What’s Ahead For Mortgage Rates This Week – December 9, 2013

December 9, 2013 by

What’s Ahead For Mortgage Rates This Week – December 9, 2013Last week brought several indicators of a strengthening economy. New home sales, private and federal employment and mortgage rates rose.

The Department of Commerce released construction spending numbers for October with mixed results. Although public projects fueled an 0.80 percent increase in month-to-month construction spending, residential construction fell by 0.60 percent.

Analysts had expected an increase of 0.50 percent and also noted that the negative effect of the government shutdown was a “blip.” October’s reading for construction spending was the highest since 2004.

CoreLogic released data that home prices rose by 0.20 percent, which represents a year-over-year growth rate of 12.50 percent for home prices. Pending home sales were suggested that November sales are expected to hold steady as compared to October, and projected year-over-year sales for November at 12.20 percent.

Slower growth in home prices was attributed to higher mortgage rates and a fear of a housing bubble in the West, where demand for homes far exceeds the number of available homes.

Not wanting to buy at the top of the current housing market, some potential buyers may be waiting for the talk of another housing bubble to subside before buying. Robert Shiller, co-author of the Case-Shiller Housing Market Index, noted that home buyers may not be “psychologically ready” for another housing bubble.

New home sales for October were higher than expectations of 419,000 homes sold on a seasonally-adjusted annual basis. October’s reading of 444,000 new home sales was 21.60 percent higher than September’s reading of 354,000 new homes sold. The national median home price fell by 4.50 percent to $245,800 in October; this was the lowest month-to-month reading since November 2012.

The number of available homes fell to a 4.90 month supply in October. This may cause buyers to put their home searches on hold as they wait out the winter months and hope for supplies of available homes to increase.

U.S. Employment Improving, Mortgage Rates Rise

ADP a private-sector provider of payroll services reported 215,000 new jobs added in November as compared to October’s reading of 184,000 jobs added. Weekly jobless claims supported the ADP reading as new jobless claims fell to 298,000 against expectations of 325,000 new claims and a prior reading of 321,000 new claims. 

The Bureau of Labor Statistics brought more good news with its Non-Farm Payrolls report and Unemployment Rate for November. Non-Farm payrolls added 203,000 jobs in November against expectations of 180,000 jobs added and October’s reading of 200,000 jobs added.

The National Unemployment rate dipped to 7.00 percent in November against expectations of a 7.20 percent reading and October’s reading of 7.30 percent. The Federal Reserve has set a benchmark unemployment rate of 6.50 percent as an indicator of economic recovery.

Last week’s strong economic news boosted mortgage rates; Freddie Mac reported that the average rate for a 30-year fixed rate mortgage rose by 17 basis points to 4.46 percent with discount points lower at 0.50 percent.

The average rate for a 15-year fixed rate mortgage also gained 17 basis points at 3.47 percent with discount points at 0.40 percent. The average rate for a 5/1 adjustable rate mortgage rose by 5 basis points to 2.99 percent with discount points at 0.4 percent.

What’s Coming Up

This week’s scheduled economic news includes Retail Sales, Weekly Jobless Claims and Freddie Mac’s report of average mortgage rates.

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4 Safety Tips To Prepare Your Home For the Cold Weather

December 6, 2013 by

4 Safety Tips To Prepare Your Home For the Cold WeatherAs the temperature drops and we don more layers, it can be startling to realize how cold it’s actually gotten.

So before the snow starts piling up at your door, you’ll want to get yourself prepared for winter and the harsh conditions it can bring.

Below are a few cold weather safety tips to keep you and your home secure from Frosty’s frigid touch.

Keep The Cold Out

If you haven’t already winterized your home, then now is a good time to do it. Add extra insulation in your attic and walls, if possible. Caulk around windows and doorframes to keep the warm air in and the cold air out.

Prepare An Emergency Kit

In case your power goes out, you want to be sure you’re prepared to brave the cold weather for a few days. You’ll want a backup heat source, such as a generator or wood-burning fireplace.

You’ll also need at least a three-day supply of water, non-perishable food items, flashlights with extra batteries, battery-powered cell phone chargers and a medical kit that includes prescriptions.

Be Cautious When Warming Your Home

Make sure you’ve replaced the batteries in your smoke and carbon monoxide detectors. While turning on your heater will probably be fine, you should take extra precautions since it probably hasn’t been fired up for months.

Also, be extremely careful with space heaters. Make sure they’re away from anything flammable, and always turn them off before you go to sleep.

