Many lenders aren’t ready for the new Home Mortgage Disclosure Act changes that will come in just a few months. Mortgage U’s president talks about three major changes coming in 2017. …read more
From:: Real Estate Wire
Monday Morning Cup of Coffee: Hurricane Matthew causes billions in insured property losses
Hurricane Matthew’s sweep through the Southeastern coastal states left behind billions of dollars of damage, according to CoreLogic’s estimates. The GSEs are once again offering disaster relief to those whose homes were destroyed. Plus, St. Louis found a new way to create affordable housing for teachers. …read more
From:: Real Estate Wire
Zillow Report Says Rent Will Rise in the West
Rents in the West’s tech job centers are predicted to be among some of the fastest growing across the nation over the next year, according to the latest Zillow® Rent Forecast for August 2016 to August 2017, which predicts rent trends down to the zip-code level across the U.S.
Rents in Seattle and Portland are expected to rise the most over the next 12 months—Zillow forecasts rent growth of more than 7 percent in Seattle and 6 percent in Portland. Denver, San Francisco and San Jose are forecasted to see rent appreciation of more than 4 percent. Only 11 of the 35 largest metros will see a slowdown in rents.
Fast rising rents in the West continue a trend that’s been happening over the past several years. Seattle, Portland and Sacramento reported the fastest rent appreciation over the past 12 months. Last year, Miami and Boston were among the 10 fastest-growing rental markets, but over the next year San Jose and Cincinnati will replace them on the roster of the 10 fastest growing rental markets. Cincinnati is the only Midwestern metro to make the list.
Job opportunities and high salaries are drawing millennials to tech centers like Seattle and San Francisco, but the demand for a limited number of rental units available continues to drive up costs. Rents in these areas have been growing rapidly over the past year, with Seattle reporting the fastest growth at almost 10 percent.
“High rent growth in these markets is being driven by high demand and low supply,” says Zillow Chief Economist Dr. Svenja Gudell. “We have more renters today than in the past and most newly formed households are renter households. This taken together with a lack of new rental construction at less expensive price points has been a recipe for rising rents. There is good news for renters on the horizon, though. Current renters in these markets can expect rents to slow down a bit over the next year. Instead of the 10 percent rental appreciation we’ve been seeing in some places, expect growth more along the lines of 4 to 7 percent. This is still high, but will hopefully give renters some relief.”
Highest Forecasted Rent Appreciation over the Next Year
Seattle – 7.2 percent
Portland – 6.0 percent
Denver – 5.9 percent
Cincinnati – 5.2 percent
San Francisco – 4.9 percent
Los Angeles – 4.8 percent
Sacramento – 4.7 percent
San Diego – 4.7 percent
Phoenix – 4.6 percent
San Jose – 4.5 percent
Median rent across the U.S. is forecasted to appreciate just 1.7 percent over the next year, which is consistent with growth experienced over the past 12 months — a substantial slowdown from the 6 percent rent appreciation reported at this time last year.
For more information, visit www.zillow.com.
From:: Finance and Economy
Zillow Report Says Rent Will Rise in the West
Rents in the West’s tech job centers are predicted to be among some of the fastest growing across the nation over the next year, according to the latest Zillow® Rent Forecast for August 2016 to August 2017, which predicts rent trends down to the zip-code level across the U.S.
Rents in Seattle and Portland are expected to rise the most over the next 12 months—Zillow forecasts rent growth of more than 7 percent in Seattle and 6 percent in Portland. Denver, San Francisco and San Jose are forecasted to see rent appreciation of more than 4 percent. Only 11 of the 35 largest metros will see a slowdown in rents.
Fast rising rents in the West continue a trend that’s been happening over the past several years. Seattle, Portland and Sacramento reported the fastest rent appreciation over the past 12 months. Last year, Miami and Boston were among the 10 fastest-growing rental markets, but over the next year San Jose and Cincinnati will replace them on the roster of the 10 fastest growing rental markets. Cincinnati is the only Midwestern metro to make the list.
Job opportunities and high salaries are drawing millennials to tech centers like Seattle and San Francisco, but the demand for a limited number of rental units available continues to drive up costs. Rents in these areas have been growing rapidly over the past year, with Seattle reporting the fastest growth at almost 10 percent.
“High rent growth in these markets is being driven by high demand and low supply,” says Zillow Chief Economist Dr. Svenja Gudell. “We have more renters today than in the past and most newly formed households are renter households. This taken together with a lack of new rental construction at less expensive price points has been a recipe for rising rents. There is good news for renters on the horizon, though. Current renters in these markets can expect rents to slow down a bit over the next year. Instead of the 10 percent rental appreciation we’ve been seeing in some places, expect growth more along the lines of 4 to 7 percent. This is still high, but will hopefully give renters some relief.”
