If you’re a U.S. homebuyer waiting for a return to super-low mortgage rates, don’t hold your breath.
The short-lived era of 3% interest rates for 30-year fixed mortgages is over, and unlikely to return anytime soon — perhaps for decades — says Lawrence Yun, chief economist at the National Association of Realtors.
“One can never truly predict the future, but I don’t see mortgage rates returning back to the 3% range in the remainder of my lifetime,” he says.
That’s because average 30-year fixed mortgage rates of 3% or less were an anomaly related to the pandemic, lasting from about July 2020 to Nov. 2022. Historically, the rates have been closer to an average of 7% over the past 50 years, according to Freddie Mac data.
Why super-low mortgage rates won’t return any time soon
Historically low mortgage rates during the pandemic were “an exceptional measure, during exceptionally uncertain times,” says Yun.
With the pandemic came economic uncertainty not seen since the 2008 financial crisis. Fearing a prolonged recession, the Federal Reserve followed the same playbook it used in 2008, pumping money into the economy to stimulate growth.
As was the case in 2008, the Fed slashed interest rates to nearly 0%, created emergency lending programs and bought government bonds and mortgage-backed securities, otherwise known as quantitative easing.
Since mortgage rates are closely linked to the Fed’s benchmark interest rate and can be driven further down by quantitative easing, the interest on mortgages subsequently hit rock bottom at 2.67% in January 2021.
Congress also passed trillions of dollars in Covid-19 relief and stimulus spending, which helped increase U.S. national debt by roughly 30% between 2020 and 2022, according to Treasury Department data.
However, unlike 2008, the economy recovered quickly and rising inflation soon became a problem. By spring 2021, the year-over-year inflation rate had accelerated beyond the Fed’s benchmark of 2%, forcing the central bank to start raising interest rates again. And with that, mortgage rates rose too.
I don’t see mortgage rates returning back to the 3% range in the remainder of my lifetime.
Lawrence Yun
Chief economist at the National Association of Realtors
As a result of inflation and current federal spending deficits, Yun doesn’t think the Fed is likely to drop interest rates down to nearly 0% again, even in the event of another financial market panic or pandemic.
Other economists who spoke to CNBC Make It agree that homebuyers shouldn’t expect a return to record-low mortgage rates in the near term.
“It’s unlikely that the Federal Reserve will respond with the same breadth and aggressiveness like it did in 2020, as the very low mortgage rates in 2020 were caused by very unique circumstances” related to the pandemic, says Abbey Omodunbi, senior economist at PNC Financial Services.
“I haven’t seen mortgages that low in over 30 years in the business,” says Dottie Herman, vice chair at Douglas Elliman. “It’s highly unlikely we’ll see rates that low anytime soon.”
Where mortgage rates are headed
The current average mortgage rate for a 30-year fixed-rate mortgage is 6.81% as of July 6, slightly lower than its November peak of 7.08%, per Freddie Mac data. (Check out this list of the best mortgage lenders here, from CNBC Select.)
However, many projections are expecting a steady decline over the next year or so.
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Builder sentiment in the market for single-family homes rose 1 point in July to 56, according to the National Association of Home Builders/Wells Fargo Housing Market Index.
It marks the seventh straight month of gains and the highest level since June 2022. A reading above 50 is considered positive sentiment.
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Builders say low supply in the resale market is driving demand for new construction, but higher mortgage rates and supply-side challenges continue to put pressure on the market.
“Although builders continue to remain cautiously optimistic about market conditions, the quarter-point rise in mortgage rates over the past month is a stark reminder of the stop and start process the market will experience as the Federal Reserve nears the end of the ongoing tightening cycle,” said Robert Dietz, NAHB’s chief economist.
The average rate on the popular 30-year fixed mortgage crossed over 7% briefly in May and then again at the end of June. It has only come down slightly in the last week. Those higher rates are straining affordability in the market, where prices for existing homes are rising yet again.
Of the NAHB index’s three components, current sales conditions in July rose 1 point to 62; buyer traffic increased 3 points to 40, the highest reading since June of last year; and sales expectations in the next six months fell 2 points to 60. The drop in expectations is due to that jump in interest rates and the resulting hit to affordability.
Despite higher mortgage rates, however, builders are using fewer incentives. Just 22% of builders reported cutting prices in July. This is down from 25% in June and 27% in May.
Sales of newly built homes in May, the latest reading available, jumped 13% compared with April and were 20% higher than May 2022, according to the U.S. Census Bureau. The median price was down over 7% from May of last year, but that median may be skewed by the mix of homes selling, which is currently leaning toward the lower end.
Fickle mortgage rates rose once again last week, this time four basis points to an average of 2.99%, according to Thursday data from Freddie Mac‘s PMMS. However, despite fluctuating sub-3% mortgage rates, borrowers are still competing in a supply strained and overheated market.
“Home prices continue to accelerate while inventory remains low and new home construction cannot happen fast enough,” said Sam Khater, Freddie Mac’s chief economist. “There are many potential homebuyers who would like to take advantage of low mortgage rates, but competition is strong. For homeowners however, continued low rates make refinancing an option worth considering.”
