FREE Report – Today’s Guide for Home Loans

Home Loans - The New Normal

Today's home loan market has consumer's confused.  New regulations have tightened an already difficult to understand market place for mortgages.  How do you know if you qualify for a home loan?  What do you need to do to qualify for a very low rate?

Many "would be home owners" are dismayed with the many requirements for home financing and those who want to refinance are also discouraged by the many complaints against the big banks on taking months and months to get the refinance done.

John Sauro, President of North Atlantic Mortgage Corp. say's that consumers must be armed with knowledge. "The home loan market has changed greatly since the credit crash.  Consumers need to be educated before deciding on a home loan and where to apply for one.  Consumers that are not prepared to meet the today's home loan qualification's, may find themselves chasing lender's for months for an answer."

Finally, there are answers to the many questions consumers have.  North Atlantic Mortgage Corp. has made available a FREE report- "Today's Guide for Home Loans"

This report cover's all that consumers need to know about today's home loan financing challenges.  This is a must read for anyone planning to buy or refinance a home.

CLICK HERE to get your free FREE Report "Today's Guide for Home Loans" now!

or contact North Atlantic Mortgage at 1-877-794-5363


Builders Say Headwinds Remain for Recovery

Single-family and multi-family housing starts are predicted to post double-digit gains this year over last year, according to the National Association of Home Builders. NAHB says that the market could post even stronger gains but several factors are holding back the recovery.

The biggest obstacles? Labor and lot shortages, rising costs of building materials, obtaining construction credit, and overly restricting mortgage-lending rules are hampering the market, NAHB economists noted during NAHB’s recent Spring 2013 Construction Forecast Conference webinar.

“As demand for housing gradually picks up steam, supply chains for building materials, developed lots, and skilled workers will take some time to re-establish themselves in the aftermath of the Great Recession,” NAHB notes.

For example, prices of building components — such as gypsum, softwood lumber, and concrete — are above 90 percent of their housing boom peak.

As such, home construction costs are rising at a faster pace than appraised values, says David Crowe, NAHB chief economist.

Still, there are plenty of positives to point to in the recovery, NAHB notes. Home prices are posting solid gains, with nearly a 6 percent annual rate of home price appreciation on a national basis. Growth in housing is rising at a faster pace than the overall economy, Crowe says.

Notably, North Dakota, Texas, Oklahoma, Wyoming, Montana, and Louisiana — all energy-producing states — are the first projected to return to normal production of homebuilding levels by next year, says Robert Denk, NAHB's assistant vice president for forecasting and analysis. Denk also noted that Iowa is also approaching a faster return to normal conditions.

Source: National Association of Home Builders

Are you looking to lower your mortgage payment or qualify for a higher loan amount and not sure of who to use?

  • Should you spend your days checking all the different banks for their different rates?
  • Should you check bank rate monitor?
  • Should I use the bank I have my savings account with?


  • It would take too much time to go to bank to bank to bank and by the time you apply and lock your rate it will not be the lowest anymore.
  • Banks advertise with a low rate on bank rate monitor just to get you to call, then the rate is completely different, always!!
  • Just because you have a savings account and you know someone in the bank means nothing! Underwriting is done by the books and never takes into consideration relationships. The underwriting of your loan is not done in the branch and you will always pay for a retail rate not a wholesale rate.


A broker has to pass extensive training and licensing to get his licensing, a branch worker doese not. A broker has access to all the banks wholesale rates. With one application a broker can lock your mortgage rate at what ever bank has the lowest rate at a moments notice. They monitor all bank rates better than you can, they live and breath rates all day long. If they have been doing this long enough they can even predict what bank will have a very low rate.

North Atlantic has been a top Mortgage Broker since 1996 and clients always return because they have been through the process and know this is the only way to get a very low rate.

Call to speak to John Sauro, he is the most experienced Mortgage Professional you will ever find. He will put your mortgage concerns at ease with a very quick phone call or email him john(@) and with about 10 questions answered you will be on your way.

It cost nothing to get started!!!

Don't waist your time & money!! Contact him now!! 1-877-794-5363

John Sauro



North Atlantic Mortgage Corp. 733 Summer St. Stamford, CT 06901 

Licensed Mortgage Broker, CT, NY, FL, Banking Department *Loans Arranged Through Third Party Providers. MORTGAGE BROKER ONLY, NOT A MORTGAGE LENDER OR MORTGAGE CORRESPONDENT LENDER. NMLS #1375

What Mortgage Rate Should I Have?

Use the Financial Tool below and see for yourself what mortgage you need.

The goal  is to get the lowest  monthly mortgage payment and essentially save you interest over the term of your mortgage. When you are considering refinancing your mortgage it is important to calculate how long it is going to take you to break-even or to recoup the amount of money that it costs you.

