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7 historic Phoenix landmarks that no one remembers

7 historic Phoenix landmarks that no one remembers

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When the Central Avenue Dairy began in the early 20th Century between Central and 3rd Avenue, north of Thomas, the city limits for Phoenix ended at Van Buren.

They are all historic Phoenix landmarks. They were centers for the community long before Phoenix became the fifth-biggest city in the country. They have all been replaced by various commercial real estate projects, but they created memories for all who visited them. Here are seven historic Phoenix landmarks that very few people remember.

Weems Turkey Ranch

The ranch was built around the time Arizona became a state in 1912.  It was surrounded by a six-foot granite wall.  The ranch covered about 80 acres and was located at 7th Avenue and Camelback.  It extended from 7th Avenue to 11th Avenue to the west and from Camelback to Colter to the north.  The ranch house faced east and sat about 150 feet north of Camelback and 100 feet west of 7th Avenue. Weems had hundreds of turkeys and also had chickens, geese and goats. Most families in Phoenix at the time bought their Thanksgiving Turkeys there.

Today: The area is home to an LA Fitness, Fry’s and other retail shops and restaurants.

Central Avenue Dairy

The dairy began in the early 1900’s and ran from Earl to just south of Thomas and from Central to 3rdAvenue (about 46 acres).  We never were bothered much by the smell as there were less than 100 cows at any one time. 

Today: Park Central Mall construction began in 1955, thus ending the run for Central Avenue Dairy.Nearby land was also used to build St. Joseph’s Hospital and Medical Center.

Phoenix Trap and Skeet Club

Located in Echo Canyon at the base of Camelback Mountain, the Arcadia Neighborhood, it was an ideal place to be.  The club was organized in the 1930s.  In trap shooting, the“clay pigeons” are launched from a single machine away from the shooter.  In skeet shooting, targets are launched from two machines in sideways paths that intersect in front of the shooter. The club hosted the world national competition for many years until 1952, when the club moved to Papago Park.

Milky Way Ranch

The ranch was a gorgeous place to visit — a giant oasis of 320 acres.  It was located between 20th Street to 28th Street and from Camelback to Campbell.  The ranch’s headquarters was located exactly where Trader Joe’s is today. The ranch was built in 1900 and closed down in 1950, but a nine-hole golf course was built on the site in late 1951.   

Today: In 1965, Town and Country Mall was built and it has undergone renovations and a renaissance over the past several years.

Sportsman’s Park

Sportsman’s Park was a 160-acre horse racing track. It had a huge white sign with blue letters that rose high above the entrance at the northeast corner of 7th Avenue and Indian School Road. It extended east to 3rd Avenue and north to Indianola.  The park was built in 1920. By late 1950, the racetrack closed its doors.

Today: The area is home to the entrance of the Melrose Historic District, a post office, fast-food restaurants and residential housing.

Cactus Air Park was an open area of 960 acres.  There was always at least three to five airplanes sitting at the northwest corner of the field. The airplanes did not have a closed hangar.  The area had no street signs until 1957.  All of the 960 acres were hard flat dirt without a single growth of anything.  This was due to the Borate compound the airplanes would spray on the field (Borate was later outlawed in the mid-1960s).  The confines were Shea to Cactus to the north and 32nd Street to 44th Street to the east.  Endless miles of desert extended beyond the confines.Cactus Air Park

Airhaven Airport

Airhaven Airport was built during WW II and was located between 27th Avenue and 35th Avenue just south of Indian School Road.  The runway ran 30 degrees northeast to 30 degrees southwest.  It was bordered on the southwest by Grand Avenue and the northeast by Indian School Road.  The Arizona Canal bordered the airport to the south.  The entrance was just before you got to the intersection of Indian School Road, 35th Avenue and Grand Avenue. 

 

Mansion by Former Frank Lloyd Wright apprentice is on the market

This Phoenix mansion designed by former Frank Lloyd Wright apprentice is on the market for $8.75 million

May 6, 2016, 8:15am MST

A Phoenix mansion designed by Vernon Swaback, one of the last living former apprentices to famed architect Frank Lloyd Wright, is for sale. View pictures.

