May 5, 2014 | Uncategorized
Last week’s economic news included several reports related to housing and mortgages. The NAR started the week on a positive note with its Pending Home Sales Index released Monday. Pending home sales in March were higher with an unexpected increase of 3.40 percent over February for an index reading of 97.40.
This is encouraging news for home sales that were severely affected by a hard winter in many areas, and suggests that as warmer weather approaches, home sales will pick up. Analysts do not expect the rapid rate of price appreciation seen in 2013. The Fed’s tapering of its “quantitative easing” program has caused mortgage rates to rise, and last year’s rapid run-up of home prices has made affordability an issue in many areas.
The S&P Case-Shiller Home Price Index for February performed slightly better than expected with a seasonally-adjusted month-to-month reading of 0.80 percent. The expected reading was 0.70 percent.
The year-over-year reading fell short of January’s reading of 13.20 percent and the expected reading of 13.00 percent at 12.90 percent. Analysts noted the continuing trend of slowing momentum in home price growth, but seem confident that home prices will continue to increase over the spring months.
Fed Continues Tapering Of QE, Mortgage Rates Mixed
Wednesday brought the FOMC’s customary statement after its two-day meeting concluded. There were no surprises as the statement verified another monthly tapering of $10 billion from the Fed’s quantitative easing (QE) program of asset purchases.
The tapering was evenly divided with $5 billion less in MBS purchased and $5 billion less in treasury securities purchased. The ongoing tapering was seen as contributing to rising mortgage rates, but the Fed asserted that its asset purchases remain sufficient to dampen rapid increases in long-term interest rates, which include mortgage rates.
The Fed repeated its usual reminder that its decisions are not on a pre-set course and that the committee members would closely monitor economic and financial developments as guidance for future decisions.
Freddie Mac reported mixed results for mortgage rates on Thursday. Average rates rose by four basis points to 4.29 percent for a 30-year fixed rate mortgage with discount points of 0.70 percent.
The average rate for a 15-year fixed rate mortgage dropped by one basis point to 3.38 percent; discount points steady at 0.60 percent. The average rate for a 5/1 adjustable rate mortgage rose by two basis points to 3.05 percent; discount points dropped from 0.50 to 0.40 percent.
Weekly jobless claims made an unexpected jump to 344,000 as compared to the prior week’s revised figure of 329,000 jobless claims and an expected reading of 320,000 new jobless claims.
Analysts note that week-to-week figures continued to show volatility, but said that on balance, the rolling average for jobless claims appeared consistent with moderate growth in labor markets.
This Week
This week’s scheduled economic news shows no events related to housing and mortgages. Highlights include Fed Chair Janet Yellen’s appearance before the Joint Economic Committee in Washington, D.C. and the usual releases of mortgage rates and new jobless claims on Thursday.
May 2, 2014 | Uncategorized
When it’s just about time to welcome a new family member into the home, you want to ensure that you’re as prepared as you can be. If you’re becoming a parent for the first time, being prepared for your baby’s arrival is especially important.
Just because you want to be prepared, however, doesn’t mean you have to reveal your baby’s gender if that’s something you wish to keep a surprise. Here are some stunning gender neutral nursery designs for 2014.
Purity And Peace: Shades Of White
A design for a neutral gender nursery that is becoming increasingly popular is one that is full of different shades of white, bringing with it an atmosphere of peace and purity.
Suited just as well to your baby girl or baby boy, a nursery with white walls and off-white or cream linens will certainly create a perfect canvas.
Once your baby’s gender is determined, a colored rug or wall decorations can make the room more gender-specific, though leaving it as an all-white haven works well, too.
Common focal points in these kinds of “purity” themed nurseries are crystal chandeliers, grandiose white drapery around the baby’s crib, or antique furniture. Mirrors with intricate frames also work well in these kinds of rooms, and subtle pastels can be added while still maintaining a gender-neutral theme.
Gender Neutral With Neutrals And Primaries
Of course neutral colors work well for creating a room that will be suited to a boy or a girl, but you don’t have to leave out the colors completely in order to obtain a gender neutral feel. Instead of opting for a light pink or baby blue, primary colors tend to be more gender neutral, so opt for shades of green, yellow, and red.
Another option is to create a multi-colored atmosphere by making use of all the primary colors in your nursery’s decor and design elements, while opting for neutral colors for the walls, carpeting, and bedding. Using this strategy, you can create an ultra-modern or slightly retro room, while the vibrancy of the colors make it an ultra-fun space.
A Wild Safari: Fit For Boys And Girls
Wilds safaris are just as suited to boys as they are to girls, and this kind of nursery theme is one that is especially popular when creating a gender neutral atmosphere. When creating this kind of a wild safari nursery, you can make creative use of wall motifs and wall decals to recreate a scene from the jungle.
Images of a jungle’s terrain, giraffes, and elephants will certainly create the perfect space for your baby boy or girl. These themes can make use of neutral colors like beige, brown, and white, while also working in some of the gender neutral primary colors like yellow and green.
