By Christopher Rugaber The expected interest-rate increase will raise short-term borrowing costs for things like credit cards, and it often has an indirect impact on mortgage rates. WASHINGTON (AP) – The Federal Reserve launched a high-risk effort Wednesday to tame the worst inflation since the 1970s, raising its benchmark short-term interest rate and signaling potentially up to seven rate hikes this year. The Fed’s quarter-point hike in its key rate, which it had pinned near zero since the pandemic recession struck two years ago, marks the start of its effort to curb the high inflation that has followed the recovery
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By Jim Saunders A judge named a receiver for Tampa-based property insurer Avatar Property & Casualty Insurance Co. for “purposes of liquidation.” Avatar has 37K policies. TALLAHASSEE, Fla. – A Leon County circuit judge issued an order placing a Tampa-based property insurer into state receivership, as problems continue to mount for homeowners and insurance companies. Judge John Cooper on Monday appointed the Florida Department of Financial Services as receiver for the “purposes of liquidation” of Avatar Property & Casualty Insurance Co. The order came after the department filed a petition March 4 seeking appointment as receiver, saying that Avatar was
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By Kerry Smith The index that measures home builders’ attitudes fell below 80 for the first time since last Sept., largely due to supply issues and interest-rate expectations. WASHINGTON, March 16 – The nation’s homebuilders remain generally optimistic about their business, but the monthly index based on a survey – National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) – has inched lower for four months in a row. NAHB says ongoing lumber and building material constraints, rising construction costs and expectations for higher interest rates negatively affected builder sentiment even though buyer demand remains relatively solid. In
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By Derek Gilliam On the one hand, Fla. is the No. 1 state for Russian RE investing – 29% of all U.S. purchases. On the other, Russian buyers make up only 0.8% of all foreign purchases. NAPLES, Fla. – Over the past six years, Russian buyers of U.S. real estate have preferred the sunny coasts of Florida over property in any other state in the nation. Wealthy Russians have reportedly bought so many luxury condo properties in the north Miami city of Sunny Isles Beach that some have termed it “Little Moscow.” “They love to be here, and they like
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By Kerry Smith Rising mortgage rates and home prices have dampened demand for vacation homes. As voluntary purchases, they tend to be more sensitive to market changes. SEATTLE – Vacation-home demand dropped sharply in February, with mortgage-rate locks for second homes reaching their lowest level since May 2020, according to a new analysis by Redfin using data from real estate analytics firm Optimal Blue. Second-home demand remained 35% higher than it did before the pandemic, but it’s down from an 87% increase the month before. February also marked the first month since the start of the pandemic that growth in
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By Kerry Smith The U.S. will spend $2.6B in the next fiscal year to end homelessness, with 328 Fla. agencies receiving anywhere from $10,000 to $3.2 million. WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) announced over $2.6 billion in fiscal year (FY) 2021 Continuum of Care (CoC) Competition Awards for roughly 7,000 local homeless housing and service programs across the United States. In Florida, 328 individual agencies across the state will receive $114,030,413. The grants are as small as $9,464 for one group in St. Johns County to $3,074,525 for a group in Miami-Dade County. HUD
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To recoup money lost because insurers failed, the Fla. IGA OK’d a 1.3% assessment on all state policies, including homeowners, aircraft, flood, malpractice and more. FORT LAUDERDALE, Fla. (AP) – Florida homeowners are about to pay more in insurance premiums, and they have failed insurance companies to blame. The South Florida Sun Sentinel reported that late last month, the Florida Insurance Guaranty Association (FIGA) approved a 1.3% assessment on the premium cost of all policies sold in Florida. That not only includes homeowners insurance but aircraft, crops, flood and malpractice insurance policies. The Florida Insurance Guaranty Association was created by
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By Kerry Smith A Redfin survey of agents found all-cash offers 334% more effective in bidding wars – but escalation clauses and waiving inspection contingencies had little impact. SEATTLE – It’s apparently true: “Cash is king.” Prospective homebuyers who offered all cash were more than four times as likely to win a bidding war as those who didn’t in 2021, according to a new report from Redfin. It makes all-cash offers the most effective strategy by far to win a home when there are multiple offers. Two other tactics also do some good: Waiving the financing contingency and conducting a
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Congress passed a bill that keeps government running through the fiscal year. It also extends flood insurance to Sept. 30 and adds $85M to boost fair housing. WASHINGTON – Congress passed a long-awaited bill late Thursday night to fund the government through the remainder of the fiscal year, sending it to President Joe Biden for his signature. The $1.5 trillion bipartisan package keeps the government running through Sept. 30 and includes money for priorities the National Association of Realtors® (NAR) supports, such as housing programs, rural broadband and surface transportation projects. The bill also reauthorizes the National Flood Insurance Program
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By Kimberly Miller In a handful of U.S. metros, studies say it’s cheaper right now to rent – but those studies assume renters must take any savings and invest it rather than spend it. WEST PALM BEACH, Fla. – With no end in sight to South Florida’s scorching housing market, real estate economists said this week that it makes more sense in many cases to rent a home until the fracas subsides. The caveat to the idea that leasing is preferable to purchasing is that money saved by not paying for home maintenance, association fees, insurance and taxes should be
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