Jul 18, 2016 | Mortgage Rates
Last week’s economic news included reports on inflation, retail sales and weekly readings on mortgage rates and weekly jobless claims.
Mortgage rates were mixed with average rate for a 30-year fixed rate mortgage rising by one basis point to 3.42 percent. The average rate for a 15-year mortgage dropped by two basis points to 2.72 percent, and the average rate for a 5/1 adjustable rate mortgage rose six basis points to 2.76 percent. Discount points averaged 0.50 percent for 30-year fixed rate mortgages and 5/1 adjustable rate mortgages and 0.40 percent for 15 year fixed rate mortgages. Freddie Mac said that recent patterns in mortgage rates suggested that rates are likely to remain low throughout the summer; last year the average rate for a 30-year fixed rate mortgage was 4.09 percent.
Inflation Grows at Steady Rate
Inflation grew by 0.20 percent in June according to the Consumer Price Index issued by the government. Rent, gas and pharmaceuticals drove the increase, while grocery prices declined. The Core Consumer Price Index, which excludes volatile food and energy sectors, also grew by 0.200 percent; this reflects lower grocery prices and relatively low fuel costs.
Increasing rents could propel more renters into the home buying market, but high home prices and short supplies of available homes continue to limit home buyer choices. Inflation remains below the Federal Reserve’s target of 2.00 percent annually; this indicates that the Fed isn’t likely to raise its target federal fund rates in the near future.
Home and Garden Sales Drive June Retail Sales
Homeowners were busy with home improvements and yard work in June; this boosted retail sales to 0.50 percent against an expected reading of 0.10 percent and May’s reading of 0.20 percent. June retail sales excluding automotive sales rose from May’s reading of 0.40 percent to 0.70 percent; analysts had expected retail sales exclusive of autos to grow by 0.50 percent in June.
New Jobless Claims Hold Steady, Consumer Sentiment Dips
Weekly jobless claims were unchanged at 254,000 new claims filed; analysts had expected new claims to increase to 265,000 new claims. A wave of new claims created by end-of-school-year layoffs caused new claims to jump in recent weeks, but analysts said that layoffs remain low. New jobless claims remained well below the benchmark of 300,000 for the 71st consecutive week. This extended the longest time that new jobless claims were below 300,000 since 1973.
What’s Ahead
This week’s scheduled economic news includes the NAHB Housing Market Index, Existing Home Sales, Housing Starts and Building Permits. Weekly readings on mortgage rates and new jobless claims will also be released.
Jul 15, 2016 | Home Mortgage Tips
When you’ve finally found the home you’re looking for at the right price, it’s easy to think that the hard part is over; however, there’s still a lot to do in order to ensure your purchase goes through without a hitch. If you’re tying up the loose ends on your home purchase, here are some things you should do to avoid any unnecessary delays.
Hire A Legal Professional
However much research you may have done in regards to buying a home, there’s still a lot of legal jargon in the closing documents that can be difficult for most people to understand. Instead of doing guesswork, you may want to use an attorney who will take the difficulty out of the documents for you so there will be no holdups with the paperwork.
Arrange A Home Inspection
A home inspection is a necessary step before the sale of a home, but this is an important one to get out of the way because it can seriously impact your home purchase. Because major problems can often be discovered during inspection, getting this out of the way and deciding if an item should be fixed or the total price knocked down will ensure there are no delays at the last minute.
Acquire Title Insurance
In order to make sure your property really belongs to you, it’s a good idea to have a title search completed to see if there are any claims to your future property that could invalidate your purchase. As this is a legal safeguard for your claim to your home, it will help you avoid unnecessary issues in the event of an unknown property claim.
Determine The Closing Costs
An escrow company is responsible for holding the funds until all aspects of a home sale are complete, but there are fees that go along with this service. Before you get to the end of the process, determine what exactly the company will be charging so that you can be prepared for the final total. While fees are legitimate, if you see a higher tally than expected, you may want to negotiate for a reduced cost.
Purchasing a home is a significant investment full of hurdles you might not be aware of, but by acquiring title insurance and having a legal professional look through your documents, you can make your home purchase go a little smoother. If you’re planning on purchasing a new home soon, contact your local real estate professional for more information.
Jul 14, 2016 | Around The Home
Bathrooms are an essential part of any home, especially when it comes to buying and selling a home. They’re impossible to ignore and one of the first things buyers look at. Despite this, it’s simple for homeowners to forget how important these rooms are.
Bathroom decor can quickly go wrong. Little features look big when they’re packed into these small spaces, so minor things like shower curtains or how clean the window is can make a big difference.
On the other hand, homeowners are also able to take advantage of how powerful interior design can be in smaller spaces. A little effort goes a long way when looking to maximize the price of property or speed up a sale.
Homeowners can boost the benefits of their sale with these four tips on the most unappealing bathroom trends around.
1. Color Toilets and Sinks
Toilets and sinks in colors like rose pink or seafoam green were incredibly popular years ago, but they’re still loved by many people who enjoy a vintage look or just love bright spaces.