Care For Your Pipes

Frozen pipes are costly to fix. Your pipes can freeze and cause water damage when they thaw. And, not being able to access clean water can be major inconvenience.

To prevent frozen water, keep your home at a constant temperature day and night. If the power goes out, turn your faucets on to get a small trickle and open up all the cabinets to circulate warm air around the pipes.

Don’t let a snow or ice storm catch you unprepared! From survival storage to heating your home, the better you equip your house now to handle the cold weather, the less you’ll have to worry about when the power goes out.

Utilize the safety tips above to get your family and your home ready for whatever winter might blow at it. For more around the home tips or how to stay warm in a new home this winter, contact your trusted real estate professional.

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Creative Holiday Storage Solutions

December 5, 2013 by

Creative Holiday Storage SoluttionsEvery holiday season when you get out the decorations, there always seems to be a period of organization where you need to untangle lights, sort out the broken ornaments and just get all of the trimmings in order.

Next year, skip the hassle of sifting through everything. The year-to-year holiday storage strategies below will help make next December’s decorating easy.

Hide Paper Up High

Utilize a space that is always vacant — the ceiling of your closet. Attach two strings of wire from the front wall above your closet door to the back wall. Make them parallel to each other and about two feet apart. Then you can slide your wrapping paper tubes across the two wires. No more crinkled or torn paper! 

Bag Your Lights

The hassle of untangling holiday lights every year can become a dreaded tradition. A smart solution is to invest in inexpensive gallon-sized sealable bags. Label what each bag’s lights are for, such as the tree, mantel or outdoors.

Wrap individual strands around your arm and them place them inside the appropriate bag. Put all bags in one holiday storage container.

Recycle Wrapping For Your Breakables

After you’ve ripped off the wrapping and gotten to the goods, don’t just throw your pretty paper out. Reuse it! Run it through the shredder to create fun filling for the boxes that hold your ornaments and breakable decorations.

Get Crafty With Labels

Instead of writing straight onto the holiday storage bins, tape or glue festive envelopes to the side. Then you can write a list of everything in that box and put it in the envelope.

For those who like everything clean and organized, this means that if you switch out anything in the box, you don’t have to mark it out on the side — just change the paper inside the envelope.

Display Holiday Cards Creatively

Receiving holiday cards is a great way to keep in touch with distant family and friends. Instead of throwing the cards away each January, use a hole punch to create two holes in the sides of the card.

Then insert jump rings to make little picture memory books that you can display on the coffee table every year. For more around the home tips or if you are looking to buy a home with plenty of storage space, contact your trusted real estate professional.

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5 Tips On Selling Real Estate Even In The Brisk Cold

December 4, 2013 by

5 Tips On Selling Real Estate Even In The Brisk ColdAny real estate agent will tell you that it’s harder to sell your home in the winter. The days are colder and shorter, leaving less time to show your home to potential buyers. 

The good news is that most of the buyers who are looking at houses in the winter aren’t just killing time. They’re serious enough about finding their new home to go house hunting at a time that most people would rather stay inside.

There Are A Few Things You Can Do To Make A Good Impression On Home Buyers This Winter:

  • Make sure all walkways are safe. Spread out ice melt or sand to provide traction during snowy weather. Shoveling the snow on the driveway and sidewalks will make your real estate appear more inviting and well-maintained. Be sure to place a mat for visitors to wipe their feet on.
  • Warm up the house. Buyers will remember the house that was pleasantly warm on a frigid day. In addition, you will be able to demonstrate to the buyer that your furnace is in good working order.
  • For a welcoming scent, bake cookies the day of the showing. Some people are sensitive to the fragrances in air fresheners and perfumes, so skip spraying those when expecting someone to look at your house. 
  • Serve snacks in the kitchen. Give the buyer a reason to linger in your home by leaving a light snack in the kitchen. If the weather is cold, consider providing chili or soup in a crockpot to keep it warm with festive disposable bowls. Or, to keep it simple, you can provide coffee or hot chocolate and cookies. Be sure to talk with your real estate agent before leaving these snacks so he or she knows they’re for the buyers.
  • Make your house appear warm and inviting. Turn all the lights in the house on; place warm-toned throws and decorator pillows around the living room. Put on some soothing classical or jazz music; keep the volume low enough that buyers can talk quietly to each other.

You can make your home seem more inviting this winter by using these proven techniques. 

Are you ready to sell your home? Call your trusted real estate professional today.

