Real Estate Daily News Buzz is designed to give news snippets to readers that our (yet to be award winning) editors thought you could use to start your day. They come from various business perspectives, real estate, government, the Fed, local news, and the stock markets to save you time. Here you will find the headlines and what the news buzz of the day will be.
Thursday, the Dow Jones industrial average climbed 369.26 points, or 2.3%, to 16,654.77. The index has recouped almost 1,000 points in the last two days. That’s more than half of its losses during a sharp six-day slump. The S&P 500 index gained 47.15 points, or 2.4%, to 1,987.66. The NASDAQ composite rose 115.17 points, or 2.5%, to 4,812.71.
U.S. oil rose $3.96, or 10.3 per cent, to $42.56 a barrel. Brent crude, a benchmark for international oils imported by U.S. refineries, rose $4.42, or 10.3 per cent, to $47.56 in London. Wholesale gasoline rose 10.19 cents to $1.435 a gallon. Heating oil gained 11.51 cents to $1.496 a gallon. Natural gas fell 5.5 cents to $2.638 per 1,000 cubic feet.
Average US rate on 30-year mortgage drops to 3.84% - Average long-term U.S. mortgage rates dropped this week to their lowest levels since May, in a week marked by turmoil in global markets that was stoked by economic developments in China. Mortgage giant Freddie Mac said Thursday the average rate on a 30-year fixed-rate mortgage fell to 3.84 per cent from 3.93 per cent a week earlier. The benchmark rate hasn’t been that low since May 21. The rate on 15-year fixed-rate mortgages declined this week to 3.06 per cent from 3.15 per cent. (Yahoo) h
Lightstone Gives Birth to Another REIT “Focusing on providing funding sources for development and redevelopment projects, Lightstone has launched Lightstone Real Estate Income Trust, Inc., a $300 million development finance REIT.” (Commercial Property Executive)
Bill Ackman’s Gains for the Year Got Wiped Out in a Matter of Weeks “Pershing Square Holdings, the $7.4 billion publicly traded vehicle led by Bill Ackman, has erased all its gains in a matter of weeks and is down for the year.” (Business Insider)
Meatpacking District Office Boom in Google's Shadow “In the 10 years the meatpacking district has been Google's New York home, the company has grown to encompass about 2 million square feet in four contiguous buildings—and with it, nearly 40% of the neighborhood's office space.” (Crain’s New York Business)
Hong Kong Property Developer Invests in Co-Working Space Company NeueHouse “Hong Kong property company Great Eagle Holdings Ltd. is betting on the shared-office trend that is taking off in the U.S.” (Wall Street Journal)
Associated Press to Move to New NYC Headquarters in 2017 “The Associated Press plans to move its global headquarters from Manhattan's far west side to a smaller, less-expensive space adjacent to the World Trade Center site, the news cooperative's president said Wednesday.” (Associated Press)
Now's the REIT Time to Go Shopping For SWANs “As I sat down last night listening to the pundits on Fox Business discussing the impact of the global economy, I became increasingly fixated on the ominous headwinds, mainly depreciation of non-U.S. currencies and the impact on global profits.” (Seeking Alpha)
How the Oil Slump is Affecting Residential Real Estate in Houston “For months, Houston developers have watched nervously as oil prices plummeted to six-year lows. As energy companies tightened their belts, developers wondered how the oil slump would affect Houston’s residential real estate market — particularly in the suburbs, which saw expansive growth during the energy boom.” (Houston Business Journal)
After Sale of Site Off Mag Mile, Could High-Rise Proposal Be Far Behind? “A new developer is poised to take a swing at a high-rise project just off the Magnificent Mile after another one with a plan to build a 45-story hotel tower on the site struck out last year.” (Crain’s Chicago Business)
Treasury Yields Climb as Wall Street Rebounds “Treasury yields continued to climb on Wednesday, with the 10-year yield reaching its highest level in more than a week, as Wall Street recovered from a six-session rout, and investors sold bonds in favor of riskier assets.” (Market Watch)
Joseph Stiglitz Explains Why the Fed Shouldn't Raise Interest Rates “As central bank governors, Federal Reserve officials, economists and reporters convene for the annual economic policy retreat in Jackson Hole, Wyo., this weekend, the question on everyone's mind is: Will the Fed raise interest rates come September?” (Los Angeles Times)