Posts Tagged ‘hickory nc home builders’

Mortgage rates remain at lowest level in decades

Monday, July 26th, 2010

 Mortgage rates were unchanged this week at the lowest point in decades, but it hasn’t been enough to jump-start the housing market.

Government-sponsored mortgage buyer Freddie Mac said Thursday the average rate for 30-year fixed loans this week was 4.57 percent. That’s the same as a week earlier and the lowest since Freddie Mac began tracking rates in 1971.

The last time home loan rates were lower was the 1950s, when most mortgages lasted just 20 or 25 years.

Rates have fallen since the spring. Investors, concerned with the European debt crisis, have poured money into the safety of Treasury bonds. Treasury yields have fallen and so have mortgage rates, which tend to track yields on U.S. debt.

However, low rates have yet to fuel home sales and have sparked only a modest increase in refinancing activity.

The housing market has slowed since federal tax credits for homebuyers expired at the end of April. And the latest decline in mortgage rates is unlikely to boost the market.

Mortgage rates have hovered near record lows for some time, so most people who can afford to buy homes or qualify to refinance their loans have already done so in the past 18 months. Doing so again wouldn’t be worth the cost for most.

Meanwhile, millions of Americans are unable to take advantage of the low rates. Many have seen the value of their homes plummet and have little or no equity. Or they lack good credit or steady income to get or refinance a mortgage.

Rates could go lower and still not budge the housing market, analysts say. That’s because a person without a job can’t afford a home and a person worried about losing their job is unlikely to do so either.

To calculate the national average, Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.

Rates on 15-year fixed-rate mortgages decreased to an average of 4.06 percent, down from 4.07 percent last week. Rates on five-year adjustable-rate mortgages averaged 3.85 percent, up from 3.75 percent a week earlier.

Rates on one-year adjustable-rate mortgages fell to an average of 3.74 percent from 3.75 percent.

The rates do not include add-on fees known as points. One point is equal to 1 percent of the total loan amount. The nationwide fee for all types of loans in Freddie Mac’s survey averaged 0.7 a point.

by Alan Zibel,  AP

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Housing Market: U.S. Home Prices Show Signs of Revival

Wednesday, June 2nd, 2010
DV Wise builds homes in the Charlotte and Lake Norman area of NC

DV Wise builds dreams of all sizes

Spring is typically the season when people shop for houses. Many families like to complete their home purchase by the end of the summer so as to not uproot their children during the school year. And let’s face it: houses just look more enticing when flowers are out. But the real estate bust and economic downturn have made the past few housing hunting seasons rather slow. Some buyers have waited on the sidelines hoping prices had further to drop.
This year looks to be different. Already, falling interest rates, an improving economy and a last bit of economic stimulus are helping the housing market stage a revival. In April alone, sales of existing homes jumped 23% from a year ago, according to the trade organization National Association of Realtors. Sales of new homes rose even faster, up 48% from a year ago. What’s more, a growing number of economists believe the three-year plunge in housing prices is at an end. (See pictures of Americans in their homes.)
“Units, volume and sales price are up on all fronts,” says real estate broker Todd Hetherington, who is based in Alexandria, Va. “Houses that are priced well are getting multiple offers in the first week.”
For now, though, housing prices, like everything else, remain rocky. According to the S&P/Case-Shiller nationwide index, home prices fell 3.2% in the first quarter of 2010, down from the already low levels where they stood at the end of 2009. And home prices may stay down for a little longer. The continued recent slide in the stock market is hurting consumer confidence and likely to make some people pause before buying a house. Foreclosures aren’t helping the housing market either. The government’s home-loan-modification programs have helped keep a relatively small amount of home owners out of foreclosure. But more repossessed homes are now starting to land on the market, driving up the number of houses for sale and holding down prices. In addition, some economists are concerned that the expiration of an $8,000 tax credit for homebuyers, which essentially ended in April, will hurt home sales. Indeed, the Mortgage Bankers Association said last week mortgage applications for new home purchases fell to the lowest level since 1997. Lastly, mortgage credit remains tight, making it hard for some prospective home buyers to qualify for a loan. (See high-end homes that won’t sell.)
“We think the tax credit has dragged a lot of house sales forward, and we think we are going to pay for it,” says Jay Brinkmann, the chief economist for the Mortgage Bankers Association. He expects home sales to drop 5% in the fall of 2010.
Nonetheless, a growing number of economists believe this spring could end up being the start of a sustained rebound in the housing market. The biggest driver of that rebound will likely be interest rates. Though rates were expected to rise this summer, the continuing problems in Europe are driving down rates in the U.S., which is still seen as a safe haven for investors. The result is that mortgage rates have fallen to their lowest point in a year and are expected to continue to drop through the summer. In general, for every percentage-point decline in mortgage rates, houses effectively become 10% cheaper.
A recent study of 92 economists by financial-products firm MacroMarkets found that on average housing prices are expected to drop slightly in 2010 and begin rising again next year. That means that for the first time in years someone who buys a house this spring will most likely see their home appreciate in the next year. And rising housing prices, just like falling ones, tend to feed on themselves.
“Low interest rates will be a powerful incentive,” says William Hummer, chief economist for Wayne Hummer Investments. “People who want to be home owners will get back into the market.”

