Mortgage Rates Fall to the Lowest Level Since 2016—Could This Be the Last Affordable Spring Home-Buying Season?

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Mortgage rates have dropped to the lowest levels since before the 2016 presidential election.

The 30-year fixed-rate mortgage averaged 3.45% during the week ending Feb. 6, a decrease of six basis points from the previous week, Freddie Mac reported Thursday. This was the third consecutive week in which mortgage rates dropped.

The last time the 30-year fixed-rate mortgage was at or below this level was in October 2016, when it averaged 3.42%.

The 15-year fixed-rate mortgage also fell three basis points to 2.97%, according to Freddie Mac. This was the first time since 2016 the average rate for the 15-year fixed home loan fell below 3%. The 5/1 adjustable-rate mortgage, however, increased eight basis points to an average of 3.32%.

The decline in fixed mortgage rates reflected the movement in the 10-year Treasury yield—mortgage rates roughly track the direction of long-term bond yields. While equities markets rebounded this week as fears regarding the spread of the coronavirus abated, the 10-year Treasury was more resistant to upward movement. Toward the latter half of the week, the 10-year yield improved following the release of positive economic data.

“As rates fell for the third consecutive week, markets staged a rebound with increases in manufacturing and service sector activity,” Sam Khater, Freddie Mac chief economist, said in the report. “The combination of very low mortgage rates, a strong economy and more positive financial market sentiment all point to home purchase demand continuing to rise over the next few months.”

Could this be the last affordable spring home-buying market?

That rising demand is expected to speed the start of the spring home-buying season, which is generally the most popular time of year to purchase a home for most of the country.

But a new report based on research from Realtor.com and the National Association of Realtors indicates that buyers who manage to score a deal this year will be lucky, as experts predict that affordability will only worsen in the years to come.

“The number of metros across the country seeing improvements to home affordability continues to increase,” Sabrina Speianu, senior economist research analyst at Realtor.com and the report’s author, wrote. “However, this spring home-buying season may be the last to see gains to affordability in quite a while.”

In the fourth quarter of 2019, housing affordability improved across all income levels nationwide, though the biggest gains in affordability were experienced among those in high income brackets. Out of the 100 largest metropolitan areas nationwide, 87 saw affordability improvements in the fourth quarter.

The rise in affordability was driven largely by low mortgage rates, but other factors also played a role, including growing household incomes, decelerating or falling home listing prices and inventory increases in some markets. Des Moines, Iowa saw the largest improvement in affordability nationwide, while Tulsa, Okla., experienced the biggest downturn.

Barring future global economic events or changes in Federal Reserve policy, interest rates are expected to stabilize in 2020, the report said. “With stabilizing interest rates, only income growth or increased construction of affordable homes can provide continued increases to home affordability,” Speianu wrote. “However, income growth has historically failed to keep up with home price growth and home builders have yet to reach normal levels of building activity despite recent optimism.”

The post Mortgage Rates Fall to the Lowest Level Since 2016—Could This Be the Last Affordable Spring Home-Buying Season? appeared first on Real Estate News & Insights | realtor.com®.

source https://www.realtor.com/news/real-estate-news/mortgage-rates-fall-to-the-lowest-level-since-2016-could-this-be-the-last-affordable-spring-home-buying-season/

Renting Is Almost As Expensive As Owning A Home Now, Study Suggests

Rent went up 4 percent in 2019, while mortgage payments declined 1%.

source https://www.huffpost.com/entry/rent-cheaper-than-owning-home_l_5e3c2c11c5b6bb0ffc0c896f

Lance Armstrong Lists His Beloved Aspen, CO, Family Retreat for $14.5M

Mark Sagliocco/Getty Images; realtor.com

Lance Armstrong has decided to part with his gorgeous retreat in Aspen, CO. The getaway he’s called home for more than a decade is now on the market for $14.5 million.

In 2019, the now-infamous cyclist opened up his doors and gave Architectural Digest a personal tour of the property he built in 2008, and pointed out all of his favorite family spots, for an intimate look at the man in his environment.

Now that it’s landed on the market, interested buyers and curious fans alike can peek inside the multimillion-dollar home, which Armstrong outfitted for his active family lifestyle. The listing photos showcase a home curated with a number of beautiful touches, including a stunning art collection that includes names like Banksy and Kehinde Wiley.

Armstrong explained that homes in the West End neighborhood of Aspen are limited to two stories, meaning that when it’s time to expand, homeowners must go underground.

“When you drive out here, just know that every one of those homes has this dungeon, this basement, this space,” he says, gesturing around his favorite nap spot—a basement bedroom his teenage daughter uses when she visits. “Every one of them.”

