The Federal Housing Finance Agency (FHFA) today reported that the National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders, used as an index in some adjustable-rate mortgage (ARM) contracts, was 3.35 percent based on loans closed in January. There was an increase of 0.06 from the previous month. Click here for the complete contract rate series.
The average interest rate on conventional, 30-year, fixed-rate mortgage loans of $417,000 or less increased 6 basis points to 3.53 in January. These rates are calculated from the FHFA’s Monthly Interest Rate Survey of purchase-money mortgages (see technical note). These results reflect loans closed during the January 25 - 31 period. Typically, the interest rate is determined 30 to 45 days before the loan is closed. Thus, the reported rates depict market conditions prevailing in mid- to late-December.
The contract rate on the composite of all mortgage loans (fixed- and adjustable-rate) was 3.34 percent in January, up 6 basis points from 3.28 percent in December. The effective interest rate, which reflects the amortization of initial fees and charges, was 3.46 percent in January, up 4 basis points from 3.42 percent in December.
This report contains no data on adjustable-rate mortgages due to insufficient sample size. Initial fees and charges were 0.95 percent of the loan balance in January, down 20 basis points from December. Twenty-six percent of the purchase-money mortgage loans originated in January were “no-point” mortgages, up from 11 percent from the share in December. The average term was 27.1 years in January, down 0.3 years from December.
The average loan-to-price ratio in January was 76.4 percent, up 0.1 percent from 76.3 percent in December. The average loan amount was $254,700 in January down $19,400 from $274,100 in December.
The Home Builders Association of Greenville are your neighbors and community leaders providing education and support for building industry professionals. We create jobs, encourage homeownership, and promote responsible growth throughout the upstate of South Carolina.
Wednesday, February 27, 2013
Tuesday, February 26, 2013
NAHB: Top 12 Accomplishments, Number 9: Combating Water Pollution Myths
Builder Review Daily is highlighting the top 12 actions taken on behalf of Home Builders in 2012.
Accomplishment number 9: Combating Myths About Building’s Role in Water Pollution
A new NAHB resource helps HBAs and developers overcome the myth that home building is a major source of water pollutants due to storm water runoff from construction sites.
This resource, titled Water Quality and the Construction Industry, employs recent government data to explain how agriculture, dam making and other activities overwhelmingly affect water quality, while sediment released from residential construction accounted for significantly less than 1% of the total sediment in surface waters as of 2009. In fact, as the presentation notes, EPA’s own data shows that pollutant discharges from construction sites have decreased over time -- primarily due to the steps that builders and developers take to control the storm water that runs off of their sites. This fact, along with EPA’s admission that "construction sites are already being adequately addressed through existing programs,” indicates that there is little need for states or municipalities to take additional steps to control construction site runoff. Rather, in most instances, doing so would only result in higher construction costs and higher home prices, with little or no added environmental benefit. The slide presentation is available for NAHB members to download as part of our “Land Use 101” package of detailed information and background materials on infrastructure, green development and other topics.
Accomplishment number 9: Combating Myths About Building’s Role in Water Pollution
A new NAHB resource helps HBAs and developers overcome the myth that home building is a major source of water pollutants due to storm water runoff from construction sites.
This resource, titled Water Quality and the Construction Industry, employs recent government data to explain how agriculture, dam making and other activities overwhelmingly affect water quality, while sediment released from residential construction accounted for significantly less than 1% of the total sediment in surface waters as of 2009. In fact, as the presentation notes, EPA’s own data shows that pollutant discharges from construction sites have decreased over time -- primarily due to the steps that builders and developers take to control the storm water that runs off of their sites. This fact, along with EPA’s admission that "construction sites are already being adequately addressed through existing programs,” indicates that there is little need for states or municipalities to take additional steps to control construction site runoff. Rather, in most instances, doing so would only result in higher construction costs and higher home prices, with little or no added environmental benefit. The slide presentation is available for NAHB members to download as part of our “Land Use 101” package of detailed information and background materials on infrastructure, green development and other topics.
Yes Virginia, your home builder can pour the sidewalk at your new home
For nearly a year in certain areas of the City of Charleston Licensed Residential Home Builders have not been allowed to supervise the construction of sidewalks or driveways in the city's right of way.
This situation is the result of an erroneous interpretation of the law by a building official in that city who believed that only a Licensed General Contractor may construct a sidewalk or driveway in the city's right of way.
On February 13, 2013, representatives of your Home Builders Association from the Charleston area took the matter to the Residential Builders Commission, a department of the S.C. Department of Licensing and Regulation (LLR). As a result, an attorney for LLR has issued a letter affirming that, "where a sidewalk and driveway apron is to be provided in front of or beside the lot of a one single family residence, in conjunction with the construction or renovation of that residence only, a licensed residential builder or registered residential specialty contractor with the masonry classification (which includes concrete), may perform the work as part of the residential project." The letter further states, "this would also apply to the sidewalks and driveway aprons in front of or beside the lots of single family residences constructed by a licensed residential builder on contiguous lots."