Highest Forecasted Rent Appreciation over the Next Year
Seattle – 7.2 percent
Portland – 6.0 percent
Denver – 5.9 percent
Cincinnati – 5.2 percent
San Francisco – 4.9 percent
Los Angeles – 4.8 percent
Sacramento – 4.7 percent
San Diego – 4.7 percent
Phoenix – 4.6 percent
San Jose – 4.5 percent
Median rent across the U.S. is forecasted to appreciate just 1.7 percent over the next year, which is consistent with growth experienced over the past 12 months — a substantial slowdown from the 6 percent rent appreciation reported at this time last year.
For more information, visit www.zillow.com.
From:: Real Estate News
The McMansion’s Day Has Come and Gone
(TNS)—When Dr. Kishin Ramani decided to sell his six-bedroom, Georgian-style home on a half-acre lot in an affluent Chicago suburb three years ago, it never occurred to him that he’d be resigned to accepting far less than he paid when he bought the home in 2005.
Ramani was immediately drawn to the home, built in 2003, because “it was gorgeous and airy, with the highest ceilings I’d seen.” A recent appraisal said it is worth $2.5 million. But after years on the market, and dropping the price three times to $1.99 million, he says he is ready to take a $600,000 loss on the home because he has little choice.
He needs to move soon into a new home he had built for his wife, Dr. Suman Kaur, his two children and his parents, and he has no interest in keeping two homes.
Now, as he digests the loss he must take, he notices other homeowners nearby going through the same shock with homes known as McMansions. One neighbor recently marked his home down $750,000 to $1.95 million.
“There is nothing in the overall housing data that says the housing market is this bad,” says Ramani’s real estate agent, Linda Feinstein. But while smaller, lower-priced homes have often recovered significantly from the housing crash that started in 2007, McMansions are slower to come back, she says.
The McMansion style, built between 2001 and 2007 and averaging 3,000 to 5,000 square feet, lacks the appeal with today’s buyers compared to old vintage homes or large freshly built homes.
The realization is especially hard on homeowners trying to sell because when they bought the giant homes in the early 2000s, they thought of them as great investments, Feinstein says. Then, the idea was that bigger was better because prices presumably would keep going up.
Now, housing analysts say the day of the McMansion has come and gone. An analysis recently completed by Trulia shows that the amount buyers are willing to pay for McMansions over other homes has fallen 26 percent in just four years. As homes in general have been regaining value, McMansions have been losing appeal in comparison to others as the giants of the pre-crash years have aged.
Trulia economist Ralph McLaughlin notes that just four years ago, when most McMansions weren’t yet 10 years old, people were willing to pay a higher premium to get the large houses than they are willing to pay now.
Nationally, the premiums buyers are willing to pay for a McMansion have dropped from 138 percent in 2012 to 117 percent recently. The declines have been extreme in some Florida markets, where premiums have plunged more than 80 percent in areas such as Fort Lauderdale.
As McMansions were being built in the early 2000s, some observers questioned whether the homes — named after the generic, mass-produced approach of fast food — would remain desirable. They were criticized for being ostentatious and cheaply built. They were often stuffed onto suburban lots that seemed too small, where the main structure appeared to be dominated by …read more
From:: Real Estate News
Mortgage Applications Inch Higher
Mortgage applications increased 2.9 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending September 30, 2016.
The Market Composite Index, a measure of mortgage loan application volume, increased 2.9 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 3 percent compared with the previous week. The Refinance Index increased 5 percent from the previous week. The seasonally adjusted Purchase Index decreased 0.1 percent from one week earlier. The unadjusted Purchase Index decreased 0.2 percent compared with the previous week and was 14 percent lower than the same week one year ago.
The refinance share of mortgage activity increased to 63.8 percent of total applications from 62.7 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 4.5 percent of total applications.
The FHA share of total applications decreased to 10.0 percent from 10.2 percent the week prior. The VA share of total applications decreased to 11.4 percent from 11.9 percent the week prior. The USDA share of total applications increased to 0.7 percent from 0.6 percent the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 3.62 percent, the lowest level since July 2016, from 3.66 percent, with points decreasing to 0.32 from 0.33 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 3.60 percent from 3.64 percent, with points decreasing to 0.25 from 0.28 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.50 percent from 3.52 percent, with points decreasing to 0.16 from 0.21 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.93 percent from 2.95 percent, with points decreasing to 0.32 from 0.38 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs remained unchanged at 2.92 percent, with points increasing to 0.44 from 0.40 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
For more information, visit www.mba.org.
From:: Finance and Economy
Mortgage Applications Inch Higher
Mortgage applications increased 2.9 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending September 30, 2016.
The Market Composite Index, a measure of mortgage loan application volume, increased 2.9 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 3 percent compared with the previous week. The Refinance Index increased 5 percent from the previous week. The seasonally adjusted Purchase Index decreased 0.1 percent from one week earlier. The unadjusted Purchase Index decreased 0.2 percent compared with the previous week and was 14 percent lower than the same week one year ago.