The overall housing index hit its lowest point since February, said Joel Kan, the Mortgage Bankers Association’s associate vice president of economic and industry forecasting. Even though rates have been below 3.2% over the past month, they are still around 20 to 30 basis points higher than the record lows in late 2020, he said.
“Tight housing inventory, obstacles to a faster rate of new construction, and rapidly rising home prices continue to hold back purchase activity,” said Kan.
While the COVID-19 crisis has kept mortgage rates lower and suppressed inventory, these two factors have also facilitated higher levels of price growth as COVID-19 happened amid a housing market sweet spot.
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“We have an increase in the number of buyers and a total collapse of inventory driving home-price growth,” said Logan Mohtashami, lead analyst at HousingWire. “In the last expansion, the only thing that kept home-price growth from taking off was the higher mortgage rates of 4% to 5%. We are currently enjoying the lowest mortgage rates ever, so we don’t have that to dampen the market.”
According to Mohtashami, the new home sales marketplace is unhealthy, but when mortgage rates rise, this sector will get hit harder than the existing home market, like it always does. This won’t result in an epic housing crash, but it will impact future construction.
April’s existing home sales painted a familiar picture of a market still grappling with low supply as sales dropped for the third month in a row, down 2.7% from March to 5.85 million. Last week’s data on pending home sales proved that like new and existing sales, pending home sales also felt the strain of exhausted home inventory in April ― dropping 4.4% from the previous month to an index of 106.2, according to the National Association of Realtors.
For the second week in a row, mortgage applications increased — this time, up 2.1% for the week ending June 18, 2021, per the latest report from the Mortgage Bankers Association.
The 30-year fixed mortgage rate also rose to 3.18% — the highest level in a month, according to the MBA. Purchase activity was higher for the third straight week, according to Joel Kan, MBA’s vice president of economic and industry forecasting.
“Despite the jump in rates, refinances also increased for the second consecutive week, pushed higher by a 4% bump in conventional refinance applications,” Kan said, “Government purchase applications drove most of last week’s increase, which also contributed to a slightly lower overall average purchase loan size.”
U.S. inflation jumped from 1.68% in February all the way up above 5% by June, per last week’s PMMS report from Freddie Mac. If the fed were to tighten policy, Fannie Mae’s ESR Group expects this to drag on upcoming housing market growth and even stifle home sales, house prices, construction and mortgage originations.
“While mortgage rates are low, purchase demand has weakened over the last couple of months, primarily due to affordability constraints stemming from high home prices,” Sam Khater, Freddie Mac’s chief economist. “With inventory tight, the slowdown in demand has yet to impact prices, meaning the summer will likely remain a strong seller’s market.”
The refinance share of activity increased to 62.5% of total mortgage applications from 61.7% the previous week. On an unadjusted basis, the market composite index increased 1% compared with the previous week. However, the seasonally adjusted purchase index decreased 1% from one week earlier.
The FHA share of total mortgage applications decreased to 9.5% from 9.6% the week prior, and the VA share of total mortgage applications also decreased to 11.2% from 11.5%.
Here is a more detailed breakdown of this week’s mortgage applications data:
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) increased to 3.18% from 3.11%
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $548,250) increased to 3.26% from 3.20%
The average contract interest rate for 30-year fixed-rate mortgages increased to 3.21% from 3.14%
The average contract interest rate for 15-year fixed-rate mortgages increased to 2.58% from 2.49%
The average contract interest rate for 5/1 ARMs remained unchanged at 2.69%, with points increasing to 0.39 from 0.25 (including the origination fee) for 80% LTV loans
The Joint Center for Housing Studies of Harvard University released the 2015 edition of The State of the Nation’s Housing report this week and it wasn’t pretty.
The report basically highlighted the fact that the homeownership rate has dropped to the lowest level in recent history, while renting has simultaneously surged.
Last year, the U.S. homeownership rate fell to 64.5%, which essentially erases all of the gains realized over the past two decades.
We’ve basically returned to 1993 levels, as seen in the chart below.
It has since continued to fall, dipping to 63.7% during the first quarter of 2015.
All Generations Affected
Harvard noted that the fallout has been widespread, with all generations affected, especially generation X (born 1965-1984).
Put simply, young gen-Xers picked a terrible time to be born, succeed financially, and then buy their first home. Because as we all know, home prices were grossly inflated about 10 years ago, and have yet to recover after falling back down to Earth.
In fact, homeownership rates among those aged 35-44 and 45-54 have suffered the most, and now stand at rates 4-5% below those seen 20 years ago.
The only group that hasn’t really seen a major hit is the 65 and over cohort, which despite a recent dip, has a homeownership that remains about 2% above 1993 levels.
What’s the Rental Market Like?
If there are far fewer homeowners, there must be a lot more renters, right? Right.
From 2004 to 2013, renter household growth has averaged 770,000 annually, making it the best 10-year period for renter growth since the late 1980s.
During this period, 3.2 million single-family detached homes made their way into the rental market to accommodate demand. Developers have also added 1.2 million apartment starts since 2010.
Despite this, the national vacancy rate fell to 7.6% in 2014, the lowest point in nearly two decades.
The result has been steadily increasing rents, which rose 3.2% last year, twice the pace of inflation.
The problem is that the little more than one million housing units started last year was still close to the lowest total in the past half-century.