FINANCIAL TOOL - A quick view of your mortgage.

mortgage calculator

Real Estate Investment Analysis Software

by: Kim Charles Petty
Investing in Real estate is acquiring an increasingly critical profile with advancement in technology. Like other businesses all aspects of real estate investing also have become technology oriented and complicated. You may find handling day-to-day operations quite stressful and difficult to handle without obtaining expert support. The easiest way to cope with such a situation is to use real estate investment analysis software.

The software is user friendly and will prove to be the ideal option to manage your high profit ventures in real estate investing. To make it easier for you to handle the software, a detailed user manual and a CD are provided along with it. This will let you clearly comprehend the application and procedure for using the software.

The software consists of many features that are of immense use to committed real estate investors, brokers, real estate agents and developers. It allows quick and easy real estate investment analysis presentation for individual investors that help them in understanding implications of their investment moves and lets them make an informed decision on real estate investing.

There are many companies that sell real estate analysis software. Good quality software is a powerful tool that will let you determine your return on investment and analyze cash flows. It provides a near accurate estimate of future wealth/net worth and allows comparing multiple income properties through an executive summary. Using an executive summary you can run assumptions against different income generating properties and then make a comparison of the financial data derived through the executive summary to determine the property that will give the highest return. This caters to systematically building wealth through your real estate investments by making quick and better-informed decisions.

This user friendly software is available for all types of real estate like apartment buildings, single family rental housing, office buildings, industrial properties, ware houses and mini warehouses, commercial buildings etc. The software will help you generate all types of related financial reports like income statements, cash flow statement, rent roll, mortgage and equity, sensitivity analysis, executive summary, operating expenses etc. It can also let you have a breakdown of operating expenses in the form of expense item amount expressed as a percentage of total operating expenses and a percentage of effective gross income as well.

Real estate investing analysis software provides you with the flexibility of entering 2/3 mortgages on a one property to let you make a mortgage analysis of your investment real estate. It can take into account interest only mortgages, fully amortized mortgages, one future mortgage or refinancing, interest only mortgage with balloon payments, fully amortized mortgage with balloon payments etc.

You must look for real estate investing software that allows powerful sensitivity analysis by incorporating variations in purchase price, loan interest rate, appreciation growth rate, income growth rate, expense growth rate, vacancy rate and reinvestment rate of return.

In the real estate business you may come across terms that may appear to be complicated or confusing. Good real estate investment analysis software will invariably include an encyclopedia to help you out with this. It will clarify and help you understand the various real estate terms as well as its principles, concepts, practices and calculations with explanations to financial indicators like return, cap rate, IRR, GRM, DCR, DSR etc.

About The Author

Virtual Real Estate Investing Experts Kim and Charles Petty have been involved in over 700 real estate transactions in the last 9 years and are the creators of the Ultimate Turn Key Virtual Real Estate Investing Systems for investors all around the world who want to take advantage of the awesome profit opportunities in today’s real estate market. They are the worlds leading experts on Virtual Real Estate Investing. Go to or call 1-800-311-9228.


A New Perspective Can Increase Your Client List

Realtors should look at their clients, not just in terms of buying and selling their personal residences, but also in terms of being real estate investors. You think your clients do not have enough cash to invest in real estate? Think again. Did you know that you could invest IRA, Roth and 401(k) accounts in real estate? Your clients probably do not know this.

Consider asking every client these three questions:

1. Are you interested in buying real estate as an investment?

2. Did you know that you could invest your IRA in real estate using a self-directed IRA account?

3. Do you want me to forward information to you on investment properties?

Before I became a commercial realtor I asked my stockbroker and my accountant, "Can I invest my IRA in real estate?" Answers ranged from "no" to "it's possible but incredibly difficult". Being a real estate investor for years, I was always unhappy with these answers but was not willing to give up. After years of searching I discovered that yes, you can invest your IRA in real estate and soon was investing my own, and my clients' accounts, in various real property purchases.

Being the bearer of good news is always a good thing. Letting people know that this is possible is bound to raise interest in your services and increase your client contact. This is such good news, I've discovered, that people cannot wait to tell their friends about the possibility of investing IRAs in real property as opposed to the stock market. Dissatisfaction with securities due to market instability, mutual fund indiscretions and unscrupulous CEOs has caused everyone to look for alternatives and leaves the door open for you to bring other investment choices to your clients.

You probably have questions, such as:

How does investing IRAs in real estate work?
IRA accounts can be transferred from traditional IRA custodians to self-directed IRA custodians and invested in all kinds of real estate as well as notes, private placements and more. The IRA funds stay in an IRA account and there are no tax consequences if investments are done correctly.
Is it legal? Has the IRS changed the IRA law? Why hasn't anyone told me about it before?
Yes, investing in what you decide to is legal. Consult the IRS IRA FAQs to see what they have to say about real estate in IRAs ( The law has not changed, the IRS does not recommend or endorse any type of in-vestment. The investment of IRAs in real estate has been allowed from the very beginning of the IRA. You probably don't know about this because stock brokers make their living selling/buying stock and earning commissions on the trades. Why would they want people to know they could invest in real estate?
How can this information be useful to me?
Would the opportunity to tap into commissions based on IRA investments in addition to your standard transactions appeal to you? There is almost $3 trillion in buying power currently held in IRAs, the majority of which is held by customers who don't know they can invest it in real estate, at least not until you tell them! As a real estate broker you can also benefit in terms of your own retirement because of your access to properties at whole-sale. Also, consider how many more people you can market your listings to.

