Sunrise Homes & Renovations, Inc.

What’s Ahead For Mortgage Rates This Week – June 22, 2020

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What's Ahead For Mortgage Rates This Week - June 22, 2020Last week’s scheduled economic reporting included readings on U.S. Housing markets, housing starts, and building permits issued. Weekly reports on new and continuing jobless claims and mortgage rates were also released.

NAHB: Builder Confidence in Housing Market Recovers in June

Analysts cited slim supplies of available homes, tight housing markets, and low mortgage rates as drivers of new home sales. Builder confidence in current housing market conditions rose 21 points to an index reading of 58 in June;  builder confidence in housing market conditions in the next six months rose 22 points to 68.

Builder confidence in buyer traffic in new single-family housing developments rose from May’s index reading of 21 to 43 in June. Readings for buyer traffic are typically lower than the benchmark reading of 50.

Readings over 50 indicate that most builders are confident about housing market conditions and component readings of the Housing Market Index. Prospective home buyers continued to face obstacles of high unemployment and loss of income due to the coronavirus pandemic; these factors will likely impact builder confidence for months ahead as impacts of the pandemic change.

Housing Starts, Building Permits Issued Increase in May

The Commerce Department reported 974,000 housing starts on a seasonally-adjusted annual basis in May as compared to a  pace of  934,000 housing starts reported in April. Building permits issued in May rose to 1.22 million permits issued on an annual basis from April’s pace of 1.07 million permits issued. Analysts expected 1.25 million permits to be issued in May on an annual basis.

 

Mortgage Rates Hit All-Time Low as Jobless Claims Decrease

Freddie Mac reported lower mortgage rates that were the lowest mortgage rates recorded. The average rate for a 30-year fixed-rate mortgage was eight basis points lower at 3.13 percent; interest rates for 15-year fixed-rate mortgages averaged 2.58 percent and were four basis points lower than for the prior week. Interest rates for 5/1 adjustable-rate mortgages averaged one basis point lower at 3.09 percent. Discount points averaged 0.80 percent for fixed-rate mortgages and 0.40 percent for 5/1 adjustable-rate mortgages.

First-time jobless claims fell to 1.51 million claims last week as compared to the prior week’s reading of 1.57 million initial claims filed. Continuing jobless claims also fell; 20.50 million claims were reported as compared to 20.60 million ongoing jobless claims reported the prior week.

 

What’s Ahead

This week’s scheduled economic reports include reports on sales of new and previously-owned homes, FHFA’s Home Price Index, and the University of Michigan’s consumer sentiment index.

What Does It Mean To Have A Cash Buyer?

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What Does It Mean To Have A Cash Buyer?Every now and then when a person is selling their home, a cash buyer comes into the equation. If you have listed your home for sale and your real estate agent has informed you that a cash buyer is interested, you will want to understand how this affects the potential sale. 

What Is A Cash Buyer?

A cash buyer is a buyer who will not be applying for a loan to buy your house. They already have the financial resources available to make the purchase without external loans.

Cash buyers do not necessarily have the whole amount in cash sitting in their savings accounts, though. They may have the money tied up in a retirement account, stocks, bonds or other commodities. 

Is A Cash Buyer Desirable?

There are many benefits to having a cash buyer. For one, the deal will not fall apart for lack of financing because cash buyers do not need financing. As long as your real estate agent verifies the legitimate ability of a cash buyer to purchase your home, a cash buyer is very desirable.

What Does The Real Estate Agent Do With Cash Buyers?

Cash buyers should submit their financial records to your real estate agent so your agent can confirm that they have the money available to pay without financing. Proof of funds might be a recent bank statement, financial records from stock holdings or something similar.

If a cash buyer refuses to submit proof of funds available, then you and your agent should assume that they may not be a genuine cash buyer.

What Are The Risks With Cash Buyers?

Sometimes a buyer comes along who claims to be a cash buyer but is not. Maybe they intend on getting private financing, or they do not want to be bothered with a pre-approval. For whatever reason, it is essential for your agent to get proof. Otherwise, a non-cash buyer who pretends to be could derail your sale.

