Jan 20, 2014 | Mortgage Rates
Welcome news arrived last week as lower mortgage rates and a higher number of housing starts were reported. Other economic news was mixed:
The Federal Reserve released its Beige Book Report released last Tuesday indicated modest economic growth throughout the 12 Federal Reserve districts. Analysts predicted that this would cause the Fed to further reduce the volume of monthly asset purchases made under its quantitative easing program.
The Atlanta, Cleveland and Kansas City districts reported slower home sales, which supported recent expectations of slowing gains in home prices.
Mortgage Rates Dip, Housing Starts Up
According to Freddie Mac, average mortgage rates fell last week. The rate for a 30-year fixed rate mortgage dropped from 4.51 to 4.41 percent with discount points unchanged at 0.70 percent. The rate for a 15-year fixed rate mortgage was 3.45 percent as compared to the prior week’s reading of 3.56 percent.
Discount points rose from 0.60 to 0.70 percent. The average rate for a 5/1 adjustable rate mortgage dropped from 3.15 to 3.10 percent; discount points rose from 0.40 to 0.50 percent.
The National Association of Home Builders/Wells Fargo Home Builders Confidence Index dropped slightly in January. Although expectations were for a reading of 59, January’s reading was 56 and lower than December’s revised reading of 57.
The NAHB Index has increased by 19 percent year-over-year and is expected to continue rising in 2014 due to relatively lower mortgage rates, and pent-up demand for homes.
Housing starts for December came in at 999,000 against expectations of 985,000 and November’s revised reading of 1.11 million. Cold weather and concerns over rising mortgage rates in 2014 were cited as causing fewer housing starts. As the Fed tapers its QE program, mortgage rates are expected to rise.
Consumer sentiment toward the economy was lower than expected according to the University of Michigan Consumer Sentiment Index for January. The confidence index was expected to rise to 84.0 based on December’s reading of 82.5, but only achieved a reading of 80.4.
Higher gasoline prices and a slower labor market likely contributed to wavering consumer sentiment; rising inflationary expectations were also considered a cause.
This Week
This week’s scheduled economic news includes an action-packed Thursday as today is Martin Luther King Jr. Holiday and no economic reports are scheduled for Tuesday, Wednesday or Friday.
Thursday’s reports include Weekly Jobless Claims, Freddie Mac’s PMMS, along with Existing Home Prices, FHFA Home Prices and Leading Economic Indicators.
Jan 16, 2014 | Home Selling Tips
Have you made it your New Year’s resolution to find that perfect home for you and your family? You might have thought that you needed to wait until spring to start house shopping, but the fact is that January is a great time to begin.
Put on your winter jacket and get out there while the leftovers from the New Year’s party are still in the fridge – you’ll have the upper hand.
House hunting in January offers a number of advantages that will work in your favor. Here are some of the main reasons:
Busy Social Calendars
First of all, most other people will be busy with parties, holidays and getting back to work after Christmas and they won’t want to venture out in the cold weather to go look at houses – so there will be less competition when bidding on homes.
This means that you can get in there and put in an offer that the seller can’t refuse.
Determined Seller
Also, if the home is on the market at this time of year, there is a chance that the home sale is somewhat urgent.
If they were not as determined, they might pull their home out of the market and wait until spring to try again. With a motivated seller you are more likely to get a better price.
A Dedicated Real Estate Agent
Your real estate agent will have more time on their hands at this time of the year, because they will be less busy. This means that they will be able to dedicate more attention to you and help you move through the closing and moving process faster.
Cheap Deals On Furniture
Also, during the month of January, retailers will sell off their excess inventory from over Christmas in order to make room for the new models. This means that when you move into your new home you will be able to furnish it at a great discount.
These are just a few of the reasons why you might want to consider getting out this January and searching for your new home. House hunting during this time of year can offer you a number of advantages and you could possibly find that dream home you have been looking for at a great price.
For more helpful tips, contact your trusted real estate professional.
Jan 15, 2014 | Around The Home
The kitchen is one of the most important rooms of your home. It is where you prepare all of your meals and it is often a hub of family activity. When you host a party, the action often ends up in the kitchen.
Where drinks and snacks are enjoyed into the early hours of the morning. It’s crucial that your kitchen functions well because you will use it every day, but you also want to make it beautiful and stylish.
Renovating and decorating your kitchen can also be one of the best ways to increase the resale value of your home. If you are planning on a kitchen makeover:
Here Are Some Dos And Don’ts To Keep In Mind:
- Don’t forget to consider the proportions of everyone who will use the kitchen. Don’t choose kitchen stools that are too high for your kids to sit on, or cabinets that your wife cannot reach.
- Think carefully about storage space. What do you need to store and how much room do you need? You might want to store away your blender and toaster and other small appliances as well, so that they don’t have to clutter up the counter all the time.
- One of the hottest trends of 2014 is a simple and elegant white and cream kitchen. A neutral color like this can be accented with vibrant splashes of color, such as a bright fruit bowl or a wall hanging. If you are selling your home, a neutral tone will appeal more to the majority of buyers.