The letter is signed by Georgia L. Lewis, Advice Council for the Residential Builders Commission.
Yes Virginia, your home builder can pour the sidewalk at your new home.
This situation is the result of an erroneous interpretation of the law by a building official in that city who believed that only a Licensed General Contractor may construct a sidewalk or driveway in the city's right of way.
On February 13, 2013, representatives of your Home Builders Association from the Charleston area took the matter to the Residential Builders Commission, a department of the S.C. Department of Licensing and Regulation (LLR). As a result, an attorney for LLR has issued a letter affirming that, "where a sidewalk and driveway apron is to be provided in front of or beside the lot of a one single family residence, in conjunction with the construction or renovation of that residence only, a licensed residential builder or registered residential specialty contractor with the masonry classification (which includes concrete), may perform the work as part of the residential project." The letter further states, "this would also apply to the sidewalks and driveway aprons in front of or beside the lots of single family residences constructed by a licensed residential builder on contiguous lots."
The letter is signed by Georgia L. Lewis, Advice Council for the Residential Builders Commission.
Yes Virginia, your home builder can pour the sidewalk at your new home.
Government Affairs Result: ESA Rule will not be used to regulate climate change
When the federal government officially listed polar bears as a threatened species under the Endangered Species Act (ESA) in 2008, environmental groups sought to compel the state of California to place restrictions on residential development due to the presumed effects of climate change on polar sea ice.
Concerned that the Fish and Wildlife Service (FWS) might overstep its bounds in this way, NAHB urged FWS to proceed cautiously in developing rules for protecting polar bears and to "properly limit the scope" of its listing to that which is conferred by the governing statute. This week, our efforts proved successful when the FWS re-issued a final special rule for managing the polar bear that does NOT employ the ESA to regulate greenhouse gas emissions. Rather, the rule specifically states that activities outside the bear's range are not subject to ESA "incidental take" prohibitions.
This issue has far-reaching ramifications because of the potential for expansion of ESA regulatory authority to include activities related to global warming -- no matter how distant those activities may be from the location of the endangered species in question. Moreover, in view of the President's comments in his latest State of the Union address in which he promised to pursue actions to limit greenhouse gas emissions, this latest decision to stay the course on a Bush-era policy that the ESA is not the appropriate federal regulatory tool for accomplishing that goal is a truly welcome development for NAHB members. Read NAHB's official comments here
Concerned that the Fish and Wildlife Service (FWS) might overstep its bounds in this way, NAHB urged FWS to proceed cautiously in developing rules for protecting polar bears and to "properly limit the scope" of its listing to that which is conferred by the governing statute. This week, our efforts proved successful when the FWS re-issued a final special rule for managing the polar bear that does NOT employ the ESA to regulate greenhouse gas emissions. Rather, the rule specifically states that activities outside the bear's range are not subject to ESA "incidental take" prohibitions.
This issue has far-reaching ramifications because of the potential for expansion of ESA regulatory authority to include activities related to global warming -- no matter how distant those activities may be from the location of the endangered species in question. Moreover, in view of the President's comments in his latest State of the Union address in which he promised to pursue actions to limit greenhouse gas emissions, this latest decision to stay the course on a Bush-era policy that the ESA is not the appropriate federal regulatory tool for accomplishing that goal is a truly welcome development for NAHB members. Read NAHB's official comments here
Monday, February 25, 2013
Welcome, New Members of the HBA of Greenville!
With the Spring Southern Home and Garden Show right around the corner we thought we would take this opportunity to welcome our newest members and encourage YOU to do business with a member of the HBA of Greenville.
Associate Memberships:
Southeastern Underdeck Systems, LLC- Heath Bowman
The Window Gal- Teri Coulson
Outside Solutions, Inc- Keith Drew
Serrus Capital Partners, Inc- Daniel Driscoll
Deckstore- David Elenbaum
Willow Oak Landscapes- Matt Fulton
Gage Insurance- Robert Gage Jr.
KS International, Inc.- Nancy Hamilton
Home Improvement Resource Guide- Matt Loughran
Advanced Home Products, Inc.- Robert Murphy
Superior Grounds Pro LLC- Terry Puleo
Currahee Club- Susan Verlander
Super Landscape Supply- Herbert Williams
Builder Memberships:
Paul L. Johnson Interiors, LLC- Paul Johnson
Affiliate Memberships:
Certus Bank- Ozzy Custodio
Superior Grounds Pro LLC- Casey Howell
Greenville News, The- Keith Johnson and Kate Wiegmann
Builders First Source- Christi Powell
Willow Oak Landscapes- Newton Tilson
Currahee Club- Larry Torrence and Stephanie West
The Window Gal- Lars Wiren
Welcome and thank you for your membership and support. We look forward to seeing everyone at the Spring Southern Home and Garden Show this weekend, March 1-3rd.