So while it sounds like a lot of new supply, it’s not enough to keep up with demand, especially as household growth seems to be in an uptrend.
Part of this can be attributed to Millennials growing up and making the move out of mom and dad’s house. Wage growth also contributes to that trend.
Unfortunately, there aren’t many entry-level homes available for purchase because a lot of the current owners are underwater or lack the equity to sell and use the proceeds (for down payment) to buy up.
Turnover is also going to be limited as baby boomers age and hunker down in their existing properties for the next decade.
However, 2025 may be a turning point as the oldest band of that population ages and has more trouble living independently.
Still, it doesn’t solve the problem now, which is unaffordable rent and a lack of housing inventory.
The Housing Outlook Is Cloudy
Harvard seems to be cautiously optimistic (at best) in their outlook, calling on looser mortgage lending to help more renters transition to homeownership.
Ironically, we might be in a situation that calls for creative financing, such as an increased reliance on ARMs (especially as mortgage rates rise) and more 97% LTV lending.
Rates will need to rise as the economy improves, which is generally okay as long as wages also increase. This shouldn’t dampen home prices either because a good economy goes a long way.
Harvard believes the housing recovery may continue this year, but only if employment growth lifts household incomes that are clearly lacking.
There’s a general belief that renters have a willingness to own, but they question whether renters have the means. As mentioned earlier this week, owning a home requires $10,000 outside the mortgage.
The report pointed out recent moves by Fannie, Freddie and the FHA, including lower down payment and credit score requirements, but questioned whether such changes would be meaningful.
In the meantime, renters are stuck between a rock and a hard place, with rents becoming unaffordable and homeownership unattainable.
It’s become so ridiculous that unaffordable rent may be the sole reason to buy. But it’s hard to save money for a down payment when you’re barely getting by.
Harvard ultimately believes the goal should be affordable housing for all, though they don’t seem to offer any solution to that problem.
From its variety of parks and bike trails to its fresh produce and amazing restaurants, Minneapolis is the place to be. Locals will quickly rattle off important facts about the town in which there’s always something new to discover. This includes places to eat and shop along with outdoor areas to explore.
Whether you need a new coffee shop, a new pub or a new place to take a walk, our expert locals have dished out their favorite spots. Where will you try first?
1. Harriet Island
There are plenty of outdoor spots to spend the day in Minneapolis. With the largest parks system in the country, there’s never a shortage of options for outdoor fun. But, with so many options, where to go can leave some locals unsure.
An outdoor spot big with locals for its picturesque views is Harriet Island. “It has amazing views of the river and the St. Paul skyline. The paddle boats along the river are fun to see, and you can make reservations to go out on them for dinner or lunch,” shares Jeannine Marie from Jeannine Marie Photography.
2. Lyndale Park Rose Garden
For a walk among the flowers, check out the Lyndale Park Rose Garden. This local gem is the second oldest public rose garden in the country. Jessica Strobel from Jessica Strobel Photography says the more than 3,000 plants make the garden feel “magical.” Plus, the spot is near the Harriet Lake bandshell, “where there is always something going on.”
3. Mill City Museum
“I enjoy St. Anthony Main and Mill City Museum for walking around in Minneapolis,” says Erin Johnson from Erin Johnson Photography.
The museum is a great spot, alongside Mill Ruins Park in Downton East. It sits right on the banks of the Mississippi River as well, so you’ve got plenty to see all around the area.
4. Greenway Bike Trail
When it comes to the best biking trail, the team from City Paws Pet Club suggests the Greenway Bike Trail. Stretching through Longfellow, and running parallel to Lake Street, this particular trail follows along a former railroad track.
5. Any local lake
Even with these specific spots, you can’t talk about the outdoors in Minneapolis without discussing the city’s lakes. Walking around any of them is a favorite pastime of Amy Lamphere, Founder of Storyline Collection. Walking lakeside is her favorite because she, “thrives on people-watching, and listening…and I get my steps in!”
6. Mr. Paul’s Supper Club
Photo courtesy of Mr. Paul’s Supper Club Facebook
You’ll find fantastic food in every part of Minneapolis thanks to the foodie-friendly vibe throughout the city. But, locals will always have their favorites.
For those in Linden Hills, Ashley Becerra from Everyday Ejiji suggests grabbing a bite at Mr. Paul’s Supper Club. It has an, “absolutely amazing menu, unique NOLA eats and a killer cocktail list.” If you visit, she suggests you try the frozen French 75.
7. Sociable Cider Werks
Photo courtesy of Sociable Cider Werks Facebook
When you’re craving a refreshing drink that’s crisp and clean, check out Sociable Cider Werks. This hot spot located, in Northeast Park, is a favorite of Devin Abraham from Once Upon a Crime Bookstore. It’s where you’ll find, “great drinks and atmosphere, and they have a delicious food truck on site.”
8. A day of dining in Minneapolis
Photo courtesy of Tattersall Distilling Faceboook
Planning a whole day around food is certainly possible as well. For Julie Thornburg, Corporate General Manager at The Buttered Tin NE, finding the right is the key to a great day in Minneapolis.
