January 30, 2015

JLL Recruits Tomb to Expand Retail Brokerage


Lorena Tomb has joined JLL as a vice president of retail brokerage. Based in the firm’s Los Angeles office, she joins the team led by David Thomas handling agency leasing and tenant representation for the firm’s retail clients across the greater Los Angeles area.

Tomb most recently worked at BRC Advisors in Beverly Hills. Her client list includes Bombet Hospitality Group, Bernhard Maringer, GB Coffee, restaurateur Dustin Lancaster, Pop Physique, and Lord of Optic.

Tomb holds a marketing degree from the John Molson School of Business at Concordia University in Montreal, and earned a real estate investments certificate with honors from UCLA.

“Los Angeles is a key market for our retail investor and occupier clients and it’s critical to have a skilled expert, like Lorena, on the ground to support their real estate needs,” said Peter Belisle, market director for JLL’s Southwest Region. “Lorena’s vast experience in working with new and expanding retailer, restaurant and entertainment concepts has enabled her to develop and maintain strong landlord relationships at the local, regional and national levels.”

Tomb is the second retail broker JLL has brought onboard in the past six months. In October, the firm hired Danielle Cornwell as an associate with its retail brokerage team.

Article source: http://www.costar.com/News/Article/JLL-Recruits-Tomb-to-Expand-Retail-Brokerage/168327?ref=/News/Article/JLL-Recruits-Tomb-to-Expand-Retail-Brokerage/168327&src=rss

Market Trend: Los Angeles Retail Vacancy Decreases to 4.7%


The Los Angeles retail market did not experience much change in market conditions in the fourth quarter 2014.

The vacancy rate went from 4.8% in the previous quarter to 4.7% in the current quarter. Net absorption was positive 627,255 square feet, and vacant sublease space increased by 49,184 square feet. In third quarter 2014, net absorption was positive 773,787 square feet.

Tenants moving into large blocks of space in 2014 include: Target moving into 137,920 square feet at Shoppes at Westlake Village; Goodwill moving into 102,249 square feet at 3150 San Fernando Rd; and Food 4 Less moving into 78,962 square feet at 11507 S Western Ave.

RETAIL OUTLOOK: Tech-Driven Interruption of Shopper Habits Will Continue in 2015

Quoted rental rates increased from third quarter 2014 levels, ending at $25.15 per square foot per year.

A total of 11 retail buildings with 197,367 square feet of retail space were delivered to the market in the quarter, with 1,690,835 square feet still under construction at the end of the quarter.

This trend is compared to the U.S. National Retail vacancy rate, which decreased to 6.1% from the previous quarter, with net absorption positive 34.91 million square feet in the fourth quarter. Average rental rates increased to $14.90, and 561 retail buildings delivered, totaling almost 14.7 million square feet.

The information in this news report is based on CoStar’s Fourth Quarter 2014 Market Report, a 40+ page comprehensive research report available to CoStar subscribers. To learn more about quarterly research reports and other benefits available to CoStar subscribers, please call 888-226-7404.

Article source: http://www.costar.com/News/Article/Market-Trend-Los-Angeles-Retail-Vacancy-Decreases-to-47/168361?ref=/News/Article/Market-Trend-Los-Angeles-Retail-Vacancy-Decreases-to-47/168361&src=rss

CoStar’s People of Note (Jan. 25


It’s time to update those contact managers with CoStar’s People of Note, reporting news on significant new CRE hires and promotions. This week’s issue includes the following markets: Houston, Phoenix, New York City, Los Angeles, Baltimore, Greensboro / Winston-Salem, London, Philadelphia, Orlando, South Bay, and Chicago.

HOUSTON

Avison Young Hires Principal in Houston

By Tanika Belfield-Martin

Bringing more than 33 years of commercial real estate experience, industrial property specialist Bob Berry has joined Avison Young as a principal in the firm’s Houston office.

In his new role, Berry will continue to focus on industrial end-user representation and collaborate with major corporations on cost-reduction strategies, build-to-suit projects, and disposition of surplus properties.

