"Denver Calls Old Airport Ground Zero for Growth"
New York Times (09/16/98) P. A13; Brooke, James

The Stapleton Development Corporation of Denver is forming plans to redevelop the Stapleton International Airport, which closed in 1995, into a residential and commercial community. The project is one-third the size of Manhattan and would be the second-largest development in the region. Several home builders have approached Dick Anderson, president of Stapleton, about becoming part of the project, which is designed to help urban sprawl in the area. A recent Sierra Club report ranked Denver second only to Kansas City in metropolitan growth among cities with populations over one million. The population of Denver grew by two-thirds between 1990 and 1996 and has had a number of effects on the community. Brownouts are common during heat waves, schools are overcrowded, and average home prices have risen 50 percent to $200,000 since 1990. Most of the growth has occurred in the suburban counties south of the city. The Stapleton project is being praised by opponents of urban sprawl, who say it takes advantage of existing infrastructure. In addition, Mayor Wellington E. Webb says the development will include low- to moderate-income housing.

"Surprise Mortgage Fees Draw Federal Scrutiny"
Philadelphia Inquirer (09/15/98) P. C5; Kristof, Kathy

The Mortgage Bankers Associations (MBA) has acknowledged the need for the overhauling of mortgage settlement rules, as more home buyers reveal their horror stories of discovering unexpected fees and charges at the close of escrow. Since the Real Estate Settlement Procedures Act does not penalize lenders for not disclosing these fees or for even raising fees over an estimated amount, the surprise costs during the settlement process will continue to anger home buyers. "What we are trying to do is change the fundamental premise," said Paul A. Mondor, senior director of regulatory affairs for the MBA. "We think the lender should quote the consumer a guaranteed rate."

"Mortgage Securities"
Wall Street Journal (09/15/98) P. C22; Zwirn, Ed; Byrt, Frank

On Monday, mortgage bankers sold billions of dollars of new loans into the capital markets, as a myriad of homeowners nationwide scrambled to lock in current low interest rates over the weekend. The majority was in 6 percent and 6.5 percent coupon pass-throughs. However, there were also several unconfirmed reports of 5.5 percent securities. As a result, Fannie Mae now expects to total $1.4 trillion of new mortgages by the end of this year, a 40 percent increase from the $1 billion record high posted five years ago.

"Habitat for Humanity Celebrates Christian Roots During Building on Faith Week"
PRNewswire (09/14/98)

Habitat for Humanity International kicked-off its Building on Faith effort on Monday. This homebuilding program gives the nonprofit, ecumenical Christian organization an opportunity to celebrate its Christian roots because it puts church members from more than 200 locations across the country to work on building homes. Habitat for Humanity says that as a result of the volunteer effort some 300 new homes will be built for families in need. Build for Faith is a week-long project that will end on Sept. 20.

"Kokomo Still Leads as Most Affordable Housing Market"
Baltimore Sun (09/13/98) P. 1M

Kokomo, Ind., had the most affordable housing market in the country during the second quarter of 1998, according to the National Association of Home Builder's 1998 Housing Opportunity Index for the second-quarter. With an index of 93.1, Kokomo had a housing market in which a household earning the area median income of $50,800 could afford 93.1 percent of the homes in the city. Nationwide, the index was 64.8 during the quarter, which is down from 67.6 in the first quarter of 1998.

"Learn the Basics Before Remodeling"
Washington Times (09/11/98) P. F33/1

Hopkins & Porter Construction Inc. of Maryland is sponsoring "How to Avoid the Pitfall$ of Remodeling," a special seminar scheduled for Sept. 24 in the town of Potomac. Design consultant Andy Gilbert states, "We will address questions such as: 'Will this project improve the value of my home? Do I need an architect? How do I choose a contractor?'"

"Homeowners See Way to Save as Rates Fall"
Chicago Tribune (09/11/98) P. 1-1; Allen, J. Linn

In the midst of political and economic uncertainty, Freddie Mac reported that the average rate on 30-year, fixed rate mortgages last week was 6.77 percent. And according to Brian Carey, an economist at the Mortgage Bankers Association, the average rate on long-term home loans was 6.56 percent. "We think rates could fall below 6.5 percent in the next month," said Carey. Many consumers seem to think so too, and are holding out on their home financing decisions to see what is going to happen. In the meantime, lenders say that inquiries are up. "People are calling and saying, 'I want to be kept advised, send me a package, mail it out,'" said Rick Nash, president of Chicago metropolitan area-based Key Mortgage Services. "They're not rushing to apply and lock in."