“We would start the day at The Buttered Tin NE for a delicious breakfast, of course!” says Thornburg, “Then we would venture over to the Minneapolis Farmers Market to pick up some fresh goods. Throughout the day we would visit some of our local favorites: Kieran’s Food Building and Centro. For spirits, later on, we love Tattersall Distilling.”
This tour of hidden gems takes you through Northeast Minneapolis and will keep your belly full all day long.
9. Spyhouse Coffee
Photo courtesy of Spyhouse Coffee Facebook
Josh Olson from J. Olson Weddings believes that every great day begins with Spyhouse Coffee. “My ideal day starts in the morning, spent with a friend, reading a book at Spyhouse Coffee on Nicollet.” This is a perfect stop for those in or near the Whittier neighborhood of Minneapolis, although the coffee shop does have other locations throughout the city.
10. Penny’s Coffee
Photo courtesy of Penny’s Coffee Facebook
A great spot for morning commuters trekking through downtown is Penny’s Coffee. Just ask Rachel, the Shop Manager at Anna Bé Bridal Boutique. “I have been obsessed with Penny’s Coffee lately. They have a great outdoor + indoor space with the best coffee, crepes and pastries.”
11. Hunt and Gather
Photo courtesy of Hunt & Gather Facebook
There’s no shortage of hidden gems in Minneapolis when it comes to shopping, and locals all have different favorites. According to Max Zdon, from Corazon, the best thrift shop in town is Hunt and Gather in the Fulton neighborhood.
12. Southside vintage shops
Photo courtesy of Carousel + Folk Facebook. Photo taken by Fox and Loon Photography
Meghan Kujawa-Smith from Fox & Loon Photography prefers to hit up the vintage shops. They include Carousel and Folk and Southside Vintage in Standish and Tandem Vintage just a little to the south.
Discovering the hidden gems in Minneapolis
Seeking out those small, locally-owned spots throughout Minneapolis is a worthwhile endeavor. Make the effort to find these hidden gems and reap the rewards. Where you call home will impact what hidden gems you adopt as your own, but from outdoor fun to fine dining and stellar shopping, you won’t have any shortage of options in Minneapolis as you explore.
Lesly Gregory has over 15 years of marketing experience, ranging from community management to blogging to creating marketing collateral for a variety of industries. A graduate of Boston University, Lesly holds a B.S. in Journalism. She currently lives in Atlanta with her husband, two young children, three cats and assorted fish.
Former President Donald Trump has not made his real estate great again.
Trump has dominated the headlines recently, as he announced his intention to run for office again and then became the first former commander in chief to face criminal charges. But the polarizing politician and reality TV star is first, and perhaps foremost, a real estate mogul. And the past few years have not been kind to his sprawling residential real estate portfolio.
While home prices across America generally rose quickly during the “pandemic pump” housing market, sale prices at the properties listed on the Trump Organization’s website have either declined or appreciated at a slower pace than the local markets they’re in.
To be sure, the COVID-19-era real estate market will be one for the history books, defined initially by ultracheap mortgages, the liberation of newly mobile Americans who could pursue “remote work” away from their abandoned offices, and a continued housing shortage that all pushed home prices up in dramatic ways. The price gains have begun to correct in some areas, but in large part, historically high prices appear to have stuck.
But Trump’s real estate brand hasn’t benefited as much from the favorable housing market. Price appreciation for condos in properties listed on the Trump Organization’s website has been lower both in the luxury real estate and overall housing markets.
For example, the median condominium sale price in the U.S. rose 38% between 2019 and 2022, according to CoreLogic data. But over the same period, the median sale price at Trump Organization properties declined 14%. (The properties Realtor.com® analyzed were all condos.)
And while the price changes varied around the country, his condos didn’t outperform any of the local markets where they’re located.
Some local experts believe the price declines are related to the former president’s controversial politics, especially since most of his properties are in Democratic-leaning areas. Since he ran for office, his name has been pulled off some of his prime real estate holdings in major cities.
“A lot of people have said the buildings are great,” says Dan Neiditch, the president of River 2 River Realty in New York. “But when they have the Trump name on the buildings, it’s all about branding. And when that’s the case, you live and die by your brand, by your name.”
Trump was recently charged with 34 felony counts related to hush money payments made to an adult film star, is under investigation for election interference in Georgia, and is facing multiple lawsuits. That could also affect his real estate holdings, especially in places where the former president isn’t popular.
To come up with our findings, we pulled home sale records from CoreLogic, a real estate transaction data provider, for properties listed on the Trump Organization’s website. Then we compared them with condo sale prices for the counties where those properties are located. Because the CoreLogic data is not perfect, we also excluded transactions that appear to have erroneously high and low transaction amounts recorded (likely data entry mistakes).
While all of the Trump Organization’s condo projects were included in the national numbers, Trump real estate markets with fewer residential units (including Connecticut, Hawaii, and Westchester, NY) are not detailed in the pull-out sections below.
We used 2019—the year before pandemic fluctuations roiled U.S. housing—as a starting point/benchmark for our calculations.
Note: It’s unclear if every property listed on the Trump Organization’s website is owned by the organization. The Trump Organization is a privately held corporation, so it isn’t required to disclose the specifics of its real estate holdings to the public. And even though the Trump name might prominently grace a building, it doesn’t mean that the organization owns the property. The former president licenses his name for a host of different things, including real estate and consumer products.