Berry previously served as an executive vice president for JLL in Houston, specializing in industrial tenant representation. During his career, he has negotiated more than $5 billion worth of industrial leases and acquisitions. In 2008, 2009 and 2012, Berry was named JLL’s top producing industrial broker in the country and was awarded the firm’s Top Gun designation from 2002-2012, which recognizes the company’s overall top 20 brokers.


PHOENIX

Lee Associates Asks Lord to Take The Wheel of Multifamily Practice

By Justin Sumner

David Lord has joined Lee Associates Arizona as a principal, joining Todd Braun and Will Barnard to bolster the firm’s multifamily practice in the Phoenix market.

Lord brings 35 years of brokerage experience, most recently serving as senior vice president at Apartment Realty Advisors (ARA). Before that he was the chief operating officer for Hewson Development Corp., where he handled industrial and office development, management, acquisitions and marketing. He also spent a decade each with Colliers International and CBRE, and has been involved in more than $4 billion in real estate transactions throughout his career.

“David brings exceptional brokerage skills and knowledge to Lee and he will be a great addition to our strong multifamily team,” said Fred Darche, managing principal.


CoStar’s People of Note is published each Friday covering the latest commercial real estate executive level promotions and new hires. Click on the headline of each article to jump to full coverage. Follow the news on Twitter @TheCoStarGroup and @JSumner2.
Send your new executive hires and promotion announcements to news@costar.com.


NEW YORK CITY

McElroy Joins Herald Square Properties as Partner

By Benjamin Fish

Anthony McElroy, who previously had been the senior managing director at DTZ, has joined Herald Square Properties in Manhattan as partner.

At DTZ, McElroy had overseen acquisitions and dispositions of commercial properties for its New York Investment Fund. He will now oversee property acquisitions for Herald Square, which was formed in 2009 by Gerard Nocera and Michael Reid.

McElroy has been involved in the acquisition of more than $2 billion of real estate totaling over 11 million square feet in the New York metro area working on behalf of such firms as Fisher Brothers, Olympia York, Albanese Organization and S.L. Green.


LOS ANGELES

NAI Capital Appoints New LA Exec, Branch Mgr

By Frank Hermoso

NAI Capital has named Yair Haimoff as executive vice president and branch manager of NAI Capital’s North Los Angeles office in Santa Clarita.

Haimoff joined NAI Capital in 2002. He specializes in leasing, acquisition and disposition of industrial, office and investment properties in the Santa Clarita, San Fernando, and Conejo Valley areas.

Haimoff is a member of SIOR, the American Industrial Real Estate Association (AIR), the Valley Industrial Association (VIA), and the Santa Clarita Chamber of Commerce.


BALTIMORE

Chesapeake Real Estate Names Senior Director

By Carmalita Ware

Chesapeake Real Estate Group added former Sperry Van Ness/Skogmo Commercial managing director Scott Skogmo, SIOR as senior director in the firm’s Baltimore office.

Skogmo’s primary role will be to handle leasing for the company’s Central Maryland industrial and warehouse portfolio. He will also look to drive the corporate-occupier and tenant representation divisions by securing new investors, property owners and end-users.

In addition to his time at Sperry Van Ness/ Skogmo Commercial, the 30-year industry veteran served as principal for TSC Realty Services and assistant vice president for Colliers Pinkard. In his career, Skogmo has successfully leased more than 6.5 million square feet of space with a transactional sales and leasing volume of more than $250 million.


NEW YORK CITY

Ackman-Ziff Hires New Managing Director

By Megan Ohlmacher

The Ackman-Ziff Real Estate Group has hired Marion Jones as a senior director. Based in the firm’s New York City office, Jones will continue to analyze complex brokerage transactions.

Prior to joining Ackman-Ziff, Jones was with Eastern Consolidated where she closed more than $890 million in sales. She specializes in large multifamily assets and redevelopment projects.

Jones holds a Master’s of Architecture in real estate and urban planning from the University of Pennsylvania.