The tour includes a look at the kitchen, which he mentions is a favorite gathering spot for family and friends.

“You can have thousand-dollar bills sitting in the living room, and people won’t leave,” he says. “There’s something about this room, it just sucks people in.”

Armstrong in the kitchen

Architectural Digest/YouTube

The house is outfitted with five bedrooms, 5.5 bathrooms, and more than 5,800 square feet. Each bedroom has its own private bath, and the underground rooms have safety escape routes and ladders, as Armstrong explains during the tour.

The listing details state that the house is architecturally significant, but it’s far from a stuffy museum space. There’s a bunk room and dedicated gaming room for kids, an epic wine room Armstrong dreamed up himself, and a light-filled office that he occasionally used as a studio for his podcast.

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The home sits near the Aspen Institute and offers views of the Aspen and Tiehack mountains. Armstrong admitted during the home tour that he prefers the summer season in Aspen, but adds that the winter skiing and snowboarding in the area are great, too.

The fallen cycling hero is working with the Out There Adventures travel company, and is leading an upcoming cycling tour in September through the island of Mallorca, Spain, for 12 lucky guests willing to pay $30,000 for the weeklong experience.

But for deep-pocketed home buyers looking for an incredible mountain perch for family fun, the Armstrong house is worth a second look.

Here’s the tour of the home by Lance Armstrong from Architectural Digest’s “Out There” series, released in January 2019.

The post Lance Armstrong Lists His Beloved Aspen, CO, Family Retreat for $14.5M appeared first on Real Estate News & Insights | realtor.com®.

source https://www.realtor.com/news/celebrity-real-estate/lance-armstrong-selling-aspen-family-retreat/

U.S. Real Estate Market Shows Symptoms of Coronavirus Effect: What You Need to Know

JOHANNES EISELE/AFP via Getty Images

The deadly outbreak of the coronavirus from China, which has sickened thousands around the world and terrified millions more, is taking a toll on global financial markets as well—and the effects are likely to extend to the U.S. luxury real estate market.

While there are only 11 confirmed cases of the virus on American soil, the U.S. housing market is already feeling the effects of what could soon be declared a pandemic. Mortgage interest rates have dipped, and the already sluggish luxury real estate market has depended in recent years on an injection of Chinese buyers.

“China has been the most important source of foreign demand for real estate,” says Lawrence Yun, chief economist at the National Association of Realtors®. Wealthy Chinese buyers often purchase luxury properties, such as high-rise condos, in California and New York. “The upper-end market can expect to be softer as a result.”

Buyers from China spent about $13.4 billion on U.S. homes from April 2018 through May 2019, according to the NAR’s most recent data on foreign buyers. While that may sound impressive, it actually represents a 56% drop from the previous 12-month period. Chinese buyers have been spending less on U.S. real estate as their government has tightened rules on how much money can leave the country, U.S. immigration rules have tightened, and trade talks between the two nations have heated up.

But with the temporary ban on any foreigners who have been in China in the past two weeks, and cancellations of many flights from China to the U.S., a lot of would-be Chinese buyers can’t get into America, putting any home-purchase plans they may have on ice.

“You have less incentive to buy real estate if it’s unclear if and when you’ll get to visit the property,” says Chief Economist Danielle Hale of realtor.com®. “In the short term, the virus could dampen [luxury] sales further.”

Why is the coronavirus pushing down mortgage interest rates?

It may seem perplexing that a virus that originated in China (and where most of its nearly 500 fatalities occurred) could result in lower mortgage interest rates an ocean away. Thank globalization. China is the world’s second-largest economy, with a worldwide supply chain. So what happens there affects businesses around the world, which then affects global financial markets. Amid market turmoil, investors tend to pull money out of the stock market and park it in safer, more stable U.S. Treasury bonds. And when bonds are strong, mortgage rates fall.

Rates dipped 9 basis points to 3.51% for 30-year fixed-rate loans as of Jan. 30, according to Freddie Mac. The panic surrounding the disease could keep them low, or even push them lower. The only thing in recent memory to compare it with is the outbreak of severe acute respiratory syndrome, or SARS, in late 2002 and early 2003. During the resulting panic, mortgage interest rates also dipped.

“SARS was barely a blip in the U.S. real estate market,” says Yun. But there weren’t nearly as many Chinese buyers shopping for homes in the U.S. back then. “We don’t know what’s going to happen.”

There could also be a downside to lower rates—while they will likely spur more buyers to get into the market at a time when buyer activity is already ramping up, sellers may respond by boosting their list prices.