And the 13,365-square-foot home can be yours for a cool $8.75 million, one of the priciest homes for sale in the city of Phoenix, according to Realtor.com.

The property at 15 Biltmore Estates Drive sits on about 1.67 acres and includes seven bedrooms and 10 bathrooms. The home abuts the Adobe Golf Course in the Biltmore neighborhood and features resort-like grounds, custom-made limestone columns and surfaces as well as Brazilian hand-scraped cherry wood floors, an expansive master suite, bar, pool and whole slew of other high-end amenities and features.

The property previously was on the market with a price higher than $9 million, but it was de-listed roughly a year ago before going back up for sale earlier this year.

Cheery Lynn Historic District In Downtown Phoenix, Arizona

Cheery Lynn Historic District In Phoenix

Cheery Lynn Historic District Home. English and Tudor Revival styles were the dominant styles through 1930.

Cheery Lynn Historic District is roughly bounded by Flower Street to the north, Earll Drive to the south, Randolph Road on the west, and 16th Street on the east. 

Cheery Lynn Historic Homes For Sale

One of the best kept little secrets of Central Phoenix is the Cheery Lynn Neighborhood. When you step off of the hustle and bustle of 16th Street, it is almost like being transformed back in time as you’ll find people pushing strollers, walking dogs, jogging, skating, riding bikes and enjoying a porch party with their neighbors. A great diversity exists among the individuals and families that live in this neighborhood. Some are relatively new, while others have lived here since childhood.

The Greater Cheery Lynn Neighborhood Association was established in 2003. Cheery Lynn was remote from downtown Phoenix when the first home was built in 1928. On January 28, 1928, a tract of land described as Lot 1 Beverly Heights was subdivided under the name of Cheery Lynn. This neighborhood is more than 85 years old!

The Architectural Styles and Square Footage of the homes in the Cheery Lynn Historic District vary widely from around 1,000-1,350 square feet with 2-bedrooms on average. But, the 1940’s Ranch-Style homes can get to 3,000 square feet and have at least 3 bedrooms and 2 bathrooms. You’ll even find a few 2-story homes here. A nice variety with one of the most diverse, one-of-a-kind homes exist in this perfectly manicured, story book neighborhood.

All homes a very unique to each other with English Tudors and Cottage style homes built in the 1920’s and 1930’s. A few stunners of Spanish and Mediterranean-style homes add an incredible flavor to this classic central Phoenix neighborhood. The homes built post-WWII are modest, French Provincial Ranches

If you like Cheery Lynn, you’ll also like Woodlea Historic District or Yaple Park

Read the history of Cheery Lynn Historic District

Homes For Sale In Cheery Lynn Historic District

North Encanto Historic District In Central Phoenix

NORTH ENCANTO HISTORIC DISTRICT

The purpose of North Encanto Neighborhood Association (NENA) is to preserve & enhance the historic character of the North Encanto Neighborhood & to improve the quality of life for its residents  by creating a safe, vibrant & engaged community. Period of Significance: 1939-1956.

French Provincial Ranch North Encanto

A 1947 French Provincial Ranch In North Encanto

North Encanto Historic District is generally bounded by 19th Avenue on the West, 15th Avenue on the East, Thomas Road on the South, and Osborn Road on the North housing almost one square mile of historic homes. This neighborhood is close to freeways, I-17, I-10, a very short drive to downtown Phoenix and even a shorter drive (or walkable) to the light rail. There are 456 homes in this this district. North Encanto illustrates the residential development trends of the 1939 -1956 period.

