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What’s Ahead For Mortgage Rates This Week – October 22nd, 2018

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What's Ahead For Mortgage Rates This Week - October 22nd, 2018Last week’s economic reports included readings on home builder confidence,sales of pre-owned homes and housing starts.  The Commerce Department also issued a report on building permits issued; weekly reports on mortgage rates and first-time jobless claims were also released.

Homebuilder Confidence Rises One Point

The National Association of Home Builders reported a reading of 68 for October,which surpassed August’s reading of 67. Any reading over 50 indicates most home builders are confident about housing market conditions. Builders cited ongoing headwinds including higher prices for materials,shortages of lots and labor and rising mortgage rates. Builders sought ways to provide more affordable housing options as they faced higher costs.

Regional readings of builder confidence readings,which are tracked on a three-month rolling average,were missed. The northeastern region gained three points for a reading of 57; the southern region gained one point for an index reading of 70. The midwestern region lost two points for a reading of 57. The western region was unchanged from September’s reading of 74.

Sales of Pre-owned Homes Slip toward 3 Year Low

The National Association of Realtors® reported fewer sales of pre-owned homes in September;5.15 million sales were reported on a seasonally adjusted annual basis as compared to August’s reading of 5.33 million sales. Analysts expected a reading of 6.27 million sales for September. Faced with high home prices and slim inventories of available homes,would-be buyers sidelined their searches for homes. Housing starts were 3.40 percent lower month-to-month and hit their lowest rate since November 2015.

According to the Commerce Department,housing starts also fell in September to 1.201 million starts on a seasonally adjusted annual basis. August’s reading was 1.268 million starts. Year-over-year,housing starts were 3.70 percent higher.,but fewer housing starts were bad news for housing markets as demand continued to exceed supplies of available homes. Building permits issued also fell in September to 1.242 million permits issued as compared to August’s reading of 1.249 million permits issued.

Mortgage Rates,New Jobless Claims Lower

Freddie Mac reported lower average mortgage rates last week. Rates for 30-year fixed rate mortgages were five basis points lower at 4.85 percent; rates for a 15-year fixed rate mortgage averaged three basis points lower at 4.26 percent. The average rate for 5/1 adjustable rate mortgages was three basis points lower at 4.10 percent.

First-time jobless claims also fell last week to 210,000 new claims filed,which matched expectations but was lower than the prior week’s reading of 215,000 new claims filed.

What‘s Ahead

This week’s scheduled economic releases include readings on new and pending home sales along with weekly reports on mortgage rates and new jobless claims.

Foreclosure Rates Expected To Dip Below 12-Year Low

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Foreclosure Rates Expected To Dip Below 12-Year LowThe record-setting pace of the U.S. economy continues to positively impact the housing market and home foreclosures now stand at an astonishing 12-year low.

Coming off a GDP growth rate of 4.1 percent and a historic bull stock market run, everyday Americans appear to be benefiting from one of, if not the strongest economies in decades. According to data compiled by CoreLogic, mortgage delinquency rates continue to improve and are already at the lowest levels in 12 years.

Building on last year’s national trend, foreclosures and mortgages more than 30 days past due declined to 4.2 percent in May. Other analytics show that mortgages at some stage in the foreclosure process also dipped by.02 percent from May 2017 to 2018. With a low 5-percent national foreclosure rate, the industry enjoys its best forecast since September 2006.

Some Housing Markets Lag Behind

While the country appears to be immersed in an economic revival, areas impacted by severe weather and hurricanes have not quite shaken off their impact.

“Serious delinquency rates continue to remain lower than a year earlier except in Florida and Texas, the hardest-hit states during last year’s hurricane season, CoreLogic president and CEO Frank Martell reportedly said.

There are also regions unaffected by hurricanes that are also lagging behind the strengthening conditions, according to research by ATTOM Data Solutions.

