March 2nd, 2021 8:57 AM by Richard Sardella MLO.100007700/NMLS 233568
Print them and they will come: the 3-D house
While 3D-printing has been talked about for a while now, where home building is concerned, it’s a phenomenon whose time is due. With home prices surging due to lack of inventory and builders fretting over the cost of building materials, 3D-printed homes now means the homebuilding industry is on the edge of a revolution, according to CNBC’s Diana Olick.
Olick describes how 3D-printing technology was used to build a 900-square-foot model home on Long Island. But its builder, Kirk Anderson, is about to build another (even more important) one – the first 3D-printed home in the United States to be marketed to the public.
“The new home will be slightly larger at 1,500 square feet and will feature three bedrooms, two bathrooms and a garage. It is listed at just under $299,000, about half the price of a comparable newly built home in the area,” says Olick. “Demand is off the charts,” says a local Long Island Realtor.
The maker of the homebuilding feast, Andersen is director of operations at SQ4D, a New York-based company with barely a dozen employees. Olick explains how, while other companies have 3D-printed small structures that are being used to house the homeless, Andersen’s firm is the first company using the technology specifically for the for-sale market. That meant scaling up their robotic printer, doing lots of testing, then printing up the foundation, interior, and exterior walls and utility conduits for the model home. They did that in just two days.
How does it look? “Like a massive spout squeezing out concrete toothpaste in long lines, but the result is an incredibly solid, resistant structure. The raw walls look a bit like concrete corduroy, but they can be smoothed depending on the buyer’s tastes,” says Olick. “It requires little labor to build, and the price is low — two potentially attractive points as the industry contends with a severe labor shortage and high material costs. And instead of using costly lumber, they used concrete, which is far cheaper.
“We’re trying to build homes and houses in half the time for half the price,” said Andersen in the article. “Our profits will be higher and we will be able to show that with more projects that we do.” But there will be red tape barriers, as there always are for new technology no one knows how to deal with. Getting permits won’t be easy. Andersen will need to work with local officials, teaching them about the process and the potential, while dealing with zoning regulations for this first batch of printer-made homes.
As for the first prototype, there are already multiple offers on the house, some from regular buyers, others from investors. Andersen said he has also gotten a lot of interest from developers who want him to build 3D housing developments. He sees this as being involved in an important piece of history, staying local at first but looking ahead as well, hoping to take the concept to places like Florida and California, proving this can be done anywhere.
Source: CNBC TBWS
How Rates Move:
Conventional and Government (FHA and VA) lenders set their rates based on the pricing of Mortgage Backed Securities (MBS) which are traded in real time, all day in the bond market. This means rates or loan fees (mortgage pricing) moves throughout the day, being affected by a variety of economic or political events. When MBS pricing goes up, mortgage rates or pricing generally goes down. When they fall, mortgage pricing goes up. Tracking these securities real-time is critical. For more information about the rate market, contact me directly. I’m among few mortgage professionals who have access to live trading screens during market hours.
Rates Currently Trending: Higher
Mortgage rates are trending sideways so far today, but the overall trend is higher. Last week the MBS market worsened by -71 bps. This was enough to worsen mortgage rates or fees. We saw high rate volatility through the week.
This Week's Rate Forecast: Neutral
Three Things: These are the three areas that have the greatest ability to impact rates this week: 1) Stimulus, 2) The Fed, and 3) Jobs,
1) Stimulus: The House passed their version of the Budget on Saturday, and Speaker Pelosi famously left in the $15 min wage provision. However, the Senate (despite a big push for Majority Leader Schumer) has seemingly agreed to pass on the $15 min wage provision since a couple of Democratic Senators will not support it and therefore doom the entire budget. But those are the headlines, and the reality (because that can certainly change again) is what the bond market will focus on as the Senate reconciles with the House Budget. The timing and final language/dollars are very key.
2) The Fed: We are in the middle (yes, I said middle) of the second largest deterioration in bonds in recent history. Will the Fed be forced to step up to the plate and agree to purchase more bonds? After all, we have had true market forces working - can we? We have a lot of key speeches by voting members this week, and while the main topic of their speeches might not be related to bonds/rates/economy, they certainly can put in their two cents worth if they want.
Here is this week's schedule:
3) Jobs: We get a TON of jobs and wage-related data this week the culminates in Big Jobs Friday. The bond market is very sensitive to increases in wages and stronger employment numbers.
This Week's Potential Volatility: High
Rate market volatility was at extreme levels through last week. We are expecting high volatility again this week, but not as much as last week. We very easily could see very excessive volatility on Friday with the jobs numbers. If they come in stronger than expected, we're likely to see rate markets head up slightly.
If you are looking for the risks and benefits of locking your interest rate in today or floating your loan rate, contact your mortgage professional to discuss it with them.
Richard Sardella has been actively managing and providing services in the mortgage industry for over 27 years. Richard serves on the board of directors as President of Colorado Home Mortgages Inc.
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