North Encanto is my personal, current historic district residence. I can tell you first hand that it is one of the most wonderful historic districts this city has to offer! On a daily basis, you’ll see residents walking their dogs, walking with their kids (and more dogs), jogging, playing and just hanging out for a good, friendly chat. So many of us neighbors know each other and continue to get to know each other. We have many neighborhood functions from Groundhog Day parties, Christmas & New Year’s gatherings, Halloween parties, joint neighborhood block yard sales and a bunch of other street festivities where we actually block off a street while food vendors attend along with our local fire fighters and more. Games are played by all the wonderful children while the adults hang out, laugh, eat, drink and get to know each other more & more. We look out for one another, watch each others pets, homes and whatever is needed and wanted which keeps a tight knit community.

North Encanto Historic District Homes For Sale

Architectural Styles and Square Footage: North Encanto is red brick heaven loaded with 1940’s and 1950’s Mediterranean Ranch Style Homes, Mid-Century Ranches ranging from less than 1,000 square feet to 2,800 square feet. This district is predominantly comprised of Transitional Ranch-style houses with the largest concentration of intact Transitional/Early Ranch-style homes in metropolitan Phoenix, perhaps even in all of Arizona. But, there are also has a variety of Pueblo Revivals plus three Art Moderne homes. Many of these gorgeous homes have 1 to 2 car detached garages, detached studios, guest houses and lot sizes with room to make it your own. Many of these homes still boast the 2-color, original tile combo with colors that you just don’t see anymore like peach and black, pink and black, powder blue and black, pink and green and peach and green. There are also many, many homes here that have extremely modern interiors while keeping historic integrity. These are must see homes.

If you like North Encanto, you’ll probably like Campus Vista Historic District which is just east of 15th Avenue, Del Norte Place near 15th Avenue and Encanto Blvd., and, Country Club Park Historic District near 7th Street and Thomas Road.

Homes For Sale In North Encanto Historic District

History of North Encanto Historic District

Arcadia Historic Neighborhood In Midtown Phoenix Arizona

The Arcadia neighborhood is one of the most desirable addresses in Phoenix.

Camelback Mountain Arcadia Historic Neighborhood

Camelback Mountain is prominently seen from many homes in the Historic Arcadia Neighborhoods

I personally lived in Arcadia starting in 1989 as the first house I purchased was in this eclectic neighborhood. I had a stunning view of Camelback Mountain in my back yard like so many homes in Arcadia do. In fact, you’d be hard pressed to find a home that doesn’t have a view of Camelback Mountain, at least to some degree. I can attest to all the wonderful attributes Arcadia has to offer but don’t take my word for it; get in your car and go cruise the area. You’ll fall in love with it.

Arcadia is bounded by 44th Street to 68th Streets and from Indian School Road to Camelback Mountain. Immediate surrounding areas have more recently been referenced as Lower Arcadia or the Arcadia area but the true Arcadia corridor begins at the corner of 44th Street and Indian School Road going north and east from there. Contrary to many people trying to ride on the “Arcadia” name, there is indeed a true, defined Arcadia Corridor.

Arcadia neighborhood is not officially a historic district and its eastern edge is in the City of Scottsdale but Arcadia has more than earned its huge place in Phoenix history.

Arcadia Homes For Sale

Arcadia is one of the most desirable and priciest addresses in Phoenix. The homes range from small ranch houses under 1,000 Square feet to stunning luxury estates that sit on five acres with a lot of in-between. You’ll find a wide variety of architectural styles from sprawling 4 to 5-bedroom ranches built in the postwar era to Revivals and Pueblo-style homes dating to the late 1920’s and early 1930’s

The neighborhood is surrounded by original luxury guest resorts along Camelback Road like the Royal Palms and is walking distance to many trending restaurants are bars such as The Vig, LaGrande Orange Grocery and Pizzeria, Postino’s Wine Cafe, Zipps, The Arcadia Tavern, the famous Pete’s Fish and Chips and so much more! Eating and drinking your way around Arcadia is fun and can take some time.

Many people now refer to Arcadia as Midtown as it’s in the middle of everything superb and its overall location is in the center of it all. Sky Harbor Airport is just a hop and a skip away as is Biltmore Fashion Park, Fashion Square in Scottsdale and Paradise Valley along with a plethora of fantastic golf courses! Downtown and Central Phoenix is just a very short jaunt as is I-10, the Loop 202, the 51 and the 143.