Whether you choose to go on a “baby spree” with a wild safari theme, or opt for something a little more classic and modern by using white or primary colored nursery themes, there are many different ways you can prepare for your baby’s arrival without spoiling the secret.
Your baby boy or baby girl will love their nursery, and you will love the pleasant surprise! If you’re on the hunt for a new home that offers the perfect space for a nursery, get in touch with your real estate professional today, and start your home hunting as soon as possible.
May 1, 2014 | Uncategorized
The FOMC of the Federal Reserve released its customary statement after its meeting concluded April 30.
FOMC members said that the economy is improving after a winter lull caused by poor weather. The national unemployment rate remains high, although some improvement in labor markets was reported. Fiscal policy is restraining economic growth, although FOMC said that the restraint is diminishing.
FOMC Monitors Inflation, Further Reduces Asset Purchases
The FOMC statement reflected members’ concerns about the inflation rate remaining below its goal of two percent, and said that this could eventually impact economic recovery. The Fed expects inflation to approach its goal within the “medium term.”
The Fed will reduce its monthly asset purchases of mortgage-backed securities and Treasury securities to a total of $45 billion in May. FOMC members said that the Fed’s level of asset purchases is sufficient to maintain downward pressure on long term interest rates and to support mortgage markets.
The Fed expects to continue reducing its asset purchases as long as improvements in the labor market and general economic conditions occur. As of March, the national unemployment rate was 6.70 percent; the Fed previously established a goal of 6.50 percent unemployment as an indicator of economic recovery.
The statement included its usual comment that asset purchases are not on a pre-set course and that FOMC members monitor economic reports and other financial data on an ongoing basis as part of the FOMC’s decision making process.
Fed Funds Target Rate Unchanged
FOMC members agreed to maintain the Fed’s current “highly accommodative” monetary policy and left the target Federal Funds rate at between 0.00 and 0.25 percent. The committee expects this policy to continue long after the asset purchase program concludes.
FOMC members will continue to monitor economic and financial developments along with inflation to determine the course of the target federal funds rate.
The FOMC noted that retail sales in March reached their highest level since September of 2012; this was viewed as a sign of a stronger overall economy.
This FOMC statement mentioned inflation as a basis for reviewing monetary policy more than in recent statements, and clearly established maximum employment and the committee’s target two percent inflation rate as benchmarks for decisions related to future policy decisions.
April’s unemployment rate is set for release on May 2.
Apr 30, 2014 | Uncategorized
As most real estate agents will tell you, remodeling, decorating or repairing your home can go a long way towards getting it sold. For that matter, it can add value to your property in case you want to sell later – that is, if you don’t choose the wrong places to buy cheap:
- Windows – Never buy a window based on which one is cheapest. You want windows that look good, and, as most real estate agents will recommend, you want energy-efficient windows. During 2009 and 2010, you may be eligible for a Federal Tax Credit for Energy Efficiency of up to $1500 when you purchase Energy Star windows.
- Paint – Paint is one of the biggest places people skimp when it comes to cost, and a big no-no. Cheap paint may take several coats to look right; those several coats can end up leaving blotches and runs. In addition, cheap paint has a tendency to peel or wash off under light cleaning. If you’re going to add painting to your remodeling or repair work, quality is always better.
- Doors – Whether it’s for a shower or a screened-in porch, the door you choose can make all the difference. A rickety shower door falling off the railing is a big “don’t buy” sign. While you don’t want to blow your whole budget, the doors throughout your house should be of quality material. Likewise, a solid front door adds to the curb appeal and security of your home. Some exterior doors also qualify for the Federal Tax Credit for Energy Efficiency. Find out if your exterior door qualifies for an Energy Star Rebate or Tax Credit.
- Flooring – Unless it’s expensive carpet on sale, cheap flooring never looks like anything but cheap flooring. Low cost carpet and wood flooring seldom has high durability and is likely to wear out before you’re ready to replace it again. Take the time to find quality flooring at a price you can afford – don’t go cheap!
Many real estate agents will push quality, but the biggest point they’ll push these days is – go green! It may not be the cheapest option, but the benefits in efficiency and property value more than make up for the cost.
Apr 29, 2014 | Uncategorized
Even the most aesthetically pleasing homes can have mold issues. A type of fungus that thrives on moisture, mold can trigger symptoms such as itching eyes, asthma attacks and bouts of sneezing or coughing.
As a result of the possible health issues, mold is the sort of problem that should be dealt with prior to listing a home, and people who are in the market to buy a home would do well to have a licensed professional conduct a mold test on any home they’re seriously interested in buying.
What follows is a rundown of five places in the home where mold could be hiding.
The Unwanted Basement Tenant
If climate control measures are not implemented, basements can end up becoming breeding grounds for mold. Most basements get little or no direct sunlight, are often more humid than other areas of the house, and get scant ventilation, which can pose a problem should water somehow get into the basement.