- Another popular trend is green and environmentally sustainable elements within the kitchen. Recycled, renewable and energy-efficient products are in abundance at the moment and these options will not only save you money, they will be much better for the environment.
- Instead of placing your microwave on the counter, it makes a lot more sense to fit it in seamlessly with your cabinets. This will allow you to free up counter space in your kitchen.
- Be careful not to over design – it’s a common decorating mistake. Keep things simple and know when to stop, so that you don’t have a kitchen that looks overwhelming and cluttered.
These are just a few tips to keep in mind if you are giving the kitchen of your home a makeover for 2014. For more helpful tips and information, contact your trusted real estate professional.
Jan 13, 2014 | Mortgage Rates
The first post-holiday week of 2014 brought mixed economic and housing-related news. CoreLogic reported via its Housing Market Index that November home prices grew by 11.80 percent year-over-year.
This was just shy of October’s year-over-year reading of 11.90 percent. As with Case-Shiller’s recently reported Home Price Indices, a slower rate of home price growth suggested to analysts that the housing market is cooling down.
The Federal Reserve’s Federal Open Market Committee released the minutes from its December meeting. The minutes reiterated the Committee’s decision to begin tapering its asset purchases this month.
The Fed announced that it would reduce its monthly asset purchases by $10 billion to $75 billion. As always, the Fed indicated that it would continue monitoring economic data for determining future actions concerning monetary policy.
Mortgage Rates Mixed
Freddie Mac’s Primary Market Survey reported mixed results for average mortgage rates last week. The rate for a 30-yer fixed rate mortgage dropped to 4.51 percent from 4.53 percent with discount points lower at 0.70 percent; the rate for a15-year fixed rate mortgage was 3.56; this was one basis point higher than for last week.
Discount fell from 0.70 to 0.60 percent. The rate for a 5/1 adjustable rate mortgage jumped by 10 basis points to 3.15 percent with discount points unchanged at 0.50 percent.
Employment, Unemployment Data Mixed
The week’s jobs-related readings provided mixed readings for the labor sector. The ADP Employment report for December showed 238,000 private sector jobs added and matched expectations of 215,000 new private sector jobs. December’s reading also exceeded November’s reading of 229,000 jobs added.
The Bureau of Labor Statistics released the Non-Farm Payrolls report for December; it reported 74,000 jobs added in December against expectations of 193,000 new jobs and November’s reading of 241,000 jobs added.
The sharp drop in new jobs during December was partially blamed on poor weather, but analysts also said that it could be a sign of further ups and downs in the U.S. economy.
In a statement given in connection with the December Non-Farm Payrolls report, St. Louis Federal Reserve Bank President James Bullard, a member of the FOMC, said that he did not expect the Fed to stop tapering its asset purchases due to December’s sharp drop in new jobs.
The national unemployment rate improved to a reading of 6.70 percent. This was the lowest reading in five years and only two-tenths of a percent above the FOMC’s targeted unemployment rate of 6.50 percent. 347,000 workers left the workforce, which helps to explain the discrepancy between the lower number of new jobs and the lower unemployment rate.
This Week
This week’s scheduled economic news includes retail sales and retail sales except autos, the Federal Reserve’s Beige Book report, Weekly Jobless Claims, Freddie Mac’s PMMS. The NAHB Home Builders HMI and the Housing Starts report will also be released. Friday’s release of the University of Michigan’s consumer sentiment index rounds out the week.
Jan 12, 2014 | Home Selling Tips
Anyone preparing their home for sale can get focused on all the little updates they need to make before it’s ready to be put on the market. However, once the property is listed, they usually just sit back and wait for the offers to roll in — which can be disappointing.
For A Fast Sale
Real estate agents know that the work never stops. Below are insightful tips from property experts to create buzz around your house and get it sold quickly!
Bait Buyers With Visuals
Most buyers do their preliminary searches online, so this will be their first impression of your place. Hire a professional photographer if your photography skills are lacking. Or, take it one step further and have a virtual tour video made — the extra effort might clench the deal.
Create An Online Social Life
Just posting your home online might not be enough to attract buyers. However, if you give it a persona on Facebook or tweet about its beautifully refinished hardwood floors, you’ll reach more potential buyers and establish an emotional connection before they ever set foot inside.
Be Flexible
If the market isn’t cooperating with your current strategy, then be prepared to change it. This could mean dropping the price, hosting impromptu open houses or even taking the property off the market for a couple of months. Be sure to stay abreast of local selling trends by speaking with real estate agents and tracking area comparable.
Spread It Through Word Of Mouth
Enlist the help of all your friends and family to help spread the word. Put flyers out front and pass them around to all of your neighbors — they might want their friends to move in down the street. Also, let local real estate agents know your house is available.
To get your home sold quickly, take the advice above from successful professionals who know that no effort is too small when it comes to the real estate game. If you’re getting ready to put your house on the market and would like more selling strategies, please call your trusted real estate professional.
