Tag Archives: Waccabuc Homes for Sale

Mortgage applications fall | Waccabuc Real Estate

Mortgage applications in the United States fell 9.7 percent in the week ending September 15th, 2017, after rising 9.9 percent in the previous period. It is the sharpest decline in mortgage applications since July of 2016, data from the Mortgage Bankers Association showed. Applications to purchase a home slumped 10.8 percent and refinance applications dropped 8.5 percent. The average fixed 30-year mortgage rate edged up by 1bps to 4.04 percent. Mortgage Applications in the United States averaged 0.48 percent from 2007 until 2017, reaching an all time high of 49.10 percent in January of 2015 and a record low of -38.80 percent in January of 2009.

United States MBA Mortgage Applications

 

 

 

Calendar GMT Actual Previous Consensus TEForecast
2017-09-06 11:00 AM MBA Mortgage Applications 3.3% -2.3 0.50%
2017-09-13 11:00 AM MBA Mortgage Applications 9.9% 3.3% 0.48%
2017-09-20 11:00 AM MBA Mortgage Applications -9.7% 9.9% 0.43%
2017-09-27 11:00 AM MBA Mortgage Applications 0.45%
2017-10-04 11:00 AM MBA Mortgage Applications 0.46%
2017-10-11 11:00 AM MBA Mortgage Applications 0.46%

 

United States Housing Last Previous Highest Lowest Unit
Building Permits 1300.00 1230.00 2419.00 513.00 Thousand [+]
Housing Starts 1180.00 1190.00 2494.00 478.00 Thousand [+]
New Home Sales 571.00 630.00 1389.00 270.00 Thousand [+]
Pending Home Sales -1.30 0.30 30.90 -24.30 percent [+]
Existing Home Sales 5440.00 5510.00 7250.00 1370.00 Thousand [+]
Construction Spending -0.60 -1.40 5.90 -4.80 percent [+]
Housing Index 0.10 0.30 1.20 -1.80 percent [+]
Nahb Housing Market Index 64.00 67.00 78.00 8.00 [+]
Mortgage Rate 4.04 4.03 10.56 3.47 percent [+]
Mortgage Applications -9.70 9.90 49.10 -38.80 percent [+]
Home Ownership Rate 63.70 63.60 69.20 62.90 percent [+]
Case Shiller Home Price Index 200.54 199.05 206.52 100.00 Index Points

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https://tradingeconomics.com/united-states/mortgage-applications

Consumers remain too optimistic when estimating home value | Waccabuc Real Estate

Homeowners continue to overestimate their home values, however the gap continues to narrow, according to the latest National Home Price Perception Index from Quicken Loans.

The index, which compares homeowners estimates and the appraised home values, showed appraised home values came in 1.35% lower than homeowner estimates in August. This gap is smaller than July’s gap of 1.55%.

This closing gap is due, in part, by the increase in appraised values which ticked up 0.19% in August. This is up 2.64% from August of last year.

“As the sun sets on the summer, some of the intense competition for housing also winds down,” said Bill Banfield, Quicken Loans executive vice president of capital markets. “It’s important to focus on the annual numbers with the HVI. While there can be some monthly variations in the data, especially as seasons start to change, the annual numbers show healthy growth across the country.”

The chart below shows despite the narrowing gap over the past few months, homeowners have been overestimating their home values since the beginning of 2015.

Click to Enlarge

HPPI

(Source: Quicken Loans)

Homeowner perception varied widely from one region to the next, as appraisal values ranged from 3% higher than homeowner estimates in the West to 3% lower in the Midwest and Northeast.

The chart below shows the index in varies metros across the U.S.

Click to Enlarge

HPPI

(Source: Quicken Loans)

“One of the biggest lessons from the HPPI, is highlighting how regionalized real estate is,” Banfield said. “Homeowners who have a better understanding of their local housing market can make more informed decisions about their home. After all, their house is not just where they live, but one of their bigger assets.”