GREENSBORO / WINSTON-SALEM

Marcus Millichap Finds New Directors in Montana, Kern

By Justin Sumner

Marcus Millichap (NYSE: MMI) has named Richard Montana and Hal Kern as directors in its national multi housing group.

Headquartered in the company’s Greensboro, NC office, the pair will expand the investment services firm’s presence in the Carolinas and throughout the Southeast.

Montana previously served as a vice president with CBRE’s Carolinas multifamily group, and before that was at Alliance Commercial Properties. Kern is a ten-year industry veteran that previously served as vice president and co-lead of CBRE’s private capital multi-housing practice following a stint at Brown Investment Properties.


GVA Announces London, Bristol, Cardiff Heads
Including First Female Regional Head

By Paul Norman


PHILADELPHIA

Algatt Joins Colliers in Conshohocken

By Justin Sumner

Jeff Algatt has joined Colliers International’s investment division in Philadelphia. Based in the firm’s Conshohocken office, he will assist clients with the acquisition and disposition of office, industrial, and net-leased investments.

Algatt has more than 40 years of experience, most recently serving as a regional manager with Marcus Millichap. He also held positions at a national accounting firm, a regional home builder, a real estate holding company, private development firms, his own real estate services firm, and a foreign investment fund. Throughout his career he has been involved in 500 transactions valued at roughly $2 billion.


ORLANDO

Hoffman Joins JLL

By Justin Sumner

Darryl Hoffman has joined JLL as a vice president of office services. Based in the firm’s Orlando office, Hoffman will work with John Gilbert, managing director and Natalee Gleiter, vice president to grow the firm’s office agency leasing practice in Central Florida.

Hoffman previously served as a director with Taylor Mathis, specializing in tenant representation and office leasing and sales. Before that he served as an associate with Newmark Grubb Knight Frank in Washington DC, where focused on tech firms, law offices, and non-profits.


LOS ANGELES

JLL Recruits Tomb to Expand Retail Brokerage

By Justin Sumner

Lorena Tomb has joined JLL as a vice president of retail brokerage.

Based in the firm’s Los Angeles office, she joins the team led by David Thomas handling agency leasing and tenant representation for the firm’s retail clients across the greater Los Angeles area.

Tomb most recently worked at BRC Advisors in Beverly Hills. Her client list includes Bombet Hospitality Group, Bernhard Maringer, GB Coffee, restaurateur Dustin Lancaster, Pop Physique, and Lord of Optic.


SOUTH BAY

Cresa San Jose Hires New VP of Project Management

By Eric Kies

Cresa San Jose has hired Laurie Guluarte as vice president of project management.

Guluarte has more than 20 years of experience in international project management, facility operations and strategic planning, working on projects ranging from 2,000 square feet to 120,000 square feet and varying from $100,000 to $7.8 million.

Prior to joining Cresa, Guluarte managed construction and IT projects for numerous Bay Area companies, as well as both national and international clients.


CHICAGO

Tucker Accepts Position with Tucker Development

By Jason C. Sturgill

Aaron M. Tucker has been hired by leading fund manager and shopping center and mixed-use developer Tucker Development to serve as vice president and general counsel.

Tucker’s responsibilities will include business development, including sourcing capital and structuring deals, as well as all legal matters for Tucker Development and its subsidiaries.

Tucker was previously with Kirkland Ellis LLP and Paul Hastings LLP. His primary focus at both firms was commercial real estate including finance, development, and leasing matters.


Send your new executive hires and promotion announcements to news@costar.com.
Follow the news on Twitter @TheCoStarGroup and @JSumner2.
Check out last week’s edition of People of Note.


Article source: http://www.costar.com/News/Article/CoStars-People-of-Note-Jan-25-31/168354?ref=/News/Article/CoStars-People-of-Note-Jan-25-31/168354&src=rss

Decor That Goes for the Gold

While the sectional sofa (custom-designed by Mr. Kaner) and the carpet ground the room in gold, two retro-chic, off-white lounge chairs by Ironies provide some visual relief in the living room.

