Mortgage Rates Still Near Record Low

With a much-anticipated speech by Federal Reserve Chair Janet Yellen looming on Friday morning and a possible Fed rate hike on the horizon in September, average fixed mortgage rates remained flat over the week but still hovered just above record lows, according to Freddie Mac’s Primary Mortgage Market Survey (PMMS) released Thursday.

For the week ending August 24, the average 30-year fixed-rate mortgage(FRM) was 3.43 percent, unchanged from a week earlier but still only 12 basis points higher than the record low of 3.31 percent set in late 2012. At this time last year, the average 30-year FRM was 3.84 percent.

The average 15-year FRM for the week ending August 24 was 2.74 percent, also unchanged from the previous week but down from 3.06 percent from a year earlier.

“Treasury yields were little changed from the prior week and the 30-year fixed-rate mortgage held steady at 3.43 percent this week,” said Sean Becketti, Chief Economist with Freddie Mac. “This marks the ninth consecutive week that mortgage rates have been below 3.5 percent. Markets are erring on the side of caution ahead of the second estimate for second-quarter GDP and Fed Chair Janet Yellen’s speech on Friday.”

The advance estimate for second quarter GDP growth, released in late July, came in at a disappointing 1.2 percent after an ever more disappointing 0.8 percent for the first quarter. The second estimate for Q2 GDP will be released on Friday morning by the Bureau of Economic Analysis.

Yellen’s speech on “Designing Resilient Monetary Policy Frameworks for the Future” is scheduled for 10 a.m. EST on Friday morning, August 26, as part of the Kansas City Fed’s monetary policy symposium in Jackson Hole, Wyoming.

There has been widespread speculation that a rate hike from the Fed will happen at the next policy meeting, which concludes on September 21. Until then. . .

“Mortgage rates remain in virtual stasis,” said Keith Gumbinger, vice president of “Quiet financial markets, no imminent threat of a move by the Federal Reserve as of yet and continuing moderate economic data have seemingly lulled markets to sleep for now, but that probably won’t last forever.” reported a slight uptick in the 30-year FRM for the week, from 3.50 to 3.51.

“Despite some increased probability of a rate hike by the Fed, interest rates remain closer to bottoms than not,” Gumbinger said. “We may get some additional indication of the Fed’s intentions from Fed Chair Janet Yellen when she speaks at a global central banking conference in Wyoming on Wednesday, but probably not much in terms of a clean, clear signal that the Fed is poised to act. More likely is that mortgage and other rates keep drifting along in a soft pattern until we get a lot closer to the next Fed meeting.”

Orlando airport pitch 1,800-acre project


Orlando Airport

Roads slated to access the project include Boggy Creek Road, Narcoossee Road and Medical City Boulevard. A planned extension of Osceola Parkway would access the southern end of the project.

With the Greater Orlando Airport to the north, plans mention transit prospects for the property, which has long known as the Poitras property.

Located in a southeast Orlando sector planning area, owners are seeking “urban village” land use approval. About 236 acres would be set aside for conservation, according to plans submitted last week. Plans also mention connections to the existing sidewalks and bike lanes in Lake Nona.

The project proposals comes as Starwood has submitted plans for the 1,572-acre Vista Park north of State Road 528 and west of State Road 417. And further east, Tavistock is working through the process of a project that would engulf other proposals. With more than 24,000 acres, Sunbridge would span stretches of Orange and Osceola counties.

Maycumber and Associates

Construction unemployment drops

June unemployment rates improved in 47 states, including Florida, a new analysis from Associated Builders & Contractors shows.

The national construction unemployment rate of 4.6 percent was 1.7 percent lower than a year ago, according to data from the U.S. Bureau of Statistics.


Construction Statistics

“The drop in the construction unemployment rate from June 2015 extends the uninterrupted monthly sequence of year-over-year rate decreases that started in October 2010,” said Bernard M. Markstein, president and chief economist of Markstein Advisors, who did the analysis for ABC. “Starting in 2000, when the BLS data for this series begins, the June national NSA construction unemployment rate has fallen from May every year except 2010 when it was unchanged.”

The top five states with the lowest construction unemployment rates included:

  • Vermont (1.9 percent)
  • Colorado (2.3 percent)
  • Idaho and Iowa (tied at 2.4 percent)
  • Nebraska (2.5 percent)

Meanwhile, Florida’s construction unemployment rate was 5 percent in June, a drop of 1.9 percent from May.

