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But the world of modular housing, which includes multi-unit apartment buildings and conventional-looking houses, is littered with companies that have gone bust. AdvertisementThese restrictive policies often reflect the lingering perception that factory-built homes are inferior to traditional housing, Erlich said. Investors aren't convinced there's sufficient and consistent demand for modular housing in most markets. They tend to be run by people with deep experience in the construction industry, Erlich said. AdvertisementDo you work in the modular housing industry?
Persons: , Mark Erlich, Katerra, Erlich, Andrew Justus, Justus, Biden, aren't, there's Organizations: Service, New England Regional, of Carpenters, Urban, Niskanen, of Housing, Motors, Avana, Factory, New York Times Locations: Silicon, California, Brooklyn, Manhattan, San Francisco Bay
Washington, DC CNN —Renters and homeowners experience inflation differently; and right now, renters are taking a much more painful hit. While shelter inflation has come down over the past few months, in December, the shelter index was still 6.2% higher year over year. Inflation divide between renters and homeownersTwo things are driving the divide between how homeowners and renters experience inflation. And 64% of homeowners have a mortgage rate of 4% or lower — more than two and a half percentage points lower than prevailing rates. Even if the typical mortgage payment is higher than a typical monthly rent payment, renters’ incomes tend to be lower than homeowners.
Persons: , Lisa Sturtevant, Danielle Hale, Realtor.com, , Hale Organizations: DC CNN, Bright MLS, Bank of America Institute, BLS, Locations: Washington
On an annual basis, inflation ticked up to 3.4% from 3.1% previously. The core CPI, stripping out energy and food costs, was unchanged but dipped down to 3.9% annually from 4% in November. Government measures of housing costs tend to lag market rates, which have been trending down for apartment rental rates lately. The central bank decided at its meeting last month to leave interest rates unchanged while also penciling in at least three cuts in 2024. The Fed did warn that, should the economy perform stronger than expected, it retains the option to increase interest rates, though the probability of that is seen as low.
Persons: , , Phillip Neuhart Organizations: Federal Reserve, Labor, Fed, Markets, First, Bank Wealth Management, Dow Jones Industrial
In a letter to the Department of Housing and Urban Development and the Consumer Financial Protection Bureau, ten Democratic U.S. senators asked the regulators to investigate Navy Federal Credit Union’s mortgage lending for compliance with federal anti-discrimination laws. The credit union, which has more than 13 million members, lends to military servicemembers, defense personnel, veterans, and their families. “Navy Federal’s members have made countless sacrifices in their service to our country,” the senators wrote in the letter. The credit union declined to provide CNN any additional data that would make it possible to analyze those factors. Navy Federal has not yet responded to the lawsuits in court.
Persons: Sen, Sherrod Brown, Ron Wyden, Mary McDuffie, Emanuel Cleaver, Steven Horsford, Hakeem Jeffries, , Maxine Waters, Ben Crump – Organizations: CNN, Department of Housing, Urban Development, Consumer Financial Protection, Democratic U.S, Navy, Credit, Banking, Finance, Congressional Black Caucus, Federal, , Navy Federal, Financial Services Locations: Ohio, Oregon, “ Navy, Virginia
Mobile homes — a type of manufactured house — are a more affordable option for many. Jess Carpenter and her family are living in and renovating their mobile home in Sarasota, Florida. Housing advocates want to get rid of many regulations that bar manufactured homes from communities. AdvertisementJess Carpenter and her husband had never considered living in a mobile home when they moved from Baltimore to Florida in April 2022. In many states, mobile homes are categorized like cars or boats and don't qualify for home mortgages.
Persons: Jess Carpenter, , Carpenter, Ringling, They've, Andrew Justus, Biden Organizations: Housing, Service, Carpenters, Sarasota, Sunshine State, Niskanen, of Housing, Urban Locations: Sarasota , Florida, Baltimore, Florida, Sarasota, Levittown
New York CNN —The Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures price index, measured 2.6% annually in November. So, getting that number down to the Fed’s 2% target should happen in no time, right? That’s because much of the run-up in inflation came from pandemic-induced supply chain disruptions and unusual spikes in demand. The reason is that as inflation cools more, the remaining components that work to keep inflation above the Fed’s target are increasingly “sticky,” meaning they’re the least responsive to changes in market conditions. And it’s so far, so good.”That said, though it’s not the Fed’s go-to inflation gauge, Thursday’s CPI report showed that the road to 2% could come with more bumps.
