Category Archives: blog

Is Wells Fargo Getting Back Into Subprime Mortgages? | Cross River Real Estate

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Wells Fargo is once again setting sail on subprime mortgage waters, despite how choppy they were several years ago. The bank will consider mortgage applicants with credit scores as low as 600, announced Franklin Codel, a Wells Fargo mortgage executive. Previously, the minimum was 640, and this change applies to purchase mortgages to be guaranteed by the Federal Housing Administration.

Lenders routinely re-evaluate their standards as consumer credit trends shift, and Wells Fargo considered applicants with credit scores in the low 600s as recently as the fourth quarter of 2011, said Tom Goyda, a Wells Fargo spokesman. In fact, that threshold was 500 in January 2011. The 640 benchmark had been in place since about November 2012, before the change to 600 last year.

There are dozens of credit scoring models, but most lenders use the 301 to 850 range, and anything in the 600 to 649 bracket is considered poor, or subprime. Consumers in the next highest credit tier (650 to 699, aka near prime) enjoyed increased access to home loans over the last several quarters, according to data from Experian-Oliver Wyman Market Intelligence Reports and Experian’s IntelliView tool. (The tool uses the VantageScore model but breaks down borrowers into tiers like prime, near-prime, etc.)

 

http://finance.yahoo.com/news/wells-fargo-getting-back-subprime-123018201.html

 

Dec. home prices see 11% annual rise | Chappaqua Real Estate

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Home prices were up 11% in December year over year as 2013 marked the strongest year for home price gains since 2005, market watcher CoreLogic says.

Ten states and the District of Columbia reached new all-time price peaks, mostly in the second half of the year, CoreLogic says.

Home price gains this year are not expected to be as robust. Rising prices will attract more sellers, leading to an increased supply of homes on the market, and that will have a “moderating effect on prices,” says Mark Fleming, CoreLogic chief economist.

The 10 states hitting all-time price peaks tend to be ones with strong energy economies or places where the home price bubble didn’t inflate as much so prices fell less during the downturn.

The states are Texas, North Dakota, Nebraska, Vermont, South Dakota, Iowa, Colorado, Alaska, Oklahoma and Wyoming, CoreLogic’s data shows.

It’s hardly surprising that 2013 was the strongest year for home price gains since 2005. The historic housing bust took off in earnest in 2006 and it wasn’t until 2011 before prices started to recover in the first major markets.

Most economists see price growth slowing a lot this year, but the nagging question remains how much inventory will come on the market.

 

 

http://www.usatoday.com/story/money/business/2014/02/04/december-home-prices-corelogic/5189675/

Mortgage rates tick up slightly | Katonah NY Real Estate

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Freddie Mac today released the results of its Primary Mortgage Market Survey, showing average fixed mortgage rates climbing a little from last week following positive news for housing starts and building permits.

According to Freddie Mac, 30-year fixed-rate mortgage rates averaged 4.47% with an average 0.7 point for the week ending Dec. 19.

That’s up from last week’s 4.42%.

The 30-year fixed averaged 3.37% a year ago.

The 15-year fixed rate hit 3.51% with an average 0.6 point, up from 3.43% last week.

 

 

 

http://www.housingwire.com/articles/28357-mortgage-rates-tick-up-slightly

Average fixed mortgage rates rising slightly from last week | Chappaqua Real Estate

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Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates rising slightly from last week following positive news for housing starts and building permits.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 4.47 percent with an average 0.7 point for the week ending December 19, 2013, up from last week when it averaged 4.42 percent. A year ago at this time, the 30-year FRM averaged 3.37 percent.
  • 15-year FRM this week averaged 3.51 percent with an average 0.6 point, up from last week when it averaged 3.43 percent. A year ago at this time, the 15-year FRM averaged 2.65 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.96 percent this week with an average 0.4 point, up from last week when it averaged 2.94 percent. A year ago, the 5-year ARM averaged 2.71 percent.
  • 1-year Treasury-indexed ARM averaged 2.57 percent this week with an average 0.5 point, up from last week when it averaged 2.51 percent. At this time last year, the 1-year ARM averaged 2.52 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 the Regional and National Mortgage Rate Details and Definitions. Borrowers may still pay closing costs which are not included in the survey.

Quotes Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac.

“Mortgage rates rose slightly leading up to the Federal Reserve’s policy announcement. The statement indicated that the central bank would begin to trim its bond buying program. The Fed noted that the economy expanded at a modest pace, but the unemployment rate remains elevated. In addition, housing starts in November rose to a seasonally adjusted annual rate of 1,091,000, the highest rate since February 2008. Permits were at a seasonally adjusted annual rate of 1,007,000 in November, 7.9 percent higher than in November 2012.”

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four home borrowers and is one of the largest sources of financing for multifamily housing. For more information please visit www.FreddieMac.com and Twitter: @FreddieMac.

Cuomo Announces $30 Million In Funding For Westchester Solar Projects | Bedford NY Homes

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WESTCHESTER COUNTY, N.Y. — Gov. Andrew Cuomo announced $30 million in available funding under the NY-Sun Competitive Photovoltaic Program to further stimulate large-scale solar and biogas projects in Westchester County and the Hudson Valley.

“Expanding the use of clean, renewable power in the Hudson Valley will help make New York a greener state,”  Cuomo said in a statement. “Large scale solar and biogas installations are both good for the environment and lower electricity prices for consumers. Renewable energy, including biogas, is a cornerstone of New York’s clean energy economy and helps the State meet energy demand in an environmentally friendly way that protects the well-being of all New Yorkers.”

With the, the New York State Energy Research and Development Authority is seeking proposals for Photovoltaic and renewable biogas systems larger than 200 kilowatts to be installed at businesses, factories, municipal buildings and other larger commercial and industrial customers in the Hudson Valley as well as in the five boroughs of New York City. Proposals are due on Dec. 30 and projects must be installed by April 30.

