Americans went shopping for homes in August.

New home sales for single families totaled 552,000 homes last month. That's the best monthly figure since February 2008 and an encouraging sign of the housing market's momentum.

It was nearly a 6% increase from July, which was also revised up, according to the Census Bureau.

Still, the figure is a far cry from the historic average: the average monthly number of new home sales over the last 30 years is 706,000 according to Peter Boockvar, chief market strategist at the Lindsey Group.

"Today's figure is encouraging but we've got a LONG way to go," Boockvar wrote in a note to clients.

Some economists believe there could be an uptick in home buying as prospective home owners try to lock in a low mortgage rate before the Federal Reserve raises interest rates.

The average rate on a 30-year fixed mortgage in August was 3.9%, very low on a historical basis. A decade ago the rate was about 5.8% and 20 years ago it was 7.8%. When the Fed raises rates, the expectation is that rates on mortgages will gradually move up too.

The central bank is now expected to raise rates in December.

Article curated from CNN Money

http://money.cnn.com/2015/09/24/news/economy/new-home-sales-august/index.html?iid=SF_River

Average long-term U.S. mortgage rates fell sharply this week amid concern over a labor market that has shown recent signs of weakness.

Mortgage giant Freddie Mac said Thursday the average rate on a 30-year fixed-rate mortgage dropped to 3.76 percent from 3.85 percent a week earlier. The rate on 15-year fixed-rate mortgages declined to 2.99 percent from 3.07 percent.

Rates have stayed below 4 percent for 11 straight weeks. This week's decline brought rates to levels far below last year's levels, providing an inducement for potential homebuyers. A year ago, the average 30-year mortgage rate was 4.19 percent, while the rate for 15-year loans was 3.36 percent.

The heightened interest among potential purchasers and homeowners looking to refinance was evident in a sharp increase in mortgage applications. Applications jumped 25.5 percent in the week ended Oct. 2 from the previous week, according to the Mortgage Bankers Association.

A government report issued last Friday showed that U.S. hiring slowed sharply in September, and job gains for July and August were lower than previously thought. That was a sour note for a labor market that had been steadily improving.

The Labor Department said employers added just 142,000 jobs in September, depressed by job cuts by manufacturers and oil drillers. The unemployment rate remained 5.1 percent, but only because more Americans stopped looking for work and were no longer counted as unemployed. All told, the proportion of Americans who either have a job or are looking for one fell to a 38-year low.

The tepid pace of hiring complicates the picture for the Federal Reserve, which is deciding whether to raise short-term interest rates later this year for the first time in nine years.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for a 30-year mortgage held steady from last week at 0.6 point. The fee for a 15-year loan declined to 0.6 point from 0.7 point.

The average rate on five-year adjustable-rate mortgages fell to 2.88 percent from 2.91 percent; the fee was unchanged at 0.4 point. The average rate on one-year ARMs rose to 2.55 percent from 2.53 percent; the fee remained at 0.2 point.

Article curated from Chicago Tribune

http://www.chicagotribune.com/business/ct-mortgage-rates-fall-20151008-story.html

Mortgage applications increased 25.5 percent from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending October 2, 2015.

The Market Composite Index, a measure of mortgage loan application volume, increased 25.5 percent on a seasonally adjusted basis from one week earlier. On an un-adjusted basis, the Index increased 26 percent compared with the previous week. The Refinance Index increased 24 percent from the previous week. The seasonally adjusted Purchase Index increased 27 percent from one week earlier. The un-adjusted Purchase Index increased 27 percent compared with the previous week and was 49 percent higher than the same week one year ago.

"The number of applications for purchase and refinance mortgages soared last week due both to renewed rate volatility and as many applications were filed prior to the TILA-RESPA regulatory change. The average loan size of applications in the weekly survey increased by 6.9 percent, driven by a 12.1 percent increase in the average size of refinances," said Lynn Fisher, MBA's Vice President of Research and Economics.

The refinance share of mortgage activity decreased to 57.4 percent of total applications from 58.0 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 7.6 percent of total applications.