How can I learn more about investing IRAs in real estate? Your first stop should be finding a local self-directed IRA administrator. You can find continuing education classes as well as publications that can help you learn more. Increase your commissions by increasing the scope of your business. Include clients' IRAs as part of your business. Use the three questions in newsletters, your web-site, ads and whenever you meet a client. Be the bearer of good news and your clients will love you for it.

Catherine Wynne, President of Entrust New Direction IRA ( has extensive personal experience as a real estate investor and syndicator and is recognized regionally as an expert in the IRS rules for IRA investment. .

Can You Say Whiplash?

Friday August 20th, 2011 6:15 PM ET
By John Sauro

Can You Say Whiplash?
Whiplash is a good description of the recent activity in the financial markets. The stock market has logged its worst 4-week drop since March of 2009. Stocks accelerated their selloff to finish near session lows in light, choppy trading Friday as investors were reluctant to remain in the market ahead of a weekend, amid worries over a global recession in addition to the ongoing euro zone jitters.

Bonds prices and Mortgage rates have been the beneficiary of the concerns in the global economy and the selloff in stocks. The 10 Year Treasury yield plunged to a record low of 1.97% as the weekly 30-year mortgage tracked by Freddie Mac hit a low not seen in over 50 years. At one point the 30 year conforming fixed rate was priced at 4 percent.

After a wild week of trading, Mortgage Bonds hit a ceiling of resistance at the $101.75 level to settle the week at $101.44. The charts are showing a “Bearish Double Top Reversal”, a good reason for my bias toward locking into mortgage rates.
If the stock market reverses, it’s possible much of the gains in Bonds would evaporate pushing mortgage rates higher.

Inflation numbers and expectations will help to determine the direction of interest rates. It’s important to pay close attention to incoming inflation numbers and expectations - as in order for Mortgage Bonds, the 10-year Note and the 30-year Bond are to go higher - inflation expectations and numbers must level off. Otherwise Bond prices will have to move lower over time, pushing mortgage rates higher.

Click to Listen to Bloomberg Radio interview with John Sauro and Kathleen Hays


Economic News

Home prices rose 1% in May compared to April, and 16 of 20 metropolitan areas tracked by the Standard & Poor's/Case-Shiller house price index registered monthly price gains.

The Mortgage Bankers Association's weekly mortgage applications survey for the week ending Aug. 12 noted its market composite index – a measure of mortgage loan applications – grew 4.1% on a seasonally adjusted basis, while the same index increased 3.6% on an unadjusted basis.
The Wall Street Journal said that Fannie Mae is paying $500 million to buy $73 billion worth of servicing rights from the wobbly Bank of America. Since Fannie is a ward of the Treasury that means the $500 million (more or less) is coming from – guess who– Taxpayers.

July Housing Starts Off 1.5%, Less Than Expected; Permits Down 3.2%,

Lower rates and more liquidity will not help this economy further. There is plenty of money to lend, but the "velocity of money", the rate at which money is spent or lent, is as Fed President Richard Fisher said, "in a coma" …meaning that everyone is neither spending nor lending.
Gold hit a Record $1,877 an ounce on Friday, highlighting the ongoing panic buying over the debt crisis. Analysts believe a correction of 8 percent is likely as prices may be overblown due to the debt crisis.

Jobless claims up to 408,000
Initial jobless claims increased 2.2% last week, climbing back over 400,000.
The Labor Department said the seasonally adjusted figure of actual initial
claims for the week ended Aug. 13 rose by 9,000 to 408,000 from 399,000 the
previous week, which was revised upward 4,000. Analysts surveyed by Econoday
expected 400,000 new jobless.

Inflation Surging:
Producer Price Index Gains 0.4%; Up 0.2 % ex-Food and Energy



Don’t let the bed bugs bite! Chester will let you sleep tight.

Pesticides kept bed bugs in their place for the past fifty years, but now, largely due to the ban on DDT and increased international travel, bed bugs are popping up everywhere.   Travelers are routinely warned about bed bug infestations, and high profile institutions, such as the United Nations, Lincoln Center, the Waldorf-Astoria, Bloomingdales have also been under siege in recent months.  Bed Bugs can and will nest almost anywhere.  Is your home next?  Let Chester, the bed bug detection dog, give you peace of mind. 

Bed bugs, which range in size from a pin head to an apple seed, are nocturnal insects.  They can hide in any space the width of a credit card, including floor boards, baseboards, furniture, and electronics, as well as mattresses and box springs.   Bed Bugs venture out only in the dead of night, and therefore are extremely difficult to detect with the naked eye. Chester, however, can find them in a matter of minutes, with up to 98 percent accuracy. 

