SPRING MARKET PREVIEW SEE PAGE 10
ANNIVERSARY BY THE NUMBERS
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R E AA LL EES ST T F AI N A INA CL I IANLF OI R NM F A O TRI M A TSI I O RE AA T ET E& & FIN NC ON NN C E S 1I 8N7C2 E
County close-up: Bristol Spotlight: Dighton
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Even before the pandemic, the “Amazon effect,” had changed consumers’ expectations about how they interact with companies. The Aite-Novarica Group’s Paul Legutko wants to help lenders meet these demands.
IN PERSON
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WEEK OF MONDAY, APRIL 11, 2022
BANKING & LENDING BY THE NUMBERS
The new law requires MBTA communities to allow multifamily zoning by-right near train stations and points where bus lines intersect. A 2021 Metropolitan Area Planning Council study estimated this would create 31,000 acres worth of development sites in 38 communities that currently have more restrictive zoning.
COMMERCIAL INTERESTS
.5 percent The Federal Reserve is indicating it may raise interest rates in halfpercentage-point jumps rather than the more traditional quarter-point in an effort to combat inflation. See Week on the Web on page 2. Source: Federal Reserve meeting minutes
20 percent Freddie Mac estimates the average monthly mortgage payment for new buyers is 20 percent higher than it was this time last year. See the editorial on page 4. Source: Freddie Mac
8.3 percent The national median payment applied for by applicants jumped 8.3 percent to $1,653 in February, up from $1,526 in January. See page 9. Source: Mortgage Bankers Association
HOUSING AROUND TRANSIT NODES
2 percent MAR proposes a transfer tax of up to 2 percent on high-end home sales; Cape Cod Realtors counter that won’t slow down sales growth on the islands. See page 5. Source: MAR; Candace daRosa and Ken Beaugrand
15 percent Teachers Insurance Fund provided 15 percent of mortgage loans in February in Bristol County. See By the Numbers on page 6. Source: The Warren Group
4.7 percent Last week’s mortgage rates topped 4.7 percent. See Week on the Web on page 2. Source: Freddie Mac
70 percent Seventy percent of survey respondents said they increased their customer service budget in the past year. See the In Person on page 8. Source: Aite-Novarica Group
$5,000 First-time homebuyers in Somerville can receive up to $5,000 to help with closing costs on new mortgages. See Lew Sichelman’s column on page 4. Source: Down Payment Resource
Threatened by Local Concerns Preserving ‘Town Character’ Isn’t a Good Reason to Stop Development BY SCOTT VAN VOORHIS BANKER & TRADESMAN COLUMNIST
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uburban leaders are taking aim at a centerpiece of the Baker administration’s plans to tackle the state’s housing crisis by spurring construction of hundreds of thousands of new apartments and condominiums. The Massachusetts Municipal Asso-
without sewer service or municipal water, may simply take the hit and lose state grant money rather than comply with the law, which would require towns to zone for at least 750 new multifamily units, the two groups warned. But in their opposition, local officials are going beyond mundane complaints about the lack of infrastructure to raise concerns of a fuzzier, more metaphysical nature, namely that opening the door to large numbers of multifamily units will negatively alter the time-honored “character” of individual towns.
Continued on Page 3
R I S I N G R AT E S
FROM THE FED
Interest Rates, Construction Costs Pressure Financing
Home Prices Becoming ‘Unhinged from Fundamentals’
Housing Pipeline Faces a Stress Test By Steve Adams | Banker & Tradesman Columnist
Unless otherwise noted, all data is sourced from The Warren Group’s Mortgage Market Share Module, Loan Originator Module, Statistics Module and/or proprietary database. For more information please visit www. thewarrengroup.com/business/datasolutions.
ciation and the Massachusetts Municipal Lawyers Association are raising serious concerns about the MBTA Communities law and in particular how state officials hope to go about enforcing it. The new law, which passed last year, uses the threat of the loss grant money to prod cities and towns within a certain distance of T commuter rail, bus and subway stops to open the door to hundreds and in some cases thousands of new multifamily units in various communities. However, some communities, especially smaller ones in the outer suburbs
Commercial Real Estate PAGE 7
Dallas Fed Researchers Warn of Housing ‘Bubble’ By James Sanna | Banker & Tradesman Staff
Banking & Lending PAGE 9