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☆ China pledges $42 billion in a slew of measures to support the struggling property sector
▼ + stars: | 2024-05-17 | by ( Evelyn Cheng | ) www.cnbc.com time to read: +5 min

China announced "historic" steps to stabilize the crisis-hit property sector on May 17, 2024, allowing local governments to buy "some" apartments, relaxing mortgage rules and pledging to deliver unfinished homes. These and other measures announced Friday marked Beijing's latest efforts to address issues in the massive real estate sector. The real estate companies can then use funds earned from those sales to complete construction on other apartments, the central bank said. Pre-sold, unfinished homesFor years, many apartments in China tended to be sold before construction was finished. Nomura estimated last year there were around 20 million such pre-sold, unfinished apartments in China.

Persons: Zhu Ning, Tao Ling, Xiao Yuanqi, Larry Hu, Dong Jianguo, Lifeng, Zhu, Nomura Organizations: China, Nurphoto, Getty, Tsinghua University, People's Bank of China, National Financial Regulatory, Macquarie, CNBC, of Housing, Housing, Future Publishing Locations: BEIJING, Wanxiang City, Huai'an City, East China's Jiangsu, China

☆ Housing market: China unveils sweeping measures to rescue its crisis-hit property sector
▼ + stars: | 2024-05-17 | by ( Laura He | ) edition.cnn.com time to read: +4 min

Hong Kong CNN —China has unveiled wide-ranging measures to rescue its property sector, including asking local governments across the country to buy unsold homes from beleagured developers and easing rules on purchases. In a coordinated move, the People’s China of China (PBOC) announced that it will set up a nationwide program to provide 300 billion yuan ($41.5 billion) in loans to fund state purchases of unsold homes. The 300 billion yuan provided by the central bank could eventually underpin 500 billion yuan ($69 billion) worth of credit to support such purchases, she estimated. Expectations that Beijing was preparing a plan to have local governments across the country buy millions of unsold homes have successfully buoyed China stocks. On Friday, He also urged local governments to buy back or directly purchase land that has been sold to developers but not yet used.

Persons: Lifeng, Tao Ling, Larry Hu, ”, Société Générale Organizations: Hong Kong CNN, Communist, China Real Estate Business, Macquarie Group, Reuters, provident Locations: China, Hong Kong, Beijing

☆ China Says It Will Start Buying Apartments as Housing Slump Worsens
▼ + stars: | 2024-05-17 | by ( Alexandra Stevenson | ) www.nytimes.com time to read: 1 min

Chinese officials signaled their growing alarm over the country’s worsening real estate market on Friday, unveiling a plan to step in to buy up some of the vast housing stock and announcing even looser rules for mortgages. The flurry of activity came just hours after new economic data revealed that Chinese authorities are staring at a hard truth: No one wants to buy houses right now. Policymakers have tried dozens of measures to entice home buyers and reverse a steep decline in the housing market that has shown few signs of recovering soon. On Friday China’s vice premier, He Lifeng, indicated a shift in the government’s approach to dealing with a housing crisis that has prompted households to cut spending. He told policymakers that local governments could begin to buy homes to start dealing with the huge numbers of empty apartments.

Persons: Lifeng

☆ Don't blame Wall Street for jacking up home prices, economist says
▼ + stars: | 2024-05-09 | by ( Matthew Fox | ) www.businessinsider.com time to read: +1 min

Wall Street isn't to blame for the non-stop rise in housing prices, according to Capital Economics. The research firm said any legislation designed to block hedge funds from buying homes won't lower home prices. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementThe ongoing rise in home prices shouldn't be blamed on Wall Street, according to a Thursday note from Capital Economics. The worry is that a surge in big investors buying up single-family homes is driving up prices, exacerbating a shortage in housing, and preventing younger people from becoming first-time home buyers.