Recognizing the need for a bed bug detection dog in Northern Westchester and Fairfield counties, long time friends Erin Joslyn of Pound Ridge and Carla Foran of Stamford, founded Peace of Mind Canine Bed Bug Patrol.   Chester, a beagle mix, is a “Pepe Dog,” trained at the J&K Canine Institute in Gainesville, Florida. A University of Florida study found J&K dogs to be between 96 and 98 percent effective in the detection of the scent of live bed bugs and their viable eggs.

If you think you may be suffering from a bed bug infestation, don't panic!  Peace of Mind is an independent entity and is in no way associated with any pest control company.  Carla and Erin are always thrilled to be able to inform clients when no evidence of bed bugs have been detected.  However, in the event of an infestation, they can advise you of the safest and most cost effect options available.

Buying a New Home?

Protect yourself and your investment!  Have Chester inspect your property prior to move-in.  For even greater peace of mind, Chester will inspect your moving van before your belongings are loaded.

Luggage Inspection Service

Have Chester inspect your bags, either in the comfort of your own garage, or at our inspection station. Appointments arranged to coincide with your return flight. Give yourself the Peace of Mind of a clean inspection, or protect your home and your family by treating infested baggage outside your living area. Reasonable rates.

Contact Peace of Mind for further information or to schedule an appointment.

(914) 215-4797

“Know When to Hold’em – Know When To Fold’em”

Market Update Saturday June 25th, 2011 6:00 am ET
 By John Sauro

That old Kenny Roger’s song says it best. “Know When to Walk Away and Know When to Run”

Mortgage Bonds seem to be trapped between support and resistance, as there were no gains today despite falling stock prices.
Mortgage rates, which move lower when Bond prices move higher, saw no change.  The 4% coupon finished unchanged at 101.25.  The yield on the 10-yr note hit a 2011 low of 2.87%.  For those of you looking to time locking into a low interest rate, my advice is to lock in now.  Rates can move higher a lot faster and a lot more than they can move lower.

Right now rates are near the bottom of their six month range.  So, you may save an extra $29 in the monthly payment if you hold out for .125% better in rate, or it can cost you $149 more in the monthly payment if rates move up by .625% on a $400,000 loan. 
Take a look at Feb 7th to Feb 8th on the chart below.  In that one day the Bond lost 116 Basis Points.  That correlates to an increase of .625% for the 30 year fixed rate mortgage, as mortgage rates move about .125% for every 22 basis point move in the Bond price.
And believe me; banks raise their rates faster than they lower them.

Gamblers look at the odds. Would you gamble $149 to make $29 on a game you don’t fully understand?
I watch this game all day, every day, I’m pretty good at it and I wouldn’t make that bet.
If you’re a gambler, know when to place your bet, but know when to walk out of the casino.

Lower Jumbo Loan Amounts

Fannie Mae and Freddie Mac, the private mortgage lending entities under government conservatorship, are set to reduce their maximum conforming loan limit from the current $729,750 to $625,500 on October 1st.
Some lenders have already reduced their loan limits to $625,000.  So if you need a loan amount in excess of the new limit, I suggest you get moving ASAP.
Economic News

This weeks Fed meeting left the Fed Funds Rate unchanged and the Policy Statement was about the same.
Fed Chairman Bernanke acknowledged the slowing economy and revised their 2011 GDP lower to 2.9% from the earlier forecast of 3%.  The Fed acknowledged “frustratingly slow” pace of job growth, stating the unemployment rate will average 9.6% to 8.9% in the 4th quarter of 2011…higher than the previously forecasted 8.4 to 8.7%.

Jobless Claims post a surprise gain, rising 9,000 to 429,000. Estimates called for a decline of 1,000.
Existing Home Sales continued its downward trend for the sixth month in a row in May as weather and financing problems weighed on the market, according to the National Association of Realtors.  Sales of previously owned homes fell 3.8% to a seasonally adjusted annual rate of 4.81 million in May, the lowest since November.

New home sales fell 2% in May after a 6% increase in April.

Economic trouble puzzles Fed chief, too

By PAUL WISEMAN and MARTIN CRUTSINGER, AP Economics Writers Paul Wiseman And Martin Crutsinger, Ap Economics Writers Wed Jun 22, 5:57 pm ET

WASHINGTON – The economy's continuing struggles aren't just confounding ordinary Americans. They've also stumped the head of the Federal Reserve.

Fed Chairman Ben Bernanke told reporters Wednesday that the central bank had been caught off guard by recent signs of deterioration in the economy. And he said the troubles could continue into next year.

"We don't have a precise read on why this slower pace of growth is persisting," Bernanke said. He said the weak housing market and problems in the banking system might be "more persistent than we thought."

It was the Fed chief's most explicit warning yet that the economy will face serious challenges next year. For several months, he had said the factors working against economic growth appeared to be "transitory."