Arcadia Park, G.R. Herberger Park, Camelback Mountain (and its hiking trails) along with easy access to the canal gives many options for hiking, jogging, biking and walking.

Arcadia is also known for its top tier public schools (some of the best in the state) such as Hopi Elementary School, Ingleside Middle School and Arcadia High School in the Scottsdale Unified School District making it an extremely family friendly community. There are also private schools in the area.

This is the type of neighborhood where the neighbors know each other, walk their dogs and are out with their children enjoying the tranquility this wonderful neighbor offers!

Arcadia homes have character, are well-kept and have high property values as the neighborhood is adjacent to the upscale suburbs of Paradise Valley, the Biltmore area, Scottsdale and North Central Phoenix. Most lawn have lush, green lawns, custom landscaping, palm trees and citrus trees galore!

Built on former citrus groves, Arcadia is known for well-irrigated, mature landscaping. Several yards prominently feature orange, lemon and grapefruit trees as reminders of the area’s past. The area used to be occupied by citrus farmers from 1919 to the mid-1950’s. In the mid-1950’s, the rest of Phoenix caught up with the farms and the area suburbanized with characteristic ranch homes on large lots. Arcadia High School serves and derives its name from the neighborhood.

The film, Everything Must Go, takes place in Arcadia.

In 2002, CNNMoney voted Arcadia as one of the “Best Places To Live” stating:

In stark contrast to Ahwatukee’s desert foliage are the lush green lawns of Arcadia, a neighborhood that sits on the Phoenix and Scottsdale city line. Arcadia is a former orange grove with its own irrigation system, and rows of citrus trees line its blocks of quaint homes built in the 1950’s and 1960’s on large lots.

Because Arcadia is so highly regarded for its greenery and high-performance schools, which are in the Scottsdale system, prices are on the high end: Starter homes begin at $300,000. Homeowners tend to do a lot of remodeling, adding much diversity to the once similar-looking homes; it’s not uncommon to see a country cottage adjacent to a Spanish hacienda. Residents brag about being close to Scottsdale’s high-end shopping, a world-class resort, arts centers and good restaurants, as well as downtown Phoenix.

I couldn’t agree more. After all, living in Arcadia for so many years, I’m hooked.

Read the History of Arcadia Historic Neighborhood

Roosevelt Row BID Proposal Faces New Challenges

Since April 2014, Downtown Phoenix Journal has been sharing the story of the developing proposal for a Roosevelt area Enhanced Municipal Services District, more commonly known as a Business Improvement District or BID. 

Roosevelt Row Historic Phoenix

Roosevelt Row, Phoenix, AZ

Over the past 18 months, the Roosevelt Row community has been engaged in the process of forming a business improvement district (BID), which would provide enhanced municipal services for the area. Though the proposal for the BID passed the Phoenix City Council in January, it is now in danger of being invalidated due to a bill that is advancing in the state legislature.

HB 2440 would essentially change the process for the formation of BIDs – not just in downtown Phoenix, but across the state. If passed, it would incorporate more government oversight into the process and would be retroactive to January 1, 2016. The bill is sponsored by Representative Warren Petersen of Gilbert and is supported by a group of Roosevelt Row land owners who oppose the formation of the BID. The bill passed the House this week and is now on its way to the Senate.

Earlier in the week, Roosevelt Row CDC sent a letter to Roosevelt business owners informing them about the bill. The letter is excerpted here:

Dear Roosevelt Row Business Owner,

As many of you are aware, the Phoenix City Council recently approved the formation of a business improvement district for our Roosevelt Row area. That vote gives us the opportunity to create an organization that represents us, the small business owners of Roosevelt Row, to collectively market our area as an evolving canvas of creativity. By forming this district we will be able to promote arts, music, dining and shopping opportunities which will increase business and community awareness of Roosevelt Row as a culturally diverse destination welcoming to everyone.

