Category Archives: Lewisboro

30-Year Fixed-Rate Mortgage Hits Year’s Low | South Salem 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 following bond yields lower. Averaging 4.10 percent for the week, the 30-year fixed-rate mortgage fell below its previous 2014 low of 4.12 percent.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 4.10 percent with an average 0.5 point for the week ending August 21, 2014, down from last week when it averaged 4.12 percent. A year ago at this time, the 30-year FRM averaged 4.58 percent.
  • 15-year FRM this week averaged 3.23 percent with an average 0.6 point, down from last week when it averaged 3.24 percent. A year ago at this time, the 15-year FRM averaged 3.60 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.95 percent this week with an average 0.5 point, down from last week when it averaged 2.97 percent. A year ago, the 5-year ARM averaged 3.21 percent.
  • 1-year Treasury-indexed ARM averaged 2.38 percent this week with an average 0.5 point, up from last week when it averaged 2.36 percent. At this time last year, the 1-year ARM averaged 2.67 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 were down slightly this week, following the decline in 10-year Treasury yields. Meanwhile, housing starts in July jumped 15.7 percent to 1.093 million units after falling 4.0 percent a month earlier. Also, July’s consumer prices increased at a 0.1 percent seasonally adjusted pace, the slowest in five months.”

Existing home sales rise at fastest pace in 10 months | Katonah Real Estate

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Americans resold their homes in July at the fastest pace in almost a year, a sign the housing market was gaining steam again after a year-long slump.

The National Association of Realtors said on Thursday existing home sales increased 2.4 percent to an annual rate of 5.15 million units.

That was above analysts’ expectations and marked the fourth straight month the pace of home resales accelerated.

Home resales dropped in the summer of 2013 after the Federal Reserve signaled it would dial back its monetary stimulus for the economy, pushing mortgage interest rates higher.

The Fed, however, ended up keeping a bond-buying program running at full throttle for longer than investors expected, and mortgage rates edged lower again. This, coupled with robust job growth this year, helped push home resales in July to their highest level since September 2013.

Distressed sales, which include foreclosures and short sales, made up only 9 percent of sales last month, the lowest share since the NAR starting tracking this information in October 2008.

 

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http://news.yahoo.com/u-existing-home-sales-rise-fastest-pace-10-140345767–business.html

 

Numerous factors make homebuying advantageous for the rest of this year | South Salem Homes

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1. Home prices are still off their highs

Yes, home prices are rising from the lows seen during the housing crash of 2008, but they’re still nearly 20 percent off their mid-2006 peak. According to the S&P/Case-Shiller Home Price Index, average U.S. home prices are currently at summer 2004 levels. In markets that are still recovering, first-time homebuyers could see significant appreciation over the next few years, if they buy now.

2. Interest rates are expected to keep rising

Interest rates are slowly climbing, and as the Federal Reserve concludes its economic stimulus plan, rates are expected to continue to rise. Some experts believe mortgage interest rates could hit 5 percent by the end of 2014 or the first quarter of 2015, according to Glink. And even a small bump in interest rates can mean a significant jump in your monthly note.

“If you’re offered a 4.2 percent interest rate on a $400,000 mortgage, for example, your monthly payment will be $1,961, and you’ll pay more than $300,000 in interest over the loan’s 30-year term,” Glink says. “If your interest rate were 4.9 percent, your monthly payment would jump to $2,115, and the total interest paid over the life of the loan would exceed $360,000.”

3. Rental rates are rising

There is always an argument to be made regarding whether to buy or rent. It’s all a matter of your particular situation – as well as the status of your local housing market. If you need to be mobile — prepared for job transfers or out-of-state promotions — or are continuing to search for “the perfect place,” renting is probably right for you.

However, if you would like to put down some roots, and rents are high in your hometown – it might be cheaper to buy.

 

 

 

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http://realestate.msn.com/blogs/post–5-reasons-to-buy-a-house-in-the-next-5-months

How hard is it to get a mortgage? | Katonah Real Estate

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Yes. And no. And mostly yes again. And maybe it should be.

And since January 10 when the CFPB’s Qualified Mortgage rule took effect, it is definitely harder. So yes.

But there’s more to the story than that, and it doesn’t mean only Patsy Pays Perfect can qualify anymore.

The Qualified Mortgage rule has definitely put the squeeze on would-be homebuyers seeking a mortgage. People with lower income, the self-employed, those with credit scores on the margin, and people whose income comes from tips, bonuses or other harder to document sources are definitely being are all facing an uphill battle.

Industry analysts say that anywhere from 10% on the low side to 20% on the high side of people who have a mortgage now would not qualify for a mortgage under today’s rules.

But the rules and standards for getting a mortgage were already tightening long before the CFPB put their screws to it. In fact, the industry had largely self-corrected – as if it had a choice – long before Washington put it in ink with heightened documentation and tighter standards.

Mortgage applications, the first step in the mortgage process, have been down this year almost consistently.

 

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http://www.housingwire.com/blogs/1-rewired/post/31082-how-hard-is-it-to-get-a-mortgage

 

Weak Home Sales, Falling House Prices | Katonah Real Estate

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Followers of the housing market got spooked a couple weeks ago by some data suggesting the market was in trouble. First, the recent pending home sales data from the National Association of Realtors showed a 1.1% decline, when economists had forecast a 0.5% increase. Second, the S&P Case-Shiller 20-city house price index declined 0.3% on a monthly basis, when economists had predicted a 0.4% increase. Is it game over for the U.S. housing market?

U.S. housing affordability and homeowner vacancy rates
There’s no doubt that the housing market has slowed from the strong growth it saw in 2013, but that doesn’t mean it’s about to crash. On the contrary, there are four key reasons the market is likely to improve.

