Posts Tagged ‘homes with libraries’

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

www.dvwise.com

Product Review: Green Cabinetry

Monday, July 5th, 2010

DV Wise builds custom homes in the Lake Norman NC region

A product is only as sustainable as the sum of its parts. In the case of cabinetry, there are quite a few parts to add up.

When selecting cabinetry for a green-built home, dedicated research is required to break the products down and evaluate the origins of the wood used to make the raw materials, the resins that bind them, the chemical content of the glues used to adhere the parts together, and the VOC levels of finishes. 

Raw Materials

The base components of most wood cabinetry today are made with hardwood plywood, MDF, or particleboard. While these materials are more resource efficient than solid wood, manufacturing them historically has involved formaldehyde-laden resins; the high formaldehyde content off-gassing from some man-made materials creates health concerns, according to the Healthy House Institute, especially for people with chemical sensitivities.

Several major manufacturers of composite wood panels, including Timber Products and Columbia Forest Products, have already been working with resin manufacturers and refining their manufacturing processes to create no-added-formaldehyde (NAF) or no-added-urea-formaldehyde (NAUF) products. Columbia’s PureBond NAUF plywood, for example, utilizes a soy-based adhesive.

“The formaldehyde levels of [composite] products have come down dramatically over the past 10 years,” says Dick Titus, executive vice president of the Kitchen Cabinet Manufacturers Association (KCMA).

Helping the push are the most recent emissions requirements from the California Air Resources Board (CARB); once phase two of the rules begin in 2012, they will be the strictest regulations in the world. Though the laws are specific to the Golden State, most panel manufacturers and cabinet companies are changing over their stock across the country. There is also speculation that similar emissions regulations may be adopted at the federal level.

In addition to CARB compliance, some composite panels may carry the Composite Panel Association’s Environmentally Preferable Product (EPP) certification, which verifies formaldehyde emissions lower than government regulations and the use of recycled and/or recovered wood fiber.

Indeed, along with formaldehyde, consider the resource origins of the wood panels for recycled content (some certified by Scientific Certification Systems) and/or for sustainable harvesting as verified by the Forest Stewardship Council or the Sustainable Forestry Initiative, among others. Certified products may carry a slight price premium.

Finally, you’ll also need to examine the woods that make up the veneers and solid wood trim, doors, and drawer fronts. Austin Energy Green Building’s Sustainable Building Sourcebook recommends domestic hardwoods or certified, sustainably harvested tropical hardwoods as the most environmentally sound choices. “Veneer-grade domestic softwoods are often harvested from old growth timber, and non-certified tropical hardwoods are too often harvested in a manner that is devastating to the forest,” the group advises.

And, be sure to enquire about the chemical content of the glues used to adhere the veneers to the cabinet box; non-solvent-based adhesives can be comparable in performance and cost, Austin Energy says.

Alternative Materials
Though traditional composite wood panels dominate, alternatives exist that offer their own environmental benefits or trade-offs.

Solid wood is one option that will eliminate formaldehyde concerns, but it lacks the materials efficiency of an engineered product, is fairly rare, and is more expensive.

Weyerhaeuser makes composite panels using Lyptus, a Brazilian-grown wood that can be harvested for lumber in 14 to 16 years. Like bamboo, another cabinetry alternative, Lyptus offers the benefits of rapid renewability but does have to be shipped a longer distance. Wheatboard, made from waste stalks, is another option gaining attention.

As with traditional composite panels, ensure alternative engineered materials you select utilize formaldehyde-free resins.

Though more rare here, some metal cabinets can be a green selection from both a resources and health standpoint. For example, St. Charles Cabinetry says its metal options contain more than 70 percent recycled material and are 98 percent recyclable; the products’ baked-on powdercoat finish is considered hypoallergenic.

Finishes
Though low-VOC finishes are becoming more readily available, they’re not yet widespread due to concerns that are similar to those made during the transition to healthier paints: The quality and richness aren’t always equivalent and the application may be unfamiliar.

Still, the options have come a long way and you should enquire with your supplier about what they have available. For instance, Crystal Cabinetry offers a Valspar ULF topcoat that is Greenguard Indoor Air Quality certified.

Managing buyer expectations is key, as popular high-sheen finishes are harder to get in a low-VOC formula, and some natural-based products may have a slightly different look.

Reuse and Recycle
For remodelers, the greenest choice would be to protect and salvage as much of the existing cabinetry as possible. Refacing is one option, although the same questions need to be asked about the new adhesives and finishes.

At the very least, consider repurposing discarded cabinetry for the garage, workroom, or other lower-profile spaces.

There aren’t many options for recycling cabinetry, since veneers and finishes make separation difficult. Before trashing unwanted pieces, explore local options for donation, such as to a Habitat Restore, or consider listing the materials on Craigslist or Freecycle.

Putting It All Together
With the many components that need exploring, it’s easy to get bogged down by the product selection process.

The KCMA’s Environmental Stewardship Program (ESP) aims to ease some of the burden by recognizing manufacturers who meet requirements in five key areas: air quality, product resource management (wood origins and content), process resource management (manufacturing processes), environmental stewardship (including documentation of environmental quality commitment), and community relations. Manufacturers must earn points in all five areas to qualify.

About 140 brands—70 percent of the U.S. cabinet market—are certified under the program, says Titus.