Mold can go undetected for years in such spaces since it can grow behind walls, baseboards and insulation. Fortunately, detecting mold is possible not only by sight, but also by scent. A moldy or musty smell should not be ignored since it could be evidence that there is a mold problem.
The Air Conditioner’s Chilly Reception
Unfortunately, mold can take root in places that people cannot easily access and monitor such as on the inside of their air conditioner units. Mold can grow on the coils and, when moisture enters into the picture, a small problem can become a big one quickly.
People who find themselves coughing or sneezing whenever they turn on their air conditioners ought to be suspicious since mold could be the culprit.
Not On The Kitchen Menu
Leaving leftovers in the fridge for too long can create conditions where mold thrives. The mold can then get into crevices where it will have even more places to grow. The problem can become even more serious if contaminated food and appliances transfer the mold to other areas in the kitchen.
Furthermore, kitchens that are insufficiently ventilated can also have negative implications as far as food safety is concerned,
The Chimney: Where There’s Smoke…
Leaky chimneys can cause mold problems that, if not fixed, may end up infecting other areas of the house. In a leaky chimney, moisture can seep into crevices and create mold areas that may eventually make their way down to the walls. Therefore chimneys that are in need of repair should be fixed promptly so that problems don’t pop up later.
If Walls Could Talk
One of the most common places for mold to form and grow is behind walls. Humid air behind the walls can be problematic, particularly if water finds its way back there as a result of things like flooding.
It’s also possible for mold to form behind wallpaper. People can determine whether or not they have mold behind their walls by having an inspector come in and check.
Mold is no laughing matter. Before listing, it wouldn’t be a bad idea to address any mold issues. People who are planning to buy a home should have an inspector conduct a test to ascertain if there are any problems.
Taking the proper steps will help to remedy any mold situation that may be present. Whether you’re looking to sell or looking to buy, the right real estate agent can make all the difference. Call your trusted real estate professional today for more information on how to deal with mold when buying or selling a home.
Apr 28, 2014 | Uncategorized
Last week’s economic news supported recent reports that home sales were fewer and home prices increased, but did so at a slower pace.
The NAR reported a slower pace of existing home sales, and FHFA reported a slower year-over-year rate of growth for home prices on properties financed by Fannie Mae and Freddie Mac.
The U.S. Commerce Department reported that new home sales fell to their lowest level since July 2013. Mortgage rates rose for fixed rate mortgages, but were unchanged for 5/1 adjustable rate mortgages. Here are the details:
Existing Home Sales Slow, Moderate Growth In Home Prices
March sales of existing homes dipped by 0.20 percent according to the NAR. 4.59 million previously owned homes were sold on a seasonally adjusted annual basis against projections of 4.55 million sales and February’s reading of 4.60 million pre-owned homes sold.
Rising home prices contributed to the slowdown in sales, which started last summer. Rapidly rising home prices due to short supplies of available homes and high demand for homes caused some buyers to leave the market. The national average price for existing homes was $198,500 in March, which represented a year-over-year increase of 7.90 percent.
The Federal Housing Finance Agency, which governs Fannie Mae and Freddie Mac, reported that home prices for homes financed with Fannie Mae and Freddie Mac owned mortgages rose by approximately 7.0 percent year-over-year as of February.
Severe winter weather was cited as a possible factor in slowing home sales, but as the peak home buying season gets underway, analysts forecast that some sales lost may be recovered in warmer weather.
Mortgage Rates Rise, New Home Sales At Lowest Level In 21 Months
Freddie Mac reported that average mortgage rates for fixed rate mortgages rose. The rate for a 30-year fixed rate mortgage rose by six basis points to 4.33 percent; the rate for a 15-year fixed rate mortgage also rose by six basis points to 3.39 percent.
The average rate for a 5/1 adjustable rate mortgage was unchanged at 3.03 percent. Discount points were also unchanged at 0.60,.60 and 0.50 percent respectively.
Sales of new single-family homes slumped to their lowest level in since July 2012 according to the U.S. Department of Commerce. The median price of a new single family home rose to $290,000, which represented a 12.60 percent increase year-over-year.
Analysts noted that month-to-month home sales numbers are not as reliable as sales trends measured over months, but 384,000 March sales of new homes fell markedly short of expectations of 450,000 new home sales and February’s upwardly revised reading of 440,000 new homes sold.
Unemployment Ups And Downs Contribute To Buyer Uncertainty
New jobless claims rose to 329,000 against expectations of 315,000 new jobless claims and the prior week’s reading of 305,000 new jobless claims. The Labor Department said that seasonal adjustments were incomplete due to the Easter holiday, which occurs on different dates.
As labor and other sectors of the economy endure ups and downs during the economic recovery, it is reasonable to expect some home buyers to put off buying homes.
This Week
This week’s scheduled economic news includes Pending Home Sales, Case-Shiller’s Housing Market Index, the FOMC meeting and statement and Construction Spending. The Bureau of Labor Statistics will release April’s Non-Farm Payrolls Report and National Unemployment Report on Friday.