For instance, you might have entertained other offers if you had known that person was not really as liquid as they claimed.

Your real estate agent will cover your interests if a cash buyer comes along. Just know that if you do have a genuine offer from a cash buyer, your closing will likely be very smooth.

 

How To Keep Your Pet Safe When Moving

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How To Keep Your Pet Safe When MovingMoving with pets can be strenuous, especially for the pet. Oftentimes pets might even go missing on moving day or shortly before or after. Many pets, such as dogs and cats, are sensitive and acutely aware of when big changes are taking place within the home.

They might even sense the need to escape the source of stress by running away. Here are a few safety tips for moving with your pet.

On Moving Day

While movers are busy moving furniture and boxes, frightened cats or dogs might run out the door and go missing. On moving day, keep your pet secured in a separate room where they cannot escape. A bathroom is ideal since it will not have furniture or boxes that the movers need to get to.

Place a sign on the door to alert the movers that the pet is in there, and not to open the door. Make sure to put food, water, bedding (and a litter box if necessary) inside the room so your pet is comfortable.

While On The Road

While driving to your new home, your pet may experience fear and/or stress from being in a moving vehicle, especially after a stressful day of moving house. Cats in particular are sensitive to the unusual sensation, and may try to hide under a seat of the car or even crawl up under the dashboard. Prevent this by purchasing a pet carrier and placing it on the floor of the back seat. This will keep the carrier from tipping from excess movement or sharp turns.

If you prefer to keep your pet unenclosed, make sure they have a collar and leash on. When you open the door they may try to escape and the collar and leash will help prevent this. 

In The New Home

When you finally move into your new home, keep your pet indoors for between a few days and a week. This allows your pet to relax and build an understanding of the new environment.

If you let your pet outdoors too soon, they may get lost or instinctively try to go back “home” to the old house. 

These few tried and tested tips will ensure your pet is safe on moving day and throughout the move. Once you arrive safely in your new home, your pet will soon be able to enjoy it just as much as you!

 

Should You Buy A Fixer Upper?

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Should You Buy A Fixer Upper?If you’ve expressed any interest in buying a home that you can work on, your real estate agent may present you with one or two fixer upper properties for your consideration. Fixer upper homes can offer good value for certain kinds of homebuyers.

But not everyone should buy a fixer upper. Here are some considerations to keep in mind.

There May Be Unforeseen Conditions

Until you actually get in there and start renovating, you cannot know exactly what is behind those walls. Fixer uppers could have unforeseen conditions that could blow away your renovation budget.

If you do decide to forge ahead with an offer, consider hiring a structural engineer, a pest control technician and a mold expert to carefully inspect the property first.

Will You Be Able To Live There During Renovations?

Sometimes a fixer upper requires a complete overhaul. Other times there are a few inhabitable rooms you can stay in while completing the rehab.

Consider whether you and/or your family can be comfortable during the work, or if you will need to rent an apartment or stay with family.

This will heavily impact your fixer upper experience.

How Handy Are You – Honestly?

This is the time to be really honest with yourself. How much of the work can you actually do? Are you a wannabe handyman, or do you truly possess the skills and experience to complete quality work? If everyone you know is astonished that you want to work on a fixer upper house, it is a smart idea to take stock of your abilities. 

Can You Afford To Hire Workers?

Just because you buy a fixer upper does not mean you have to do the work yourself, either. Maybe you have the money to hire a contractor or workers to get the job done. If hiring others is part of the plan, make sure you budget accordingly. Do not forget to budget for the unexpected because with a fixer upper, you can expect the unexpected.

Finally, if the only house you can afford is a fixer upper and you really want to buy now, then maybe you should go for it. After all, when you finish the rehab, you could be in a position to take some equity out of the house after a new appraisal.

For the right person in the right circumstances, a fixer upper can be a viable choice.

 

How Do Real Estate Agents Make Their Money?