Persons: — Organizations: Capital Economics, Investor, Service, Business Locations: Congress

☆ A Way to Beat High Mortgage Rates? Take Over Someone Else’s Loan.
▼ + stars: | 2024-05-09 | by ( Tara Siegel Bernard | ) www.nytimes.com time to read: +1 min

Home prices were already high when Ellen Harper, a software architect living in Atlanta, started searching for a house in 2021. But she couldn’t have anticipated the quick surge in interest rates the following year and, even with a large down payment, the new math made her uneasy. It’s an amount she’ll be able to comfortably afford into retirement thanks, in large part, to a 2.49 percent mortgage rate. That’s less than half the current rate of 7.09 percent on 30-year-fixed loans, the most popular type of mortgage. She found her home through Roam, a start-up that went live in September that lists homes with assumable low-rate loans, and assists buyers through the process.

Persons: Ellen Harper, Harper, Ms, ” Locations: Atlanta, Fairburn

☆ Want to fire your real estate agent? Try this.
▼ + stars: | 2024-05-07 | by ( Alistair Barr | ) www.businessinsider.com time to read: +3 min

A $418 million legal settlement in March upended the residential real estate market. It's the brainchild of Lewis Buckley and Allan Wood who met during a private home sale process that — you guessed it — involved no real estate agents. In the US, commissions on home transitions have hovered between 5% and 6% of the sale price for decades. In the UK, real estate agents charge a 1% to 3% of the property sale price, and then sellers usually have to hire someone else to handle the legal stuff. Even with the lowest 1% commission rate of a traditional estate agent, a homeowner would save £4,605 if they paid Hiizzy's £395 flat fee.

Persons: —, Lewis Buckley, Allan Wood, Albert Fox Cahn Organizations: Service Locations: Hiizzy

☆ High mortgage rates didn't put a lid on home prices, but soaring insurance costs might, real estate experts say
▼ + stars: | 2024-05-04 | by ( Yuheng Zhan | ) www.businessinsider.com time to read: +5 min

While high mortgage rates didn't bring prices down, steep insurance costs could put a lid on further appreciation. But there's an under-the-radar factor that could soon pull down home prices nationally, real estate experts told Business Insider — soaring home insurance costs. AdvertisementThe insurance costs usually come as a surprise to home buyers in those areas, Fairweather added. To Fairweather, it's more precise to say the rising insurance will make home values grow more slowly than they would have, as the robust demand still characterizes the current market. We take into account prices and mortgage rates and now rising insurance costs, but there's still people wanting to buy homes," she said.

Persons: —, Zillow, FRED, Daryl Fairweather, Fairweather, Danielle Hale, Hale, Jesse Keenan, Keenan, it's, homeownership, there's Organizations: Service, Business, Tulane University Locations: Florida, Texas, West, Louisiana

☆ As home sellers, buyers wait on a Fed cut, here's how mortgage rates have impacted the spring housing market
▼ + stars: | 2024-04-29 | by ( Ana Teresa Solá | ) www.cnbc.com time to read: +1 min

People looking to buy or sell a home this spring are paying close attention to mortgage rates. The average 30-year, fixed-rate mortgage rose to 7.17% for the week ending April 25, according to Freddie Mac data via the Federal Reserve. It remains unclear when the Federal Reserve might make its first rate cut. "I believe our first rate cut is penciled in for July," said Matthew Walsh, assistant director and economist at Moody's Analytics. "We might not see rates fall in any meaningful way until [the] later half of this year," he said.

Persons: Freddie Mac, Matthew Walsh, Walsh Organizations: Federal Reserve, Moody's Analytics, Finance

☆ Mortgage demand drops as interest rates soar over 7%
▼ + stars: | 2024-04-24 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +1 min

Mortgage rates rose for the third straight week last week, hitting the highest level since November. As a result, mortgage application demand dropped 2.7% compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. As home prices rise along with interest rates, potential buyers' purchasing power are suffering a double whammy. ARMs offer lower rates and can be fixed for up to 10 years, although they are considered riskier. Mortgage rates have eased very slightly so far this week, but there hasn't been much economic data to influence them.

Persons: Joel Kan, hasn't Organizations: Mortgage

☆ March homes sales dropped despite a surge in supply. Here's why.
▼ + stars: | 2024-04-18 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +2 min

Rising mortgage rates are likely the cause of the slowdown. Mortgage rates stayed lower in January, in the mid 6% range on the popular 30-year fixed loan. Inventory did improve slightly, rising 4.7% month to month to 1.11 million homes for sale at the end of March. Investors pulled back a bit, making up 15% of sales, compared with 21% in February and 17% in March of last year. Mortgage rates have moved even higher this month, with the average rate on the 30-year fixed hovering around 7.5%, according to Mortgage News Daily.