The FHA share of total applications decreased to 12.7 percent from 13.8 percent the week prior. The VA share of total applications decreased to 9.2 percent from 10.3 percent the week prior. The USDA share of total applications remained unchanged from 0.7 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 3.99 percent, the lowest level since May 2015, from 4.08 percent, with points increasing to 0.46 from 0.45 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 3.89 percent, the lowest level since April 2015, from 3.96 percent, with points decreasing to 0.25 from 0.35 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.80 percent, the lowest level since May 2015, from 3.87 percent, with points increasing to 0.35 from 0.34 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.24 percent, the lowest level since May 2015, from 3.29 percent, with points decreasing to 0.38 from 0.41 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs increased to 2.96 percent from 2.95 percent, with points decreasing to 0.32 from 0.41 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The survey covers over 75 percent of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990.  Respondents include mortgage bankers, commercial banks and thrifts.  Base period and value for all indexes is March 16, 1990=100.

Article curated from Mortgage Bankers Association's

https://www.mba.org/2015-press-releases/october/mortgage-applications-up-sharply-in-latest-mba-weekly-survey

How the tech ecosystem is shaping Chicago's real estate market

According to a report by leading commercial real estate company CBRE, Chicago’s blossoming tech industry isn’t just shaping the future of technology.

As tech startups continue to hire new employees and move into newer, bigger spaces, the success of these companies is also influencing the landscape of the city’s real estate market.

The study, which looked at both job growth and office market rent growth, found that since 2012, high-tech has been one of the top three industries for leasing activity in the city. From 2012 to May 2015, high-tech companies in the city jumped from six percent to eight percent of all commercial tenants in the city, rising from 4.4 to 6.7 million square feet being used for tech offices.

Meanwhile, office market rent growth sits at just 6.2 percent (compared to markets like San Francisco, who saw an increase of over 30 percent).

Chicago’s development as a tech hub has slowed as it reaches full maturity. Though the city’s reported job growth is down about five percent since the last period of study, almost 80,000 workers are employed in Chicago’s tech industry today. The average labor cost for a software engineer came in at $90,393.

Asking price for rent in the city sits at $28.40 per square foot each year. Unsurprisingly, River North was named as the top submarket for tech companies in the city, though rent in that neighborhood averages $35.21 per square foot each year.

So far this year, the three largest real estate deals have come from Yelp, Avant, and SAC Wireless, who have moved into bigger offices downtown.

In total, digital tech software and services companies have added more than 730,000 new jobs in the country — an increase that represents more than one-fifth of all new jobs based out of office spaces — and was the leading driver of office market demand, accounting for 20 percent of leasing activity in 2015.

Article curated from Built In Chicago

http://www.builtinchicago.org/2015/09/08/how-tech-ecosystem-shaping-chicagos-real-estate-market

Suburban home sales and prices surge higher in July

The strong summer housing market continued in July as home sales and median prices posted robust gains while the time it took to sell a home declined, according to the Illinois Association of Realtors.

In the nine-county Chicago region, home sales, which include single-family homes and condominiums, totaled 12,384 in July, an increase of 9.6 percent from the 11,298 sales in the same month last year.

The median price in July in the Chicago region was $226,700, up 4.0 percent from $218,000 in July of 2014. The median is a typical market price where half the homes sold for more and half sold for less.

The Chicago region includes Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will counties.

"The strong year-over-year gains we saw in July suggest there is plenty of steam left in this market," said Jim Kinney, president of the Illinois Association of Realtors and vice president for luxury sales for Baird & Warner in Chicago. "Buyers are finding they have to work quickly once they find the home they want since inventories are very low."

The city of Chicago saw sales of 2,989 homes in July, up 9.7 percent from last year when 2,725 homes were sold. The median price of a home in Chicago was $285,000, up 5.2 percent over July 2014 when the median price was $271,000.

"The busy summer homebuying season is closing out on a high note," said Hugh Rider, president of the Chicago Association of Realtors and co-president of Realty and Mortgage Co. in Chicago. "We've seen solid gains throughout the year, and there is every expectation that we'll see the market momentum continue into the fall as buyers select from reduced inventories."

Statewide, home sales totaled 16,901 sales in July, up 8.0 percent over last July when 15,644 homes sold.

The statewide median price in July rose to $190,000, a 6.1 percent gain over the same month a year ago when the median price in Illinois was $179,000.

"Sales growth, on a yearly basis, returned to more modest rates last month after the rapid monthly change the previous month," said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois. "Prices in Illinois are forecast to grow more strongly than in Chicago, although the gap is narrowed when using the new REAL Housing Price Index that captures house characteristics. Foreclosures continue to play a smaller role in the housing market and while the foreclosure inventory is relatively unchanged, sales prices for foreclosed properties continue to increase."