Limited supply of Homes is giving Buyer’s Headaches

To understand why Buyer’s are having headaches due to the limited supply of homes in , Florida it is relevant to first take a glance at the subprime mortgage crisis that coincided with the U.S. recession December 2007-June 2009. Many of the details in the following paragraph are from facts and information gathered by Wikipedia. Before we review those findings I would like to share with you a personal perspective as a licensed Real Estate Broker and Broker-Associate for 30 years in Central Florida. During the economic crisis my real estate expertise was primarily focused in the Southeast corridor of Orlando, FL specifically referred to as the area, and home of Medical City in Lake Nona. My husband, and real estate partner work at Keller Williams Realty Advantage III on 9161 Narcoosee Rd, Orlando, FL . 32827. Contact us anytime at 407-251-1314.  I can attest to you that we distinctly felt the hit of a “brick wall” in October 2005. A brick wall at the time we had no way of knowing just how thick and long it would be … not to mention with rebar steel inlayed within it. You will see that most reports begin showing signs in 2007, however, as Realtors we are effectively the “front lines” of army troops going into battle before the fly over and bombings come into the picture of war. It was brutal. The financial impact was devastating to Millions of Americans and Europeans, yet the psychological pressure and devastation it brought to so many families was equally devastating. Witnessing family feuds, divorces, children displaced from their schools and homes, forced relocations, and the overall ripple effect was heart breaking. Allyn Maycumber and myself did every thing in our power to ease them through these unprecedented challenging times. In my opinion it frustrated me that the government kept calling it a recession when in reality it was truly a GREAT depression. Review the Wikipedia information below, and then I will share Market Pulse graphs and statistics from the Orlando Regional Realtor Association to give you a clear 2016 up to date view of the low inventory of homes in our market place which is giving Buyer’s those nasty headaches. On a positive note you do have the Maycumber team of professional Realtors to find you your dream home even in the most interesting market. You need us now more than ever, and we are here to help serve you.

The United States (U.S.) subprime mortgage crisis was a nationwide banking emergency that coincided with the U.S. recession of December 2007 – June 2009.  It was triggered by a large decline in home prices after the collapse of a housing bubble, leading to mortgage delinquencies and foreclosures and the devaluation of housing-related securities. Declines in residential investment preceded the recession and were followed by reductions in household spending and then investment. Spending reductions were more significant in areas with a combination of high household debt and larger housing price declines.

The expansion of household debt was financed with mortgage-backed securities (MBS) and collateralized debt obligations(CDO), which initially offered attractive rates of return due to the higher interest rates on the mortgages; however, the lower credit quality ultimately caused massive defaults.  While elements of the crisis first became more visible during 2007, several major financial institutions collapsed in September 2008, with significant disruption in the flow of credit to businesses and consumers and the onset of a severe global recession.

There were many causes of the crisis, with commentators assigning different levels of blame to financial institutions, regulators, credit agencies, government housing policies, and
consumers, among others.  A proximate cause was the rise in subprime lending. The percentage of lower-quality subprime mortgages originated during a given year rose from the historical 8% or lower range to approximately 20% from 2004 to 2006, with much higher ratios in some parts of the U.S. A high percentage of these subprime mortgages, over 80% in 2006 for example, were adjustable-rate mortgages.  These two changes were part of a broader trend of lowered lending standards and higher-risk mortgage products.  Further, U.S. households had become increasingly indebted, with the ratio of debt to disposable personal income rising from 77% in 1990 to 127% at the end of 2007, much of this increase mortgage-related.

When U.S. home prices declined steeply after peaking in mid-2006, it became more difficult for borrowers to refinance their loans. As adjustable-rate mortgages began to reset at higher interest rates (causing higher monthly payments), mortgage delinquencies soared. Securities backed with mortgages, including subprime mortgages, widely held by financial firms globally, lost most of their value. Global also drastically reduced purchases of mortgage-backed debt and other securities as part of a decline in the capacity and willingness of the private financial system to support lending.  Concerns about the soundness of U.S. credit and financial markets led to tightening credit around the world and slowing economic growth in the U.S. and Europe.

The crisis had severe, long-lasting consequences for the U.S. and European economies. The U.S. entered a deep recession, with nearly 9 million jobs lost during 2008 and 2009, roughly 6% of the workforce. One estimate of lost output from the crisis comes to “at least 40% of 2007 gross domestic product”.  U.S. housing prices fell nearly 30% on average and the U.S. stock market fell approximately 50% by early 2009. As of early 2013, the U.S. stock market had recovered to its pre-crisis peak but housing prices remained near their low point and unemployment remained elevated. Economic growth remained below pre-crisis levels. Europe also continued to struggle with its own economic crisis, with elevated unemployment and severe banking impairments estimated at €940 billion between 2008 and 2012.

