Mar 10, 2014 | Uncategorized
Last week’s economic news included construction spending and the CoreLogic Home Price Index for January. Reports for February included ADP Employment, Non-Farm Payrolls and national unemployment data.
The Federal Reserve’s Beige Book report and weekly reports on mortgage rates and new unemployment claims rounded out the week’s economic news.
Highlights for last week include:
Consumer spending gained 0.40 percent for January. The expected reading was 0.20 percent and the reading for December was flat.
The Commerce Department reported that increased spending was less an indicator of consumer discretionary spending than an indicator of high utility costs caused by severe winter weather.
Construction spending ticked upward in January with gain of 0.10 percent as compared to expectations of -0.40 percent and the prior month’s reading of 0.10 percent.
January’s reading translates to a seasonally adjusted annual figure of $943.1 billion.
Federal Reserve: Winter Weather Obscures Accurate Economic Outlook
According to the Fed’s Beige Book report, much of the U.S. economy was impacted by severe winter weather. The report is based on anecdotal information provided by business contacts and industry leaders throughout the 12 regions of the U.S. Federal Reserve System.
Eight regions reported slow economic growth. Janet Yellen, chairwoman of the Fed, noted that winter weather was not expected to alter the Fed’s plan to continue reducing its asset purchases under its quantitative easing program. She also said that it may be months before accurate economic readings can be obtained in the aftermath of winter weather conditions.
Freddie Mac’s Primary Mortgage Market Survey brought good news on Thursday as mortgage rates fell across the board and discount points were also lower in most cases.
Average mortgage rates were down nine basis points for a 30-year fixed rate mortgage at 4.28 percent. The average rate for a 15-year fixed rate mortgage was 3.32 percent, a decrease of seven basis points.
The rate for a 5/1 adjustable rate mortgage was 3.03 percent, down by two basis points from the prior week. Discount points were unchanged for 30-year fixed rate mortgages at 0.70 percent, but dropped to 0.50 percent for 15-year fixed rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages.
Employment Sector: Surprise Results
The ADP payroll report showed a reading of 139,000 jobs added in February as compared to the prior month’s 127,000 jobs. ADP tracks private sector jobs. The BLS released its Non-Farm Payrolls report for February, which also surpassed expectations.
175,000 jobs were added against expectations of 140,000 jobs added and January’s reading of 129,000 jobs added. The national unemployment rate rose to 6.70 percent against an expected drop to 6.50 percent from January’s reading of 6.60 percent. Once again, foul weather was seen as a major influence.
What‘s Ahead This Week
This week’s economic news schedule is relatively light with no releases set for today.
Mortgage rates will be released by Freddie Mac on Thursday, along with weekly jobless claims. Retail sales and the University of Michigan consumer sentiment index round out next week’s schedule.
Mar 7, 2014 | Uncategorized
There is a fine line between adding color to your home decor and using too much color, so that you feel like you are living inside a rainbow.
A little bit of color will add a lot of fun and interest to your home design, but too much color can be overwhelming. How can you achieve that perfect balance?
Here Are Some Tips To Keep In Mind For Using Color In Your Home In A Subtle And Balanced Way:
Before choosing the colors for your decor, do a little bit of research into color schemes and how they work, so you know how to combine colors harmoniously.
For example, you can choose a complementary color scheme with shades that are across each other on the color wheel – such as blue and orange or purple and yellow.
Or you could try an analogous color scheme, which is a scheme where the colors are next to each other on the colour wheel – such as blue, green and purple.
This is a rule that interior decorators use in order to use colors in a balanced way. Use the dominant color on 60% of the room, so that it will create a unifying look.
Then, use the secondary color on 30% of the room in order to add visual interest. Lastly, use an accent color for 10% of the room to add that little extra.
For example, you might use the dominant color for the walls and carpet, the secondary color for the upholstery and the accent color for some pillows, a wall hanging or a throw rug.
Perhaps you have found a gorgeous paint color, but it’s just a little too bright and overwhelming to use for all four walls of a room.
In this case, you can simply paint one wall with the color and the other walls with a neutral tone, so that you can enjoy the shade without it being overpowering.
You could also simply use the color in one aspect of the room, such as the baseboards or the door jams.
These are just a few of the ways that you can incorporate color into your home design, without it being overpowering. For more information, call your trusted real estate professional.
Mar 6, 2014 | Uncategorized
These gray, dreary winter days can really sap your energy and dull your enjoyment of life. To survive the winter doldrums, brighten your home.
Use These Easy Tips:
- Open your home’s window treatments during the day to let the light brighten and warm your room. Close them again as soon as night falls to retain heat.
- Brighten dark rooms with few windows by placing spotlights on the floor behind furniture.
- Add a mirror. Wherever a mirror reflects light in a room, it visually doubles that light. Place a mirror opposite a window to immediately brighten your space. No window? Hang a large mirror above a console table and place a pair of lamps in front of the mirror.
- Install higher watt bulbs in rooms that tend to be dark.
- Eliminate dark corners by adding recessed lighting.
- Use full spectrum lighting in areas where you read, knit or do other up-close work.
- Lighten living areas with colorful throws and pillows.
- Lift the winter blues by adding flowers and plants to your decor. Colorful indoor blooming plants include the African violet, Cyclamen, Orchid and desert cactus. Use tropical flowers to transport yourself mentally to climates where the sun always shines.
- Do A Little Winter Cleaning:
- Wash the inside of your windows. Fireplace and candle soot coats windows with a dingy film that blocks the sun.
