Mortgage applications rose 5.5 percent last week on a seasonally adjusted basis, despite a shortened Labor Day holiday week, according to the Mortgage Bankers Association weekly survey.

On an unadjusted basis, the index decreased 16.7 compared to the previous week and was up only 0.1 percent compared with the same week a year ago.

The refinance share of mortgage activity increased to 42.1 percent of total applications from 41.4 percent the previous week.

Here's how interest rates fared:
• The average interest rate for 30-year fixed-rate mortgages decreased to 6.25 percent from 6.42 percent.
• The average interest rate for 15-year fixed-rate mortgages decreased to 5.9 percent from 6.1 percent.
• The average interest rate for one-year ARMS decreased to 6.34 percent from 6.52 percent.

— REALTOR® Magazine Online

Back to Top

Giffels-Webster Engineers, a civil engineering firm in suburban Detroit, identifies five top trends in real estate and development. The trends are:
• Green building and design. Increased pressure on communities and businesses to promote environmentally sound designs has led developers to incorporate green elements into their projects. A plan to develop a parcel of land for retail might include green roofs, rain gardens, or gutter water retention and irrigation systems. LEED-certified environmental experts soon will become "must-have" team members as demand for energy efficient, healthy spaces grows stronger.
• Assisted living centers. Assisted living developments are on the rise due to higher life expectancies and the influx of aging baby boomers. By helping seniors lead independent lives in noninstitutionalized environments, these projects are designed to incorporate nature trails, community dining, exercise facilities, music rooms, libraries, salons, and game rooms. Opportunities exist to work with both private developers and public government-funded projects.
• Hospital expansions, education campus additions. The hospital and education expansion trend is fueled by institutional projects being funded privately though corporate gifts and individual endowments. These "recession-proof" resources mean even during economic downturns, the market segment moves forward with plentiful building and capital improvement projects.
• Mixed-use developments. Mixed-use developments are growing popular today because they reduce risk. Retail and residential can adjoin each other, and it's common to see large, national retailers combined with smaller, boutique-type stores, as well as housing varying by size, budget, and amenities. With this approach, the developer's investment is spread across the spectrum so it remains viable even if one segment does not perform as expected.
• Urban revitalization. To attract and keep people in their communities, municipalities and townships are working to make their downtowns, retail hubs, and central business districts more inviting and accessible. Streetscape improvements, including attractive landscaping, decorative streetlights, brick sidewalk pavers, and strategically planned parking areas, are examples of how municipalities are proactively transforming their space to appeal to potential and current residents.

— REALTOR® Magazine Online

Back to Top

The number of homes for sale in metro areas across the country rose 1.8 percent in August from the previous month, according to statistics compiled by ZipRealty, a real estate brokerage based in Emeryville, Calif.

This increase was similar to the average over the last two decades, indicating that the rapid rise in inventory in late 2005 and 2006 has moderated.

The Seattle metro area showed the biggest increase in supply, with a rise of 5.7 percent from July, according to ZipRealty. Seattle has remained a strong housing market, although the increase suggests it could be cooling.

The supply of available homes in the Boston area fell 2.2 in August. In early 2005, Boston was one of the first markets to start cooling, and it is now one of the few where supply is declining.

Source: The Wall Street Journal, James R. Hagerty (09/13/07)

Back to Top