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Case Shiller Price Index Shows A Spike In Home Prices In The West

December 3, 2013 by

Case Shiller Price Index Shows A Spike In Home Prices In The WestAccording to the S&P Case-Shiller 10-and 20-City Housing Market Indices for September, home prices grew at an average of 13.30 percent year-over-year and achieved the highest growth rate for home prices since February 2006.

On a month-to month basis, home prices are slowing in most areas with 19 cities included in the S&P 20-City Housing Market Index showing lower rates of growth in home prices. September’s average month-to-month growth rate was 1.0 percent for the 20-City HMI as compared to 0.90 percent in August, and 1.90 percent posted earlier in 2013.

Home prices increased by 0.70 percent in September for the combined 20-City and 10-City Housing Market Indices tracked by Case-Shiller.

Rapidly Rising Home Prices In The West: Another Housing Bubble On Tap?

Home prices continued rising in the West, with Las Vegas leading the pack with a 29.10 percent gain year-over-year although average home price in Las Vegas, Nevada remains 46 percent than its peak in February of 2006.

California also showed double-digit year-over-year growth for home prices with San Francisco at 25.70 percent, Los Angeles at 21.80 percent and San Diego posting 20.90 percent growth in home prices year-over-year.

Rapidly increasing home prices in the West are largely due to demand exceeding supply, but buyers may be sitting on the sidelines due to concerns over another housing bubble in the making.

Buyers in this scenario are aware of increasing home prices, but aren’t buying now to avoid higher prices later. Instead they are waiting to see what happens with current home prices and housing market conditions in the longer term.

Chicago, Illinois posted its highest year-over-year growth rate since 2005 while Cleveland, Ohio posted a growth rate of 5.00 percent for September as compared to a month-to-month growth rate of 3.70 percent.

This was the second lowest month-to-month growth rate for home prices, with New York City posting a month-to-month home price growth rate of 4.00 percent from August to September.

FHFA Reports Slight Gain In Home Prices

The Federal Housing Finance Agency reported stronger gains in home prices for properties financed with mortgages owned or guaranteed by Fannie Mae or Freddie Mac. In September, home prices reported by FHFA rose by 0.30 percent as compared to August’s growth rate of 0.40 percent. 

On a year-over-year basis, FHFA reported a gain of 8.40 percent between the third quarter of 2012 and the third quarter of 2013. Adjusted for inflation, home prices as reported by FHFA have risen approximately 7.20 percent. FHFA noted that home prices are growing at a rate far above the rate of 1.20 percent reported for other “goods and services.”

Lower numbers of foreclosed homes are seen as a boost for home prices in general; as mortgage lenders tend to offer foreclosed homes for sale at low prices in order to reduce inventories of real estate owned.

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Ensure Your Fireplace Is Up To Snuff

November 29, 2013 by

Ensure Your Fireplace Is Up To SnuffWhen it’s cold outside, there’s nothing quite as cozy as curling up on the sofa with a good book in front of a roaring fire. A fireplace evokes the idea of a warm and pleasant atmosphere.

However, if it isn’t properly maintained, your living room could be filled with a cloud of soot, or worse, fire. A fireplace not only creates a snug setting, but most are actually functional and can help heat your home.

Harness their heat and generate the ambiance of a softly lit living space by following the tips below to ensure yours is properly maintained and working efficiently before the first cold spell hits.

Clean It Regularly

Have your chimney cleaned out twice a year. The recommended number varies depending on how often you use your hearth. However, you should have it cleaned every fall to ensure it’s properly vented so that smoke has a way to escape.

Also, you’ll want to make sure that no animals have made their home there over the summer.

Close The Damper

Make sure you close the damper when you’re not using the fireplace. You don’t want to make your furnace work overtime because warm air is sneaking up and out the chimney.

Install A Chimney Cap

If your home doesn’t have a chimney cap, then have one installed. These help to prevent snow, leaves, animals and other debris from falling down the chimney. Caps also help keep downdrafts from gusting into your living area.

Burn Firewood Only

A fireplace isn’t the spot to burn your broken chair or ex-girlfriends photos. Painted wood, plastic and other treated wood surfaces can release chemicals into the air of your home. Worse, they can coat the interior walls of your fireplace, so you continue breathe them in for the next couple of fires. 

Mount Smoke Alarms

If you don’t already have them, mount smoke alarms near your hearth and in every bedroom. Consider installing combined carbon monoxide and smoke detectors if you have a home with a gas-burning fireplace.