Persons: , John Cochrane, Jerome Powell, Gregory Daco, That’s, Powell, Cochrane, , ” Paul Donovan, ” Powell, I’d, it’s Organizations: New, New York CNN, Hoover Institute, , University of Chicago, CNN, UBS Global Wealth Management Locations: New York, EY
AdvertisementRigel Robinson, chair of the Land Use, Housing, and Economic Development Committee on the Berkeley City Council, said "the student housing crisis has become the defining characteristic of the student experience at UC Berkeley." Experts said the housing crisis is making the already high student-debt load in the country worse. But with housing costs spiking, living expenses are a big part of the story for many. Darrell Owens, a policy analyst at California YIMBY — an advocacy organization working to end California's housing crisis — noted that the student housing crisis exacerbates the broader housing crisis. "Then what ends up happening is that they spike housing costs for other people."
Persons: , Katie Ibsen, Ibsen, Berkeley, Gavin Newsom, Rigel Robinson, Robert Kelchen, Kelchen, Marcella Bombardieri, Bombardieri, They're, Pell, I've, Darrell Owens, Robinson, it's Organizations: Service, University of California, Business, Gov, Economic, Berkeley City Council, UC Berkeley, Department of Educational, University of Tennessee, Knoxville ., Center for American Progress, Kootenai, Parsons School of Design, Hope, Temple University, Pell Grants Locations: Berkeley, COVID, Davis , California, Knoxville, Knoxville . College, California, Montana, Kootenai College, New York City, Jersey City
Mortgage demand should increase in 2024, says ICE's Andy Walden
  + stars: | 2024-01-03 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMortgage demand should increase in 2024, says ICE's Andy WaldenAndy Walden, vice president of enterprise research at ICE Mortgage Technology, and CNBC's Diana Olick join 'The Exchange' to discuss the state of mortgage demand, the overall health of housing, and more.
Persons: Andy Walden Andy Walden, Diana Olick Organizations: Email Mortgage, ICE Mortgage Technology
It has been predominantly used by life insurers, because they need to boost their investment returns with cheap funding to meet long-term liabilities. They provide the cheap funding to banks and insurers in exchange for collateral to ensure they get their money back. Insurers are entitled to tap FHLB funding. Insurers’ borrowing from FHLBs picked up in 2008 financial crisis, as those that spread themselves thin with aggressive investments scrambled for cash. They did not explain why insurers need FHLB funding to invest in mortgages.
Persons: Sarah Silbiger, Ryan Donovan, CMBS, Lawrence White, White, Graphics JUICING, Cynthia Beaulieu, Cornelius Hurley, Hurley, FHLBs, , Michael Ericson, Jack Dolan, Koh Qui, Greg Roumeliotis, Anna Driver Organizations: REUTERS, Loan, Federal Housing Finance Agency, of Federal Home Loan, FHLBs, FHLB, National Association of Insurance, New York University, MetLife Inc, Equitable Holdings Inc, Corebridge, Brighthouse Financial, MetLife, TIAA, Equitable, Graphics, Wellington Management, Boston University School of Law, Coalition, Silicon Valley Bank, First, American, of, Insurance Coalition, Reuters, Thomson Locations: Washington , U.S, U.S, Boston, Silicon, First Republic, Chicago, New York
Barcelona is a decade into transforming many of its streets into green, car-light public spaces. Earlier this year, the city announced yet another major expansion of the project, with a goal of making a third of city streets green by 2030. And as Americans experience an epidemic of loneliness, a built environment that fosters social connection might be crucial for public health. Making a neighborhood more attractive with more walkable, green streets could mean triggering or speeding up gentrification. More walkable communities with high-quality public spaces are much more expensive to live in, indicating high demand.
Persons: , Sven Eggimann, Tayana Panova, Jonathan Cohn, who's, Eggimann, pyi2lKhNzc, Billy Fields Organizations: Service, ZHAW School of Architecture, Residents, Urban, Smart Growth Locations: Barcelona, Spanish, Switzerland, New York City, Barcelona's, Vitoria, Europe, Valencia, Manhattan, Francisco, Superblocks
Pending home sales, a measure of signed contracts on existing homes, dropped 1.5% in October from September. They hit the lowest level since the National Association of Realtors began tracking this metric in 2001, meaning it's even worse than readings during the financial crisis over a decade ago. Because the index measures signed contracts, it is the most recent indicator of housing demand. The realtors continue to say it's not just high rates but still very low supply of homes for sale that is deflating activity. The Realtors noted that sales of homes priced above $750,000 have been increasing simply because there is more supply on the high end of the market.