Now that you have a better understanding what happened in the housing bubble let’s take a at the Orlando, Florida three year history of inventory 2014,2015, and 2016.And while you are inventory Hsitoryreviewing these statistics keep in mind a few factors of home owners and investors. Given the sustained low interest rate environment, many owners have either purchased or refinanced and are locked into tremendously low interest rates over the past six years. It is highly unlikely that these homes will be coming  up for sale anytime soon as a result of this favorable financing. In addition to the sustained low interest rate environment and its potential damper on those properties actually coming up for sale anytime during the life of their loans, I should mention the “value disruption” factor that occurred between 2007-2010+.

A number of areas experienced a complete “reset” of values and in some cases to nearly HALF of their peak values. Buyers purchased properties in this marketplace at significant discounts from the high point, resulting in additional “frozen inventory”.  If you combine those two factors, it’s unreasonable to expect that these homes will be coming up for sale anytime soon. In addition, an unprecedented number of institutional investors entered the residential real estate market acquiring large pools and blocks of properties. This inventory is now also frozen and held. There is a current mentality among some homeowners and investors that home values will continue to rise. And indeed the low inventory has attributed to a strengthening of home values. Right or wrong, this mindset has become another factor in tightening of inventory.

This same dilemma plagues retirees finding limited or no options for retirement communities in their local area. Those retirement communities are costly. This also limits housing supply on the top end of the market since seniors are not motivated to sell unless they know exactly where they are going.

In the Lake Nona area of Orlando, Florida we do have a strong new housing development engine, and that is indeed giving our local buyers more options than most buyers across the country. Remember if you are interested in new construction let us represent you. The builder already factors in our compensation, and we carefully review your new home build contracts to make any needed changes to protect you. Meet us personally, or verify our single agency representation for you by email. The same applies to existing home sales. Our real estate expertise with Florida sales contracts is extensive, and so very important for one of the most critical asset purchases in your life.

Maycumber and Associates Lake Nona Florida

Writer and Realtor Pam Maycumber



Nemours, Andrews Institute become official USTA medical providers in Lake Nona – Orlando Sentinel

Nemours Children’s Health System and an internationally recognized orthopedic institute will be the official medical providers of the United States Tennis Association’s campus in Lake Nona, they announced on Thursday.

Andrews Institute for Orthopaedics & Sports Medicine, located in Gulf Breeze, and Nemours will provide the USTA with a team physician, sports nutritionists and athletic trainers year-round.

They will be responsible for medical services and care of visiting athletes, coaches, staff and spectators.

The partnership gives Nemours and Andrews prominent exposure in the 64-acre facility, officials said. A 16-court Nemours/Andrews Family Tennis Zone will also be created with smaller courts for beginners.

USTA officials said that they spoke with several health systems in the region, but the Nemours/Andrews partnership was the best fit.

“The idea of having a pediatric facility nearby combined with world-class institutes and the shared commitment of overall wellness for kids, all the boxes got checked,” said Lew Sherr, chief revenue officer at USTA.

Nemours and Andrews Institute have worked together before in North Florida, but this is their first official partnership.

Andrews Institute, which is part of Baptist in Pensacola, has more than 40 physicians and experts in orthopedics, sports medicine, joint care and neurosurgery. Nemours has one of the largest pediatric orthopedic practices in the United States.

Both will have staff on campus.

“We’re certainly going to be on call for USTA all the time,” said Dr. Sarah Gibson, a pediatric sports medicine physician at Nemours who completed her fellowship at Harvard and a tennis player. “We’re going to have an open line of communication with the staff and we’re always available to them.”

Dubbed the Home of American Tennis, USTA’s National Campus has 102 lighted tennis courts, making it one of the largest tennis facilities in the world.

The campus will be the headquarters for USTA’s Community Tennis and Player Development area, which features 22 courts and a player lodge that can house 40 players.

It will also be the home of UCF men’s and women’s varsity tennis program and will host the 2017 USTA/ITA National Intercollegiate Championships.

The campus is expected to host as many as 70 tournaments and events in 2017 with nearly 30,000 participants and as many as 100,000 attendees.

The Nemours/Andrews team will address acute injuries and rehabilitation, but also focus on injury prevention and athletic performance enhancement.

“The goal is to prevent injuries and recognize them early,” said Dr. James Andrews, founding partner of the Andrews Institute and world-renowned for his research in the field.

It will also serve as a lab of sorts for research on tennis injuries and prevention efforts, “so that we can make tennis even safer,” said Andrews.

Nemours, Andrews and USTA said they’re planning to develop programming to reach out to the community and give local kids access to activities, training and lifestyle education.

The USTA broke ground in Lake Nona in April 2015 and is expected to open the National Campus in December, with the first tournament scheduled for January.

The campus is open to the public.