Short-term effects: The luxury market could slow on the coasts

Recently, the luxury market hasn’t been in the best of health—and some folks fear the coronavirus scare could cause a relapse. The market was just beginning to pick back up, as buyers enticed by low mortgage rates were beginning to pick up pricey properties again. Then the virus hit.

(Realtor.com defines luxury as $1 million-plus homes in most of the country, although that threshold can be higher in the most expensive cities like New York and San Francisco.)

Real estate broker Amy Kong is seeing fewer folks attending open houses marketed toward Asian buyers. Kong is a real estate broker at Realty World Advance Group in San Bruno, CA, and the president-elect of the Asian Real Estate Association of America.

“People would rather not go out and mingle,” says Kong, who has heard some closings had to be postponed. “The buyers can’t be here physically to sign. They have to make other arrangements.”

That won’t be too catastrophic, though, as many of these affluent foreign buyers have representatives in the U.S. who can act on their behalf and usher through the paperwork.

Some wealthy non-Asian buyers, on the other hand, are worried about their prospective neighbors.

“Clients looking at new condos are asking us what is the percentage of Chinese living in those buildings,” says luxury real estate broker Dolly Lenz, who is based in New York but sells properties around the country. Three unrelated clients asked her this question, which she was legally unable to answer due to fair housing laws. “That was shocking to me.”

But Patrick Carlisle, chief marketing analyst for the San Francisco Bay Area at Compass, believes concern about the coronavirus affecting real estate sales is overblown.

“I don’t think it will have any impact unless it turns into a worldwide disaster,” he says. “People locally, I can’t see them changing their plans one way or another unless it gets much worse.”

Long-term effects: The U.S. luxury market could see a boost

While the outbreak may make it more difficult for Chinese buyers to pick up U.S. properties for now, it could be a boon for the luxury market in the long term.

“[Chinese] people who are wealthy may feel tired of the perception of China as being a third-world country,” says NAR’s Yun. “They want to park their money in a first-class world economy, which is Australia, Canada, and the U.S. Hence, we may see greater demand from Chinese, wealthy households.”

For example, more buyers from Hong Kong came to the U.S. looking for real estate after anti-government protests began last year in the territory. Since the coronavirus outbreak, luxury broker Lenz is seeing them become even more motivated to acquire a U.S. property. These affluent buyers are worried about medical care, strikes, and more unrest back home, and are looking to the U.S. as a safer option.

Chinese buyers may flock to the U.S. again for the same reasons. But once the virus is under control, the real estate market will likely go back to normal, more or less.

“I look at this as something that will last as long as the virus does,” says New York City–based real estate appraiser Jonathan Miller. “We’re uncertain about everything, and this is just another item to fret about.”

The post U.S. Real Estate Market Shows Symptoms of Coronavirus Effect: What You Need to Know appeared first on Real Estate News & Insights | realtor.com®.

source https://www.realtor.com/news/trends/will-the-coronavirus-infect-the-u-s-real-estate-market/

Retired NFL QB Michael Vick Lists ‘Blessed’ South Florida Home for $2.4M

realtor.com; Denis Poroy/Getty Images

Retired NFL quarterback Michael Vick and his wife, Kijafa Vick, have listed their chic home in Plantation, FL, for $2.4 million. It’s a soft, modern, and airy space the couple had tailored for their family.

The couple spotted the spec home in 2018, when it was near completion. They snapped up the South Florida spread for $2.38 million. It was right around the same time Vick sold a home in Davie, FL, for $1.4 million.

The stylish couple and their four children added their own flair to the property, including the high-end lighting and jaw-dropping custom closet Kijafa—who has her own accessories label called PnkElephant—filled with designer goodies.

The muted, sophisticated interiors were created by designer Nancy Hernandez.

The 7,700-square-foot house has six bedrooms and six bathrooms. It sits on an acre lot, which also comes with a custom pool, outdoor kitchen, lanai, basketball court, and guesthouse with bedroom suite and kitchenette.

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“It’s a blessed house,” says listing agent Giselle Bonetti. “The location, the way the light hits it … the energy. It’s just blessed.”

Bonetti explains the Vicks are building a larger dream home in South Florida, “something that meets the needs of the growing family.”

Both Michael and Kijafa are featured in a new documentary, “Vick,” which is part of ESPN’s “30 for 30” series. The film follows Michael from his start as a football prodigy in Virginia through his stellar early NFL career, dogfighting conviction, return to the field, and redemption.

Vick and Kijafa met in 2002, married in 2012, and have four children.

