Top News Of The Week

CoreLogic Now Forecasts Continued Price Growth
NAHB CEO Warns of Impact of Soaring Lumber Prices
Fed Move Could Spell End of Record Low Mortgage Rates
FHFA Extends Moratoria on Evictions, Foreclosures
Twin Cities Can’t Get Enough Homes on the Market
Millennials Flexing Their Home-Buying Muscle
July Construction Spending Robust
Will Your Next Home Include a Zoom Room?
Builders See Rush to ‘Burbs
Mortgage Market Remains Uncertain” MBA Chief Economist
Professor Foresees ‘Unsellable’ Boomer, Gen X Homes
Millennials Grabbing Old Houses
Fannie, Freddie Warn of Higher Mortgage Cost from FHFA Capital Requirements
Orlando Prices Surge As Inventory Shrinks
NAHB To Focus on Women This Week
The Cities With The Biggest Concentrations of Adults Living With Mom and Dad

CoreLogic Now Forecasts Continued Price Growth

Home prices across America continue to defy gravity.

The latest CoreLogic home Price Index shows that prices rose 5-point-5 percent year-over-year in July, up from 4-point-3 percent growth in June.

And principal economist Molly Boesel says, in a CoreLogic video, that the company’s prediction in May that your home could lose value by next May no longer applies.

CoreLogic says prices keep rising because of that powerful recipe of very strong demand, exceptionally low inventory, and record low mortgage rates.

NAHB CEO Warns of Impact of Soaring Lumber Prices

While new home sales and housing starts continue to rise, America’s home builders have never been more confident.

However, there is a serious headwind on the horizon: soaring lumber prices.

National Association of Home Builders CEO Jerry Howard sounded the alarm in an NAHB podcast.

The NAHB has been pressing the Trump administration to help get lumber prices under control.

Fed Move Could Spell End of Record Low Mortgage Rates

Some experts think mortgage rates will begin to rise, now that the Federal Reserve has signaled it’s okay with inflation that may run higher than its target rate of 2-percent.

Fed Chair Jerome Powell said in webcast.

But mortgage rates are not influenced so much by what the Fed does, as by the yield on 10-year Treasury bonds.  As inflation rises, investors will demand higher interest on bonds, and that will push mortgage rates

The Fed’s Open Market Committee is set to have its regular meeting Tuesday and Wednesday.

FHFA Extends Moratoria on Evictions, Foreclosures

As expected, the federal government has acted, to protect millions of Americans from eviction or foreclosure, through the end of this year.

The Federal Housing Finance Agency has extended moratoria protecting properties with mortgages backed by Fannie Mae, Freddie Mac, or the FHA.

The extension through December 31st was announced just as those moratoria were about to expire at the end of August.

Twin Cities Can’t Get Enough Homes on the Market

Bidding wars are breaking out all over the Twin Cities, as Minneapolis-St. Paul area home buyers search for those elusive homes for sale.

Twin Cities Realtor Lyndon Smith told WCCO-4 News.

According to Minneapolis and St. Paul Realtors, pending sales in July were the strongest for any July in 17 years.

Millennials Flexing Their Home-Buying Muscle

A recent report from the National Association of Realtors found that over a one-year period that ended this summer, Millennials made up 38-percent of all home buyers.

Not surprising, says Wall Street Journal housing reporter Nicole Friedman. She said in a Journal podcast.

The NAR figures also showed that Millennials obtained more than half of all purchase mortgages in that one-year period.

July Construction Spending Robust

America’s appetite for new homes help push private residential construction spending up in July, for the first time in five months.

Spending on single-family construction rose 3-point-1 percent

Multifamily construction spending was up 4-point-9 percent.

Will Your Next Home Include a Zoom Room?

By now people recognize the value of having a home office.

And with more business meetings and classroom work being conducted remotely, using apps like Zoom, there’s a new thing some homeowners want — a Zoom Room.

Mike Koenig is president and co-founder of Colorado-based “Studio Shed” which makes manufactured spaces, He told Yahoo Finance his business has been booming.

Having a Zoom room, proponents say, helps ensure that you will never again be embarrassed by what your camera sees behind you during a meeting.

Builders See Rush to ‘Burbs

There is more evidence now, that the pandemic is sending lots of city dwellers to the suburbs.

The latest quarterly Home Building Geography Index, produced by the National Association of Home Builders, shows a growing demand for homes in less dense, more affordable communities.

Toll Brothers chairman and CEO Doug Yearley has been seeing it, too.

Yearley spoke on CNBC.

Mortgage Market Remains Uncertain” MBA Chief Economist

The mortgage industry has had a terrific year so far.

But the chief economist with the Mortgage Bankers Association says it is still “very much an uncertain environment.

Mike Fratantoni said, in an MBA-produced video.

But one thing Fratanonti says he’s confident about:  he says the “surprising strength” in the purchase market is probably going to be here for another couple of years.

Professor Foresees ‘Unsellable’ Boomer, Gen X Homes

America’s shifting demographics could make millions of homes virtually unsellable in coming years, says one professors new study.

Arthur Nelson, a professor of urban planning and real estate development at the University of Arizona forecasts that millions of homes now owned by Baby Boomers and Gen Xers could go unsold, because they are not the kind of homes that Millennials and Gen Z buyers want.

Nelson projects a glut of the big houses that Boomers tend to prefer, which he says are falling out of favor with younger buyers.

Millennials Grabbing Old Houses

Being suddenly free to work from home, and live anywhere they want, a growing number of Millennial home buyers are shopping for old houses to fix up.

Elizabeth Finkelstein is co-creator of a popular Instagram page called “Cheap Old Houses.” She told ABC’s Good Morning America.

She cautions, of course, that really old houses can often come with really big problems to fix.

Fannie, Freddie Warn of Higher Mortgage Cost from FHFA Capital Requirements

As the FHFA continues to push government-sponsored enterprises Fannie Mae and Freddie Mac toward privatization, the GSEs now warn that the result could be higher mortgage costs for home buyers.

FHFA Director Mark Calabria is requiring the GSEs to maintain a certain level of equity capital, and Fannie and Freddie say the only way they can do that is to raise certain fees.

As a result, they say, the cost of your mortgage could go up by a few hundred dollars.

Orlando Prices Surge As Inventory Shrinks

In most American housing markets, it’s very challenging right now to find very many homes for sale.

And that is certainly true in sunny Orlando, Florida.

Realtor Veronica Figueroa told WESH-2 News.

And the inventory shortage is reflected in the median sale price, which Figueroa says is 9-percent above what it was a year ago.

NAHB To Focus on Women This Week

The National Association of Home Builders is calling attention to women this week.

Betsy Shepherd is Chair of the NAHB’s Professional Women in Building Council.

This year’s focus, she says, is on diversifying the construction industry.

The Cities With The Biggest Concentrations of Adults Living With Mom and Dad

For a number of reasons, many adults live with their parents. Some have moved back in, perhaps because of the pandemic, others never left.

A new report finds that the place where you’ll find the biggest concentration of adults still living at home is Riverside, California.

L-A and Miami are close behind, according to that analysis by Magnify Money, a branch of LendingTree.

 

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