Persons: it's, Lawrence Yun Organizations: National Association of Realtors, Mortgage News, The realtors, NAR, Realtors Locations: Northeast
This isn’t due to a constant need to be in new surroundings and no, I do not own four homes. When I was searching for a new place to live over the summer last year, I messaged more than 180 people and only managed to get six viewings through the entirety of my search. London tenants are paying an average of £2,627 ($3,293) per month for rent – a 12.1% increase over the last year alone. I haven’t felt secure in a rental property in years – partly due to feeling as though I’m at the mercy of landlords who have the power to change my situation at a moment’s notice. No matter your relationship status, age or gender identity, no one in London is going through renting unscathed.
Persons: Read, I’ve, Jemal, SpareRoom.com, I’m, SpareRoom, , It’s, , They’re, they’ve Organizations: CNN, London CNN — Locations: London
Mortgage rates will settle between 5%-6%, helping boost home sales, Zandi added. The trend is especially evident among high-end properties, where the rise of multi-family towers in urban centers has lowered rents and impacted the single-family housing market. That's because the added supply increases overall competition in the housing market as sellers of existing homes will be under more pressure to cut prices, he explained. The rush to add inventory comes as the housing market faces a broad supply crunch, made worse by homeowners' resistance to sell their properties. He reiterated that this will help boost housing sales, as long as a recession is avoided and incomes continue to rise.
Persons: Mark Zandi, Zandi, Organizations: CNBC, Service
New Home Sales Plunged in October as Prices Fell
  + stars: | 2023-11-27 | by ( Tim Smart | Nov. | At A.M. | ) www.usnews.com   time to read: +3 min
New home sales fell 5.6% in October, worse than expected, as higher mortgage rates took a bite out of demand. The annual level of sales in October was 679,000, down from September’s substantially revised 719,000 pace, However, sales in October were still up 17.7% from a year ago. October saw a sharp increase in mortgage rates to around 8% for a 30-year fixed rate loan. However, the higher mortgage rates have slowed sales of new homes as well. The recent drop in mortgage rates, with more expected next year, could prove to be a tonic to the market.
Persons: , Kelly Mangold, Greg Logan, Lisa Sturtevant, ” “, ” Sturtevant Organizations: Census Bureau, Department of Housing, Urban Development, Builders, RCLCO Real Estate Consulting, MLS Locations: RCLCO, Southern, Northeast, Midwest
Washington, DC CNN —New home sales in the United States fell in October as typical mortgage rates reached their highest levels this year. This was below analysts’ expectations of an annualized sales pace of 723,000. The average mortgage rate for that loan has been lower recently, dropping down to 7.29% last week, according to Freddie Mac. New home builders often offer more financing options for homebuyers, she said, and are able to “buy down” mortgage rates to make their offerings more attractive than the resale market. With [mortgage] interest rates anticipated to drop in the coming year, more resale homes may go on the market – however there remains significant pent-up demand from buyers,” Mangold said.
Persons: Freddie Mac, , Kelly Mangold, ” Mangold, Organizations: DC CNN, US Department of Housing, Urban Development, Census, Federal Reserve, Real Estate Consulting, homebuyers Locations: Washington, United States
They were participants at a mass blind-dating event hosted by Seongnam city, an attempt by the local government to reverse a falling birth rate in a country where the popularity of marriage and enthusiasm towards parenthood have nosedived. Jung Jae-hoon, a professor at the department of social welfare at Seoul Women's University, said it was "nonsense" to expect these events to lead to higher birth rates. "You need to spend more money directly on supporting pregnancy, child delivery and parenting to call it a policy to boost birth rates," Jung said. Despite criticism, thousands of people have signed up for this year's blind-dating events arranged by the Seongnam city. "Low birth rates cannot be resolved with a single policy," Shin said.