- Polish your furniture. Shiny furniture reflects ambient light.
- Wash ceiling light fixtures in soapy water. Light is muted when filtered through dirty light fixtures.
Lighting can change how you (and potential buyers) feel about your home. It’s one of the easiest and least expensive ways to quickly improve the ambiance of your home.
If you’d like to sell your home, I can help. Contact your real estate professional today.
Feb 19, 2014 | Uncategorized
By Amy Tierce
Real Estate appraisals are performed by independent, licensed and in most cases certified appraisers.
How an appraiser views a property and the nature of the appraisal investigation is highly regulated and restrictive. Among many data fields, the appraisal report is required to address:
• Town and registry data on the property
• Recorded data on the immediate neighborhood
• If the property is legal per city and town records
• The condition of the property along with major systems
• Room count, size and general dimensions
• If improved, if proper permits were issued
• Market statistics and conditions
• Comparable sold properties
• Comparable properties on market
• Complete photographs as required by secondary market
• Floor plan on property is drawn by appraiser
Any errors or discrepancies on the appraisal report as compared to other data in the application process must be resolved. This means that all data throughout must match, for example street address, zip code, and property tax figures.
Much of the frustration with the appraisal process comes from the selection of comparable properties to support the value of the subject. It is required that these comparables be as close as possible to the subject in terms of style, age, size and proximity and timing of the sale.
Condominiums require additional work by the appraiser because the appraiser must validate the condominium information and many times this information can only be acquired by obtaining a completed condo questionnaire. To assist the appraiser and help expedite the process a copy of the lenders condo questionnaire will help.
Depending on market conditions, an appraisal can take up to two weeks to obtain. However, your lender can have the full credit approval completed on the borrower while waiting for the appraisal to be completed.
In this competitive market be sure to speak with the lender about the risks associated with the waiving of an appraisal or mortgage contingency.
Admittedly, the appraisal can be one of the most frustrating components of the mortgage process especially if the seller and real estate agent believe that the valuation is low.
Content courtesy of
Amy Tierce, Regional Vice President, Fairway Independent Mortgage
http://amyrates.com/
Feb 6, 2014 | Uncategorized
The Mortgage Bankers Association forecasts $1.2 trillion in mortgage originations during 2014, a 32 percent decline from 2013. Here’s a look at more key stats projected for 2014.
- Originations: Purchase originations are projected to increase to $723 billion in 2014, up from $661 billion in 2013. In contrast, refinances are expected to drop to $463 billion, which will result in total originations of around $1.2 billion. For 2015, MBA is forecasting purchase originations of $796 billion and refinance originations of $433 billion as total volume holds steady. The MBA expects a decline in the share of sales paid for with cash, and higher average LTVs on purchase mortgages, due to the rise in home prices.
- Mortgage Rates: The MBA estimates mortgage rates will increase above 5 percent in 2014 and then increase further to 5.5 percent by the end of 2015. As a result, mortgage refinancing will continue to drop, and borrowers seeking to tap the equity in their homes will be more likely to rely on home equity seconds rather than cash-out refinances. The market will potentially see a small increase in refinances toward the end of 2015 as the Home Affordable Refinance Program 2.0 expires.
- Existing Home Sales: Sales are forecasted to hold fairly even with 2013— which should finish around 5.13 million—at about 5.12 million in 2014. The average median existing-home price is projected to be about $209,000, up 6 percent from 2013 year-end estimates.
- New Home Sales: Likely to grow to 508,000 in 2014, housing starts are forecast to reach 1.13 million in 2014 compared to an estimated 917,000 in 2013.
- Real GDP: Growth will remain relatively weak through early 2014, at around 2 percent, due to a variety of uncertainties, particularly over U.S. spending and tax policies linked to the debt limit debate. The MBA expects the economy will grow somewhat faster in the second half of 2014 as some of these issues are resolved.
- 10-Year Treasury Rate: The 10-year Treasury rate is expected to stay below 3 percent into early 2014, but then increase more rapidly in the second half of 2014 as the Fed tapers its asset purchases and subsequently phases out the third round of quantitative easing (QE3). The MBA expects the Fed to begin tapering its asset purchases in early 2014, and ending QE3 in September 2014. The Fed funds rate will be kept near zero until mid 2015.
- Unemployment: The unemployment rate is expected to continue on a downward path due to falling labor force participation and job growth in the range of 150,000 to 170,000 jobs per month. The MBA expects the unemployment rate will decrease to 6.9 percent in 2014 and 6.5 in 2015.
Source: Mortgage Bankers Association, National Association of Realtors and American Land Title Association.
Jan 29, 2014 | Uncategorized
Earlier this month the Consumer Financial Protection Bureau updated the real estate
settlement cost booklet “Shopping for yor home loan”. The booklet was which originally prepared by the U.S. Department of Housing and Urban Development (HUD).
According to the CFPB, certain changes were made to reflect new mortgage rules under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).
The booklet includes information about title services and title insurance. The it tells consumers that a lender’s policy only protects the lender’s interest. But it also informs consumers that “If you want to protect yourself from claims by others against your new home, you will also need an owner’s title insurance policy.” This is no change to the description of what HUD previously said in the booklet about owner’s title insurance.
The CFPB plans a larger update of the booklet, which will reflect the integrated mortgage disclosures under the Truth in Lending Act and the Real Estate Settlement Procedures Act and other changes under the Dodd-Frank Act. The changes are consistent with other CFPB resources and tools for consumers as part of the CFPB’s broader mission to educate consumers. View and download the booklet here.