 

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https://www.housingwire.com/articles/41281-consumers-remain-too-optimistic-when-estimating-home-value?eid=311691494&bid=1863956

Mortgage rates fall again | Waccabuc Real Estate

Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing the 30-year fixed mortgage rate dropping for the fourth consecutive week and hitting its lowest level in nearly seven months.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 3.89 percent with an average 0.5 point for the week ending June 8, 2017, down from last week when it averaged 3.94 percent. A year ago at this time, the 30-year FRM averaged 3.60 percent.
  • 15-year FRM this week averaged 3.16 percent with an average 0.5 point, down from last week when it averaged 3.19 percent. A year ago at this time, the 15-year FRM averaged 2.87 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.11 percent this week with an average 0.5 point, the same as last week. A year ago at this time, the 5-year ARM averaged 2.82 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 10-year Treasury yield fell 3 basis points this week. The 30-year mortgage rate moved in tandem with Treasury yields, falling 5 basis points to 3.89 percent. Mixed economic data and increasing uncertainty are continuing to push rates to the lowest levels in nearly seven months.”

Canada Must Deflate Its Housing Bubble | Waccabuc Real Estate

Canada’s housing market offers a case study in a contentious economic issue: If a central bank sees a bubble forming, should it act to deflate it? In this instance, the answer should be a resounding yes.

A combination of foreign money, local speculation and abundant credit has driven Canadian house prices to levels that even government officials recognize cannot be sustained. In the Toronto area, for example, they were up 32 percent from a year earlier in April. David Rosenberg, an economist at Canadian investment firm Gluskin Sheff, notes that it would take a decline of more than 40 percent to restore the historical relationship between prices and household income.

Granted, the bubble bears little resemblance to the U.S. subprime boom that triggered the global financial crisis. Although one specialized lender, Home Capital Group, has had issues with fraudulent mortgage applications, regulation has largely kept out high-risk products. Homeowners haven’t been withdrawing a lot of equity, and can’t legally walk away from their debts like many Americans can. Banks aren’t sitting on the kinds of structured products that destroyed balance sheets in the U.S. Nearly all mortgage securities and a large portion of loans are guaranteed by the government.

That said, the situation presents clear risks. As buyers stretch to afford homes, household debt has risen to 167 percent of disposable income — the highest among the Group of Seven industrialized nations. This is a serious vulnerability, and a big part of the rationale behind Canadian banks’ recent ratings downgrade. The more indebted people are, the more sensitive their spending becomes to changes in prices and interest rates, potentially allowing an otherwise small shock to result in a deep recession.

What to do? Administrative efforts to curb lending and tax foreign buyers have helped but haven’t solved the problem. That’s largely because extremely low interest rates are still giving people a big incentive to borrow. The Bank of Canada has held its target rate at 1 percent or lower since 2009, and at 0.5 percent since 2015, when it eased to counteract the effect of falling oil prices. That’s a very stimulative stance in a country where the neutral rate is estimated to be about 3 percent or higher. One can’t help but see a parallel with the low U.S. rates and the housing bubble of the early 2000s.

 

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https://www.bloomberg.com/view/articles/2017-05-23/what-canada-should-do-about-its-housing-bubble

Are Trophy Homes Losing their Lustre? | Waccabuc Real Estate

Are Trophy Homes Losing their Lustre?

With pressure on the homebuilding industry to build fewer trophy homes and concentrate on filling the demand for affordable housing, the data does not bode well for builders.

Median prices of new homes have risen steadily during the recession. In September, the median sold price of a new home hit $313,500, 5.5 percent higher than last year’s median of $296,400 and 25.2 percent higher than the median price for existing homes in September.

Even so, over the past two years super expensive homes priced at one million or more are on the decline, according to data from the Census Bureau’s Survey of Construction.  In 2015, a total of 1,762 homes were started for sale with a price of $1 million or more and new homes started for sale with a price of $1 million or more decreased as a share in absolute number in 2015. That number was significantly lower than in 2013 (3,347 homes) and 2014 (3,019).