The Trump Organization did not respond to a request for comment.
Trump Tower in New York, NY
(Spencer Platt/Getty Images)
For decades, Donald Trump made a name for himself as a New York City real estate celebrity and tabloid fixture. The Big Apple was his launching pad, where the Trump Organization began developing residential properties in the early 1980s. And it’s still where his company has the most buildings.
He announced his first run for the presidency, in 2015, in his iconic Trump Tower on 5th Avenue, where he rode down a golden escalator.
But in the past few years, the organization’s Manhattan properties have fallen behind the competitive Manhattan condo market.
In 2022, the median sale price for all of the organization’s New York City properties combined was about $1.75 million. Within the past 10 years, that figure hit a high point in 2015, at $2.3 million, and a low in 2020, at around $1.4 million.
Since just before the COVID-19 pandemic, the Trump Organization’s prices are down about 16%—far behind the roughly 11% price growth for all condos in Manhattan over the same period.
The list of Manhattan buildings listed on the organization’s website includes the Trump Tower, in Midtown, and Trump Parc, on the southern edge of Central Park. On the Upper West Side, the organization has six buildings that make up Trump Place, situated along the Hudson River. Three are apartment buildings, which were not included in this analysis, and three are condominium buildings. Residents voted to remove the Trump name from the buildings in 2019. There is also Trump International Hotel & Tower, on Central Park West. In Midtown East, the organization owns Trump World Tower, looking onto the East River, just across the street from the United Nations headquarters. And on the Upper East Side, the organization owns Trump Park Avenue, Trump Palace, and 610 Park Avenue.
Despite the successful efforts to remove the Trump branding from several of his New York properties, much of the Trump residential real estate is still highly valued among certain buyers.
Trump Park Avenue in New York, NY
(Drew Angerer/Getty Images)
According to luxury real estate broker Dolly Lenz, the properties themselves and their management are second to none.
“The management of the properties—whether it’s Trump Tower, Trump International, Trump World Tower—are some of the best-run buildings in New York,” she says. “They choose the best doormen, the best concierges, so the service is top quality.”
But many of the Trump Organization’s properties are older and have trouble competing with the newer buildings, which offer more modern designs, layouts, and amenities. Trump Tower opened in 1983—40 years ago.
For some local experts, it’s politics that have caused the lagging prices.
“New York and New Jersey are majority-Democrat states. I believe the prices of Trump’s properties take a hit just because of the politics of the people in the area,” says Neiditch, of River 2 River Realty. “We’ve had people who lived there, who said, ‘Hey, we want to sell. We don’t want to live in a building where that name’s on the outside.’”
Access to Trump Tower, which was more restricted during Trump’s presidency due to heightened security and Secret Service activity, also likely affected the value of the units in the bellwether building, says one real estate expert, who asked not to be named.
Trump Grande in Sunny Isles, FL
(MICHELE EVE SANDBERG/AFP via Getty Images)
Fed up with the backlash against him and his politics, Trump officially left New York. Since 2019, the former president has called the purple state of Florida home. He now resides in his oceanside Mar-a-Lago resort in Palm Beach.
The Trump Organization has residential properties in and around Miami, including Trump Grande, Trump Tower Sunny Isles, and Trump Hollywood.
The Trump-branded properties in Florida’s Miami-Dade and Broward Counties appreciated by about 15% between 2019 and 2022, after first dipping in 2020, the biggest price gains of any location analyzed.
But prices shot up much higher in Florida during the pandemic as the Sunshine State saw an influx of companies and new residents. In the Miami-Dade and Broward markets where Trump properties are located, the median condo sale price has increased by more than 50%, going from just under $200,000 in 2019 to just above $300,000 in 2022.
And for the luxury condo segment in the same area (the upper 10% of sales by price), which is closer to the price range of the organization’s properties, prices grew by more than 60% over the same period.
Trump International Hotel & Tower in Las Vegas. NV
(AaronP/Bauer-Griffin/GC Images)
Trump International Hotel & Tower’s opening in Las Vegas in 2008 marked the organization’s first expansion into the western U.S. But condo sale prices in the building have substantially lagged behind overall Las Vegas condo price appreciation.
The median sale price at Trump International Hotel & Tower took a significant hit in 2020, dropping from $305,000 to $214,500. Since then, the prices rose but were still down about 8% below pre-pandemic prices.
Meanwhile, in Clark County, which includes Las Vegas and the surrounding cities, the median condo sale price rose by more than 50% from 2019 to 2022.
June Stark, a real estate agent and broker at The Stark Team–Elite Realty, in Las Vegas, blamed pandemic restrictions as one of the reasons that Trump property prices dropped. Reduced tourism affected the building, which is a combined hotel and condo tower.
“The building itself is beautiful, probably the best-maintained hotel and condo tower in the city,” Stark says, noting that she was among the first agents to sell the residences.
Trump International Hotel & Tower in Chicago, IL
(Beata Zawrzel/NurPhoto via Getty Images)
Trump International Hotel & Tower in Chicago looms large in the city, with its height, distinctive style, and prime location, but the sale prices have taken a dive.