The Fed cut its forecast for economic growth this year to a range of 2.7 percent to 2.9 percent from an April forecast of 3.1 percent to 3.3 percent. It also cut its forecast for next year to a range of 3.3 percent to 3.7 percent from an earlier 3.5 percent to 4.2 percent. The Fed also said unemployment would stay higher than it had expected earlier.

In a policy statement issued at the end of a two-day meeting, the Fed blamed the worsening economic outlook in part on higher energy prices and the earthquake and tsunami in Japan, which slowed production of cars and other products.

But at a press conference afterward, the second of what the Fed says will be regular question-and-answer sessions with reporters, Bernanke conceded the economy's troubles are more puzzling and potentially more long-lasting than a pair of temporary shocks.

The Fed announcement, at 12:30 p.m., had little effect on the stock and bond markets. Bernanke began speaking at 2:15, and stocks started falling at about 2:30, when he acknowledged that some of the economy's problems could linger into next year. The Dow Jones industrial average closed down 80 points for the day.

The Fed's statement Wednesday stood in contrast to the Fed's more upbeat view when officials last met, eight weeks ago. At that time, the central bank said the job market was gradually improving.

Since then, the economic news has been gloomy. The government reported that the economy grew at an annual rate of only 1.8 percent in the first three months of the year. It isn't expected to grow much faster in the current quarter. The economy added 54,000 jobs in May, far fewer than in the previous two months. Consumer spending has weakened, too.

The bad economic news is taking a political toll on President Barack Obama. For the first time this year, an Associated Press-GfK poll found that fewer than 50 percent of respondents believe Obama deserves re-election. Obama's overall approval rating fell to 52 percent in the new poll. It had risen as high as 60 percent after the U.S. raid last month in Pakistan that killed Osama bin Laden.

The new Fed statement acknowledged a slowdown over the past two months. "They see the weakness," said Bruce McCain, chief investment strategist at Key Private Bank. "You can hear their concern about economic weakness despite their hope it is likely to be temporary."

The Fed stuck to its plan to bring an end this month to a program to help the economy by buying $600 billion in government bonds. The Fed also intends to keep short-term interest rates near zero "for an extended period," a phrase it has been using the past two years. Though the central bank noted that inflation has risen, it expects that to be temporary as well.

The Fed has kept rates at ultra-low levels since December 2008. Abandoning the promise to keep them there for an "extended period" would be viewed as a signal that the Fed is preparing to raise interest rates. Many private economists think it will be another full year before the economy has recovered enough for the Fed to do it.

Economists looking for clues to the Fed's next move didn't get much help Wednesday. "There's no obvious hint of tightening here," said Jim O'Sullivan, chief economist at MF Global. "There's no hint of new easing."

The bond-buying program has been controversial. Supporters say the bond purchases have kept interest rates low and encouraged spending. Low long-term rates make it easier to buy homes and cars and for companies to expand.

They also argue that those lower rates fueled a stock rally. Since Bernanke outlined plans for the program last August, the Standard & Poor's 500 index is up 24 percent. Lower rates made stocks more attractive to investors than bonds, whose yields were falling.

The average rate on a 30-year mortgage has stayed below 5 percent for all but two weeks this year and was 4.5 percent last week. But low rates haven't helped home sales much. They fell in May to the lowest level since November.

Critics, including some Fed officials, saw things differently. They warned that by pumping so much money into the economy, the Fed increased the risks of high inflation later.


The Westchester County Association is a proud sponsor of


Date: Wednesday, July 13, 2011
Time: 2:30 to 6 pm
Location: 1133 Westchester Avenue, White Plains, NY 10605
special thanks to RPW Group

The Westchester Real Estate Conference promises to be a terrific half-day of informed conversation, valuable insights, and unparalleled networking.

Includes a Networking Cocktail Party following the panel discussions

Click Here to Register for $75.00 per person (up to 3)
Click Here to Register for $60.00 per person for groups of 4 or more
Click here to Register via fax or mail

For more information, please visit:


  • Real Estate Brokers
  • Real Estate Developers
  • Commercial Builders
  • Economic Development Officials
  • Government Agencies
  • Educators/Colleges
  • Architects
  • Landscapers
  • Attorneys
  • Financial Institutions
  • Transportation Officials

As Renters Grow in Ranks, Options and Affordability Shrink

The number of renters spending 50% or more of their income on housing and utilities is at an all time high, according to a recent study.

By: Claire Easley

Rental housing is home to 38 million U.S. households today, according to the National Low Income Housing Coalition (NLIHC). While households can choose to rent for a variety of reasons, for many of these Americans, it is a matter of economic necessity.

The average renter wage in the U.S. is estimated to be $13.52 per hour, according to "Out of Reach," a recent study conducted by NLIHC. Not only does such a wage fall short of what is generally needed to buy a home, but it is also falling increasingly short of what it takes to rent even a modest apartment.