To be clear, the Council’s vote to approve the District is contingent upon us working together to develop by-laws and a budget which reflects our priorities in a fiscally responsible manner. Once those documents are completed the City Council will then review, modify, and/or approve what we submit.

While we are currently in the process of developing those items (budget and by-laws), a lobbying firm, which recently purchased a building on Roosevelt Row, is using its influence to retroactively stop our district from being formed and essentially prohibiting any future Business Improvement Districts from ever being organized again. Public Policy Partners, a lobbying firm owned and operated in part by lobbyist Marcus Dell’Artino, has successfully gotten a Gilbert lawmaker to introduce House Bill 2440, which would essentially prohibit any types of these organizations from ever being organized again anywhere in Arizona! And the bill is retroactively dated to the date our district was approved by Phoenix City Council.

Currently business improvement districts are successfully operating in Downtown Phoenix, Tempe, Mesa, Chandler, Tucson and Flagstaff – they have been highly effective in revitalizing these urban core areas by recruiting, retaining and expanding locally-owned and independently operated small businesses and promoting these areas as unique cultural, artistic and commercial destinations. They have proven to be powerful economic engines to spur business and job growth.

If you agree with the Roosevelt Row CDC and would like to voice your support for the BID, follow this link to contact members of the Arizona Legislature: http://www.rooseveltrow.org/save-roosevelt-row/

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DOWNTOWN PHOENIX LIFE

The City of Phoenix defines Downtown as the area between 7th Street and 7th Avenue, from McDowell Road on the north to Buckeye Road on the south. However, the majority of downtown development is concentrated in the smaller area surrounding the intersection of Washington St. and Central Avenue. Downtown Phoenix is one of a the few major business districts in the city and is the central business district of the City of Phoenix, Arizona.

It’s located in the heart of the Phoenix metropolitan area or ‘Valley of the Sun’ with a large variety of designated historic districts housing some classic, vintage homes attracting people from all walks of life.

Phoenix, being the county seat of Maricopa County and the capital of Arizona, serves as the center of politics, justice and government on the local, state and federal levels. The area is a major center of employment for the region, with many financial, legal, and other national and international corporations housed in a variety of skyscrapers. Major arts and cultural institutions also call the area home. Downtown Phoenix is a center of major league sports activities, live concert events, and is an equally prominent center of banking and finance in Arizona. Regional headquarters for several major banks, including JP Morgan Chase, Wells Fargo, US Bank, Bank of America, Compass Bank and MidFirst Bank are all located within or close proximity to the area.

A Little History of Downtown Phoenix

Territorial era

In 1870, a meeting was held to select a town site for the influx of pioneers coming to the recently recognized town of Phoenix. 320 acres were purchased for $50 raised by popular subscription. This original site, the whole of the town of Phoenix in that day, encompasses what would presently be the Downtown Core, bordered by Van Buren Street south to Jackson Street, and Seventh Street to Seventh Avenue.

With the first survey of the new town, streets were laid out in a grid, with Washington Street as the main east-west thoroughfare. The north-south streets originally bore Native American tribal names, but were changed to more easily remembered numbers, with everything east of Center Street (later Central Avenue) named as streets and everything west as avenues. The town continued to grow, and was eventually incorporated as a city on February 28, 1881 centered around downtown.

Throughout the 1880’s the newly incorporated city made many strides toward modernization with the construction of one of the first electric plants in the West as well as the opening of the horse-drawn streetcar line. The Phoenix Street Railway system was eventually electrified and expanded to several different lines that connected Downtown Phoenix to other neighborhoods and cities in the Valley. Independence Day of 1887 heralded the arrival first Southern Pacific train. This opened up the economy of the young city, as goods now flowed in and out by train as opposed to wagon. As Phoenix became the center of commerce in the territory, the capital was moved to Phoenix, with temporary offices being set up in Downtown.

The city of Phoenix’s story begins as people from those settlements expanded south, in conjunction with the establishment of a military outpost to the east of current day Phoenix.