Persons: Lawrence Yun, It's, Yun Organizations: National Association of Realtors, Investors, Mortgage News Locations: West, That's

☆ U.S. Mortgage Rates Jump Above 7% for the First Time This Year
▼ + stars: | 2024-04-18 | by ( J. Edward Moreno | More About J. Edward Moreno | ) www.nytimes.com time to read: +1 min

Mortgage rates rose above 7 percent for the first time this year, crossing a symbolically concerning threshold that threatens to keep millions of potential home buyers and sellers on the sidelines of a U.S. housing market that is increasingly showing signs of slowing. Mortgage rates reached a recent high of nearly 8 percent late last year — a level not seen since 2000. As mortgage rates have risen in recent months, making homeownership costlier for buyers, potential sellers who may feel locked into lower rates on their existing loans have been keeping their houses off the market, in effect pushing prices higher, too. “Potential home buyers are deciding whether to buy before rates rise even more, or hold off in hopes of decreases later in the year,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “It remains unclear how many home buyers can withstand increasing rates in the future.”

Persons: Freddie Mac, ” Sam Khater, Freddie Mac’s, ” Locations: U.S, United States

☆ Election Updates: Biden heads to Pennsylvania to talk taxes and hit Trump.
▼ + stars: | 2024-04-16 | by ( Nicholas Nehamas | ) www.nytimes.com time to read: +4 min

In an unprecedented trial, Mr. Trump is spending most of this week, and much of the coming month or two, in a Manhattan courtroom facing criminal charges. In 2020, he narrowly defeated Mr. Trump in Pennsylvania by about 80,000 votes. “I went to school here, right?” Mr. Trump, a graduate of the Wharton School of the University of Pennsylvania, reminded his audience. They say it is imperative that Mr. Biden campaign in western Pennsylvania, as well as swing areas like Erie County, which Mr. Biden flipped in 2020. Mr. Trump said last week that he would not, reversing a position he held during his term in the White House.

Persons: Biden, Donald J, ” Michael Tyler, Trump, Mr, “, Trump’s, Michael Gold Organizations: Trump, Biden, Affordable, Mr, Wharton School, University of Pennsylvania, Scranton, Pittsburgh, United Steelworkers . Unions, Democrats, U.S . Steel, steelworkers, Democratic National Committee, Democratic Locations: Pennsylvania, Scranton, Manhattan, Israel, Michigan, Wisconsin, Philadelphia, Erie County, Arizona, Schnecksville, Pa

☆ Why the Fed needs to cut interest rates to lower inflation, according to a JPMorgan strategist
▼ + stars: | 2024-04-10 | by ( Matthew Fox | ) www.businessinsider.com time to read: +3 min

If the Federal Reserve wants to lower inflation, they need to cut interest rates, according to JPMorgan. JPMorgan strategist Jack Manley said lower interest rates would help lower shelter costs. "You're not going to see meaningful downward pressure on shelter costs until the Fed lowers interest rates," Manley said. AdvertisementIf the Federal Reserve wants to lower inflation back to its long-term target of 2%, it needs to start cutting interest rates, according to JPMorgan strategist Jack Manley. "A lot of what's going on today can be very closely linked to the level of interest rates.

Persons: Jack Manley, Manley, — Organizations: Federal Reserve, JPMorgan, Service, Bloomberg

☆ A Hot Inflation Report Is a Blow to President Biden
▼ + stars: | 2024-04-10 | by ( Jim Tankersley | More About Jim Tankersley | ) www.nytimes.com time to read: +1 min

The unexpected re-acceleration in price growth across the economy is at least a temporary setback for President Biden, who has been banking on cooling inflation to lift his re-election prospects. Mr. Biden and his aides have publicly cheered the retreat of annual inflation rates over the last year, after watching the fastest price growth in 40 years dent the president’s approval ratings earlier in his tenure. Mr. Biden has been particularly focused on home buyers, including young voters who are key to his electoral coalition, and who are struggling to afford high housing prices as mortgage rates remain around 7 percent. Wall Street analysts saw Wednesday's surprise pickup in the inflation rate as a sign that the Fed could leave rates on hold for months longer than expected. That could mean no cuts before the November election, a campaign where Mr. Biden’s Republican opponent, former President Donald J. Trump, has slammed Mr. Biden for both rapid price increases and high borrowing costs.