The number of renters spending more than 50% of their income on rent and utilities, a situation defined as a severe cost burden, is at an all-time high, according to a recent study conducted by Harvard University’s Joint Center for Housing Studies (JCHS). The study, titled "America’s Rental Housing: Meeting Challenges, Building on Opportunities", reports that more than one in four renters, or 10.1 million Americans, faces such a burden. That number has grown by 2.6 million over the past decade. An additional 26% of renters spend between 30% and 50% of their income on rent and utilities, meaning that more than half the country’s renters face at least a moderate cost burden.

“If you are a person working a low-wage job and are spending 50% or 60% of your income on housing, you will have no room for error, no room for catastrophe, no room for savings, and certainly no ability to think about plans for retirement,” said Sheila Crowley, president and CEO at NLIHC, during a press call announcing the findings of "Out of Reach."

And it’s not just the lowest paid workers that are being affected. “In the last decade, rental housing affordability problems went through the roof,” said Eric Belsky, managing director of the JCHS and an author of "America’s Rental Housing." “And these affordability problems are marching up the income scale.”

Harvard’s study found that although severe housing cost burdens are more concentrated in the bottom fifth of the household income distribution, during the past 10 years, the number of renter households in the next two higher quintiles that faced a severe housing cost burden grew by one million. There were also increases among lower-middle-income and middle-income renting households paying between 30% and 50% of their income on housing and utilities. “In real terms, it means more people have less money to spend on household necessities such as food, healthcare, or savings,” Belsky said.

No Safe Havens

According to the NLIHC’s report, the national average for a fair-market rental studio apartment is $712 per month—$9 more each month than what the average renter could afford, using the generally accepted standard of housing affordability as 30% of a household’s monthly income.

And while a studio might suffice for one person, single-person households only account for two in five renters, NLIHC reports. Widespread perception holds that renters are young, but the Harvard study found that 46% of heads of renter households are between the ages of 35 and 64, prime years for households to have children living at home.

Nationally, the fair-market rent for a modest two-bedroom apartment is $960 per month, according to NLIHC. That rate would leave a minimum wage worker just $68 per week for all other expenses, explains Danilo Pelletiere, research director and chief economist at NLIHC. A renter would need to make $18.46 per hour to make that average rent affordable.

However, “just as there is no national temperature, there is no national housing market,” Crowley pointed out. And in many areas of the country, the situation is much worse.

In Hawaii, the most expensive state to rent in, a household must make $31.08 per hour to make a modest two-bedroom apartment affordable. However, the state’s estimated average renter salary is $13.65. At minimum wage, a household would need 4.3 full-time jobs to make a two-bedroom apartment affordable, "Out of Reach" reports.

In fact, Wyoming is the only state in the nation where a household would not need more than one full-time job at a given state’s average renter wage to be able to afford a two-bedroom apartment at fair-market rent, according to NLIHC.

Affordability problems were found across urban, suburban, and rural areas. Even in Clay County, Ky., the most affordable county in the nation according to NLIHC, a household would need to earn more than $8 an hour to make a two-bedroom apartment affordable at fair-market rent. Meanwhile, minimum wage stands at $7.25. “There is no haven for low-income renters,” Pelletiere said.

Renters with high housing cost burdens have little left to pay for other necessities such as food, clothing, and healthcare,” a fact sheet reporting the Harvard study’s findings states. “On average, severely burdened families spent 71% less on transportation, 52% less on clothes, 52% less on healthcare, and 37% less on food than those living in affordable housing.”

Growing Demand, Diminishing Supply

The need for rental housing is expected to grow dramatically, with the number of U.S. households that rent their homes increasing to 42.6 million by 2020, according to the Harvard Joint Studies report.  

“The housing bust and Great Recession have pushed up the share and number of renter households,” the study reported. “With millions of homeowners delinquent on their mortgages, further increases in the renter population are likely. Owners that have gone through foreclosure are especially likely to remain renters for a number of years to come.”

Unfortunately, just when it seems to be needed the most, the country’s rental stock is disappearing, with low-cost rentals fairing the worst.

Between 1999 and 2009, 6.3% of the country’s rental stock was lost, equating to 2.4 million lost units, the Harvard study found. The decade saw a permanent removal of 12% of low-cost rentals, twice the loss rate of units renting for between $400 and $799 and four times the loss rate of units renting for $800 or more.

And while rent increases paused during the recession, the study reports that they are on the rise again, according to a survey of rents among professionally managed apartments.

The Message for Builders

While rental housing usually calls to mind massive high-rises built by large-scale developers, the Harvard study reports that “more than half of all rental units are in small structures, including single-family homes, properties with two to four units, and manufactured homes.”

In fact, the majority of new apartment construction caters to the higher end of the rental market. In 2009, the median asking rent for a new, unfurnished apartment was $1,067, compared to $808 for all rental housing, the Harvard study reports.

