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.
Apr 25, 2014 | Uncategorized
If you’re looking to lengthen the life span of your clothing without always needing to purchase something new to wear, consider the following five easy steps every time you do a load of laundry.
It’s a little bit of effort that goes a very long way; and who knows, you might just enjoy doing laundry again after seeing such great results!
Button, Zip, Turn Inside Out, And Separate
Spend a little bit of extra time making sure your buttons are buttoned, your zippers are zipped, and clothes are turned inside out.
Doing so will ensure that your garments are less likely to snag one another in the wash, prevent pilling, and keeping your colors from fading. It’s an extra step, but completely worth your time. Wash your colors in cold water, and separate from your whites when you can.
While it’s tempting to wash everything together, a little separation can go a long way – especially when you’re dealing with delicates as they should always be in a separate load (or hand washed and laid flat to dry).
Hang Those Clothes Out To Dry
Stop in the name of shrinking, pilling, fading, and unraveling! Is the garment in your hand made of a delicate fabric? Is that sweater made with mainly wool or cotton? Is that t-shirt your favorite? Better hang them all to dry.
Consider purchasing a clothes drying rack, as they fold beautifully and can be tucked away in the corner when not in use, and generally range between 10 and 50 dollars. If you’re concerned over the softness of your hang to dry clothing, there are always detergents you can buy with built in softeners, but often, the quality of the water in your area may be enough.
Shorten Your Cycle
If you are washing regularly, and your clothing isn’t heavily soiled, then there is no need to set the washer to a longer cycle. The longer your clothes wash for, the more damage is done. A quick wash, believe it or not, is more than you need if you are just looking to wash out the general scent and small stains of everyday wear.
Whiten And Brighten Naturally
Stop bleaching if you don’t need to! Bleach, while it may be useful for extremely soiled clothing (do you work and play in the mud regularly?) is not needed for your everyday garments. Bleach is harsh on your clothing, and using something as simple as baking soda can have the same effect as bleach on your clothes in the wash.
A spoonful of baking soda naturally brightens your clothing by boosting the effects of your detergent. For treating specific stains, try sprinkling and rubbing some baking soda into the stain and let it sit for a bit before your wash to maximize the stain lifting action.
Soften And Scent Naturally, Too
Softening with fabric softener is great, but often fades your clothing at a faster rate than you’d like. So when it comes to softening, a dryer sheet or two will do the trick. If you’re not a fan of/ have sensitivities to strong fabric softeners or detergents, a spoonful of fresh squeezed lemon juice is a beautiful natural option for giving your laundry a fresh, pleasant scent.
Keep your laundry looking like new, and spend some time filling your laundry room with some essentials that you feel would help you become more efficient with some of the steps above. After a few loads, you’ll quickly begin to see the difference.
So on your next laundry day, don’t forget to congratulate yourself for a job well done on extending the life of your garments!