The town of Phoenix was settled in 1867, and incorporated in 1881 as the City of Phoenix. Phoenix served as an agricultural area that depended on large-scale irrigation projects. Until World War II, the economy was based on the “Five C’s”: cotton, citrus and cattle, climate and copper. The city provided retail, wholesale, banking, and governmental services for central Arizona, and was gaining a national reputation among winter tourists. The post-World War Two years saw the city beginning to grow more rapidly, as many men who had trained in the military installations in the valley, returned, bringing their families. The population growth was further stimulated in the 1950’s, in part because of the availability of air conditioning, which made the very hot dry summer heat tolerable, as well as an influx of industry, led by high tech companies. The population growth rate of the Phoenix metro area has been nearly 4% per year for the past 40 years. That growth rate slowed during the Great Recession but the U.S. Census Bureau predicted it would resume as the nation’s economy recovered, and it already has begun to do so. While currently ranked 6th in population, it is predicted that Phoenix will rank 4th by 2020. Currently it the 6th most populous city in the United States.

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Downtown and Central Phoenix Life Becoming a Nationwide Hotspot

DOWNTOWN LIFE

The Downtown Phoenix Condo and Loft Scene

Metro Light Rail, Phoenix, AZ

Metro Light Rail In Downtown Phoenix

The number of high-rises, mid-rises and low-rises being built, restored and renovated have been absolutely BOOMING in Central Phoenix! These buildings are old mixed in with new and provide amenities galore. Downtown Phoenix is the new home of loft traditions where space and creativity have been merging into stylistic, personalized urban expression. Many industrial buildings have been converted into desirable, luxurious, lofts or condominiums for your taking. If a single-family home is not for you but simple living is, (no yard responsibilities, etc.), then you’ve come to the right place. Or maybe you’re an artist looking to live where you work. I have ideas for you.

Here, you will find real-time, live listings of all Downtown, Central and North Phoenix condos for sale, Urban Lofts for sale, Condos in High-Rises for sale, and pretty much any dwelling type that is not a single-family home. Whether you wish to buy, sell, renovate or design a loft or condominium in Phoenix, HistoricPhoenixDistricts.com and Downtown Life has the property and solution for you.

Downtown and Central Phoenix is fun urban living. It is a series of distinct urban and historical phoenix neighborhoods where neighbors know each other and are constantly welcoming new neighbors as the downtown area continues its growth.

Downtown Phoenix and the Central Avenue Corridor has enjoyed tremendous growth since the completion of light rail and ASU opening its Downtown Phoenix Campus.

You can walk for coffee, breakfast, lunch, dinner, drinks and entertainment including the First Friday Art Walk, museums, sporting events, shopping, parks and more. It is a place populated by people seeking a way of life that doesn’t require hours of commuting each day. Many people enjoy driving any one of the many Historic Phoenix Districts just to view the architectural designs of the beautiful homes that encompass Phoenix Historic neighborhoods.

While downtown Phoenix grows, you can and experience urban living at its best. No matter what your taste there are homes that will make you happy. Live in an area full of cultural venues and experience the convenience a downtown residence can provide whether in a modern or historic condominium, historic loft, or a townhome. Come be part of downtown life.

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Why homeowners are leaving billions on the table

Mortgage rates have been so low for so long that it is hard to believe nearly everybody hasn’t refinanced to a lower rate yet. Believe it. More than 5 million borrowers could both qualify and benefit from a mortgage refinance, according to a new report from Black Knight Financial Services.

True, that is less than the nearly 7 million who could have refinanced just last spring, when the average rate on the 30-year fixed mortgage was below 3.7 percent. Today, thanks to the rout in the stock market, rates have fallen back just below 4 percent. About 2.4 million borrowers could potentially save $200 or more on their monthly mortgage payments and an additional 1.9 million could save $100 to $200 per month. Add it up, and that is $1.2 billion still on the table, according to Black Knight.