For builders looking for practical solutions, Pelletiere has a litany of suggestions, including mixed-income developments, inclusionary zoning provisions setting aside affordable units, and building at different densities.

He also emphasized the importance of something many builders are focusing on already: using building technologies to build more efficiently. Since construction costs are a major determiner of rent prices, Pelletiere argues, “to the extent that we utilize that technology to build more efficiently, that should lower rents.”

Claire Easley is senior editor, online, at Builder.

  • From: BUILDER 2011
  • Staying the Course, Providing Value and Commit to Your Client’s Goals

    For the past twelve years Lee McTeigue has been a licensed real estate professional for the Larchmont, Mamaroneck, New Rochelle, White Plains, Valhalla areas in New York. Lee says ”the market is currently cautiously optimistic.  Prices are realistic, interest rates are low and it's a good time buy.”   She is finding that Single family homes priced under $500,000 (first time home buyers) and upper range of $1. - $1.5M are what is moving the fastest in her market.

    When asked what makes her successful Lee said “I am committed to my client's goals first and keeping the lines of communication open at all times. I am advising them of one of the biggest financial investments they will make in their life and I take that responsibility very seriously.”  It’s that kind of commitment that is the difference between a real estate sales person and a real estate professional.  Lee goes on to say “Sellers need to know that I work tirelessly to creatively market their property alongside my company's unparallel marketing strategy and internet presence.

    I believe in an open and honest communication with sellers to keep them up to date on the latest trends in their local real estate market.  For my buyer’s, I research, negotiate, and provide step-by-step guidance through the whole process. “

    Another advantage is that Lee lived in each of the communities she works in, so she knows the unique and intimate characteristics of each one.

    Today’s real estate market is challenging and professionals like Lee are critical to providing the high level of expertise, knowledge and service home buyers and sellers expect.

     Visit Lee's Website 

    Lee McTeigue, Sales Associate
    Julia B. Fee Sotheby's International Realty
    1946 Palmer Avenue
    Larchmont, NY 10538

    Office: 914-834-0270
    Direct: 914-833-5908
    Mobile: 914-479-7561
    Fax: 914-834-1877

    Realtors Need to Get Creative! Here are 5 Ways.

    Today's Realtor needs to think out of the box.  The days of taking on a new listing, placing a sign on the property and advertising a few print ads are long gone.  When it comes to homes that are in a higher price range, where the buyers are few, you must get more creative and resourceful.  When a house is not selling the answer is not always to lower the price, but in fact to up your game.

    Get Creative! 

    You need to research where the buyers are and not sit back and wait for them to come. Here is one example of a million dollar home that found its way to an out of state buyer who never physically visited the property.  As featured in USA Today, Josh Phoenix, of HD Estates used cutting edge technology and produced this video and strategically placed it online.

    Get an Appraisal

    Make sure the house is priced right.  "Whether the real estate market is hot, cold or some lukewarm level in between, it is a good idea to pay for an appraisal..." say's Carlos Montos of Calgary Real Estate.  A professional appraisal is a must!  Having a certified appraiser value of your home ranks up there with providing a home inspection.  You erase potential buyer's worry that they are paying too much along with avoiding trouble with obtaining the mortgage.

    Target The Buyer

    What type of professional, entrepreneur, executive or rock star could or would buy the home? Although you can't predict what type buyer, you need to consider the possibilities with marketing focused on these potential buyers.  What ever type buyer you think the home is ideal for, you need to figure a way to reach them.  An Investment Broker may not see the same marketing that a Neurosurgeon would so your marketing needs to be specific.

    Article Marketing

    Make article marketing top on your list as it is one of the most effective ways to promote your business.  Article marketing is a great way to acquire new clients as it instantly makes you an authority in your field. "The idea from the writer's point of view is that you can increase your exposure by having your content reproduced around the internet." says Yaro Starak, who has been testing article marketing for Ezine.  Yes, yes I know, your a Realtor not a writer. There are simple ways to get yourself an article.  You can start with using Realty Roosters Article Marketing - Question to Article System.  Simply answer a few questions and they will write and publish your article free.  This will create a huge impact on your target audience, where you will notice an increase of prospects aimed to your listing.  GET YOUR ARTICLE MADE HERE

    Get Your Clients a Pre-Approval

    It is detrimental not to have your home buyer's financing in place and ready to go.  With today's new lending standards it is quite difficult and somewhat time consuming to obtain a mortgage.  It would be devastating to a seller to sell a home to someone who in the end has to walk away from the table and waist months of precious selling time and blame you for arranging the sale.  GET A PRE-APPROVAL HERE

    Savvy buyers know when they are getting a lot of bang for the buck



    Bargain hunting is what’s on buyers minds these days and there are some very attractive properties on the market that will make buyers gush.  Many agree this is a favorable time to buy, for those who have paused their buying trigger. Fortunately, the time is now that you can get a lot of house for your money.   While other markets haven’t seen an up tick in activity, others have and gained momentum.  