Don’t use your fireplace without taking the right precautions. Get it cleaned, and if it’s your first use, then be sure to get it inspected beforehand. Make the hearth in your home the heart of your home by following the tips above to ensure it’s up to snuff this fall.

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Savoring The Good Things In Life

November 27, 2013 by

Savoring The Good Things In Life“There’s always something to be thankful for. If you can’t pay your bills, you can be thankful you’re not one of your creditors” – Author Unknown

With Thanksgiving being tomorrow, I find myself thinking about everything I have to be thankful for. For instance, I’ve been a real estate agent for some time, which is a position that I enjoy and love. 

What Am I Grateful For?

I’m also grateful to be able to share the knowledge that I’ve learned throughout the years with my clients and those of you who read my blog. It’s a wonderful and rare thing to do something that you love for a living.

Most of us are so busy reaching our goals, making plans for the future, pushing and struggling to rise to wherever we feel our position in life should be, that we very rarely take the time to look back at where we started. 

While it’s always a good idea to have goals, to visualize and work towards them, if you never take the time to appreciate what you’ve done then it becomes a constant, maddening race to the finish line. Intangible things, such as happiness and satisfaction, fall by the wayside, considered unimportant in the grand scheme of things.

What Do I Savor?

With Thanksgiving drawing closer, this real estate agent invites you to think about what you have to be thankful for. Whether big or small, you’ll find yourself savoring all the good things in your life. 

So what are some of the things that you’re grateful for? It doesn’t have to be a big thing to be appreciated. Was the sky particularly beautiful today? 

Maybe you caught the bus on time, or you’re throwing the family Thanksgiving dinner this year and everyone is coming. If it brightens your life, brings a smile to your face, lightens your mood or warms your heart, be thankful for the experience. 

Enjoy each moment as if it were your last, sipping from the cup of gratitude and appreciation; you may find that your heart is constantly filled with happiness. Your trusted real estate professional invites you to make every day Thanksgiving Day.

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Get The Low Down On Pending And Existing Home Sales This Month

November 26, 2013 by

Get The Low Down On Pending And Existing Home Sales This MonthThe National Association of REALTORS reported Monday that pending home sales dropped by -0.60 percent in October after falling at a revised rate of -4.60 percent in September. According to Lawrence Yun, chief economist for NAR, 17 percent of real estate agents reported delays in loan closings due to the government shutdown in early October.

Lenders were unable to verify borrower income through the IRS, which was closed during the shutdown. October was the fifth consecutive month with fewer pending home sales reported.

Homeowners who owe more on their mortgages than their homes are waiting to sell, and recent spikes in mortgage rates were cited as factors contributing to fewer pending sales.

Pending home sales are defined as homes for which signed purchase offers have been received and are considered an indicator of future home sales. The NAR notes that most pending sales close within 30 to 60 days of an offer being signed.

High Demand And Low Supply Of Homes Thwarts Buyers

Would-be homebuyers may be including their dream homes on their wish lists for the holidays as many areas continue to experience a short supply of homes against high demand. In desirable areas this can lead to bidding wars and homes being sold before they are listed for sale.

Cash buyers are benefitting from these situations, while first-time and moderate income buyers may be sidelined due to affordability issues and the inability to compete with cash buyers.

Mortgage rates fell last week and the previous week. While a recovering housing market has been causing home prices to rise, economists described current readings for pending sales as a “pause” in the housing market recovery and said that a significant decline in home sales could adversely impact overall economic recovery.

Regional Pending Sales Mixed

Pending sales for the Northeast and Midwestern regions increased slightly and declined in the South and West. This suggested to some economists and analysts that the formerly hot housing market is cooling off along with the weather. Some decline in home sales is expected during fall and winter months.

Sales Of Existing Homes Better Than Expected

October sales of existing homes surpassed expectations of 5.10 million sales with a reading of 5.12 million existing homes sold. Again, the government shutdown and related concerns of consumers and home builders were cited as reasons for sales falling shy of September’s reading of 5.29 million existing homes sold.

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What’s Ahead For Mortgage Rates This Week – November 25, 2013

November 25, 2013 by

What’s Ahead For Mortgage Rates This Week – November 25, 2013Last week’s scheduled economic news was varied, but mortgage rates fell and jobless claims were significantly lower than expected. The minutes for last month’s FOMC meeting were released, and confirmed the Federal Reserve’s intention to leave its quantitative easing program unchanged at least for the near term.