“If rates go up 50 basis points from where they are now, 2.1 million borrowers will fall out of the running; a 100-basis-point increase would eliminate another million, leaving only 2 million potential refinance candidates, the lowest population of refinance candidates in recent history,” said Ben Graboske, senior vice president at Black Knight Data & Analytics.

In other words, borrowers should act now, as mortgage rates are expected to rise through 2016. While mortgage rates do not follow the Federal Reserve’s moves exactly, they will rise with an improving economy and job growth.

The robust rise in home values has helped bring millions of borrowers back above water on their home loans, allowing them to qualify for a refinance. There is also, however, a government refinance program, called HARP, for those still owing more on their loans than their homes are worth. To qualify, borrowers must have loans backed by Fannie Mae, Freddie Mac or the FHA. There are about 430,000 borrowers who could still benefit from HARP.

Rising home values have also given borrowers more “tappable” home equity — that is, money they could take out in the form of a home equity line of credit (HELOC). While underwriting is far more strict for these loans today than during the last housing boom, when people used their homes like ATMs, they are available at low rates. Their popularity, in fact, is growing again, up 35 percent in 2015 from 2014 levels.

Homeowners today have a collective $4.2 trillion in available home equity, up $600 billion over the last year, according to Black Knight. About 37 million borrowers could pull out an average $112,000 before hitting the amount of equity most banks require them to keep in the home. Average credit scores on new HELOC originations today, though, are at a record high.

Californians are the big winners in home equity. More than a third of the nation’s collective home equity is in the state. The state has the most borrowers eligible for a refinance and/or a HELOC. Texas and Florida are next with the most home equity ready to be tapped. Refinancing a primary loan is heavily rate-dependent, but borrowers are still willing to take out a HELOC at higher rates.

“While it’s not a hard and fast rule that borrowers won’t refinance into a higher rate in order to tap available equity — 23 percent of cash-out refi borrowers over the past six months did just that — for the most part, as rates rise, HELOCs will continue to become more popular to homeowners looking to tap available equity,” said Graboske.

Borrowers today appear to be more cautious about their home equity. Those who are taking the money out are using it to pay down debt or to improve their homes, adding value to the investment — as opposed to buying luxury vacations, cars and second homes as they did a decade ago, when home equity was more of an optimistic notion to lenders than an actual reality.

Courtesy of Diana Olick CNBC Real Estate Reporter

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Mortgage applications pop 9% on stock sell-off

The sell-off in the stock market was a boon to the mortgage market last week. Mortgage application volume jumped 9 percent on a seasonally adjusted basis for the week, compared with the previous week, according to the Mortgage Bankers Association.

Refinance applications were the driver of total volume. They surged 19 percent from the previous week, seasonally adjusted, but are 40 percent below where they were a year ago, when rates were even lower. Applications to purchase a home fell 2 percent week-to-week, although they are 17 percent higher than the same week one year ago. The refinance share of mortgage activity increased to 59.1 percent of total applications from 55.8 percent the previous week.

“Global stock markets plunged last week, led by weakness in China, but further weakened by continued sharp drops in oil prices. Investors drove down Treasury yields in a flight to safety, and mortgage rates fell to their lowest level since last October,” said Michael Fratantoni, the MBA’s chief economist.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.06 percent, from 4.12 percent, with points increasing to 0.41 from 0.38 (including the origination fee) for 80 percent loan-to-value ratio loans, according to the MBA. For borrowers with high credit scores and significant down payments, lenders offered rates below 4 percent.

Mortgage rates moved very slightly higher Tuesday, as the stock market closed in positive territory. Lenders, however, are looking for a more decisive recovery in stocks, after the rout that has plagued 2016 so far.

“It’s clear that every time it looks like stocks are considering a bigger bounce that rates quickly get in position for a more meaningful move higher,” said Matthew Graham, chief operating officer of Mortgage News Daily. “Rates would be in more trouble if stocks happened to make bigger gains tomorrow (Wednesday).”

Courtesy of Diana Olick
CNBC Real Estate Reporter

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