The bedroom features a painting by Wulf Winckelmann.

The Arne Jacobsen-designed chairs in the banquette are upholstered in Knoll’s Pop Parakeet fabric.

New York architect William Reue ended up combining what had been a narrow galley kitchen, a small breakfast room and a maid’s room into a new, bigger kitchen with better light.

Custom-designed chairs in the dining room are upholstered in a Holly Hunt fabric in Sterling.

A view of the hallway

A view of the bedroom

WE ARE ALL DRAWN to certain colors. But as anyone who’s braved a purple-phile’s home knows, decorating your space entirely in a narrow palette can make it seem oppressive, if not mentally destabilizing. This soothing apartment on New York’s Upper East Side—a theme-and-variations exercise in golden earth tones—proves it doesn’t have to be that way.

The palette was one of the first things the clients—attorneys Dan and Barri Waltcher, a couple with two children—decided on, said New York City-based interior designer

Robert Kaner

: “There were two fabrics they really gravitated toward. I used those as the jumping-off point to build the color scheme for the apartment.” While the words “earth tones” might make you think of marijuana-scented ’70s shag carpeting or klutzy macramé wall-hangings, here they translated into an array of rich amber and caramel shades, glints of brass and gold, along with burnt siennas, ochers and the much-villainized but modulating beige.

Mr. Kaner used the two fabrics in question—a gold Joseph Noble mohair and a caramel Rogers Goffigon linen—to upholster the living room sectional sofa he designed. “The colors in these two fabrics are very warm neutrals which you might think of as having the colors of honey,” he said. “The red notes come through more strongly than the yellows to create this amber tone.”

To ensure that the homeowners wouldn’t feel encased in amber, Mr. Kaner judiciously introduced contrasting colors. The breakfast nook features muted greens, still earthy but cooler. And in the dining room—a mildly subversive foil to the rest of the apartment—he went for a silvery take on orange’s classic complementary shade, blue.

It wasn’t all about color. The Waltchers had looked at apartments that were fully renovated, move-in ready and priced accordingly. Then they came across this home, said Mr. Kaner: a bit of a mess, with a dated kitchen and bathrooms and layout problems. “But they recognized,” he added, “that with the relative price advantage, they could transform the space into something which exactly suited their taste and lifestyle.” Architect

William Reue

opened up the apartment’s floor plan to dial down the visual noise so that the space felt as open, light and airy as possible. “The rooms remained in the same position, but what changed was the way the spaces were connected,” he said.

Here’s a room-by-room breakdown of how the design team’s strategy played out.

The living room
ENLARGE

The living room in this apartment on New York City’s Upper East Side establishes an earthy color scheme that interior designer Robert Kaner played with throughout the home. While the sectional sofa (custom-designed by Mr. Kaner) and the carpet ground the room in gold, two retro-chic, off-white lounge chairs by Ironies provide some visual relief. Between them sits a resin tabletop that pops with a vivid orange, an irrepressible color note in an otherwise discreet room. “We were trying to take [the clients] from a more traditional design sensibility to something more contemporary,” said Mr. Kaner.

The bedroom
ENLARGE

In the not-too-sedating bedroom, Mr. Kaner went for “a softer version of the amber hues of the living room.” He luxed up Crate Barrel’s Tate Bed with a custom silk duvet cover and yellow-and-gold pillowcases from The Red Threads. The pale shade on the Osso Table Lamp from Room Board—and the custom chair upholstered in a beige from Calvin Fabrics through Donghia—are equally mild. Gutsier elements: The burnt-red throw and the painting by

Wulf Winckelmann.

The dining room
ENLARGE

To counteract monotony, the cool, blue-gray dining room strategically departs from the warm palette elsewhere in the home. Custom-designed chairs are upholstered in a Holly Hunt fabric in Sterling, and a shimmering Italian glass chandelier, an icy blue lacquered console and the muted gray tones of the photograph “Tate Modern,” by

Doug Fogelson,

introduce shades that Mr. Kaner associates with “a sense of sky,” less woodsy and more delicate. Still, the rosewood of the elliptical table ensures that the room doesn’t entirely float away.