 

2016-11-16_14-05-42

In percentage terms, these expensive homes represented 1.06 percent of all new homes started for sale in 2015, from a peak of 1.26 percent in 2014 but about the same as in 2013 (0.99 percent). This represents a much higher percent share compared to other years. For instance, from 2008 to 2012 the percent share of $1 million or more homes started for sale was less than 0.50 percent, while it was at most 0.66 percent during the boom period, reported the National Association of Home Builders’ Eye on Housing blog.

To put things in perspective, Trulia reported in May that since 2012 the share of all million dollar homes in the United States has increased from 1.6 percent to 3 percent, but many metros and neighborhoods have seen a much larger increase.

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http://www.realestateeconomywatch.com/2016/11/are-trophy-homes-losing-their-lustre/

Mortgage rates average 3.52% | Waccabuc 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 second week in a row and marking the first time the 30-year fixed-rate mortgage has risen above 3.5 percent since June.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 3.52 percent with an average 0.5 point for the week ending October 20, 2016, up from last week when they averaged 3.47 percent. A year ago at this time, the 30-year FRM averaged 3.79 percent.
  • 15-year FRM this week averaged 2.79 percent with an average 0.5 point, up from last week when they averaged 2.76 percent. A year ago at this time, the 15-year FRM averaged 2.98 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.85 percent this week with an average 0.4 point, up from last week when it averaged 2.82 percent. A year ago, the 5-year ARM averaged 2.89 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 fixed-rate mortgage moved a solid 5 basis points to 3.52 percent while the 10-year Treasury yield remained relatively flat. This is the first week in over 4 months that rates have risen above 3.50 percent. This month, mortgage rates seem to be catching up to Treasury yields and returning to pre-Brexit levels.”

Home building group unveils tiny home designer series | Waccabuc Real Estate

Architect Jeffrey Dungan said it was important to keep the tiny home's dimensions between 12-feet-tall and 12 ½-feet-wide so that it could be transported by road and under bridges. The "Low Country" model pictured here at Cashiers Designer Showcase in Cashiers, North Carolina in August, is the first in a series of tiny homes that Dungan designed for Clayton Homes. (Submitted/Special to the Knoxville News Sentinel)

Architect Jeffrey Dungan said it was important to keep the tiny home’s dimensions between 12-feet-tall and 12 ½-feet-wide so that it could be transported by road and under bridges. The “Low Country” model pictured here at Cashiers Designer Showcase in Cashiers, North Carolina in August, is the first in a series of tiny homes that Dungan designed for Clayton Homes.

Vaulted ceilings give the impression of spaciousness and offer additional wall space for mounting storage and lofted sleeping areas, according to architect Jeffrey Dungan. Pictured here is the interior of the "Low Country" model designed as part of Jeffrey Dungan Collection for Clayton Homes. (Submitted/Special to the Knoxville News Sentinel)

Vaulted ceilings give the impression of spaciousness and offer additional wall space for mounting storage and lofted sleeping areas, according to architect Jeffrey Dungan. Pictured here is the interior of the “Low Country” model designed as part of Jeffrey Dungan Collection for Clayton Homes. (Submitted/Special to the Knoxville News Sentinel)

"It's more about designing much more meticulously, design by the cubic inch instead of by the square foot," said Jeffrey Dungan of his thoughtful use of the limited space in a tiny home. (Submitted/Special to the Knoxville News Sentinel)

“It’s more about designing much more meticulously, design by the cubic inch instead of by the square foot,” said Jeffrey Dungan of his thoughtful use of the limited space in a tiny home. (Submitted/Special to the Knoxville News Sentinel)

Lofty 12-foot ceilings leave plenty of space for bunk beds in the "Low Country" tiny home model, built by Clayton Homes. (Submitted/Special to the Knoxville News Sentinel)

Lofty 12-foot ceilings leave plenty of space for bunk beds in the “Low Country” tiny home model, built by Clayton Homes. (Submitted/Special to the Knoxville News Sentinel)