First, despite the talk that rising mortgage rates will choke off demand, housing still remains relatively affordable. Take a look at the National Association of Home Builders/Wells Fargo housing opportunity index — the higher the number, the more affordable housing is.

Source: NAHB/Wells Fargo.

Affordability fell in the second half of 2013, but on a historical basis, it’s still supportive of good growth in the housing market. Readers can see that, according to the index, housing is more affordable than it was for most of the 1992-2009 period.

Second, homeowner and rental vacancy rates suggest that the number of houses and rentals available is shrinking. Vacancy rates simply refer to the percentage of properties which are unoccupied. A look at the data from the U.S. Census Bureau demonstrates that rental vacancy rates are falling sharply, while homeowner vacancy rates remain low. The lower the number, the fewer properties there are available to rent or buy

 

 

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http://www.fool.com/investing/general/2014/08/11/weak-home-sales-falling-house-prices-game-over-for.aspx

 

Mortgage applications tick up 1.6% for week as refis grow | South Salem Real Estate

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Mortgage applications increased 1.6% from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending August 1, 2014.

The Market Composite Index, a measure of mortgage loan application volume, increased 1.6% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 1% compared with the previous week.

The Refinance Index increased 4% from the previous week.

The seasonally adjusted Purchase Index decreased 1% from one week earlier. The unadjusted Purchase Index decreased 2% compared with the previous week and was 14% lower than the same week one year ago.

“Last week was a volatile week for interest rates, but it also proved to be a positive one as refinance applications increased,” said Quicken Loans Vice President Bill Banfield. “More Americans are realizing that they need to take advantage of the low rates before they start climbing. Even underwater homeowners can still refinance, as millions have yet to take advantage of the HARP program.”

The refinance share of mortgage activity increased to 55% of total applications, the highest level since March 2014, from 53% the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 8% of total applications.

 

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http://www.housingwire.com/articles/30930-mortgage-applications-tick-up-16-for-week-as-refis-grow

Tread Lightly Around the Rickety Homes of Wilderness Dwellers | Katonah Real Estate

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6antoinebruy6.jpgPhoto by Antoine Bruy via Art the System

From 2010 to 2013, French photographer Antoine Bruy spent his life threading through the remotest regions of Europe, capturing the daily existence of the ultimate in civilization-eschewing people. His Scrublands series tells the stories of individuals and families whose extreme brand of self-reliance translates to, among other things, the most rudimentary and ramshackle of homes—think “The Burrow” from Harry Potter, but without all the magical bits holding it together.

 

 

 

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http://curbed.com/archives/2014/08/04/houses-wilderness-people.php

 

The Problem isn’t Student Loans, it’s Student Dropouts | Katonah NY Real Estate

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Student loans have been a problem for first-time buyers for generations, but they didn’t stop first-timers from buying 40 percent of the homes sold ten years ago. So what’s the whining all about?

One thing that’s different is the size and scope of the problem. Overall student loan debt recently breached the $1 trillion mark. There are more individuals with student loan debt, and more of it, than ever before. Compared to past generations, income growth for young people in the U.S. today is stagnant. Yet going to college still increases one’s earning potential.

“For those who had to finance college with loans, the burden of repayment relative to income remains the same today as in the 1990s. Which begs the question, if young people in the 1990s found a way to buy a home at the same time as having student loans, then why wouldn’t young people today, with the same relative burden, be able to do the same?” writes CoreLogic’s Mark Fleming in the firm’s blog

Research by Jeffrey P. Thompson, economist at the Board of Governors of the Federal Reserve System, shows that when carefully empirically modeling the level of educational attainment among those who have student loan debt, there is little evidence of a strong reduction in the likelihood of homeownership for those who complete their education. The research does find the likelihood of homeownership is reduced for those who have student loan debt, but do not complete their education. Accumulating the debt, but not earning the degree, results in the burden without any benefit. Research still shows that, on average, getting a college degree results in higher earnings.

 

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http://www.realestateeconomywatch.com/2014/07/the-problem-isnt-student-loans-its-student-dropouts/

China Posts Sharper Fall in Home Prices in June | Katonah Real Estate

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Average new home prices in 70 Chinese cities declined for a second straight month in June and fell more sharply as property developers stepped up discounts to lure home buyers amid a housing market downturn.

Home prices slid 0.47% in June, compared with a 0.15% fall in May, according to calculations by The Wall Street Journal, based on data released Friday by the National Bureau of Statistics. May’s drop was the first month-over-month decline in two years. On an annual basis, the average price in June rose 4.05%, compared with 5.35% in May.

Excluding subsidized low-income housing, prices fell 0.48% in June from May, compared with a 0.16% decline in May. Home prices fell in 55 of the 70 cities in June, a broader range than the 35 cities that posted declines in May.

Real estate and construction are important drivers of the Chinese economy, accounting for more than 20% of growth in the world’s second-largest economy when cement, steel, furniture and other related industries are factored in, analysts estimate.

To arrest the slide, property developers—many of them holding large inventories of unsold units and facing tight credit—have been offering discounts, though some analysts expect prospective buyers to wait for lower prices.

“The price cuts have only just started, and now that the discounts are getting bigger, I would think it’s better for homebuyers, if they can wait, to hold off purchasing a home now,” said Song Huiyong, research director of Shanghai Centaline Property, a real-estate consultancy. “The price cuts could last for as long as a year this time, since there is little prospect for a broad-based stimulus.”

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http://online.wsj.com/articles/new-home-prices-fall-in-chinese-cities-1405650237