The kitchen
ENLARGE

To overcome the layout issues that came with this circa-1960s apartment, New York architect William Reue ended up combining what had been a narrow galley kitchen, a small breakfast room and a maid’s room into a new, bigger kitchen with better light. While the custom-stained cerused white oak cabinets tie this room into the apartment’s earth-tone color scheme, pale 2-by-12-inch limestone wall tiles keep it from feeling too heavy, lodge-like or ’70s—creating a modern space for cooking and gathering around an island topped with natural quartzite.

The banquette
ENLARGE

Occupying a corner of the newly opened-up kitchen, the banquette was designed by Mr. Kaner and Mr. Reue to emphasize “the importance of family meals as a time to be together, with kids in the kitchen doing schoolwork during meal preparation.” White lacquered cabinetry and the sculptural white Leonardo Pendant lamp by Santa Cole keep things reassuringly clean, as befits a kitchen, while the

Arne Jacobsen

-designed chairs are upholstered in Knoll’s Pop Parakeet fabric, a mossy, murky green, another example of what Mr. Kaner calls a hue “inspired by nature.”

Article source: http://online.wsj.com/articles/an-apartment-whose-color-scheme-is-far-from-chaotic-1422557287?mod=residential_real_estate

More Development Immigrates to Port Chester

For decades marginalized as the downscale neighbor of Greenwich, Conn., and Rye, N.Y., Port Chester in Westchester County has begun to capitalize on its grittier image.

Several new luxury developments and the arrival of a number of swanky new restaurants and bars are helping Port Chester attract young professionals from New York City as well as area baby boomers looking to downsize. While the newcomers are chipping away at the former…

Article source: http://online.wsj.com/articles/more-development-immigrates-to-port-chester-in-westchester-county-1422582829?mod=residential_real_estate

Matthew Perry Is Selling in Malibu

A view of the home, which overlooks the ocean
ENLARGE

Actor

Matthew Perry

is under contract to sell his roughly 5,500-square-foot, contemporary Malibu, Calif., home, according to people familiar with the sale. The home was most recently on the market for $12.5 million.

Actor Matthew Perry
ENLARGE

The home was listed in late 2011 for $13.5 million before being reduced to $12.5 million in May. According to

Mark Rutstein

and

Greg Holcomb

of Partners Trust Real Estate Brokerage Acquisitions, which handled both sides of the transaction, it sold for close to asking price.

Located on about 2 ½-acres in the gated community of Serra Retreat, the home, called the Pier House, overlooks the Pacific Ocean through sliding glass panels that open up to a pool deck and outdoor entertaining area. The home has two fireplaces, smart-home automation features and a media room.

Mr. Perry bought the property for about $6.55 million through a trust in 2005, according to public records and people familiar with the listing. The actor, who will star in the coming series “The Odd Couple,” couldn’t be reached for comment.

Article source: http://online.wsj.com/articles/matthew-perry-is-selling-in-malibu-1422553628?mod=residential_real_estate

CFPB Expands Rural & Small Creditor Definitions

As it said it would, the Consumer Financial Protection
Bureau (CFPB) has taken steps to assist small lenders, particularly those in
rural areas, comply more easily with the new mortgage rules that took effect at
the beginning of last year.  Changes were
proposed on Thursday to the ability-to-repay rule and its category of loans
called Qualified Mortgages (QM) which CFPB said would, if enacted, increase the
number of financial institutions able to offer certain types of mortgages in
rural and underserved areas and help small creditors adjust their business
practices to comply with the new rules.

Ability-to-repay requires that lenders
generally make a reasonable and good faith determination that a borrower is
able to pay back a loan.  Loans that
qualify as QMs are presumed to comply with ability-to-repay requirements
because of that category’s laundry list of prohibited risky loan features. 