At 98 stories and reaching 1,388 feet, it’s the seventh-tallest building in the nation and second in Chicago (behind the Willis Tower, formerly known as the Sears Tower). The building’s off-centered, tapering spire is hard to mistake, but it’s the 20-foot-tall and 141-foot-wide “TRUMP” sign on the building on the northern bank of the Chicago River that informs anyone who passes by who owns the building.
But while the building’s prominence is unquestionable, the median sale price for residences there dropped by almost half in 2020 alone—going from just below $1.5 million the year before to $750,000. Since then, prices have come back some, but at $1 million in 2022, the median sale price is still down more than 30% compared with before the pandemic.
During the same three-year period, 2019–22, the median condo sale price in Cook County, which includes most of the Chicago area, rose about 12%. But for additional context, condos priced closer to Trump International Hotel & Tower in Chicago, those within the top 10% of sales by price for Cook County, also saw a big drop in prices in 2020, and an overall price decline greater than the Trump Organization’s building.
88 Morgan Street Condominiums in Jersey City, NJ
(Realtor.com)
Across the Hudson River from the Trump Organization’s Manhattan properties is 88 Morgan Street Condominiums, formerly known as Trump Plaza Residences, in downtown Jersey City. The 55-story building, developed by the organization in the late 1980s, provides a sweeping view of the Manhattan skyline and the Upper Bay.
But 88 Morgan Street has not seen the same price gains as condos nearby. The median condo price in Hudson County, NJ, which includes everything from Bayonne to North Bergen and from the Hudson River across the Hackensack River to Kearny and Harrison to the west, saw modest appreciation during the pandemic, rising by about 14% from 2019 to 2022.
In Jersey City, condo sale prices at 88 Morgan Street rose only 4%.
“I know in those buildings in New Jersey, there have been fights about taking his name off,” says Neiditch, of River 2 River Realty, “but that’s been going on since back in 2016.”
Breaking a tradition since 1961, the Oscars theme was a champagne hue instead of the classic red. Critics may have been divided on the change, but the stars outdid themselves in high-fashion couture, from delightful rosette accents to ethereal white gowns. Lady Gaga turned heads in a jaw-dropping Versace creation, Rihanna made a statement with her Eagles t-shirt and a sultry Alaïa midriff-baring dress, while Nicole Kidman sizzled in an Armani ensemble adorned with sequined flowers and a daring thigh-high slit. Here are the most fashionable Celebrities at the Oscars.
1. Nichole Kidman
Photo Credit: Shutterstock.
Rosettes are a ubiquitous sight on the red carpet, including the Oscars champagne carpet, but Nicole Kidman managed to make them appear fresh and alluring rather than mundane. The Armani Privé gown adorned with rosettes seemed to blossom off her shoulder and at the top of her skirt. It seemed intimate and warm, like a fresh boquet. Kidman exuded a remarkable sense of confidence, evident in her poised demeanor.
2. Lady Gaga
Photo Credit: Shutterstock.
Lady Gaga’s stunning Versace dress was recently showcased at Donatella Versace’s fall 2023 runway show in Los Angeles and was previously modeled by Gigi Hadid. Despite Gaga’s penchant for red-carpet theatrics, her stunning attire this time spoke for itself. Her natural beauty was on full display, and the dress perfectly complemented her vibrant personality without requiring any additional embellishments.
Personality and Drama
Photo Credit: Shutterstock.
As expected, Gaga’s signature flair was still evident with the surprise low-cut back, which playfully revealed a glimpse of skin and embodied her cheeky style. This playful detail added a touch of fun and glamour, without the need for a large entourage on the red carpet.
3. Michelle Yeoh
Photo Credit: Shutterstock.
Michelle Yeoh is a true red-carpet chameleon, defying convention by experimenting with different styles and constantly reinventing herself. While many celebrities adopt a fixed aesthetic for their Oscars campaign, Yeoh fearlessly steps outside her comfort zone and tries something new every time. For the recent ceremony, she opted for an angelic look in a Dior Couture gown that resembled a wearable cloud, beautifully accessorized with a tiara-like headband.
Young and Playful
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This stunning outfit seems like the kind of dress we might have imagined ourselves wearing when we were young, daydreaming about being all “grown up.” It’s fitting that Yeoh made history in this dress, decades after what some in the industry would mistakenly view as her “prime.” Her Oscars moment, embodied by this dress, feels like a childhood dream come true.
4. Michelle Williams
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Michelle Williams stunned in an ethereal Chanel couture gown that evoked a heavenly presence, with a forward-falling cape that draped over her figure. The effect was a snowstorm of shimmering sequins, creating a dreamy and surreal visual experience. This particular look took her to another level of otherworldly charm. She gave the impression of a Degas painting, brought to life with a stunning couture gown that accentuated her delicate features.
5. Tems
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Tems made a bold fashion statement in a Lever Couture hooded gown, featuring a design that resembled a swirling trail of smoke. The dress was a work of art, meant to be admired from all angles, with tulle around her cheeks, shoulders, and hair. While Williams and Yeoh channeled angelic vibes, Tems embodied the very essence of heaven itself with her cloudy, feathery landscape-inspired dress. She exuded a serene yet powerful energy that captivated everyone’s attention.
