Mortgage Rates Surge Upward As Q3 Earnings Post

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Rising interest rates are having a big effect in Southeast Michigan. According to Freddie Mac, the 30-year fixed mortgage rate is higher than 7%. This surge hasn’t been seen since April 2002. The U.S. Federal Reserve is hiking rates in order to control inflation. Detroit-based Rocket Mortgage parent company Rocket Companies Inc. will soon be reporting its third-quarter earnings on Nov. 3, providing a better picture of how mortgage companies will fare in the future months. Ann Arbor-based Home Point will report its earnings on Nov. 10. Pontiac’s UWM has not released the date of its third-quarter report.

 

Michigan Landlords and Tenants May Be Facing Big Changes

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The State Court Administrative Office has proposed new rules that would affect eviction cases. The proposal includes an option for online pretrial hearings in eviction cases, a tenant requirement to give landlords 48-hour notice if a jury trial is desired, a requirement that tenants be served in person if the landlord wants an immediate default judgement, the creation of a minimum 7-day window between pretrial hearings and trials, and the ability for tenants to get an automatic stay if they’ve applied for rental aid. The aim is to allow more time for commercial and residential tenants to pay what is owed when they fall short. In some cases, this will lengthen the eviction process. The intent is to continue the advances that were made during the pandemic. The rule changes are in a public comment period until Tuesday.

 

New Costco Business Center Is On The Horizon

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The planned Costco Business Center in Southfield is one step closer to happening. Southfield City Council approved Contour Companies LLC’s sale of the property at the southwest corner of the former Northland Center site. When complete, it will be Michigan’s first Costco Business Center. The center would be geared toward small businesses, restaurants and the hospitality industry. Michigan’s Costco Business Center would be one of 15 located in the United States. Project demolition has started, and framework for the buildings has begun. The overall plan will bring more than 2,800 housing units to the site.

 

Developer Plans Lakeside Mall Transformation

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It is expected that Sterling Heights City Council will vote on Tuesday on Lionheart Capital’s “Lakeside City Center” proposal for the Lakeside Mall. The mixed-used development plan includes residences, parks, a hotel and office space, and retail and dining space. The Miami developer says the project could provide an estimated $1 billion to the region over a ten-year span. The property on Hall and Schoenherr roads will host more than 2,800 multi-family apartments (including some senior housing, and 150,000 square feet of retail and dining space, 60,000 square feet of office space, as well as a 120-room hotel. About 30 acres will be donated to the city for park, streetscape and infrastructure.

 

 

Detroit Developer Revamps Plans For Grand Rapids’ Furniture Company Property

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Detroit developer, Sturgeon Bay Partners is revamping its plan for a huge apartment complex southwest of downtown Grand Rapids. The previously announced plan was to convert the historic Sligh Furniture property into a mixed-use development with residential, retail and commercial spaces. The project’s current price tag is at $100 million due to rising construction costs and interest rates. The developer is revising its plans for the concept design and mix of incentives. The original plan was to create a mixed-use devlopment with 753 apartmes, a five-story parking garage and ground-floor retail space.

 

As Mortgage Rates Rise, Demand Drops

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The S&P 500 bounced back from the 2022 lows. The 10-year U.S. Treasury bonds yield hit 4.337% on Friday. Following a Wall Street Journal report that some Federal Reserve officials are uneasy with the pace of the central bank’s interest rate increases, treasury yields slid down to close out the week. The Mortgage Bankers Association reported that U.S. mortgage demand dropped to a 25-year low, and the average rate for a 30-year fixed-rate mortgage rose to 7.15%. The S&P 500’s price to earnings ration is 15.5 which is below its 10-year average.

 

Buyers Can Afford To Be Choosy As Housing Market Slows

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With rising interest rates, the fast and furious pandemic-era housing market has slowed. Metro Detroit home buyers have time to make thoughtful choices. Homes are sitting longer, and buyers are able to take time with inspections and decisions. Buyers’ questions have shifted from “How many offers?” to “Can we get a better deal on this house?” As home prices continue to increase, sales are dropping and homes are sitting on the market longer. The average number of days on the market in September was 29. The median sales price is 2.3% higher than last year. Sales are down nearly 20%.

 

432-Unit High Rise Planned For Grand Rapids

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Spire Investment Properties and Krika Development are proposing 432 market-rate apartments at the southern edge of downtown Grand Rapids. The McConnell is a 10-story, 336,835-square-foot development that covers three lots. The two out-of-state investors hope to build a food hall, microbrewery or distillery, an outdoor lot for food trucks and shipping container-retail  stores. The development would spread over three parcels. They have not disclosed the project’s budget. The developers are seeking special land-use approval from the Grand Rapids Planning Commission to sell alcohol, food and retail at the site.

 

Duggan-Targeted Riverfront Apartment In Foreclosure

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The former River Plaza Apartments, a rundown apartment building between old Whittier Hotel and Owen Park, has fallen into foreclosure. The two-building property went into foreclosure with Columbia, Maryland-based Enterprise Community Loan Fund Inc. The property, one of 100 similar properties, was targeted by Mayor Mike Duggan to rid the city of blighted buildings. It’s unclear if the administration is still seeking demolition and there is no update on the plans. The foreclosure was scheduled at the end of December but was postponed multiple times; it finally took place in late August. The owner, Kathy Makino-Leipsitz, has until February 25, 2023 to redeem the properties.

 

WeWork Closing Cass Avenue Location

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NYSE:WE, the New York City-based coworking space provider has announced that it’s closing its space at 6001 Cass Avenue, effective November 10. According to a WeWork spokesperson, they have two other coworking space locations in the immediate area. Three years ago, the company more than doubled its space at the time, adding the 91,000-square-foot location. The location is one of three in Detroit. The company communicated with tenants that they may be relocated to the Detroit locations downtown.