Because compliance with either ability
to repay or QM presents particular changes for small and/or rural creditors
they are allowed certain exceptions to the CFPB rules.  For instance, a provision in the ability-to-repay
rule extends Qualified Mortgage status to loans that small creditors hold in
their own portfolios, even if consumers’ debt-to-income ratio exceeds 43
percent. Small creditors in rural or underserved areas can originate Qualified
Mortgages with balloon payments even though balloon payments are otherwise not
allowed.
Also, under the Bureau’s Escrows rule, eligible small creditors that
operate predominantly in rural or underserved areas are not required to
establish escrow accounts for higher-priced mortgages.

CFPB says it has monitored the mortgage
market and has sought public feedback on these rules and in May of 2013 said it
would study whether the definitions of rural and underserved should be adjusted.  In May 2014 the Bureau requested comments on
the limit of originations that determined small creditor status.  The following proposed changes reflect the
information CFPB has gathered.

  • The
    loan origination limit for small-creditor status would be raised from 500
    first-lien mortgage loans to 2,000 and would not count loans held by the
    creditor or its affiliates in its portfolio.
  • The current asset limit for
    small-creditor status would remain at less than $2 billion (adjusted
    annually) in total assets as of the end of the preceding calendar year.
    However, the proposal would include the assets of the creditor’s
    mortgage-originating affiliates in calculating whether a creditor is under
    the limit.
  • The proposal would expand the
    definition of rural areas to include census blocks that are not in an
    urban area as defined by the Census Bureau.
  • Creditors that exceeded the origination limit or
    asset-size limit in the preceding calendar year would be permitted a grace
    period and allowed to continue to operate as a small creditor in certain
    circumstances with respect to mortgage transactions with applications
    received prior to April 1 of the current calendar year. The proposal would
    create a similar grace period for creditors that no longer operated
    predominantly in rural or underserved areas during the preceding calendar
    year.
  • The proposal would adjust the time period used in
    determining whether a creditor is operating predominately in rural or
    underserved areas, from any of the three preceding calendar years to the
    preceding calendar year.
  • The temporary exception
    allowing eligible small creditors to make balloon-payment Qualified Mortgages and
    balloon-payment high-cost mortgages regardless of where they operate is
    scheduled to expire on January 10, 2016. CFB proposes to extend that
    exception to include balloon-payment mortgage transactions with
    applications received before April 1, 2016, giving creditors more time to
    understand how any changes will affect their status, and to adjust their
    business practices.

CFPB said there are other small or
technical changes included in the proposal which can be read in its entirety on
CFPB’s website.  The Bureau is inviting public
comment on the changes and these will be received until March 30, 2015.

Article source: http://www.mortgagenewsdaily.com/01292015_cfpb_mortgage_rules.asp

Rules Set for Disbursement of Affordable Housing Funds

When Federal Housing Finance Agency Director Melvin L. Watts
testified before the House Financial Services Committee early this week he said
that FHFA had notified Fannie Mae and Freddie Mac that it was reversing
suspension
of contributions to affordable housing funds which the GSEs were
required to make prior to being placed in conservatorship.  The suspension was authorized by the Housing
and Economic Recovery Act (HERA) in 2008.   

On
Friday the Department of Housing and Urban Development (HUD) clarified how
those funds would be used
with publication in the Federal Register of an interim program rule for the National
Housing Trust Fund (HTF). HTF is a new production program designed to work with
other existing programs to increase and preserve the supply of decent, clean
and safe affordable housing for extremely
low- and very low-income households, including homeless families.  The rule provides guidance to states and state-designated entities
which are eligible grantees of HTF on the program’s implementation. 

Annual formula grants will be awarded by HUD to eligible agencies and can be used for either new construction, acquisition,
reconstruction, rehabilitation, or preservation of affordable housing
.  A minimum of 80 percent of a grant must be
used for rental housing and a maximum of 10 percent can be used for
homeownership and for reasonable administrative and planning costs. All
HTF-assisted units will be required to have a minimum affordability period of
30 years.

HUD said that over the next year states
should begin to solicit input from their constituents, develop HTF Allocation
Plans and submit these plans to HUD along with their 2016 Annual Acton Plans.  Grantees should receive their HTF allocations
by summer 2016.