6. Rihanna
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Rihanna never fails to make a statement, even when it comes to the Oscars red carpet. Rumor had it that she arrived wearing an Eagles T-shirt and a sequined hat so large it could barely fit through the door. But instead of disappointing us with her absence, she made a grand entrance fashionably late in a stunning belly-baring Alaïa gown. The dress was a masterpiece in every way, with daring thigh-high slits and leather detailing wrapped around her neck and chest, framing her midriff. Rihanna looked absolutely breathtaking, radiating confidence and glamour with every step she took.
7. Cara Delevingne
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While many guests played it safe with black or white ensembles, Delevingne stole the show in a deep, romantic red gown. The oversized rose detail on her shoulder was a bold choice but not overpowering. The gown draped at her hips in a theatrical manner. Delevingne is not just a fashion icon but a true supermodel with an undeniable presence. Her striking features and confident demeanor were impossible to ignore, making her a true force to be reckoned with. With this appearance, Cara Delevingne cemented her status as a fashion icon with a face card that never declines.
8. Malala Yousafzai
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Malala Yousafzai, the educational activist, made a stunning Oscars debut as an executive producer of the short film “Stranger at the Gate”. She arrived on the Champagne carpet early, making a grand entrance in a silver sequined Ralph Lauren hooded gown that set an impossibly high standard. The dress was a perfect match for Yousafzai’s formidable presence, as she is a powerful force in her own right. The glistening sequins of the gown reflected her inner strength and resilience, making her shine even brighter on Hollywood’s biggest night.
9. Michael B Jordan
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Michael B. Jordan, who was presenting at the Oscars ceremony, arrived on the Champagne carpet looking sharp and stylish in his custom-made Louis Vuitton double-breasted tuxedo with a satin lapel. He opted for a classic black bow tie and shoes to complement his ensemble. However, he didn’t shy away from adding a pop of color to his outfit through his jewelry choices. Jordan wore a pair of Tiffany & Co.’s Bird on a Rock Brooches on his lapel, one with a pink morganite stone and the other with a green tourmaline. Both brooches featured diamond birds perched on top, adding a touch of glamour to his already stunning outfit.
Sparkling like Champagne
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Not stopping there, the 35-year-old actor also wore diamond studs, a diamond tennis bracelet, and a diamond ring, all from Tiffany & Co. The subtle glimmer of his jewelry perfectly complemented his attire, making him stand out on the red carpet. To complete the look, he wore a stainless steel watch with a black strap, adding a touch of sophistication to his already elegant outfit. Overall, Michael B. Jordan’s stylish ensemble was a perfect blend of classic and modern fashion that showcased his impeccable taste.
The Oscars red carpet was a celebration of fashion, with stars dazzling in stunning couture. From Nicole Kidman’s alluring rosette-adorned Armani ensemble to Lady Gaga’s jaw-dropping Versace dress, the red carpet was a sight to behold.
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After two consecutive weeks of increases, mortgage applications decreased 6.9% in the week ending June 25, 2021, according to the latest report from the Mortgage Bankers Association.
Mortgage applications had increased 2.1% and 4.2% in the previous two weeks, respectively.
The 6.9% dip brought application volume to its lowest level in almost 18 months, according to Mike Fratantoni, MBA’s senior vice president and chief economist. Purchase applications for conventional loans also declined to its lowest level since May 2020.
“Mortgage rates were volatile last week, as investors tried to gauge upcoming moves by the Federal Reserve amidst several divergent signals — including rising inflation, mixed job market data, strong consumer spending, and a supply-constrained housing market that has led to rapid home-price growth,” Fratantoni said.
“As the economy progresses and inflation remains elevated, we expect that rates will continue to gradually rise in the second half of the year,” added Sam Khater, Freddie Mac’s chief economist. “For those homeowners who have not yet refinanced – and there remain many borrowers who could benefit from doing so – now is the time.”
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The refinance share of activity decreased to 61.9% of total mortgage applications from 62.5% the previous week. On an unadjusted basis, the market composite index decreased 7% compared with the previous week. The seasonally adjusted purchase index also decreased 5% from one week earlier.
The FHA share of total mortgage applications remained unchanged at 9.5% from the week prior, and the VA share of total mortgage applications also decreased to 10.5% from 11.2%.
Here is a more detailed breakdown of this week’s mortgage applications data:
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) rose to 3.20% from 3.18%
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $548,250) decreased to 3.23% from 3.26%
The average contract interest rate for 30-year fixed-rate mortgages decreased to 3.19% from 3.21%
The average contract interest rate for 15-year fixed-rate mortgages also decreased to 2.56% from 2.58%
The average contract interest rate for 5/1 ARMs increased to 2.98% after remaining unchanged for the last two weeks at 2.69%, with points decreasing from 0.26 (including the origination fee) for 80% LTV loans
In August 2020, Taylor Lopez and her husband Joseph bought their home for $180,000 in the fast-growing city of Anna.
They bought the three-bedroom house built in 1966 with a loan carrying a 3.8% mortgage rate. “From an investment standpoint, it felt like a good choice,” said Lopez, 36, a real estate manager for restaurant chain Wingstop.
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Dallas-Fort Worth home sales, prices only take slight hit from higher mortgage rates
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After more than two years in the home, they’ve been thinking about selling. Joseph works in Lewisville and Taylor works in Addison, so they would like to find a place offering a shorter commute.