The National Association of Homebuilders Wells Fargo Housing Market Index for November indicated that builder confidence, while still positive, dipped by one point to a reading of 54 as compared to an anticipated reading of 55, and October’s revised reading of 54.

Retail Sales for October Rose By 0.4 Percent

NAHB noted that uncertainty over the federal budget and political gridlock may have kept builder and consumer confidence levels from achieving further gains in November.

The Consumer Price Index for October contracted by -0.10 percent against expectations of 0.00 percent growth and September’s reading of 0.20 percent growth. The Core CPI, which excludes volatile food and energy sectors, rose by 0.10 percent against expectations of 0.20 percent and was unchanged from September’s reading.

The National Association of REALTORS reported that Existing Home Sales for October were lower than for September’s reading of 5.29 million, but slightly exceeded the expected reading of 5.10 million. October’s reading came in at 5.12 million sales of existing homes.

Analysts attributed the lower reading to tight supplies of available homes in many areas and higher home prices and mortgage rates that impacted affordability.

The FOMC minutes indicated that the committee has ongoing concerns over national unemployment rate of 7.20 percent against the committee’s target unemployment rate of 6.50 percent.

Weekly Jobless Claims were notably lower at 323,000 new jobless claims as compared to the prior week’s reading of 344,000 new jobless claims. Analysts and investors had expected a reading of 334,000 new jobs. Analysts noted the Veterans Day holiday as a likely contributor to the lower reading for new jobless claims.

Freddie Mac provided good news in its weekly Primary Mortgage Market Survey; the average rate for a 30-year fixed rate mortgage fell from 4.35 percent to 4.22 percent with discount points unchanged at 0.70 percent. The rate for a 15-year mortgage fell from 3.35 percent to 3.27 percent with discount points unchanged at 0.70 percent. 

The average rate for a 5/1 adjustable rate mortgage remained unchanged at 2.61 percent with discount points unchanged at 0.40 percent. This was encouraging news for home buyers and homeowners who have recently faced rising mortgage rates and home prices.

What’s Coming Up

This week’s schedule for economic reports includes several of interest to mortgage and housing professionals. Pending Home Sales will be out on Monday; Tuesday’s calendar is full with Housing Starts and Building Permits, the Case-Shiller Housing Market Index, the FHFA Home Price Index and the Consumer Confidence Index.

Wednesday’s news includes Weekly Jobless Claims, the University of Michigan Consumer Sentiment Index and Leading Economic Indicators. No economic news is scheduled for Thursday or Friday in observance of the Thanksgiving holiday.

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Thanksgiving Decorating Ideas For Your Home

November 22, 2013 by

Thanksgiving Decorating Ideas For Your HomeThanksgiving is right around the corner, and if you’re opening your home for the family get together, that usually means you’ll be decorating. 

If you’ve racked your mind for ideas and none sound just right, here are a few decorating ideas that might help you along your way.

Fall Leaves

Decorations don’t have to be expensive, just look outside the door of your home. Brightly colored fall leaves, either randomly placed on the table or bunched in small arrangements, can really brighten up a table.

Turkey Napkins

Folded turkey napkins is a simple way to spruce up your Thanksgiving table. Use linen napkins for a classy touch.

Thanksgiving Centerpiece 

A cornucopia is a great idea for the centerpiece. Filled with leaves, small pumpkins and other fall foliage or fruits, cornucopias remind us to be thankful for nature’s bounty.

Candles 

Candles can add a warm touch to any Thanksgiving dinner. The key for candle placement is to arrange them in places where a person’s breath won’t blow the flame out, generally between where people sit instead of in front of them.

Thanksgiving Wreaths

Thanksgiving wreaths can be fun to make, and a well-made wreath may even bring some surprising compliments. Tasteful and elegant at any time, wreaths made in fall colors are a beautiful addition to your decorations.

Thanksgiving Baskets

Thanksgiving baskets can be simple, inexpensive decorations for your home.  Acorns or other nuts, mixed with fall leaves and a few flowers from your garden, will brighten up any room.  Hang small baskets from wall hooks, or place larger baskets in corners.

No matter what Thanksgiving decorations you use, whether elegant or fun, hand-made or store-bought, the key is not to overdo it.  Don’t let yourself get so caught up in making the decorations perfect that you forget to enjoy your friends, family and food. 

May you have many things to be thankful for in the years to come. Happy Thanksgiving!

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