HUD Secretary Julian Castro said, “Affordable
housing is about opportunity.  Once fully implemented, the Housing Trust
Fund will help folks across the nation secure a decent place to call
home.  We look forward to working closely with our partners across the
nation to implement this critical resource to expand the circle of opportunity
for current and future generations of Americans.” 

More detailed
information about the HTF is available here.

Article source: http://www.mortgagenewsdaily.com/01302015_affordable_housing_hud.asp

Mortgage Rates Shoot Past Recent Lows; 3.5% Getting More Prevalent

Mortgage rates moved lower today at their fastest pace since January 14th.  Rates sheets moved well past recent lows and back to levels not seen since May 10th 2013.  That was the day that the Wall Street Journal’s Hilsenrath suggested the Fed was mapping an exit from stimulus, which sent markets into the tailspin that was effectively the prologue to the taper tantrum.  It’s amazing, or at least interesting to consider that asset purchases have now been fully phased and that a rate hike is a much more immediate threat, yet rates are back to where they were before markets really began adjusting for all that “stuff.”  That’s the power of global economic turmoil and a troubling lack of inflation for core economies.

The specific result today is the greatly-increased prevalence of 3.5% as a conforming 30yr fixed quote for top tier scenarios.  3.625% is ubiquitously available, but again, keep in mind that these rates refer to top tier scenarios with 25% equity or more, and high credit scores among other things.  The important part is the day-over-day change and the relationship to recent levels.  In other words, no matter what you were quoted in the past few weeks, if your scenario is the same, today’s rates are better.

In terms of how to approach this rate environment, the analogy of the falling knife continues to apply.  Time and time again since late December, any move toward higher rates has proved fleeting.  That CAN end any time, but it hasn’t yet.  One common strategy for those that want to keep floating in the hopes of further gains would be to set a limit at slightly higher rates than today’s quote and keep floating until that limit is reached.  For instance, if you’re being quoted 3.5% today, you could plan to lock if your rate rose to 3.625%.  It’s the same concept as a “stop-loss” employed by investors.  Whatever you do, be sure to coordinate on your strategywith your originator. 

For the knife-catchers out there, today is the best day in more than 20 months.  No one could fault you for locking.  Combine that with the fact that the end of the month tends to be a slightly better time for bond markets (which affect mortgage rates), and you can make a perfectly fine case for catching that knife–especially if you have a shorter term time horizon.


Loan Originator Perspective

“With the rally we saw this morning, the only way i would advise to lock
today is if your lender gives a late day reprice for the better. That
is unlikely with today being a Friday. The rate sheets i have viewed
are improved over yesterday, but lenders havent passed along all the
improvements. I continue to favor floating all loans.” -Victor Burek, Open Mortgage

“The rally that won’t stop or will it? This is great for home purchasers
and those seeking to refinance as well. I never would have thought
rates in the middle 3s would ever make the rounds again, but here we
are. Locking now is not a bad idea though a run to lower rates could
continue. Judgment call based on risk reward analysis and the ability
to lock quickly if the tide turns” -Michael Owens, VP of Mortgage Lending, Guaranteed Rate, Inc.

“I suggested floating yesterday and today
that decision would be paying dividends. What should you do from here?
I’m always an advocate of taking your improvement and locking, but I
still think floating is the best option….for now. The 10 year
treasury is at 1.68 and this may simply be a test below 1.7, but it
could be the sign of a move much lower. Float but do so cautiously, and
be ready to lock.” -Brent Borcherding, brentborcherding.com

“Rates are solidly at the lows of the years today as bonds advanced
further. Bonds are now at a point where profit taking may ensue.
Lenders however have not been passing all the market gains to rate
sheets so even if bonds pull back a bit we may not see a significant
change to rates. Longer term I still see rates decreasing but we now
need to be in guard and start locking loans closing in under two weeks.” -Manny Gomes, Branch Manager Norcom Mortgage