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But, like many other would-be upsizers in Dallas-Fort Worth, the couple feels locked into their current home.
Although they could get a good return on a sale, they would have to shop in a dramatically more expensive housing market than when they first purchased and sacrifice their current loan for a new one at a much higher rate.
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After a wave of low-rate homebuying and refinancing from 2020 to 2022, more than half of outstanding Texas mortgages have rates of less than 4%, according to Federal Housing Finance Agency data.
Since last fall, the average rate for a 30-year, fixed-rate mortgage has been hovering between 6% and 7%.
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“There are people that want to sell, but that is what is keeping them there at their house,” said Misty Michael, a real estate agent in the Sachse and Plano area.
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The Lopez family said any home they would want to buy, in school districts they want to be in and that wouldn’t require a lot of work, would start in the $400,000 range.
“It doesn’t make sense when you weigh out all the pros and cons, so we’re continuing to drive about an hour each way to work,” Lopez said. “We could always purchase a home at a higher interest rate, then refinance it if the interest rates go down, but that’s an if and when situation.
“When you’re playing with that much money, it doesn’t seem like a risk I’m willing to take right now.”
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Joseph (left) and Taylor Lopez purchased their home in Anna in 2020 for less than $200,000 with lower mortgage rates and are now waiting out higher rates and prices as they look to sell. (Liesbeth Powers / Special Contributor)
Changing math
Since the start of 2020, the median price of a single-family home in Dallas-Fort Worth has risen more than 50%, according to North Texas Real Estate Information Systems and the Texas Real Estate Research Center at Texas A&M University.
On top of that, the Federal Reserve has aggressively increased its federal funds rate for more than a year, indirectly driving up mortgage rates. Freddie Mac recorded an average 30-year mortgage rate of 6.96% on July 13.
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The result: The monthly principal and interest payment for a median-priced Dallas-Fort Worth home at the average rate with a 20% down payment, before insurance or property taxes, was about $980 in January 2020. In June, it was more than $2,100.
For buyers who purchased a $300,000 home at the record low of 2.65% in January 2021, just buying a house at the same price again at today’s average rate would add almost $900 to their monthly payments before taxes and insurance.
Purchasing a bigger or nicer home would add significantly more to that already-elevated payment, so people with job promotions or babies on the way looking to upgrade to bigger homes may not find a good enough deal to justify it financially.
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“It now is significantly more expensive to make these marginal changes that you might have been planning,” said Texas A&M economist Adam Perdue. He and his wife are expecting a baby soon and have considered getting a bigger home, but they too have a low rate on their home in Brazos County and don’t want to take on higher monthly payments.
While prices are declining slightly year to year, Texas A&M economists don’t expect them to return to where they were at the beginning of 2020. Rates are also expected to decline, but not back down to the record lows. Mortgage Bankers Association forecasts rates in the 5% range by 2024.
Still buying and selling
As mortgage rates rose and sellers held back, new single-family home listings in Dallas-Fort Worth dropped 22% between June 2022 to June 2023, limiting options for people looking to buy.
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Buyers with an immediate need to move are still purchasing homes, and people continue to move to Texas from other parts of the country. Local home sales recorded in June were down only slightly from a year before.
“We have a ton of buyers that are wanting to buy a home,” Michael said, adding that buyers may choose to refinance later. “You have people getting married, having babies, kids going to college.”
More casual buyers without an immediate need to move may no longer be shopping, said Drew Kayes, who heads up homebuying company Opendoor’s operations in Dallas-Fort Worth and Houston.
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“A lot of those folks right now are not in the market because they’re locked into a sub-4% rate, and that’s more of a luxury move than a necessity move,” Kayes said.
An open house sign beckons buyers outside of a home in Plano. (Shafkat Anowar / Staff Photographer)
Jason Dickson, co-owner of North Texas-based Nuwave Lending, said while it may be hard for homeowners to leave their current home, it may be worth it for them to tap into equity they’ve built up during the pandemic to pay off credit card debt or auto loans.
“They’ll gladly sign up for the higher interest rate in the new house if they have the benefit of taking that equity and improving their overall financial position,” he said.
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A silver lining
Nipun Gadhok, development manager for the Nehemiah Company, is looking to move from Fort Worth to buy a home in Mesquite next year.(Liesbeth Powers / Special Contributor)
Nipun Gadhok, 31, doesn’t want to lose his 3% rate but hopes to purchase a new home for him and his girlfriend next year.
Gadhok, a development manager for the Nehemiah Co., a local firm behind residential communities throughout Dallas-Fort Worth, purchased his five-bedroom home in Fort Worth’s Augusta Meadows neighborhood in 2021.
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He’s looking to buy a home along the outskirts of the metro area, potentially in one of his company’s developments on the east end of Mesquite. Knowing he has a rate he may never get again, he’s not planning to sell his Fort Worth house.
He intends to keep it as a rental property and is already renting out rooms to four other tenants. With mortgage rates causing many people to rent, that’s turning out to be a good side hustle.
“People are choosing to rent, they are not as much inclined to buy,” Gadhok said. “The rates really helped me out in the way that I’m not having problems with finding tenants.”
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