Persons: Biden, Biden’s, Donald J, Trump Organizations: Federal Reserve, Wall Street, Biden’s Republican

☆ This trade wins if interest rates stay high and hurt the housing market
▼ + stars: | 2024-04-02 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

To profit from this possibility, here's an options trade that bets against the housing market. US10Y YTD mountain U.S. 10-year Treasury yield so far in 2024 I'm contemplating a bearish trade on Lowe's (LOW) within the consumer discretionary sector. DMI (Directional Movement Index): When the DI+ (green line) is above DI- (red line), the stock is in an uptrend. The trade structure I am using here is called a "bear put spread" also known as "put debit spread". If LOW trades at or below my short strike by the expiration date, this trade can yield a 100% ROI on the amount risked.

Persons: I'm, I've Organizations: Federal, Treasury, Lowes Locations: US10Y

☆ They moved into floating homes and houseboats — and discovered a world of adventure and hidden expenses
▼ + stars: | 2024-03-25 | by ( Amanda Goh | ) www.businessinsider.com time to read: +10 min

Read previewMoving into their 360-square-foot floating home a year ago was a dream come true for Sarah Spiro and Brandon Jones. In 2023, there were 70 floating home sales reported on the Regional Multiple Listing Service, or RMLS, which covers the Portland area and a significant part of northwest Oregon, Portland Floating Homes real-estate broker John McPherson told BI. Lily and Dylan Rose moved onto their houseboat on Lake Union in Seattle in June 2019. AdvertisementHome insurance for a floating house tends to be about double what it is for a regular house on land, McPherson said. Additionally, the float — the part of the floating house that's equivalent to a foundation — deteriorates over time, McPherson said.

Persons: —, Sarah Spiro, Brandon Jones, Spiro, keepingafloatwiththejoneses Spiro, Jones, keepingafloatwiththejoneses, Adam Lind, @adam.floatinghome, It's, John McPherson, Lily, Dylan Rose, Elizabeth Earle, BI's Jordan Pandy, Earle, Elizabeth Earle Earle's, McPherson, Daryl Fairweather, Redfin's, Realtor.com, Hannah Jones, it's, Laura Woodley, Woodley, isn't, Kate Fincham, Fincham, Lily Rose, Dylan, Rose, she's Organizations: Service, Business, Portland Floating Homes, Realtor.com, Union, Trust, England & Wales, Lake Union Locations: Fontana Lake, North Carolina, Portland, Oregon, Seattle, Sausalito , California, Johns Island , South Carolina, England, Bluffers Park, Toronto, Lake, Boston

☆ Could First-Time Home Buyers Lose Out Under New Commission Rules?
▼ + stars: | 2024-03-25 | by ( Ronda Kaysen | Rukmini Callimachi | ) www.nytimes.com time to read: +1 min

With a landmark legal settlement poised to upend a decades-old norm that has dictated who pays real estate agents and how much, economists, agents and lenders are beginning to worry that the burden could now be on first-time home buyers. Buyers may soon have to pay out of pocket for something that had always been baked into the price. “First-time home buyers are usually the people who don’t have much cash and experience — and that experience matters,” said Daryl Fairweather, the chief economist of Redfin, the online brokerage that cut ties with the National Association of Realtors last year. The lawsuit was initially brought by home sellers in Missouri who accused N.A.R. of artificially inflating home prices by coupling commissions paid to sellers’ and buyers’ agents.

