It is generally agreed that moving is a nightmare: Most people would rather lock themselves in and shove the renewal paperwork under the door than pack up and depart for unfamiliar environs and, horrors, new landlords. [NYT]
The Markets. Rates eased a bit in the last week, but the numbers did not reflect the full effects of the announcement released after the meeting of the Federal Reserve Open Market Committee chaired by Janet Yellen. Freddie Mac announced that for the week ending March 20, 30-year fixed rates decreased to 4.32% from 4.37% the week before. The average for 15-year loans fell to 3.32%. Adjustable rates were mixed last week with the average for one-year adjustables rising slightly to 2.49% and five-year adjustables falling to 3.02%. A year ago 30-year fixed rates were at 3.54%. Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac –“Rates on home loans eased this week as housing starts declined 0.2 percent in February to a seasonally adjusted annual rate of 907,000, below consensus forecast. The rate on the 10-year Treasury note rose following the Fed’s announcement Wednesday afternoon and, if this holds, interest rates may begin to trend higher going into next week.” Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.
Current Indices For Adjustable Rate Mortgages
Updated March 21, 2014
| Daily Value | Monthly Value | |
| March 20 | February | |
| 6-month Treasury Security | 0.09% | 0.08% |
| 1-year Treasury Security | 0.14% | 0.12% |
| 3-year Treasury Security | 0.90% | 0.69% |
| 5-year Treasury Security | 1.73% | 1.52% |
| 10-year Treasury Security | 2.79% | 2.71% |
| 12-month LIBOR | 0.555% (Feb) | |
| 12-month MTA | 0.126% (Feb) | |
| 11th District Cost of Funds | 0.768% (Jan) | |
| Prime Rate | 3.25% |
Cramped city dwellers often want to buy the apartment next door and combine units, but the borrowing process can get complicated
By
When it comes to combining dwelling units, two really are better than one. But expect higher fees and more paperwork.
Mortgages for connecting two condos or co-ops, or converting a multifamily to a single-family house, can be complicated. “It’s not the kind of thing that you take off the shelf,” says Mike McPartland, head of investment finance for North America at Citi Private Bank. [WSJ]
Contact me for assistance with selling or buying a home in New York City
Manhattan
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Full Reports May Be Accessed Below:
By Jennifer Ceaser and Laura Begley Bloom
March 19, 2014 | 6:54pm
Pantone’s color of the year is Radiant Orchid; it’s everywhere at the AD Home Design Show, even brightening up a BlueStar range.
The Markets. Last week, rates bounced back in the aftermath of the release of the employment report. Freddie Mac announced that for the week ending March 13, 30-year fixed rates increased to 4.37% from 4.28% the week before. The average for 15-year loans rose to 3.38%. Adjustable rates were mixed last week with the average for one-year adjustables falling to 2.48% and five-year adjustables rising to 3.09%. A year ago 30-year fixed rates were at 3.63%. Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac –“Rates on home loans edged up amid a week of light economic reports. Of the few releases, the economy added 175,000 jobs in February, which was above the market consensus forecast and followed an upward revision of 25,000 jobs for the prior two months. Meanwhile, the unemployment rate nudged up to 6.7 percent, the first rate increase in over a year.” Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.
Current Indices For Adjustable Rate Mortgages
Updated March 14, 2014
| Daily Value | Monthly Value | |
| March 13 | February | |
| 6-month Treasury Security | 0.08% | 0.08% |
| 1-year Treasury Security | 0.12% | 0.12% |
| 3-year Treasury Security | 0.74% | 0.69% |
| 5-year Treasury Security | 1.53% | 1.52% |
| 10-year Treasury Security | 2.66% | 2.71% |
| 12-month LIBOR | 0.555% (Feb) | |
| 12-month MTA | 0.126% (Feb) | |
| 11th District Cost of Funds | 0.768% (Jan) | |
| Prime Rate | 3.25% |
Contact me to discuss any upcoming vacancies and pricing of your units.
MANHATTAN RENTAL MARKET
BOOSTED BY INCENTIVES
Landlord concessions remain popular as the vacancy rate falls and rents rise slightly.
New York, NY (March 13, 2014) – Leading Manhattan real estate brokerage Citi Habitats released its monthly rental market report for February 2014 today. The results show slightly more favorable conditions for landlords when compared to the month prior. However, the percentage of transactions that include a move-in incentive remained relatively high, which is good news for would-be tenants.
The report found that average rents increased slightly for all apartment categories except three bedroom homes. Month-over-month, rents increased 1% for studio, one and two bedroom homes. In contrast, average rents for three bedroom apartments decreased by 1%.
In February 2014, the borough-wide vacancy rate fell to 1.50% from January’s rate of 1.62%. The last time the Manhattan vacancy rate was this low was in September 2013, when the rate reached 1.48%. This is the second straight month of vacancy rate declines.
The average Manhattan apartment rented for $3,417 during February 2014, $20 more than it did in January 2014, when the average was $3,397. Looking year-over-year, average rents are also up. The average apartment rented for $3,243 during February 2013, $174 less than it did last month.
In February, 12% of rental transactions brokered by Citi Habitats offered a free month’s rent and/or payment of the broker fee to entice new tenants, compared to 13% in January. A year ago, in February 2013, the percentage of concessions was also lower, at 8%.
While the percentage of leases with a landlord concession is the highest it’s been in two years, their use was most prevalent during the depth of the country’s economic downturn. The popularity of concessions peaked in December 2009, when a full 59% of leases included a move-in incentive.
“Currently, landlord incentives are helping drive traffic, decrease vacancies and increase pricing,” commented Gary Malin, President of Citi Habitats. “The market has spoken, and landlords really cannot push rents any higher without facing tenant backlash. In the coming months, rents will generally remain stable, but concessions will likely begin to disappear as winter fades from the rear view mirror.”
Click the image above to download a PDF of the full report which lists average rents by size and neighborhood.
The Empire State building stands in the midtown Manhattan skyline seen in this aerial photograph taken in New York. Photographer: Bloomberg
Manhattan apartment dwellers are getting some relief after two years of rent increases that brought tenant costs close to a new peak. [Bloomberg]
Banks are looking to expand their programs aimed at helping doctors, lawyers and others in well-paid professions qualify for large mortgages
The rise of the jumbo-loan market has some lenders stepping up efforts to attract lawyers and doctors as borrowers.
So-called specialty-profession loans, designed to ease the qualification process for people in certain professions, may offer lures such as low—or no—down payments or no mortgage-insurance requirement. “Historically, these loans perform very well and have low default rates,” says Michael Zimov, a physician-specialist officer at Ohio-based Fifth Third Bank. [WSJ]
High-tech features and high-design finishes are the latest warming trends; sending your oven a text message
Busy professionals may have little time to cook, but many are still willing to pay top dollar for restaurant-worthy—and sleekly designed—kitchen appliances.
“A big 48- or 60-inch range is the Hummer of the kitchen,” says Atlanta-based kitchen designer Matthew Quinn. [WSJ]