However, homeowners have a greater potential to make more money faster if they appeal to a wide range of buyers. Bathrooms decorated in a classic style are great looking to most people, making them more likely to put in an offer.
2. Peel and Paste Wall Paper
Modern peel and paste wall paper is a new trend that’s taken over many interior design websites and stores. It’s available in countless prints, colors and patterns and its popularity continues to grow.
Despite this, it’s difficult to find a style that’s sought after by the majority of buyers. Yellow polka dot cabinets may be hip, but it’s usually best for homeowners to decorate in neutral colors and traditional materials.
3. Carpet
Carpet is warm and feels great, but there are several drawbacks to decorating with this trend. Buyers know the potential hassle of wall-to-wall carpet, which may reduce the price of their offer or stop them from buying at all.
Buyers like stress-free flooring that’s difficult to stain, so homeowners should consider using easy-to-clean materials in their bathrooms.
4. Unusual Tile and Linoleum Flooring
Unusual tile colors and patterns can look outdated, while linoleum flooring can look inexpensive. Unfortunately, neither results are attractive to buyers. To get the most out of their property, homeowners should consider replacing the flooring with hardwood or a convincing laminate alternative.
Reach out to your trusted real estate professional to get more advice on how to create beautiful bathrooms today.
Jul 13, 2016 | Home Buyer Tips
From finding the right agent to discovering the home you can truly feel comfortable in, there are a variety of things involved in the home buying process. However, it’s important not to get caught up in the home and ignore altogether the community you’ll be living in. If you’re planning a move to a new neighborhood, here are some things you should look into before putting in an offer.
Local Amenities
A peaceful, picturesque community is ideal, but if there are not a lot of resources nearby for your family, it’s possible that your new neighborhood may not be the best fit. Instead of having to get in the car and drive everywhere, ensure you research nearby community centers, green spaces and recreational spots so your family has somewhere to spend their weekends.
Research The Crime Rate
You can certainly get a good sense of the well being of a community just by looking at it, but be sure that you’re informed about exactly how safe the surrounding area is so your family will feel at ease in their new locale. While you can easily research the community and find information online, websites like Neighborhood Scout and Crime Report also make it simple to discover the less well-known details.
Transportation And Accessibility
A community you love is ideal, but if you work in the downtown core or an area far away, it will be important to determine the effect this will have on the length of your commute. In addition, you’ll want to be sure there are local transportation options like buses and shuttles that provide access all over the center in the event that it’s needed.
Learn About The Locals
There’s something to be said for the perfect home, but you’ll also need to feel a certain sense of comfort in the place you live so ensure you choose a place with nice neighbors and a community feel. This may seem hard to determine before buying a house, but try visiting the local community center or knocking on a few doors for a quick impression of what the locals are like.
It can be easy to throw everything else out the window as soon as you’ve found the perfect home, but it’s important that your home is situated in a neighborhood you’ll feel comfortable in. Contact your local real estate professional for more information.
Jul 12, 2016 | Around The Home
Airbnb has become an attractive way for homeowners to make income from their property. Although Airbnb’s is known for its reputable insurance policy, there are a few things you should consider before listing your home online.
Time Commitment
People have a tendency to think more about what they can gain from hosting on Airbnb than what hosting will do to their life. Having a steady stream of guests is quite a time-consuming endeavor; you’ll have to respond to inquiries online, clean your guest’s space and do laundry after every booking, and make sure your home is constantly neat and tidy.
This may seem like a small to-do list, but if you have a new guest every 3-4 days that could add up to 10 extra loads of laundry per month. Yikes!
As a host, you will also need to be present to check guests in and out of your home, which means you’ll need to book time off from your other commitments to properly welcome your guests and fulfill your hosting requirements. Hosting on Airbnb is just like having a real B&B, it is a business and requires time as such.
Risky Business
Needless to say, allowing strangers to stay in your home comes with inherent risk. Although Airbnb has insurance to protect its hosts and their homes, hosts are still vulnerable to theft or property damage. This can be especially devastating if sentimental items, such a wedding rings or family heirlooms, are stolen by a guest.
Another risk for Airbnb hosts to be aware of is squatting scams. Some scammers have taken advantage of the fact that when a guest stays in a home for longer than 30 days, they may gain squatting rights to the property, making it difficult for their host to force them to leave.
To avoid this situation, do not accept bookings that are longer than 30 days, and/or be very clear in your communication to guests that they are only allowed to stay at your property until the agreed upon departure date, and explicitly state that they must vacate your home after that time.
Be Realistic
It is unlikely that listing your home on Airbnb will provide you with enough financial freedom to quit your job and travel the world, though it may provide you with extra funds to contribute towards your mortgage payments. Be realistic about your expected hosting income, and don’t make any major financial changes based on your expectations until you have experience as a host and can accurately predict your monthly Airbnb profit.
Are you ready to find an ideal income property for Airbnb guests? Speak with your local real estate professional today!