Persons: ”, Daryl Fairweather, Buyers, N.A.R Organizations: Redfin, National Association of Realtors Locations: Missouri

☆ Consumer advocates — and even some Realtors — hail NAR settlement: 'We've opened up the entire industry to competition'
▼ + stars: | 2024-03-24 | by ( Rob Wile | ) www.cnbc.com time to read: +6 min

Now, a landmark settlement with the National Association of Realtors is poised to upend this model. According to consumer advocates, and even some Realtors, it's a win for homebuyers and sellers. And in the months following Covid-19 pandemic reopenings, the hottest U.S. real estate markets were tipped squarely in favor of sellers. It's the same amount of money, but now the buyer gets money instead of a buyer agent, and they can decide what to do with it." What's more, greater competition for clients is likely to result in lower costs across the board, said Ryan Tomasello, a real estate industry analyst with the Keefe, Bruyette & Woods financial firm.

Persons: it's, Mariya Letdin, Letdin, they'll, Doug Miller, Miller, Ryan Tomasello, Keefe, Tomasello, Phil Crescenzo Jr, Crescenzo Organizations: National Association of Realtors, Realtors, homebuyers, Florida State University's College of Business, NBC News, U.S, NAR, Nation One Mortgage Corp Locations: Alhambra , California, Minnesota, Woods

☆ Could real estate go the way of the travel industry? Not just yet
▼ + stars: | 2024-03-23 | by ( John Towfighi | ) edition.cnn.com time to read: +5 min

Sites like Redfin and Zillow provide a way for buyers and brokers to connect online, but the role of real estate agents in closing purchases has persisted. “Ultimately, people will understand what real estate agents really do, especially on the buy side,” Piskorski said. But even with the possibility of major changes, Hale said, one thing will almost certainly remain the same for real estate agents. Currently, the framework of real estate solely emphasizes the buy and sell transaction, said John Bodrozic, co-founder of HomeZada, a real estate tech company. Yet what ultimately differentiates a travel agent from a real estate agent is the value and risk associated with the purchase.

Persons: Tomasz Piskorski, ” Piskorski, Danielle Hale, ” Hale, Hale, “, John Bodrozic, Bodrozic, ”, Bobby Juncosa, Piskorski, ” Juncosa, Juncosa Organizations: CNN — Technology, National Association of Realtors, Columbia Business School, NAR, CNN, Buyers, ” Finance

☆ The NAR settlement could slash home prices for many Americans
▼ + stars: | 2024-03-16 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +3 min

The settlement, which is still subject to a judge’s approval, will eliminate the long-standing standard 6% commission paid by the seller. The NAR, which represents more than 1 million agents, declined to comment on whether home prices will fall as a result of the settlement. For instance, listing agents will likely continue to tell sellers that their homes will be sold faster if they pay for the buyer’s agent’s fee. That would increase how much they’re compensated since the total fee ends up getting split between listing agents and the buyer’s agents. NAR settlement or not, factors such as housing inventory, mortgage rates and consumer savings rates will “play much larger roles,” said Brobeck.

Persons: won’t, Kevin Sears, ”, Stephen Brobeck, ” Brobeck, “, ” Tomasz Piskorski, Piskorski Organizations: New, New York CNN, National Association of Realtors, NAR, Consumer Federation of America, CNN, Columbia University Locations: New York, Missouri

☆ How the recent settlement on paying a commission could change the way Americans buy and sell homes
▼ + stars: | 2024-03-15 | by ( Anna Bahney | ) edition.cnn.com time to read: +4 min

Commissions aren’t disappearing — you’ll still need to pay a real estate agent for their work, just as you would any service provider. And the commission, which is set between an agent and the seller, will continue to be negotiable. The seller’s agent will also still be able to split the commission with the agent bringing the buyer. One new rule prohibits agents’ compensation from being included on listings placed on local centralized portals known as multiple listing services, which critics say led brokers to push more expensive properties on customers. This agreement will specify the work the buyer’s agent will do and how they will get paid.

Persons: who’ve, TD Cowan, Will, that’s, it’s Organizations: DC CNN, National Association of Realtors, NAR, MLS Locations: Washington

☆ The housing market's inventory crisis is finally easing
▼ + stars: | 2024-03-15 | by ( Filip De Mott | ) www.businessinsider.com time to read: +2 min

Read previewUS home-sellers are finally getting accustomed to higher mortgage rates. "The housing market is nothing like it was two years ago during the pandemic homebuying frenzy, but it's better than it was last year. Mortgage-purchase applications declined through February, as rates rose from early 2024. While mortgage rates are moving back down from last month's 6.78% average, they are likely to remain elevated for longer, Redfin said. AdvertisementBetween mortgage rates and higher prices, the median US monthly housing payment stood $2,686 through February, just $30 below last year's all-time high.