    Robert Paul of Douglas Elliman works the Armonk, Chappaqua, Bedford, & Pound Ridge areas of Northern Westchester NY.  Rob is well known for his proficient use of social media and marketing to keep his clients well informed.

    “We can all relate when it comes to managing buyers and sellers expectations." Says Rob. "It helps to stay informed and up to date with the latest market information because it brings them down to earth.  There are some great deals to be made out there and some great houses.  One of my listings is a custom colonial across from a lake in Pound Ridge on over 3 acres that appraised for $2,000,000 five years ago and is now selling for $1,675,000. Some sellers are being more realistic when pricing their home."  View Listing

    Buyers are beginning to see the light. It may be a buyers market, but only a savvy buyer can identify when their getting a lot of bang for their buck and don’t want to loose out on a great deal.

    Some buyers are finding obtaining a mortgage is challenging, while those with substantial down payments and good credit are able to secure financing.  Savvy buyers have their mortgage in place and are finding their mortgage through more regional lenders.

    It seems buyers and sellers are trying to find common ground and this is helping the housing recovery.


    Robert Paul
    Prudential Douglas Elliman Real Estate
    438 Old Post Rd.
    Bedford, NY 10506
    Personal Cell: 914-325-5758

    Challenges for Buyers, Sellers and Agents

    Current conditions in the real estate market are challenging for buyers, sellers and the real estate agents that serve them. 

    Tess Brannagan a licensed Real Estate Agent for Caldwell Banker, Katonah offers her insight on Today’s Real Estate Market.  Her expertise is with Residential, First-time home buyers, Buyers, Sellers and Rentals. 

     “The Sellers are avaricious and the buyers are opportunistic.  Both sides are confused which makes it so difficult to help them both.   Today’s Sellers need to be realistic, after all when they have to buy another place to live, they will be moving to the Buyers' side and will benefit from the lower prices as well, it’s all relative”.

    Tess goes on to say “Most importantly, Buyers should always first sit with a trustworthy Mortgage Officer to determine what they can really afford.  Buyers should get all their mortgage information and know that pre-approvals of some Mortgage Companies can be worthless”.

    Tess attributes her success to being goal oriented and by taking a real interest in helping her clients either buy or sell their home. “Many agents have left the business, while I have been able to weather the storm and still be there for my clients.  Eventually the market will come back and I want to be around when it does”.

    Tess Brannagan has been a Real Estate Agent for 7 years serving the Westchester, Putnam and Duchess Counties.

    ARTICLE MARKETING! A Great Way to Attract New Clients.

    Make article marketing top on your list as it is one of the most effective ways to promote your business.  Article marketing is a great way to market to your clients as it instantly makes you an authority in your field.

    Not great at writing or don't have the time? 

    Simply answer the questions below and we'll write and publish the article for you FREE.   Once your article is written and approved we will publish it and feature it on Realty Rooster for the world to see.

    Questionnaire to Article

    Answer the following questions and we will create an article from the answeres.

    * indicates required field

    Mortgage Applications On The Rise

    Mortgage applications are moving higher according to Mortgage Bankers Association (MBA).

    The Mortgage Bankers Association survey shows mortgage applications increased 5.3 percent.

     “Purchase application volume jumped last week largely due to another sharp increase in applications for government loans. Borrowers were likely motivated to apply for loans before the scheduled increase in FHA insurance premiums,” said Michael Fratantoni, MBA’s Vice President of Research and Economics.

    The refinance index increased 2.7 percent and the purchase index increased to its highest level in months at 10.0 percent.

    “Refinance activity increased somewhat, as rates dropped to their lowest level in a month towards the end of the week” Fantantoni said.

    The average rate on a 30-year home loan is down to 4.83 percent from 4.98 percent. The rate on a 15-year mortgage is 4.7 percent, down from a week ago when the rate was 4.17 percent.

    Higher Home Resales in March

    March home resales beat economist’s estimatess of 2.5 percent and showing signs of recovery, according to the National Association of Realtors. Existing home sales increased 3.7 percent month over month to an annual rate of 5.10 million units.

    Lawrence Yun, NAR chief economist, expects the improvement to continue. “Existing-home sales have risen in six of the past eight months, so we’re clearly on a recovery path,” he said.

    “With rising jobs and excellent affordability conditions, we project moderate improvements into 2012, but not every month will show a gain – primarily because some buyers are finding it too difficult to obtain a mortgage.”

    The median sales price for an existing home was $159,600, down 5.9 percent from the median price of $169,600 a year-ago.

    The supply of existing homes on the market dropped to 8.4 months’ in March, down from 8.5 in February.

    “Although home sales are coming back without a federal stimulus, sales would be notably stronger if mortgage lending would return to the normal, safe standards that were in place a decade ago – before the loose lending practices that created the unprecedented boom and bust cycle,” Yun explained.

    According to Freddie Mac, the national average for a 30-year, conventional, fixed-rate mortgage decreased to 4.84 percent in March from 4.95 percent in February.