Every square inch of Clayton Homes Designer Series Tiny Homes has been carefully considered to accommodate high-end amenities, such as this full bathroom in the "Low Country" model home. (Supplied/Special to the Knoxville News Sentinel)

Every square inch of Clayton Homes Designer Series Tiny Homes has been carefully considered to accommodate high-end amenities, such as this full bathroom in the “Low Country” model home. (Supplied/Special to the Knoxville News Sentinel)

Last week, the Clayton home building group took their “Low Country” tiny home prototype to the Cashiers Designer Showcase in North Carolina. The event attracted interior designers and builders from around the region to explore new trends.

“People were very excited,” said Jeffrey Dungan, whose company designed the prototype. “It was almost like a childlike response, even with people who are 70 years old. I don’t know quite what it is, there’s this youthful exuberance when you talk about tiny homes and when they get to actually stand in one.”

Most people were surprised it did not feel like a “playhouse” and that it was actually really comfortable, said Dungan

“I could have sold it 15 times. People pulled out their checkbooks and offered money on the spot,” said Dungan of the response to the low country-inspired tiny house.

Dungan, a renowned Birmingham, Ala.-based architect, has partnered with Clayton building group, a division of Clayton Homes and one of America’s largest homebuilders, to bring luxury tiny homes to the housing market that the architect would not ordinarily reach.

The “Low Country” model tiny home, which was showcased in Cashiers, is 396 square feet and retails for $96,000.

“Clayton approached us to design a series of five homes and this is the first one that they’ve actually constructed,” he said. “Instead of me designing all of them, I have a talented crew that works with me, so everybody took a day to sit around and sketch, look at inspiration and share ideas. We took the best of the bunch and pursued those.”

In addition to the “Low Country” there are four different models in the series: Adirondak, Saltbox, Marseille and Cloudbreak. They range in size from 386-399 square feet.

The designers looked at different styles of architecture across the country and in Europe. “We looked at the low country in South Carolina, the Saltbox in New England, the Adirondacks in upstate New York, the French countryside, and beach huts in the Bahamas, Cape Cod or Malibu.”

“We really loved the whole attitude of being at the beach and escaping and that’s what little houses are about,” said Dungan. “Cloudbreak was inspired by beach style, surf shacks and places that sell beer and Jerk chicken in the Bahamas.”

“It’s more about designing much more meticulously, designing by the cubic inch rather than by the square foot,” said Dungan, who is more accustomed to designing high-end residences with a minimum of 7,000-8,000 square feet.

Planning and then manufacturing a small home off-site comes with its unique set of challenges according to Dungan. “Everything was a little different,” he said. “There were the restraints of working within 400 square feet — it couldn’t be more than 12 ½ feet wide to get them down the road or more than 12 feet tall to go under bridges.” This led to the modification of roof pitch in some cases.

Dungan admits to never watching shows like “Tiny House Nation”.

“When I started this study, what I reacted to was how DIY they looked,” he said. “There was a lack of overall elegance and sophistication in a lot of what I saw.”

Dungan hoped to bring the elegance and sophistication of his firm’s work into a tiny place. “I wanted the quality of the Faberge egg with details and wonderful materials,” he said. “Because you are doing something small you can afford to work with better materials. I was very impressed with Clayton’s joinery, the craftsmanship and just the materials themselves I didn’t feel like I was in a less nice space than I was accustomed to.”

Inside the prototype they opted for reclaimed materials such as the ceiling beams and the hardwood floors, and used for wood for the ceilings and vertical ship lap for the walls so there is no Sheetrock at all.

The exterior is clad in poplar bark siding with cedar shake on the roof.

Dungan said it is economical to heat and cool and the windows have the highest insulation value.

“In all of the designs we were very mindful of the 3-D space,” said Dungan. “The vaulted ceiling created wall space for additional storage and sleeping space. It can sleep up to six or eight people and that totally blows my mind.”

