Wednesday, February 24, 2016
Wednesday, February 17, 2016
Fannie Mae: Housing market needs incomes to grow
Source: Yahoo! Finance
The chief economist of Fannie Mae is warning that housing affordability—or lack thereof—is going to put a damper on the housing market’s growth. A big factor in the strength of the market and the story for housing is very much tied to whether incomes increase, according to Fannie Mae’s analysis. Doug Duncan, chief economist for Fannie Mae, commented, “Our theme for the year is [that] housing affordability constrains as the expansion matures. Both rents and house prices are appreciating at pretty strong levels. And what is required is to see income growth, particularly at the medium and lower income levels.”
The chief economist of Fannie Mae is warning that housing affordability—or lack thereof—is going to put a damper on the housing market’s growth. A big factor in the strength of the market and the story for housing is very much tied to whether incomes increase, according to Fannie Mae’s analysis. Doug Duncan, chief economist for Fannie Mae, commented, “Our theme for the year is [that] housing affordability constrains as the expansion matures. Both rents and house prices are appreciating at pretty strong levels. And what is required is to see income growth, particularly at the medium and lower income levels.”
Sunday, February 14, 2016
Wednesday, February 10, 2016
Fed: Tight Inventory Still Dogs Housing Markets
Source: DSNews.com
The Federal Reserve has released its first Beige Book of 2016, and despite existing-home sales falling to their slowest pace in 19 months in November, the 12 Federal Reserve Districts reported mixed but slightly improved housing markets for the six-week period leading up to January 4. Part of the reason that inventories remain low is that residential construction in the single-family home space “remains sluggish, with developers reluctant to build inventories,” according to the Fed. Multifamily construction, on the other hand, “continues to be brisk,” as most of the 12 districts reported modest or moderate growth in commercial construction. Overall, economic activity expanded in nine of the 12 districts since the previous Beige Book was issued in December.
The Federal Reserve has released its first Beige Book of 2016, and despite existing-home sales falling to their slowest pace in 19 months in November, the 12 Federal Reserve Districts reported mixed but slightly improved housing markets for the six-week period leading up to January 4. Part of the reason that inventories remain low is that residential construction in the single-family home space “remains sluggish, with developers reluctant to build inventories,” according to the Fed. Multifamily construction, on the other hand, “continues to be brisk,” as most of the 12 districts reported modest or moderate growth in commercial construction. Overall, economic activity expanded in nine of the 12 districts since the previous Beige Book was issued in December.
Wednesday, February 3, 2016
Facebook’s 10-Mile, $10,000 Solution to Housing and Long Commutes
Source: KQED
Tech workers who live in San Francisco and commute to work in Silicon Valley have been blamed for driving up rents in the area and causing congestion on local transportation corridors. Facebook is now offering payments of $10,000 and up to workers who relocate to within 10 miles of its main campus. However, there are concerns that residents in nearby communities — East Palo Alto, Menlo Park and Redwood City, for instance — will be threatened by the announcement, as they will find themselves competing for housing with well-paid Facebook workers. The policy may add to tension in the region about the surge in housing prices and the lack of housing available in the area due to the dominant presence of tech companies.
Tech workers who live in San Francisco and commute to work in Silicon Valley have been blamed for driving up rents in the area and causing congestion on local transportation corridors. Facebook is now offering payments of $10,000 and up to workers who relocate to within 10 miles of its main campus. However, there are concerns that residents in nearby communities — East Palo Alto, Menlo Park and Redwood City, for instance — will be threatened by the announcement, as they will find themselves competing for housing with well-paid Facebook workers. The policy may add to tension in the region about the surge in housing prices and the lack of housing available in the area due to the dominant presence of tech companies.
Wednesday, January 27, 2016
HUD Secretary Castro Chats Housing on Late Show with Stephen Colbert
Source: Reverse Mortgage Daily
Department of Housing and Urban Development (HUD) Secretary Julián Castro appeared as a special guest recently on The Late Show with Stephen Colbert, where he discussed HUD’s role in the housing market recovery and those pesky rumors about the vice president nomination. Castro touted HUD’s efforts to decrease veteran homelessness and the Neighborhood Stabilization Program that helped revitalize neighborhoods across the U.S. that have suffered from foreclosures. Colbert also asked him to rate the likelihood that Clinton actually approached him about being vice president.
Department of Housing and Urban Development (HUD) Secretary Julián Castro appeared as a special guest recently on The Late Show with Stephen Colbert, where he discussed HUD’s role in the housing market recovery and those pesky rumors about the vice president nomination. Castro touted HUD’s efforts to decrease veteran homelessness and the Neighborhood Stabilization Program that helped revitalize neighborhoods across the U.S. that have suffered from foreclosures. Colbert also asked him to rate the likelihood that Clinton actually approached him about being vice president.
Friday, January 22, 2016
Interest Rate Update
Interest rates are still looking good. Even with the .25% hike in the Federal Funds Rate long
term interest rates remain at historic lows.
30 Year Fixed up to $417,000 3.75% to 4.125%
30 Year Fixed “Agency” up to $625,500 3.875% to 4.25%
30 Year Fixed FHA up to $417,000 3.50% to 3.75%
30 Year Fixed FHA “Jumbo” up to $729,500 3.625% to 3.875%
Here We Go! Get Ready to Ramp it Up With the current struggles in the stock market the fixed interest rates have actually started to ease downward again. This is an election year and the people in power can’t afford to go into the election with a sluggish economy. Right now the housing industry is about the strongest sector of the economy and they can’t let that slow down if at all possible. The media news is all good for the continued strength of the housing market. The Orange County Register on Wednesday this week reported on the front page “Home Prices Edge Close to Record”. Fannie Mae also issued reports that the housing recovery “will continue to march on” and a new report out today says the sales of existing homes in December surged nearly 15% over November. The report says that is the largest monthly jump in history.
How Does This Affect You ? I have maintained for many years that the key component to the housing market is the media. In this case it is not just the local newspaper that is gushing about the strength of the real estate market but other creditable media and news outlets. So enjoy the ride and pass this information along.
30 Year Fixed up to $417,000 3.75% to 4.125%
30 Year Fixed “Agency” up to $625,500 3.875% to 4.25%
30 Year Fixed FHA up to $417,000 3.50% to 3.75%
30 Year Fixed FHA “Jumbo” up to $729,500 3.625% to 3.875%
Here We Go! Get Ready to Ramp it Up With the current struggles in the stock market the fixed interest rates have actually started to ease downward again. This is an election year and the people in power can’t afford to go into the election with a sluggish economy. Right now the housing industry is about the strongest sector of the economy and they can’t let that slow down if at all possible. The media news is all good for the continued strength of the housing market. The Orange County Register on Wednesday this week reported on the front page “Home Prices Edge Close to Record”. Fannie Mae also issued reports that the housing recovery “will continue to march on” and a new report out today says the sales of existing homes in December surged nearly 15% over November. The report says that is the largest monthly jump in history.
How Does This Affect You ? I have maintained for many years that the key component to the housing market is the media. In this case it is not just the local newspaper that is gushing about the strength of the real estate market but other creditable media and news outlets. So enjoy the ride and pass this information along.
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