In Illinois, the time it took to sell a home in July averaged 58 days, down from 65 days a year ago and faster than 63 days in June. Available housing inventory remained tight with 72,371 homes for sale, a 7.7 percent decline from July 2014 when there were 78,373 homes on the market.

The monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central U.S. region, which includes Chicago, was 4.04 percent in July, up from 3.98 percent the previous month, according to the Federal Home Loan Mortgage Corp. In July 2014, that common mortgage rate averaged 4.11 percent.

According to the association's figures, 52 Illinois counties reported sales gains for July over previous-year numbers, including DeKalb County, up 25.8 percent with 122 units sold; Sangamon County, up 23.4 percent with 306 units sold; Will County, up 16.7 percent with 1,181 units sold; and Champaign County, up 15.8 percent with 322 units sold.

Fifty-two counties recorded median price gains in July over previous-year numbers, including LaSalle County, up 17.8 percent to $119,600; Winnebago County, up 14.3 percent to $100,000; Cook County, up 6.7 percent to $238,950; and Peoria County, up 4.0 percent to $136,200.

Find Illinois housing stats, data and the University of Illinois REAL forecast at www.illinoisrealtor.org/marketstats.

Article curated from The Daily Herald

http://www.dailyherald.com/article/20150822/entlife/150829845/

Consumers grow uneasy as the spring season comes to a close and recent gains in the housing market begin to decline. Clear Capital, Inc., a provider of data and solutions for real estate asset valuation and collateral risk assessment, recently released its Home Data Index (HDI) Market Report with data through June 2015 that shows that 2015 will be a non-growth year.

In January, the company forecasted total national housing market growth for 2015 to reach 1.3 percent, more than five percent lower than growth for 2014 at 6.7 percent. The adjusted forecast presumes that year-end national growth will come in at 2.6 percent, falling within the projected range of 1 percent to 3 percent.

“With a first full look of the spring buying season and six-month update to the forecast, our data through June confirms our initial projection that 2015 would be a non-growth year," said Alex Villacorta, Ph.D., VP of research and analytics at Clear Capital. “Here we are six months later, and there is very little evidence to change our view that the year will end up with price growth coming in just around the rate of inflation."

The report found that while San Francisco’s and San Jose’s year-end growth rates are expected to remain positive, at 3.4 percent and 3.2 percent, growth for both regions are projected to decline into the negatives at -0.2 percent and -0.4 percent through the second half of 2015. Clear Capital added that this drop raises concern among consumers after the summer buying season and experiencing two years of consecutive, yet unsustainable, gains.

“In our June report, we went on record with concern of bubble markets across the U.S. Now San Jose is starting to go the way of San Francisco, at peak levels and now leveling off,” Villacorta said. “Both San Francisco and San Jose have been red hot markets, supported in large part by strong job growth. The latest numbers reveal, however, that both markets have reached their apex in the most recent upward price swing and are projected to take a slight dip into negative territory through the second half of 2015, by -0.2 percent and -0.4 percent. While both markets are projected to have total 2015 yearly growth rates of around 3 percent, entering winter 2015-2016 on the down side is of great concern. What started as 'red hot' at the start of 2014 may end as 'in the red' come 2016."

Regionally, growth across all regions remains flat, Clear Capital noted. The Midwest saw an increase in quarterly growth, from 0.1 percent to 0.3 percent. The West continues to be the strongest in terms of quarterly price grow at 1 percent and is expected to end 2015 with a 3.3 percent growth rate, reducing disparity between the East and West. Meanwhile, growth in the East is forecasted to come to a halt for the rest of 2015 at 0.1 percent, but it is also projected to end the year at 1 percent.

On a national level, the growth levels are about the same, the company says. Data through June looks similar to data through May 2015, with no change in quarterly growth at 0.6 percent and a slight drop in yearly growth from 5.3 percent to 5.2 percent. If spring and summer seasons actually reflect the peak of the housing demand cycle, 0.6 percent quarterly growth likely to come to pass as for how the rest of the year will turn out.

Article curated from DSNews.com (embedded link - http://dsnews.com/news/07-03-2015/housing-growth-expected-to-slow-for-the-remainder-of-2015)