The refinance share of mortgage activity increased to 63.8 percent of total applications from 62.7 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 4.5 percent of total applications.
The FHA share of total applications decreased to 10.0 percent from 10.2 percent the week prior. The VA share of total applications decreased to 11.4 percent from 11.9 percent the week prior. The USDA share of total applications increased to 0.7 percent from 0.6 percent the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 3.62 percent, the lowest level since July 2016, from 3.66 percent, with points decreasing to 0.32 from 0.33 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 3.60 percent from 3.64 percent, with points decreasing to 0.25 from 0.28 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.50 percent from 3.52 percent, with points decreasing to 0.16 from 0.21 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.93 percent from 2.95 percent, with points decreasing to 0.32 from 0.38 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs remained unchanged at 2.92 percent, with points increasing to 0.44 from 0.40 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
For more information, visit www.mba.org.
From:: Real Estate News
Great Spaces: Pharrell Williams’ Miami Penthouse Sells for $9.25 Million
Pharrell Williams has every reason to be “Happy” after finally selling his Miami penthouse to a New Jersey businessman. With his main residence in the swanky Laurel Canyon in Los Angeles that he bought in 2015, it wasn’t feasible to hold onto the penthouse—even if it were in what many would call the best location in South Florida.
Perched on top of the 40-story Bristol Tower at the entrance to Key Biscayne, the property is just a stone’s throw from trendy Coconut Grove and a quick drive in the other direction to South Beach—locations with quite possibly the best restaurants, clubs, beaches and marinas in Miami. At 10,000 square feet, the penthouse has five bedrooms, seven bathrooms and an additional 5,000 square feet of terraces, with its own rooftop swimming pool and a second-level summer kitchen. Pharrell purchased the condo in 2007 for $12.5 million, then transformed it into a mogul palace with his art and furniture collection. The home offers 360-degree views of Biscayne Bay, the Atlantic Ocean, Key Biscayne, Coconut Grove and the Miami skyline.
Originally listed in 2012 for $16.8 million, the property had gone on and off the market with several price cuts until recently selling for $9.25 million.
In addition to his songwriting and performance skills, Pharrell’s explosion of creativity has led him into exciting musical collaborations and productions, as well as avenues where he can express other unexpected talents. He has his own clothing lines, BBC and BGC, along with Ice Cream Footware designed by Pharrell and produced by Reebok; a jewelry line through Louis Vuitton; sunglass designs; furniture and sculpture, in addition to many other creative and business pursuits.
Photo courtesy of toptenrealestatedeals.com.
From:: Real Estate News
Mortgage Rates Hover in Place
Average fixed mortgage rates remain largely unchanged ahead of this week’s employment report, according to Freddie Mac’s recently released Primary Mortgage Market Survey.
The 30-year fixed-rate mortgage (FRM) averaged 3.42 percent with an average 0.5 point for the week ending October 6, 2016, unchanged from last week. A year ago at this time, the 30-year FRM averaged 3.76 percent.
“The 10-year Treasury yield leaped to a two-week high following reports of the European Central Bank retreating from its bond-buying program ahead of its initial March deadline,” says Sean Becketti, chief economist, Freddie Mac. “In contrast, the 30-year fixed-rate mortgage remained unchanged. Over the past two weeks, mortgage rates have remained fairly flat while Treasury yields have fallen and risen.”
The 15-year FRM this week averaged 2.72 percent with an average 0.5 point, unchanged from last week. A year ago at this time, the 15-year FRM averaged 2.99 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.80 percent this week with an average 0.4 point, down from last week when it averaged 2.81 percent. A year ago, the 5-year ARM averaged 2.88 percent.
For more information, visit www.FreddieMac.com.
From:: Finance and Economy
Mortgage Rates Hover in Place
Average fixed mortgage rates remain largely unchanged ahead of this week’s employment report, according to Freddie Mac’s recently released Primary Mortgage Market Survey.
The 30-year fixed-rate mortgage (FRM) averaged 3.42 percent with an average 0.5 point for the week ending October 6, 2016, unchanged from last week. A year ago at this time, the 30-year FRM averaged 3.76 percent.
“The 10-year Treasury yield leaped to a two-week high following reports of the European Central Bank retreating from its bond-buying program ahead of its initial March deadline,” says Sean Becketti, chief economist, Freddie Mac. “In contrast, the 30-year fixed-rate mortgage remained unchanged. Over the past two weeks, mortgage rates have remained fairly flat while Treasury yields have fallen and risen.”
The 15-year FRM this week averaged 2.72 percent with an average 0.5 point, unchanged from last week. A year ago at this time, the 15-year FRM averaged 2.99 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.80 percent this week with an average 0.4 point, down from last week when it averaged 2.81 percent. A year ago, the 5-year ARM averaged 2.88 percent.
For more information, visit www.FreddieMac.com.
From:: Real Estate News