Associate Memberships:
Southeastern Underdeck Systems, LLC- Heath Bowman
The Window Gal- Teri Coulson
Outside Solutions, Inc- Keith Drew
Serrus Capital Partners, Inc- Daniel Driscoll
Deckstore- David Elenbaum
Willow Oak Landscapes- Matt Fulton
Gage Insurance- Robert Gage Jr.
KS International, Inc.- Nancy Hamilton
Home Improvement Resource Guide- Matt Loughran
Advanced Home Products, Inc.- Robert Murphy
Superior Grounds Pro LLC- Terry Puleo
Currahee Club- Susan Verlander
Super Landscape Supply- Herbert Williams
Builder Memberships:
Paul L. Johnson Interiors, LLC- Paul Johnson
Affiliate Memberships:
Certus Bank- Ozzy Custodio
Superior Grounds Pro LLC- Casey Howell
Greenville News, The- Keith Johnson and Kate Wiegmann
Builders First Source- Christi Powell
Willow Oak Landscapes- Newton Tilson
Currahee Club- Larry Torrence and Stephanie West
The Window Gal- Lars Wiren
Welcome and thank you for your membership and support. We look forward to seeing everyone at the Spring Southern Home and Garden Show this weekend, March 1-3rd.
What You Missed at the Builder Breakfast!
The Builder Breakfast was held at Tommy's Ham House, 214 Rutherford St., Greenville on Thursday Feb 21st. This event was sponsored by Piedmont Natural Gas, and featured Mark Nix, Executive Direct or HBA of South Carolina, and Michael Dey, Executive Vice President of the HBA of Greenville both giving overviews of the government affairs scene in Columbia and in the Upstate. Keep in mind that these meetings are open to all HBA builder and remodeler members at no charge. The next Builder Breakfast is May 30th
NAHB Recommends Reforms to Residential Appraisal System
NAHB this week publicly released a "Comprehensive Blueprint for Residential Appraisal Reform" that sets forth our association's recommendations for addressing serious problems in the residential appraisal process.
This landmark white paper, completion which was first announced to association members right after the 2013 International Builders' Show, notes that -- because appraisals are governed by multiple public and private entities and ultimately by states -- standards and requirements can vary greatly, resulting in a system that is inconsistent, confusing and does not serve consumers well.
To address these problems, a special Appraisal Working Group was established last year to develop formal recommendations for comprehensive residential appraisal reform. Members of the working group included home builders as well as representatives from the financial and appraisal sectors, and input was sought from representatives of every stakeholder group.
Praising the efforts of Appraisal Working Group, co-Chairs Barry Rutenberg and Joe Robson, 2013 NAHB Chairman Rick Judson noted that, "Even as the residential construction industry shows signs of recovery, housing activity is thwarted by an appraisal system that remains dysfunctional and is a major impediment to a stable housing finance framework. Until we see meaningful appraisal reform, the U.S. housing finance system will be operating under unprecedented uncertainty.”
The white paper offers specific recommendations for changes to all aspects of the appraisal system, and will form the basis of our outreach to policymakers as we encourage them to move forward on its proposals. To access the report, visitwww.nahb.org/appraisalwhitepaper.
This landmark white paper, completion which was first announced to association members right after the 2013 International Builders' Show, notes that -- because appraisals are governed by multiple public and private entities and ultimately by states -- standards and requirements can vary greatly, resulting in a system that is inconsistent, confusing and does not serve consumers well.
To address these problems, a special Appraisal Working Group was established last year to develop formal recommendations for comprehensive residential appraisal reform. Members of the working group included home builders as well as representatives from the financial and appraisal sectors, and input was sought from representatives of every stakeholder group.
Praising the efforts of Appraisal Working Group, co-Chairs Barry Rutenberg and Joe Robson, 2013 NAHB Chairman Rick Judson noted that, "Even as the residential construction industry shows signs of recovery, housing activity is thwarted by an appraisal system that remains dysfunctional and is a major impediment to a stable housing finance framework. Until we see meaningful appraisal reform, the U.S. housing finance system will be operating under unprecedented uncertainty.”
The white paper offers specific recommendations for changes to all aspects of the appraisal system, and will form the basis of our outreach to policymakers as we encourage them to move forward on its proposals. To access the report, visitwww.nahb.org/appraisalwhitepaper.
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