The American Consumer is alive and well, it seems.
Friday morning, the Census Bureau will release its Retail Sales figures for September. The report is expected to show an increase in gross receipts for the 15th straight month with analysts predicting a 0.6 percent increase from August.
The projected increase represents the largest jump in Retail Sales in six months and would likely lead mortgage rates higher for buyers in Fitchburg and nationwide.
The connection between Retail Sales and mortgage rates is fairly straight-forward. Retail Sales are the majority component of “consumer spending” and consumer spending represents the majority of the U.S. economy — up to 70 percent, by some estimates.
And, as the economy goes, so go mortgage rates. (more…)
Did you remember to handle the most basic safety precaution for your new home?
When people buy homes — in Worcester or wherever — , there’s a tendency to think “Big Picture” on home improvements. Flooring, painting and furniture are common “just-moved-in” purchases, as are cable television and utilities packages.
The most important move-in purchase, though, may also be the least expensive — deadbolts for your doors.
Every home has at least one — and sometimes up to dozen — keyed points of entry. And until you change those locks, there’s no telling just how many people may have access to your home.
For example, your home’s prior owners may have shared house keys with any/all of the following people : (more…)
With mortgage rates at all-time lows, you may be asking “Is now a good time to refinance?”. This short interview from NBC’s The Today Show offers good insight.
Refinancing a mortgage is about more than just “low rates”. For example, there are costs associated with giving a new mortgage and even with the average, 30-year fixed rate mortgage near 4 percent, the costs of a such a move can outweigh the benefits — both in the short- and long-term.
The video originally ran in September when mortgage rates averaged 4.09%. Rates are different today, but the offered advice remains relevant.
The lowest rates come with the highest costs. Consider a slightly higher-rate option from your bank.
Falling home values may make it harder to qualify for a refinance in the future. Your best time to act may be now.
If you’re many years into a 30-year loan, you can consider switching to a 15-year mortgage to avoid “resetting” your term.
And, lastly, the interviewee makes a strong point that your refinance should save you enough money to make paying the closing costs “worth it”. Make sure the break-even point on your closing costs versus your monthly savings occurs within a reasonable time frame.
At 4 minutes, the The Today Show video is short, but dense with quality information. For follow-up on whether a refinance makes sense for your situation, be sure to talk with a qualified loan officer. Feel free to contact me any time to discuss your options and I can put you in contact with a dependable, trustworthy and experienced loan officer. Don’t just pick a company or individual off the internet or from a radio ad. Work with a local loan officer that will be accountable to you.
For the first time in more than 40 years, data from Freddie Mac’s weekly Primary Mortgage Market Survey shows the average 30-year fixed rate mortgage falling below 4 percent, dropping to 3.94 percent nationwide. It’s the lowest average 30-year fixed reading in the survey’s history.
In addition, Freddie Mac shows the 15-year fixed and 5-year ARM making new all-time lows, too, falling to 3.26% and 2.96%, respectively.
It’s a great time to be shopping for a mortgage or buying a home in Worcester. Because mortgage rates are dropping, housing payments are dropping, too. As compared to 8 months ago, for every $100,000 borrowed, homeowners now pay $66 less principal + interest each month.
On a $300,000 mortgage, that’s $71,280 saved in 30 years. (more…)
Mortgage rates are prepped to make big moves in the next 36 hours. Is it time for you to call in your rate lock?
Friday, at 8:30 AM ET, the Bureau of Labor Statistics will release the Non-Farm Payrolls report for September. Issued monthly, the “jobs report” offers sector-by-sector job creation figures from the month prior, and reports on the national Unemployment Rate.
Last month, exactly zero net new jobs were created, the government said. This month, economists expect a net 60,000 new jobs created.
Depending on where the actual monthly figure falls, FHA and conforming mortgage rates in Leominster may be volatile. The jobs reports tends to have out-sized influence on the mortgage bond market.
The connection between the jobs market and the mortgage market is fairly straight-forward. As jobs go, so goes the economy. This is because more working Americans leads to a stronger economic base.
When more people work, consumer spending grows
When more people work, governments collect more taxes
When more people work, household savings increases
Each of these items are strengths to a recovering economy.
For rate shoppers, Friday’s job report could cause mortgage rates to rise — or fall. If the actual number of jobs created exceeded the 60,000 consensus estimate, look for mortgage rates to climb.
Conversely, if new jobs fell short of 60,000, expect that rates will drop.
Home affordability is at all-time highs because mortgage rates are at all-time lows. If you’re under contract for a home or looking to refinance, eliminate some of your interest rate risk. Lock ahead of Friday’s Non-Farm Payrolls release.
Did you remember to handle the most basic safety precaution for your new home?