The post Retired NFL QB Michael Vick Lists ‘Blessed’ South Florida Home for $2.4M appeared first on Real Estate News & Insights | realtor.com®.

source https://www.realtor.com/news/celebrity-real-estate/michael-vick-selling-plantation-florida-home/

New Carolina Panthers Coach Matt Rhule Selling Waco Estate for $2.5M

Richard Rodriguez/Getty Images; realtor.com

Bye-bye, Baylor. Bidding farewell to the Bears, football coach Matt Rhule accepted the Carolina Panthers head coach gig in early January.

Now headed for Charlotte, NC, the Rhule family will have to part with their gorgeous home near Waco, TX. The mansion in Woodway just landed on the market for $2.5 million.

Rhule and his wife, Julie, purchased the 5.5-acre estate in 2017. It was listed for $2 million at the time.

Built in 2011 and located in the upscale Badger Ranch neighborhood just a few minutes from the Baylor campus, the 8,100-square-foot house has five bedrooms and 5.5-plus bathrooms. Rustic in places, there are touches like exposed brick walls, beamed ceilings, and wide-plank wood floors.

Those rustic elements are balanced by elegant woodwork, moldings, and sleek finishes. The luxurious mansion is large enough to entertain an entire coaching staff, but also a cozy backdrop for everyday family living.

The couple recently added a pool house and gym designed by Chip and Joanna Gaines‘ Magnolia Design and Construction—because if you live in the Waco area and want the best, you call in the “Fixer Upper” gurus.

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Rhule previously coached at Temple, from 2013 to 2016. His new deal with the Panthers makes him the sixth-highest-paid coach in the NFL. ESPN’s Adam Schefter reported the deal could be worth up to $70 million over seven years. Taking over for the ousted Ron Rivera, Rhule also has the distinction of being only the fifth head coach in Panthers franchise history.

Panthers are giving former Baylor HC Matt Rhule a seven-year – seven year – deal worth $60 million that with incentives could be worth up to $70 million, per league sources.

— Adam Schefter (@AdamSchefter) January 7, 2020

While it must be a little sad to leave this gorgeous home behind in Waco, we wish the Rhule family luck in finding a place in the Queen City.

The post New Carolina Panthers Coach Matt Rhule Selling Waco Estate for $2.5M appeared first on Real Estate News & Insights | realtor.com®.

source https://www.realtor.com/news/celebrity-real-estate/carolina-panthers-coach-matt-rhule-selling-waco-estate/

The Price on Pauly Shore’s Hollywood Hills Home Is Nothing to Laugh About

Jim Spellman/WireImage

Comedian Pauly Shore isn’t cracking jokes about the price on his contemporary home atop Nichols Canyon in L.A.’s Hollywood Hills. The mansion is on the market for a dead serious $9.5 million.

The current median list price for a home in the Hollywood Hills sits at $1.8 million. Is Shore’s home worth the hefty price tag?

Maybe! The proto-bro comic purchased the property back in his MTV glory days in 1996, for $1.15 million. The 4,500-square-foot, single-level home underwent extensive renovations in 2015. Shore’s original asking price for the property was $13 million—and that’s also no joke.

Shore had no nibbles at the eight-digit asking price, and soon listed the property as a luxury rental for $27,000 a month, after failing to land a buyer.

L-shaped infinity pool with views

Floor-to-ceiling windows

Contemporary living room opens to pool deck.

Modern kitchen

The current price is justified by a number of worthy features. Perhaps the best element of this ’50s-era architecture is its unobstructed, near-360-degree view of L.A., the nearby San Gabriel Mountains, the Hollywood sign, and the Pacific Ocean.

The open floor-plan home features four bedrooms and 3.5 bathrooms, bright-white walls, concrete-colored floor tiles, an L-shaped infinity-edge pool with an attached spa, and plenty of natural light that floods the living and family rooms.

Shore started his career as a comedian at the age of 17. He became a household name for teenagers in the 1990s as an MTV VJ. Son of Mitzi Shore, owner of Hollywood’s legendary Comedy Store, and stand-up comic Sammy Shore, Shore was on top of the world throughout the 1990s. Known for his signature curly locks and surfer-dude, laid-back attitude, he started in such feature films as “Encino Man,” “Son in Law,” and “Bio-Dome.”

The post The Price on Pauly Shore’s Hollywood Hills Home Is Nothing to Laugh About appeared first on Real Estate News & Insights | realtor.com®.

source https://www.realtor.com/news/celebrity-real-estate/pauly-shore-hollywood-hills-home/