They may be small in stature, but do not lack for amenities. The “Low Country” accommodates eight — two in the bedroom, two in the loft area, two on a fold-out couch and two bunks. There are large French doors that open out onto a covered front porch, a full-height pantry, as well as a dishwasher and stack washer and dryer.

The architect likened the production of the “Low Country” prototype to making pancakes.

“When you are cooking your pancakes if you don’t get the heat and batter right for the first one, you adjust it,” he said. “For our first pancake, it was a heck of a good one and I’m hoping that our second and third ones will be even better.”

And Dungan said a website is in the works, where buyers can customize their home. Choosing from a myriad colors, materials and exterior options. “It will give people the flexibility to personalize their tiny home,” he added.

 

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http://www.knoxnews.com/business/clayton-home-building-group-unveils-tiny-home-designer-series-3b61819a-47c6-5e09-e053-0100007f9ad8-391938021.html

Mortgage rates average 3.48% | Waccabuc Real Estate

Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates ticking down slightly from last week’s post-Brexit high.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 3.48 percent with an average 0.6 point for the week ending September 22, 2016, down from last week when it averaged 3.50 percent. A year ago at this time, the 30-year FRM averaged 3.86 percent.
  • 15-year FRM this week averaged 2.76 percent with an average 0.5 point, down from last week when it averaged 2.77 percent. A year ago at this time, the 15-year FRM averaged 3.08 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.80 percent this week with an average 0.5 point, down from last week when it averaged 2.82 percent. A year ago, the 5-year ARM averaged 2.91 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 10-year Treasury yield declined after last week’s post-Brexit high in anticipation of the Fed’s September policy meeting. The 30-year fixed-rate mortgage followed Treasury yields, falling 2 basis points and settling at 3.48 percent. Despite the decrease in rates, the Refinance Index plunged 8 percent to its lowest level since June.

Existing home sales down 10.5% in November | Waccabuc Real Estate

Sales of existing homes fell short of expectations in November, hitting the slowest sales pace in 19 months after new mortgage rules hit the market, realtors said.

Existing home sales fell 10.5 percent to 4.76 million homes in November, the National Association of Realtors said Tuesday.

Analysts polled by Thomson Reuters expected to see existing home sales in November hit 5.35 million units, about the same as the 5.36 million the previous month.

The sales represent a 3.8 percent year-on-year decline for the indicator, a barometer of the American real estate market.

The Midwest led declining sales, seeing a 16.4 percent drop in sales of existing homes, followed by the West at 13.9 percent and the Northeast at 9.2 percent.

The median home prices was $220,300, up 6.3 percent from this time last year. Inventories are currently at 5.1 month supply of homes, tighter that the 6 months considered balanced.

 

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cnbc.com

October Gains for Residential Construction Spending | Waccabuc Real Estate

NAHB analysis of Census construction spending data shows that total private residential construction spending for October increased to a seasonally adjusted annual rate of $399 billion. On a month-over-month basis, private single-family spending was $226 billion, up by 1.6% over the revised September estimate. Private multifamily spending increased to $58 billion, up by 1.4%.

Annually, the pace of multifamily spending rose 28% from the October 2014 estimate, and spending on single-family construction was 11% higher.

The NAHB-constructed spending index, which is shown in the graph below (the base is January 2000), indicates that recent gains have been driven by the steady increase in multifamily construction spending. The pace of the multifamily spending is gradually slowing. The monthly growth rate of multifamily construction fell to 1.4% in October from relatively higher rates in August (8%) and September (6%). NAHB anticipates accelerating growth for single-family spending in 2015.Slide1

The pace of total nonresidential construction spending increased by 1% monthly in October, and the annual increase from the revised September 2014 estimate was 11%. The largest contribution to this year-over-year nonresidential spending gain was made by the class of manufacturing-related construction (41% increase), followed by lodging (30% increase) and amusement/recreation (24% increase).

Slide2

 

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http://eyeonhousing.org/2015/12/october-gains-for-residential-construction-spending/