Persons: Lee Yu, Hwang Da, Hwang, Jung Jae, Jung, Shin Sang, Shin, It's, Soo, hyang Choi, Daewoung Kim, Josh Smith, Stephen Coates Organizations: Seongnam, Organisation for Economic Co, Development, Seoul Women's University, Minwoo, Thomson Locations: SEONGNAM, South Korea, Seoul, Korean, United States, Japan, Seongnam
Joseph Ataman/CNNAfter many foreign workers fled Israel following the October 7 attacks, farmers were forced to abandon crops or rely on volunteers for the harvest. Inbar’s remaining foreign workers quietly motor up and down the rows of zucchini. Hamas fighters torched the barns holding hay for the dairy cows on Kibbutz Alumim, riding unopposed into the settlement before massacring foreign workers and attendees of the nearby Nova music festival. “The foreign workers run the farm, they do all the milking,” farm manager Stevie Marcus said of the working of the farm before October 7. Joseph Ataman/CNNStanding among Inbar’s zucchini, tech worker Avi Leibovich - volunteering on a day off from his day job - said he came to help Israeli farms survive.
Persons: Thais, Nattaphong Duangchan, Matan, Yosi, Joseph Ataman, Avi Dichter, , Lior Simcha, Stevie Marcus, Yosi Inbar, it’s, Benjamin Netanyahu, Inbar, “ We’re, Lisa Perlman, Inbar’s, Avi Leibovich, Danny Parizada, hadn’t, Mei –, Mei, Organizations: CNN, Hamas, Palestinian, West Bank, Milk Producers Association, United Nations Office, Humanitarian Affairs, of Housing, Brothers, Sisters, Volunteers Locations: Thai, Israel, Gaza, Hamas, Thailand, Thailand’s, Sri Lanka, Israel’s, Egypt, United States, Nova, Kibbutz Alumim, Gaza City, Tel Aviv
New York City unveiled a pilot program to help homeowners build accessory dwelling units. New York City just unveiled its newest effort, which will hand 15 homeowners up to $395,000 to build an additional apartment. The idea is to boost housing density in a city in desperate need of new housing. The proposal also aims to legalize ADU construction across much more of the city. New York City is facing an especially severe housing affordability crisis.
Persons: , Eric Adams Organizations: New York State, Service, New York Times, York City, Big Apple Locations: York City, New York City, New York, York, California, Oregon
(Treasury yields tend to move inversely to stock prices; as yields fall investors seeking better returns move money back into the stock market). The chipmaker once again came into its quarterly print with super-high expectations on the Street, but once again exceeded them . For this reason, we put more emphasis on monthly economic releases, such as the aforementioned personal spending report. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade.
Persons: Dow, Estee Lauder, Einstein, Jim Cramer's, Jim Cramer, Jim, Locker, Jeff Greenberg Organizations: Nasdaq, Federal Reserve, Treasury, Nvidia, Apple, TJX, Bank of Nova, Elbit Systems, Intuit, Hewlett Packard Enterprise, Hormel, Kroger, KR, Academy Sports, TD Bank, Royal Bank of Canada, Dell Technologies, Bank of Montreal, BMO, Jim Cramer's Charitable, CNBC, Universal, Getty Locations: Bank of Nova Scotia, AMBA
michelle cottleSo we’re dealing with this 72-year-old widower named Gary Turner —archived recording (gary turner) I’m Gary. archived recording (gary turner) Yeah. archived recording (gary turner) Um — [LAUGHS]michelle cottleAnd I am just like, oh —archived recording (gary turner) Oh, my goodness. archived recording 12 OK. archived recording 13 I can’t climb up. archived recording (gary turner) Here’s to you, ladies.
Persons: michelle cottle, Michelle Cottle, I’m, It’s, leslie, I’m Leslie, Gary Turner, gary, Gary, michelle cottle —, I’ve, Gary —, it’ll, Theresa, Gary it’s, gary turner, they’re, that’s, They’re, don’t, you’re, we’ve, Organizations: Social Security Locations: America, Minneapolis , Minnesota, Indiana
WILL SHOPPERS FIND BLACK FRIDAY DEALS THIS YEAR? HOW MUCH ARE SHOPPERS EXPECTED TO SPEND? Spending online during Black Friday is expected to rise 5.7% to roughly $9.6 billion, according to Adobe. WHAT ARE RETAILERS DOING TO ATTRACT HOLIDAY SHOPPERS? Macy's CEO Jeff Gennette on Thursday said the competitive landscape has shifted to Black Friday deals prior to Black Friday.