By STEPHEN GANDEL

www.dvwise.com

Engineered Lumber’s Green Attributes Provide Another Selling Point

Tuesday, May 18th, 2010

DV Wise prefers to use engineered lumber on our new homes

When Trus Joist introduced the first engineered I-joist in 1969, it wasn’t to save the planet. It was to help save a building industry that depended on huge, old-growth trees that were quickly becoming scarce and more protected by regulators.

As home builders started using engineered structural lumber, including I-joists, laminated veneer lumber (LVL), finger-jointed lumber, glue-laminated lumber, and manufactured trusses, they embraced their strength, their extra-long lengths, and their ability to keep floors from squeaking.

“I think of engineered lumber as green,” says Baltimore remodeler Paul Lidard, “but I use it because it’s more convenient” than solid-sawn lumber. “Everyone’s in favor of it because you’re more in control [of how much is wasted]. But they’re not thinking of it as a green product.”

Perhaps they should be. In addition to the strength and consistency builders have long appreciated, engineered lumber boasts eco-friendly properties worth marketing to homeowners in this new era of environmental consciousness.

Green Beginnings

Made from small-diameter or lower-quality trees or from waste from wood-processing operations, engineered lumber is a combination of wood that is peeled, chipped, or flaked and then glued to produce a durable panel, stud, beam, or joist.

There’s no need to use whole trees, large trees, or old trees to produce engineered lumber products, so those resources can be conserved. In fact, engineered lumber is made with about half the wood fiber of solid-sawn wood. And because engineered wood is so strong, it’s not necessary for a builder to combine multiple, standard-size lengths to create a beam that stretches across a tall wall, a wide ceiling, or the floor of a huge room. Instead, the builder can order a board cut to a precise length—even if it’s very long—which means less cutting on site and less waste heading to landfills.

And, manufacturers like to point out, engineered wood, while a composite of different kinds of wood fibers, still starts as trees, which are renewable and remove carbon dioxide from the atmosphere.

Some manufacturers are taking the additional step of incorporating wood from sustainably managed forests that are certified by programs such as the Forest Stewardship Council, the Sustainable Forestry Initiative, the Canadian Standards Association, and the American Tree Farm System. Manufacturers of engineered wood can earn certifications at different levels if they buy a substantial portion of their wood from sustainable forests and keep tabs on the chain of custody of the product.

Lingering Challenges

“I’m not sure why anyone would choose not to use [engineered lumber],” says green home builder Jon Alexander of Seattle-based Sunshine Construction. Aside from their environmental qualities, he adds, “I like their pretty darn consistent quality. When you order one of them, you know what you’re getting.”

Still, the product, which APA-The Engineered Wood Association predicts will increase significantly in production and use over the next five years, costs more than solid-sawn lumber in most markets, leaving some builders ambivalent about pitching it to potential buyers.

“I would prefer to use all engineered wood if I could, but that’s not the case,” says Lance Hobson, owner of Legend Builders in Paco, Wash., which builds 24 homes a year—mostly on spec—and uses engineered I-joists in all of them.

For custom homes, however, he offers the buyer the option of paying the 6 percent to 8 percent more he estimates a home would cost if he used engineered wood exclusively, and he has only had two takers, who were focused on building green homes.

Engineered wood is a hard sell, he says, because “without going into the negatives [of solid-sawn wood], there’s no way to tell the positives. If I told them that [traditional] wood would warp, crack, and split, I’d be casting a doubt over the workmanship of the homes I built with wood.”

At Winchester Homes in New Market, Md., sales staff tell potential buyers about the benefits of engineered wood, but the builders decide where to use it. “If they want a big, open space, engineered wood is what we’re going to go with,” says Randy Melvin, the builder’s director of research, standards and design assurance. “If they want a less-squeaky floor and the flatness of the floor is important, we use engineered wood.”

Tim Mosely, brand manager for Canfor, notes that most buyers don’t know what kind of wood builders use in their homes. “The benefit is really more to the builder than the actual home buyer,” he says.

Mosely notes that the green benefits are growing as manufacturers develop sophisticated software that helps builders order and cut precise lengths. Software from Boise Cascade, iLevel by Weyerhaeuser, and others allow builders to accurately specify the amount and types of materials needed, so builders buy less, avoid overbuilding, and waste less.

“Wood is a green building product, engineered wood is extremely green, and Boise’s design process makes the whole thing even greener,” says Boise spokesman Dale Robley, who notes that the industry is gravitating toward electronic designs that limit the need for paper for drawing them or gas for delivering them.

“You go to a typical jobsite and you see these piles of waste every night,” Robley says. “There’s absolutely no excuse for that anymore.” — BUILDING PRODUCTS

Most structural engineered wood is glued together with binders that contain phenol formaldehyde, a product with minimal off-gassing.

The binders used for some non-structural, interior-grade products, like particleboard, MDF, and hardwood plywood, however, can contain urea formaldehyde, a volatile compound that is classified as a carcinogen. Urea formaldehyde is also linked to respiratory problems, eye and nose irritation, and allergic reactions. The telltale sign of its presence: the sweet smell that most new kitchen and bathroom cabinets emit.

New regulations in California will restrict urea formaldehyde emissions, but do not deal with phenol formaldehyde. In response, manufacturers are developing formaldehyde-free binders, using products like polyurethane and even soy. Last summer, the California Air Resources Board adopted new caps on the amount of urea formaldehyde used to bind wood products used indoors, to take effect in 2009.

By:Sharon O’Malley

http://www.ecohomemagazine.com/green-building/engineered-green-lumber-green-selling-point.aspx

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