallst.com/housing/2015/01/21/mortgage-loan-rates-fall-to-16-month-low/

Gorgeous Brooklyn Heights Townhouse Wants $7.2 Million | Cross River Real Estate

First up is this beautiful brick townhouse in Brooklyn Heights. The house was built in 1849 and there’s a ton of historic details, plus an elevator, 12′ ceilings, and bay windows overlooking a garden designed by landscape architect Alice Ireys. The place is 25′-wide and has around 6,500 square feet of living space. It’s asking $7.2 million.

↑ Over in Williamsburg, this three-story townhouse is asking $4.3 million. The place was built in 1890 and was gut-renovated 13 years ago. It’s currently configured for multiple families but it can be converted into a single-family home quite easily.

↑ This four-unit, two-story investment property in Weeksville is asking $1.495 million. The place is fully-rented and offers an income of $8,400/month. It has a two-car garage, separate boilers, hardwood flooring, and a coin operated laundry.

 

 

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http://ny.curbed.com/archives/2015/01/04/gorgeous_brooklyn_heights_townhouse_wants_72_million.php

US homebuilder sentiment slips in December | Cross River Real Estate

 

U.S. homebuilders are feeling slightly less confident in their sales prospects heading into next year, even as their overall sales outlook remains favorable.

The National Association of Home Builders/Wells Fargo builder sentiment index released Monday slipped this month to 57, down one point from 58 in November.

Readings above 50 indicate more builders view sales conditions as good, rather than poor.

Builders’ view of current sales conditions and their outlook for sales over the next six months also declined slightly. A measure of traffic by prospective buyers held steady.

The index also found sentiment had improved in the West and Northeast, but took a step back in the Midwest and South, which accounts for half of the new-home market.

The latest reading reflects a housing market that is slowly recovering, said David Crowe, the NAHB’s chief economist.

“As we head into 2015, the housing market should continue to recover at a steady, gradual pace,” Crowe said.

Housing, while still a long way from the boom of several years ago, has been recovering over the past two years.

New home sales reached a seasonally adjusted annual rate of 458,000 homes in October, the highest point since May. Still, sales remain sharply below the annual rate of 700,000 seen during the 1990s.

At the same time, home prices continue to climb.

The median price of a home sold in October was $305,000, up 16.5 percent from a year ago. November data on new-home sales are due out next week.

The steady rise in home prices has held back many potential buyers, particularly first-time buyers. Many lack the savings and strong credit history needed to afford a home, causing them to rent or remain in their existing homes instead of upgrading.

 

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http://seattletimes.com/html/businesstechnology/2025241287_apxbuildersentiment.html

Renting Now Half as Affordable as Buying | Cross River Homes

As rent soars across the US, Zillow found that renting a home is half as affordable as buying one. In the third quarter of 2014, U.S. renters could expect to spend about 30 percent of their incomes on rent, while those buying homes could expect to spend just 15 percent of their monthly incomes on their mortgage payment.

The report reveals a big shift from the years before the real estate bubble, between 1985 and 2000, when rent was typically more affordable in major metros than buying.  Now, in most metros, those who can come up with a down payment are better off buying, in terms of affordability.

Even in the least affordable metros — like San Francisco, Los Angeles, Seattle and Boston — renting was a more affordable option before the real estate market crash. But since then, rent has increased while the cost of buying a home has fallen in many places, so that renting is now the less affordable option — sometimes by a large margin.

Younger buyers making smaller down payments spend slightly more than other buyers on mortgage payments — a median of 17 percent of their incomes — but buying is still more affordable for them on a monthly basis.

“Despite rising home values, homeownership remains very accessible for buyers that can scrape together a down payment — even a relatively modest one — find a home to buy and secure financing,” said Zillow Chief Economist Dr. Stan Humphries.

Humphries has said he expects 2015 to be a breakthrough year for younger buyers to enter the market, and many of those buyers will decide to buy because rent is so unaffordable. At the same time, some renters are spending so much on rent they will struggle to save for a down payment, even if they want to buy.

 

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http://www.zillow.com/blog/rent-half-as-affordable-as-buy-165842/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+ZillowBlog+%28Zillow+Blog%29