“European bond markets posted robust gains today, dragging both US
treasuries and MBS along for the ride. While today’s rate sheets were
certainly good, it appears there’s still more improvement to come. I’m
floating my new loans for the moment (with an eye on bond markets, of
course) while locking those within 15 days of closing. It’s a great
time to be a borrower!” -Ted Rood, Senior Originator


Today’s Best-Execution Rates

  • 30YR FIXED - 3.5-3.625
  • FHA/VA – 3.25
  • 15 YEAR FIXED –  2.875
  • 5 YEAR ARMS –  2.75 – 3.25% depending on the lender

Ongoing Lock/Float Considerations

  • 2015 began with a strong move to the lowest rates seen since May 2013.  The catalyst has been and continues to be Europe.

  • European bond yields trended constantly lower in 2014, thus playing a prominent role in keeping US rates lower than they otherwise might be.  Many feel that Europe will continue to slide until their central bank engages in US-style quantitative easing.  Some see this happening in early 2015.  In any event, we’re looking for a turn in Europe, first and foremost, before worrying about the longer-term trend in bond markets being at serious risk of reversing.
  • It’s impossible to know when Europe will turn a corner, and even then it’s only the sort of thing we’ll be able to observe in hindsight.  That means every head-fake toward higher rates runs the risk of developing into a longer term rise, even if those risks vary greatly in terms of probability.  Clients with longer term time horizons and who otherwise don’t mind losing some ground in exchange for the chance at locking even lower rates are the only ones who should float.  Clients who must close by a certain date or who can’t afford to lose any ground on rates should generally be locking even though the longer term trend has been in their favor for over a year now.

  • As always, please keep in mind that the rates discussed generally refer to what we’ve termedbest-execution(that is, the most frequently quoted, conforming, 30yr fixed rate for top tier borrowers, based not only on the outright price, but also ‘bang-for-the-buck.’  Generally speaking, our best-execution rate tends to connote no origination or discount points–though this can vary–and tends to predict Freddie Mac’s weekly survey with high accuracy.  It’s safe to assume that our best-ex rate is the more timely and accurate of the two due to Freddie’s once-a-week polling method). 

Article source: http://www.mortgagenewsdaily.com/consumer_rates/430712.aspx

"Boardwalk Empire" Creator Lists a Beverly Hills Home for $7.5 Million

The Beverly Hills home of Terence and Rachel Winter.
ENLARGE

For

Terence Winter,

creator of the HBO series “Boardwalk Empire,” and his wife,

Rachel Winter,

producer of “Dallas Buyers Club,” it’s been hard to leave home.

In 2012, the couple, who spend most of their time in New York, listed their Beverly Hills home for $6.65 million, only to pull it off the market as they weighed whether to send their children to schools in New York or L.A.

In early 2014 they relisted it for $6.85 million, found a buyer, then walked away from the deal as they still felt “unsure about really wanting to sell,” says


Larry Young

of Berkshire Hathaway Home Services, who served as the listing agent both times. Now the house is listed again with Mr. Young, this time for $7.5 million.

“Yes we’re selling,” said Ms. Winter in an email. “We’re going to be looking for precisely the right buyer, but yes.”

The couple’s attachment to the house began when Mr. Winter, who had been a writer for “The Sopranos,” toured it as a prospective buyer. He spied Emmy awards in “these random dusty nooks” and learned they belonged to the previous owner—

Leonard Stern,

a writer of “The Honeymooners,” his favorite show, said Ms. Winter. The couple paid $4,062,500 for the approximately 6,000-square-foot, six bedroom, 5½-bath house in 2008.

They embarked on an extensive, 17-month renovation. They preserved original features, but opened up the kitchen and family room. In the entry they added a white magnesite staircase, common in the 1920s. Ms. Winter chose a jewel-tone palette for the interiors.

Ms. Winter said she’ll miss the house: “There’s a lyricism to it.“

—Sarah Tilton

Article source: http://online.wsj.com/articles/boardwalk-empire-creator-lists-a-beverly-hills-home-for-7-5-million-1422551104?mod=residential_real_estate