For more information on the NY-Sun Initiative, visit http://www.ny-sun.ny.gov.

 

 

http://armonk.dailyvoice.com/news/cuomo-announces-30-million-funding-westchester-solar-projects

Residents of the Aloha State shell out a lot for electricity | Katonah Homes

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Hawaii has a lot going for it: The jaw-dropping sunsets and stunning vistas, the multitude of beaches and warm temperatures year round, the relaxed island vibe. One thing it doesn’t have: low electricity bills. It seems residents of the Aloha State shell out the most money on a monthly basis for their residential electricity bill, paying an average of $203.15 per month in 2012. In contrast, New Mexico residents pay the lowest monthly rates with an average bill of  $74.62.

And when it comes to commercial electricity bills, the District of Columbia may get sticker shock: Average monthly electricity bills there for commercial structures is a whopping $3,288.38. It’s a huge number, considering that covers only 26,548 customers. As a comparison, look at Idaho, which has 102,319 customers and a monthly commercial electricity bill of just $334.19. In D.C.’s defense, it’s average price per kilowatt hour is nearly double that of the Gem State: 12.02 cents versus 6.86 cents.

It seems there are a lot of states that could benefit from energy efficiency measures. The NAHB’s Eye on Housing blog gave us the tip off on on the data, which compiles information from 2012, ranks all 50 states, and was recently released by the U.S. Energy Information Administration (EIA). On the mainland, wallets in the South Atlantic states (D.C., Delaware, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, and West Virginia) feel the pinch the most each month when it comes to residences, with an average electric bill of $122.71 per month, and Pacific states rank the lowest. On the commercial side, the Pacific states of Alaska and Hawaii foot the largest average monthly bills, coming in at $1,192.77, while the East South Central states of Alabama, Kentucky, Mississippi, and Tennessee come out on top with the lowest average commercial bill of $501.67 a month.

 

 

http://www.ecobuildingpulse.com/energy-efficiency/where-energy-efficiency-might-pay-off-most.aspx?dfpzone=home&utm_source=newsletter&utm_content=jump&utm_medium=email&utm_campaign=EBP_120313&day=2013-12-03

Three Cents Worth: Manhattan Unit Sizes No Small Change | Waccabuc Real Estate

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3CW9-17-13.jpg

After last week’s rental market report release, I thought I’d take a look at the average size of a sale and a rental over the past 20 years. Sales (blue line) represent co-ops and condos that closed during each period.  Rentals (pink line) represent rentals that closed during each period.

The chart shows continued decline in the average size of rentals over the period with a weird blip around the collapse of Lehman.  The sales market showed less variation.  While size fell over the first decade, likely as sharply rising prices pushed shift towards smaller unit sales, the trend began to rise again as the market peaked in 2007-08.

With the micro-unit phenomenon seemingly gaining traction (anecdotally), I’m not sure we’ll see the average size of rental units grow in the near future despite the strength of the current luxury rental market. · Matrix [matrix.millersamuel.com] · Three Cents Worth archive [Curbed]

 

 

 

http://ny.curbed.com/archives/2013/09/17/three_cents_worth_manhattan_unit_sizes_no_small_change.php

 

 

 

 

Home-price growth slowing, Case-Shiller says | Armonk Homes

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Home prices rose 1.8% in July, down from 2.2% in June, according to the Case-Shiller report. After seasonal adjustments, prices were up 0.6% in July, the lowest gain since September.

It looks like higher mortgage rates are hitting the housing market, said David Blitzer, index committee chairman at S&P Dow Jones Indices. Among the 20 cities tracked by S&P/Case-Shiller, 15 saw slower monthly price growth in July. Elsewhere Tuesday, the Federal Housing Finance Agency, which regulates mortgage buyers Fannie Mae and Freddie Mac, reported that home prices rose a seasonally adjusted 1% in July, and were up 8.8% from the year-earlier period.

Mortgage rates started rising in early May on speculation that the Federal Reserve could start cutting its large-scale asset purchases that have helped keep home loans relatively cheap. The Fed announced last week that it is not going to start tapering these purchases yet, but that news is likely to have only a temporary impact on housing, Blitzer said.

“The rate of increase may have peaked,” he said.

A low number of homes for sale coupled with lots of pent-up demand from buyers have led to upward pressure on prices. Indeed, on a year-over-year basis, home prices grew 12.4% in July, the fastest annual pace since 2006. Still, home prices in July were about 21% below a 2006 peak.

“The latest rise in the annual rate of house price inflation in July may be the most eye-catching part of today’s Case-Shiller house price report. But the real story is a welcome slowdown in the underlying rate of house price gains in recent months,” Capital Economics analysts wrote in a research note.

According to details of the Case-Shiller report, Las Vegas saw the largest annual home-price growth in July at 28%, followed by San Francisco at 25%. New York had the lowest annual home-price growth at 3.5%.

Looking broadly at the housing market, recent reports have indicated that the rebound is slowing. Unemployment remains high and many can’t afford to establish their own household, meaning that pent-up demand may take a long time to translate into actual purchases. First-time buyers are having a particularly tough time, and make up a small share of existing-home sales.

 

http://www.marketwatch.com/story

 

More than half of Long Island’s 20- to 34-year-olds live with parents | Armonk Homes

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A severe shortage of rental housing on New York’s Long Island due to zoning restrictions is at least partially to blame for the high share of all 20- to 34- year-olds on the island still living with their parents: 55 percent, according to a new report.

Source: New York Times

– See more at: http://www.inman.com/wire/more-than-half-of-long-islands-20-34-year-olds-live-with-parents/#sthash.v6NKK9tr.dpuf