Persons: —, Redfin, It's, David Palmer, Sellers Organizations: Service, Business, Mortgage, White

☆ Home buyers and sellers to be spared automatic broker commissions under $418 million settlement
▼ + stars: | 2024-03-15 | by ( Rob Wile | ) www.cnbc.com time to read: +3 min

The National Association of Realtors has agreed to a landmark settlement that would eliminate real estate brokers' long-standing automatic commissions, commonly of up to 6% of the purchase price. Instead, home buyers and sellers would be able to negotiate fees with their agents upfront. If the $418 million legal agreement is approved by a federal court, consumer advocates predict the ranks of real estate agents will thin, further driving down commission prices. "For years, anti-competitive rules in the real estate industry have financially harmed millions," said Benjamin Brown, managing partner at the Cohen Milstein law firm and one of the settlement's negotiators. "It's a bribe," Doug Miller, an attorney and longtime consumer advocate in the real estate industry, said of the commission-splitting arrangements.

Persons: Benjamin Brown, Cohen Milstein, Nykia Wright, Wright, —, Doug Miller Organizations: National Association of Realtors, NAR, MLS

☆ One way to help American homebuyers? Do what the Dutch do.
▼ + stars: | 2024-03-13 | by ( Cork Gaines | Eliza Relman | ) www.businessinsider.com time to read: +5 min

The Dutch offer home mortgages with evolving interest rates that can automatically decrease over time. However, other countries are taking notice: The Dutch mortgage lender DMFCO recently began offering Dutch-style mortgages in the UK. AdvertisementBut there are some deeply entrenched features of the American mortgage system that make it unlikely we'll see widespread adoption of Dutch-style mortgages. AdvertisementAdditionally, mortgage interest rates in the US aren't determined by the loan-to-value ratio beyond a certain point. AdvertisementBut Cecela says he's interested to see what happens with the Dutch-style mortgages newly on offer in the UK.

Persons: —, Lindsey Harn, Lindsey, Harn, Guy Cecala, Cecala, Melissa Cohn, Raveis, Cohn, he's Organizations: Service, Business, Lindsey Harn Group, Mortgage, Mortgage Finance, USA Locations: Netherlands, San Luis Obispo County , California, Europe

☆ How Biden hopes to recapture voters scarred by inflation
▼ + stars: | 2024-03-12 | by ( Ron Brownstein | Analysis Ronald Brownstein | ) edition.cnn.com time to read: +14 min

A majority of Hispanics, and even a plurality of Black voters, said Biden’s policies would cause inflation to rise, the survey found. You can’t not make the contrast and comparison.”These negative retrospective assessments of the Biden and Trump economic records create huge headwinds for the president. “Voters—even past Biden voters who disapprove of his economic record—clearly reject what Trump and Republicans are offering,” Democratic pollster Margie Omero said in an email. After voters were exposed to Biden’s populist arguments, assessments of his economic record improved in the group’s polling, Clark said. But even after hearing that case, most voters in the group’s surveys still gave Biden negative marks for his economic performance, the study found.

Persons: Joe Biden, Donald Trump, Trump, Biden, Biden –, “, ”, Danielle Deiseroth, West Virginia Sen, Joe Manchin, Shawn Fain, Evelyn Hockstein, Adam Green, Michael Tyler, Republican pollster Micah Roberts, It’s, Jim McLaughlin, ” McLaughlin, Roberts, ” Roberts, can’t, ” Tyler, Margie Omero, ’, Bobby Clark, Clark Organizations: CNN, GOP, Trump, Teamsters, Democratic, ACA, West, United Auto Workers, Biden, CNBC, Social Security, Republican, White, NBC News, New York Times, Siena College, CBS, Union, “ Locations: Wisconsin, Michigan, Belleville , Michigan, Scranton , Pennsylvania, Democratic, State, Biden’s

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