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How Do Real Estate Agents Make Their Money?If you are planning to buy or sell a home, you will want to enlist the services of a real estate agent. But sometimes homebuyers and homeowners worry about paying for the services of a real estate agent.

After all real estate agents put an enormous amount of time and energy working for clients. They deserve to be compensated, but where does the money come from?

When You Buy A Home

When you contract with a real estate agent to buy a home, you do not pay the agent anything at all. In fact, they do not make a dime unless you actually end up buying a home. The buyer’s real estate agent makes money from the seller’s agent.

The idea behind this setup is that the buyer’s agent is bringing a deal to the seller. For that service, the buyer’s agent receives a percentage of the money that is paid to the selling agent. 

When You Sell A Home

When you hire a real estate agent to sell your home, the agent gets paid by commission on the selling price. No money actually comes out of your pocket ahead of time. When they do get paid, it is all through the paperwork at closing. Your final check from the sale will be less their commission.

Real estate agents charge varying commissions that range from 2% all the way to 6%, depending on the brokerage firm, the region and other factors. You should ask your real estate agent when you interview them what their rate is. 

Where The Money Goes

When your real estate agent does get paid, they do not get to keep all of it. Their brokerage firm gets a percentage and the seller agent gets a percentage. On top of that, many agents around the country choose to donate a small percentage of all their commissions to a favorite charity.

What Real Estate Agents Do not Charge For

Real estate agents do a lot to earn their pay, plus extras that they do not charge extra for, like:

  • hosting open houses
  • providing food and drinks during open houses
  • driving you around in your car to view homes
  • marketing your home online and in print advertisements

When it comes to hiring a real estate agent, you do not need to worry about paying for services. It is a system that works well for everyone involved in the home buying and selling process.

 

 

What’s Ahead For Mortgage Rates This Week – June 15, 2020

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What's Ahead For Mortgage Rates This Week - June 15, 2020Last week’s economic reporting included readings on inflation, the post-meeting statement from the Fed’s Federal Open Market Committee, and consumer sentiment. Weekly readings on mortgage rates and jobless claims were also released.

Inflation Ticks Up in May

May’s Consumer Price Index moved from April’s reading of -0.80 percent to -0.10 percent. The Core Consumer Price Index, which excludes volatile food and energy sectors, rose to -0.40 percent in May as compared to April’s reading of -0.40 percent. The Consumer Price Indices are used to calculate overall and core inflation rates. The Federal Reserve uses an annual inflation rate of 2.00 percent as an indicator for achieving price stabilization.

The Federal Open Market Committee of the Federal Reserve said in its post-meeting statement that the Fed would do all it can to ease the economic downturn caused by the Coronavirus and left the current federal funds rate of 0.00 to 0.25 percent unchanged. Fed Chair Jerome Powell indirectly encouraged legislators to approve funding for additional coronavirus relief.

Mortgage Rates Remain Stable as Jobless Claims Fall

Freddie Mac reported little change in average mortgage rates last week as the average rate for 30-year fixed-rate mortgages rose by three basis points to 3.21 percent. Rates for 15-year fixed-rate mortgages averaged 2.62 percent and were unchanged from the previous week. The average rate for 5/1 adjustable rate mortgages was also unchanged at 3.10 percent. Average discount points rose to 0.90 percent and 0.80 percent for 30-year fixed-rate mortgages and 15-year fixed-rate mortgages. Discount points for 5/1 adjustable rate mortgages averaged 0.40 percent.

Jobless claims remained far higher than pre-coronavirus levels but were lower last week than for the prior week. 1.54 million first-time jobless claims were filed as compared to 1.90 million claims filed the previous week. 29.50 million continuing jobless claims were filed last week as compared to the prior week’s reading of 30.20 million continuing unemployment claims.

The University of Michigan reported a higher index reading for consumer sentiment in May with a reading of 87.8 as compared to April’s index reading of 82.3.

What’s Ahead

This week’s scheduled economic reports include the National Association of Home Builders Housing Market Index and Commerce Department readings on housing starts and building permits issued. Weekly readings on mortgage rates and unemployment claims will also be released.