"New Home Characteristics"
Housing Economics (08/98) Vol. 36, No. 8; P. 10; Crist, Dean

New homes, as well as the number of creature comforts they provide, continued to grow in 1997. On average, the new home is 2,150 square feet, reflecting a 1.4 percent growth from 1996 to 1997; so far this year it is up again slightly, to 2,170 square feet. Vinyl continued to lead brick, wood, and stucco as the most common exterior wall covering. Only in the South was the use of bricks for the exterior of a home more common. Regionally, decks are preferred in the Northeast, while porches were preferred in the South, and patios were most prevalent in the West and Midwest. As for building methods, 94 percent of new 1997 homes were stick built. Inside new homes, half of new single-family homes had 2.5 or more bathrooms, one-sixth having 3.0 or more. The number of new homes with four or more bedrooms remains constant with the 1990 figures at around 30 percent, although first-half 1998 figures indicating a possible increase. Fewer and fewer homes have basements, particularly in the West, although they are still fairly popular in the Midwest and Northeast. The average cost of a new house rose 3.1 percent last year, and a house cost 26 percent more in the Northeast, at $67.65 per square foot, than in the South, where the average price is $53.75 per square foot.

"Pet Places"
American Demographics (09/98) Vol. 20, No. 9; P. 38; Edmondson, Brad

A 1996 study by the American Veterinary Medical Association (AVMA) reveals that 59 percent of households own a pet. And the households that have pets today are likely to have more than they did in the 1980s. An analysis of other resource material such as the U.S. Pet Ownership and Demographics Sourcebook and research from Arlington, Va.-based CACI shows that rural households tend to be the greatest pet lovers, since they spend the most money on their cats, dogs, and other animals. Edmondson, Ken. is a fine example of a rural country that has a high number of households spending lots of money on pets. On the other hand, households less likely to spend on pets are the elderly, whether they are single or a married couple. Sarastota County, Fla., is the type of hub for retirees where pets are a rarity. AVMA statistics also suggests that economic factors may determine which households own pets. For instance, only 48 percent of households earning an annual income of $12,000 spend money on pets, while 65 percent of families earning $40,000 or more spend money on pets.

"Senior Citizens Remain Active in Real Estate Market"
Today's Buyer's Rep (09/98) Vol. 7, No. 9; P. 4

Nevada is projected to have the greatest increase in residents age 65 or older by 2020. According to the U.S. Census Bureau, the elderly population in the state will soar by 115.6 percent by 2020. Nevada will be followed by: Arizona, which is projected to have a 111.9 percent increase in seniors; Colorado, which is projected to have a 108 percent increase in the elderly; and Georgia, which is projected to have a 104 percent increase in older Americans. And the states of Washington, Alaska, Utah, and California are projected to have the size of their seniors markets double by 2020. Nearly 20 states are projected to have at least one million elderly residents, compared to just nine states in 1993.

"Building Online Mortgage Applications Into the Home Buyer Home Pages"
Financial Service Online (09/98) P. 6

More and more companies are delving into the online mortgage business. Take, for example, Fairfax, Va.-based American Finance, which expects to have $1 billion this year in originations from Internet loans. To boost its market share, the mortgage provider has opted to use the name recognition of Microsoft and Intuit to showcase its own services. The newest addition to the online mortgage arena is Microsoft's HomeAdvisor; located at www.homeadvisor.com, the site combines information about home purchasing with mortgage information, and it allows users to also submit a mortgage application. LendingTree's LendingTree.com features 11 lenders on its homepage and charges lenders a flat fee for every approved loan, no matter it's dollar value, which is a real incentive to companies like Eastern Mortgage Service Inc. of Trevose, Pa. Eastern, which already secured $60 million in loans via the Internet by July, plans to have $100 million in online loans for the entire year. A third provider, QuickenMortgage, estimates its page, QuickenMortgage.com, gets 500,000 visitors and between 4,000 to 5,000 applications monthly. While each of the three pages list many mortgage lenders, each tries to offer something different. QuickenMortgage focuses on mortgages and real estate loans, LendingTree gives a wider selection of loan types, and HomeAdvisor features a conceptual organization that guides the user through the home-buying process.

"Real Estate 101: New Definition of Student Housing"
Costco Connection (09/98) Vol. 13, No. 9; P. 56; Kelly, Tom

Buying housing for your college-age child could be a sensible business opportunity and a viable alternative to sinking money in on-campus accommodations or other forms of rent. These parent-student partnerships will only profit if the property value will substantially appreciate, and the student, now also landlord, takes the necessary responsibilities of maintaining the property and keeping a good relationship with the tenants. The Seattle campus of the University of Washington is an excellent example, where the median-priced home appreciated 17 percent last year. In addition, according to Business Week, many parents are lured to university towns after their children graduate to enjoy the cultural benefits of the area. While it may seem like too much to ensure a profit and to avoid dormitories and institutional food, the expenses of a $109,000 condominium and a $500-a-month dorm room tend to be about equal.

Published: September 16, 1998

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