Persons: Marcus Collins, Collins, Jane Hali, Max, Lancome mascaras, Bobbi Brown concealers, Dana Telsey, Leonardo Fernandez Viloria, David Bujnicki, Kimco, Jeff Gennette, Mattel, Steve Totzke, Juveria Tabassum, Savyata Mishra, Richa Naidu, Helen Reid, Herbert Lash, Josie Kao Organizations: Retailers, Department, Ross School of Business, University of Michigan, Dollar, Walmart, Associates, Nordstrom, Adobe Analytics, Electronics, Mastercard, National Retail Federation, Telsey Advisory, Sensormatic Solutions, U.S, Black, REUTERS, Adobe, Labor, Kimco Realty Corp, Consumers, Deloitte, Reuters, Thomson Locations: U.S, Europe, Philadelphia, China, United States, Caracas, Venezuela, Panama, Israel, Sixth, Washington, Germany, India, Spain, United Kingdom, Bengaluru, London
"A land value tax would fix that" has become a popular, and sometimes comedic, Twitter response to a range of policy conundrums among urbanists and YIMBYs. It would incentivize landowners to maximize the revenue from their property — building an apartment building instead of, for example, a parking lot. And because rich individuals and corporations own most land in cities and towns, land taxes would disproportionately fall on the wealthiest. Pure Georgists advocate for abolishing all taxes besides land value taxes. Instead, they want to see more regressive levies — like sales taxes — or those that penalize investment — like property taxes — reduced.
Persons: , Henry George, George, Stephen Hoskins, BZ5X3Lh7mU — Daryl Fairweather ⛅, Mike Duggan, Gregor Schwerhoff, Shane Phillips, Scott Olson, Phillips, Hoskins Organizations: Service, urbanists, Resource Justice, Lawmakers, Detroit, International Monetary Fund, Lewis Center for Regional Policy Locations: America, Pennsylvania, Pittsburgh , Harrisburg, Allentown, Detroit, Minnesota, Hamtramck , Michigan, American
Price drops may be needed to thaw the housing market, which could take years, Zandi said. Kelman expects home prices to drop next year, as listings are up and sellers are cutting prices. AdvertisementHouse prices may be headed lower, dealing a blow to sellers but providing relief to buyers, two experts say. The housing market ground to a halt this year, as the Federal Reserve's inflation-fighting hikes to interest rates have boosted mortgage rates to two-decade highs. "I don't expect the housing market to come roaring back here, certainly not in 2024," he said.
Persons: Mark Zandi, Glenn Kelman, Price, Zandi, Kelman, , Morgan Stanley's, there's, we've, Redfin's Kelman Organizations: Service, Yahoo Finance, Fox
Mortgage rates could decline if the Federal Reserve cuts interest rates next year. Here are 10 projections from experts on when the Fed's first rate cut will come. While these factors serve as deterrents for prospective buyers, interest rates may not stay this high forever. AdvertisementWhile declining interest rates wouldn't directly cause mortgage rates to fall, the two tend to move in the same direction. FebruaryIn August, Preston Caldwell, a Morningstar senior US economist, wrote in a note that he expected the Fed to start cutting interest rates in February.
Persons: , Preston Caldwell, Arend Kapteyn, Bhanu Baweja, David Einhorn, Diane Swonk, Andrew Hollenhorst, Goldman Sachs, David Mericle, we'll, Simona Mocuta, Jeff Morton Organizations: Federal Reserve, Service, Federal, Morningstar, UBS, KPMG, Citi, Reuters, State Street Global Advisors, DWS Locations: North America's
With some German property developers filing for insolvency, construction activity has dropped over a third from a year ago. That bleak outlook was despite the government recently announcing a 45 billion euro ($47 billion) support package for the property sector and measures to encourage house building, including tax incentives. With overall economic activity expected to remain weak over the coming quarters, it could take a while for the property sector to recover. The euro zone's commercial property sector could also struggle for years, posing a threat to the banks and investors who financed it, the ECB said recently. The median view of 12 property experts forecast average home rental prices to rise 4.0% or more until 2026.
Persons: Lisi Niesner, Sebastian Schnejdar, Carsten Brzeski, Indradip Ghosh, Purujit Arun, Rahul Trivedi, Sarupya Ganguly, Ross Finley, David Evans Organizations: REUTERS, European Central Bank, ECB, ING, Thomson Locations: Berlin, Germany, BENGALURU
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