To meet the ultra-green needs of his buyers, Texas builder and remodeler Don Ferrier works with custom cabinet shops. Though it takes a lot of legwork and documentation, this control ensures the products going into his tightly built homes won’t negatively affect indoor air quality.

Kati Curtis, ASID, LEED AP, of Nirmada Interior Architecture and Design in New York City, also relies on the control custom shops provide. It requires hand-holding at first to help them find and become familiar with new materials, she says, but they learn quickly and costs come back down.

Customers also begin to come around: “When it goes in and there’s no smell, and they understand it, then they see the value,” says Curtis.

Expect other buyers to follow. “With new generations of buyers in the market,” says Roger Rutan, vice president of sales and marketing at Timber Products, “you’re going to see a difference in demand for cabinetry that will fundamentally change the shape and look of the marketplace.”

by Katy Tomasulo, Deputy Editor for EcoHome.

www.dvwise.com

Is a Housing Recovery on the Horizon?

Sunday, June 6th, 2010

A design and construction industry recovery may not be too far distant, if recent indicators are drawing an accurate picture. The latest U.S. Census Bureau new residential construction data, as well as the most recent American Institute of Architects (AIA) Architecture Billings Index (ABI), have shown sustained improvements in the past few months, and economists’ housing industry forecasts are mostly sanguine.

After two months of modest improvements, the AIA’s ABI increased once again in April with a 2.4-point gain over March for a score of 48.5. While this reflects a continuation of the overall decline in demand for architecture services, the AIA notes that it also is the highest ABI since January 2008. Inquiries for new projects increased again, as well, scoring 59.6, up from March’s score of 58.5.

Still, don’t expect a swift recovery. “The construction industry tends to lag behind the overall economy as conditions improve following a recession,” says Scott Frank, AIA’s director of media relations. “The three-month uptick is very encouraging for the design and construction industries, but recovery is happening at a slow pace.”

“Tight credit continues to be a problem, particularly for smaller architecture firms. We have heard reports of countless projects being shelved indefinitely or canceled outright because banks are not lending for real estate projects,” Frank says. “If that persists, then it could jeopardize a full recovery.”

The U.S. Census Bureau’s April New Residential Construction Report also shows some continued improvements, although permits for all types of housing declined significantly.

Permits for privately owned housing units fell to a seasonally adjusted annual rate of 606,000, 11.5 percent below March authorizations, and permits for single-family units declined 10.7 percent to a rate of 484,000 units. Authorizations for units in buildings of five or more units fell 14.9 percent from March.

Overall starts of privately owned housing units rose 5.8 percent to a seasonally adjusted annual rate of 672,000. Single-family housing starts increased by 10.2 percent from March to a rate of 593,000, but starts of units in buildings with five or more units fell 23.6 percent. Completions for all housing types increased in April, with overall privately owned housing unit completions going up by 19.2 percent to a rate of 769,000. Single-family housing completions increased 14.6 percent to a rate of 564,000 and completions of units in buildings of five or more units jumped 33.3 percent from March.

Although there are several ways the housing recovery could be derailed, the economy finally appears to be getting back on its feet, according to economists at the National Association of Home Builders’ (NAHB) Construction Forecast Conference in May. But it’s important to remember that the design and construction industries didn’t go bust and bottom out overnight, and they certainly will not bounce back overnight, either. Economists predict it will take nearly three years to return to normal and even longer to reach a full recovery.

However, “the housing market is coming back to life, GDP is up, and unemployment is decreasing,” AIA’s Frank notes. “The construction industry is likely to catch up to the overall economy through the rest of this year and into next year.”

The outlook is much less frightening moving forward than it has been for the past few years. According to NAHB forecasts, 2010 will be a year of stabilization in home prices, healing of credit conditions, and a return of builder and consumer confidence.

Increasing job formation and rising employment will drive demand for housing, and although there currently are about 10 million vacant homes on the market, Mark Zandi, chief economist for Moody’s Analytics, expects increasing demand will work through that excess housing in less than two years.

Housing demand sank to its lowest point in 2009—bottoming at 550,000 units—after peaking at 2.1 million in 2005. In response to increasing demand for housing, Zandi said during the NAHB’s conference, “I expect single-family and multifamily starts of approximately 700,000 units this year, closer to 1 million in 2011, and by 2012 closer to trend, which is about 1.7 million units.”

Unfortunately, foreclosures are likely to rise as strategic defaulters walk away from homes that have plunged in value, Zandi predicts, which could hinder the recovery. However, according to David Crowe, the NAHB’s chief economist, areas of the country that experienced a less dramatic boom and bust, and therefore suffered the least economic impact and have the least risk of increasing foreclosures, will be the first to recover.

Overall, lenders are starting to loosen restrictions, making access to mortgage credit more available. Zandi notes lending conditions should continue to improve through 2011. Also, access to jumbo loans will improve as lenders begin to feel more comfortable with the credit environment. “Jumbo lenders will become more aggressive and we’ll see more lending as we make our way through 2010 and into 2011,” he says.

Crowe predicts that although remodeling fell off during the housing downturn, it didn’t suffer nearly as much as new construction. Remodeling will pick up during the recovery and may even improve at a better rate than the overall construction market, according to Crowe. “People whose home values have been damaged may in fact decide to stay in place and remodel rather than move as they would have in the past,” he says.

By Stephani L. Miller

http://www.customhomeonline.com/industry-news.asp?sectionID=204&articleID=1299436

www.dvwise.com