The national average on 30-year fixed mortgages topped 6% for the first time in months yesterday. Analysts already predicting a slowdown in housing price appreciation are patting themselves on the back, but say it may take a few more points before tangible cooling occurs. The National Association of Realtor’s Walter Maloney said rates would have to reach 8.6% before housing affordability leveled off.
Archive for October, 2005
Mortgage rates top 6%
Friday, October 14th, 2005The Heritage at Millenium Park
Friday, October 14th, 2005The mayor may or may not be moving there, but the Heritage at Millenium Park still commands attention from its location on Michigan Avenue across from its namesake park. Although Mayor Daley hasn’t disputed reports that he and his wife are moving there, the condo building’s management is staying mum.
The Chicago Tribune’s architecture critic Blair Kamin finds that while the residential tower makes a solid impression, it leaves some elegance to be desired next to its more stately brethren on the Michigan Avenue skyline.
Martha Stewart designs new homes
Thursday, October 13th, 2005People who can’t get enough of Martha Stewart can now live like her too. She has teamed up with homebuilder KB Home to build a line of houses inspired by her three homes in New York and Maine. The homes will debut in Raleigh, NC, with other projects planned in Atlanta and Houston. While KB hasn’t announced any Martha mansions in Chicago yet, KB is active here, so one can dream.
Roosevelt University real estate school
Thursday, October 13th, 2005Roosevelt University’s Chicago School of Real Estate has gained ground on the big boys of business schools in Chicago. Employers recognizing the need for more highly trained real estate professionals have already given the school over $4 million in endowments. The school emphasizes practice over business theory, and works hard to help minorities and women advance in the field. Students in the program can earn a master’s in real estate or an MBA with a real estate concentration.
Pluses and minuses of Option ARMs
Wednesday, October 12th, 2005Option ARMs are another type of mortgage instrument that have become increasingly popular with home buyers. They are a hybrid of traditional adjustable rate mortgages, interest only loans, and fixed rate loans. The “option” comes from the buyer’s ability to change the monthly payment option each month. A buyer could choose to make a payment according to a standard 15- or 30-year loan. They could also choose to only pay the interest, or make a minimum monthly payment based on an artificially low rate. The flexibility is enticing for some, espeically the self-employed whose income varies from month to month. But like with any exotic loan, option ARMs can be dangerous for inexperienced buyers.
Cook County property tax snafu
Wednesday, October 12th, 2005One more reason to watch for your property tax bills like a hawk. Cook County mistakenly applied payments on another home’s taxes to Jeremiah Davidson’s home and told him his bill was paid. A county employee later discovered the error, corrected it, but never informed Davidson of his new balance. Meanwhile, the county sold the property in a tax sale without Davidson’s knowledge. Fortunately, due the persistence of his nephew, the county settled with Davidson and will pay him $190,000 for his home.
Make any room look bigger
Tuesday, October 11th, 2005You don’t always need interior decorators or professional stagers to get your home ready for sale. You can instantly make your home more appealing just by cleaning up, making each room as bright and open as possible, and of course, maximizing your space.
Arts & Crafts
Tuesday, October 11th, 2005The Arts & Crafts style, popularized in the early 20th century, is making a comeback as more homeowners opt for warm, cozy, and comfortable homes.
Dump that PMI
Tuesday, October 11th, 2005Many homeowners who had to pay private mortgate insurance don’t realize that you can cancel the insurance policy after you have earned enough equity in your home. PMI, is a type of insurance premium that you must pay on top of your mortgage payment if you can’t put 20% or more down at the time of purchase. But under the Homeowner Protection act of 1988, lenders must cancel PMI at the borrower’s request once they have earned 20% equity in the home. In hot markets, owners can build this equity quickly and save hundreds of dollars per month with no PMI. However as the market cools, now is the time to ask your lender to cancel your PMI policy if you can.
Desire in design
Tuesday, October 11th, 2005Home buyers are demanding much more flexibility in their living space, but still hang on to old fashioned grandiose touches like two-story entryways, according to a survey by the American Institute of Architects. Some design features gaining popularity are: dedicated media and game rooms, home offices, mudrooms and elaborate laundry rooms, and live-in space for elderly parents or caretakers.
Home builders selling stock
Thursday, October 6th, 2005Real estate development companies are selling stock shares at a blistering pace. Some analysts worry that this predicates a drop in share prices because the companies believe the housing market is slowing. However the builders say that they are merely diversifiying their assets.
Prices slowing in hot markets
Thursday, October 6th, 2005A slowdown in price appreciation that began in some cities this summer is spreading to other markets. Inventory and market time are up, and prices are becoming more stable, according to the New York Times.
Rates approach 6%
Thursday, October 6th, 2005The national average rate on a 30-year fixed rate mortgage is up to 5.98%, the highest level since March. Five-year adjustable rate mortgages (ARM) averaged 5.48%, and one-year ARMs averaged 4.77%.
Minorities seen more likely to pay high mortgage rates
Sunday, October 2nd, 2005In 2004, African-Americans received twice as many home loans as a decade ago, but they were also four times as likely as whites to pay higher interest rates.
Front & Center
Sunday, October 2nd, 2005Dressing up your front door is becoming a popular way to add curb appeal.