  • Foreclosures increased in eight states and the District of Columbia through the first half of 2018.
  • The District of Columbia suffered the worst foreclosure rate in the nation with a 60-percent increase over 2017.
  • Foreclosures increased in only 28 of 217 metropolitan housing markets studied. Oklahoma City topped the list with a 22-percent uptick.
  • Through June 2018, New Jersey endured the highest state foreclosure rate, with.99 percent of all properties in foreclosure.

According to ATTOM, Atlantic City, Trenton, Philadelphia and Chicago topped the list of total foreclosures during the first half of 2018.

2019 Foreclosure Predictions

History makes an excellent teacher and the wildfires destroying California communities are expected to negatively impact home ownership.

“While the strong economy has nudged serious delinquency rates to their lowest level in 12 years, areas hit by natural disasters have had increases,” CoreLogic chief economist Frank Nothaft reportedly said. “The tragic wildfires in the West will likely lead to a spike in delinquencies in hard-hit neighborhoods.”

“As an example, the wildfire in Santa Rosa last year destroyed or severely damaged more than 5,000 homes,” Nothaft reportedly said. “Delinquency rates rose in the aftermath, and in the ensuing months we observed home-price growth accelerate and sales decline. We will likely see the same scenario unfold in fire-ravaged communities this year.”

While America’s collective hearts go out to the families displaced by the California wildfires, the positive economic trends are expected to continue in much of the country.

CoreLogic’s Nothaft predicts foreclosure and delinquency rates to decline even further. Heading into 2019, positive numbers could upstage the current 12-year low and reach levels not seen in upwards of 15 years.

Contact your trusted real estate professional to learn about the market trends in your area.

U.S. Wage Increases Could Help Home Buyers

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U.S. Wage Increases Could Help Home BuyersThe struggle to achieve the American homeownership dream often feels like it happens in a vacuum. Everyday people work hard, save money and polish up their credit to get a low mortgage rate.

But there are powerful forces at work that are far beyond each person’s control. And until recently, the gap between American wage growth and rising home prices was widening. According to data coming out of the U.S. Department of Labor, unemployment recently hit a 49-year low and wages are enjoying the greatest uptick in nearly a decade. That is good news for prospective home buyers.

American Wages On The Rise

The 2018 economic news has seemed like one long greatest hits album. Historic-low unemployment for African-Americans and Hispanic-Americans has spurred confidence among these groups and the national unemployment has been steadily under 4-percent. The stock markets are booming, and the GDP growth has been impressive.

But there has been some frustration over stubborn wages that haven’t kept pace with other metrics. A report following stagnant salaries in February pointed to no slow down between rising home prices and wallowing pay rates. The growth rate was reportedly a modest 0.1 percent gain in February and that put Americans behind the curve in terms of buying homes.

But numbers coming out of the second quarter jobs report point to a 10-year high wage increase. The Bureau of Labor and Statistics reported wages are rising as employers compete to fill positions and the 12-month increase stands at 2.9 percent through August.

These are key numbers that may put a smile on potential home buyers’ faces.

  • Wages rose 0.5 percent in the second quarter of 2018.
  • Through August, wages rose 2.9 percent over the previous 12-month period.
  • Private industry compensation increased by 2.9 percent.
  • Government compensation increased by 2.3 percent, down from 2.6 in 2017.
  • Sales jobs gained by 3.5 percent.
  • Transportation jobs increased by 3.4 percent.

Experts are also claiming that setbacks from hurricanes likely blocked wage growth from topping the 2.9 high in 2009.

Where The Housing Market Stands

There’s little doubt that the surging economy put a higher number of Americans in position to purchase homes. However, inventory has remained well behind demand and that created a seller’s market with rising listing prices. But home prices are coming within reach for more people in 2018 and possibly 2019 market.

Since bottoming out in 2102, today’s home prices reportedly stand at about 6 percent higher than they were at their 2006 peak. That is not necessarily an indication that another housing bubble exists. Rather, the uptick in home prices is a natural reaction to an inventory shortage and economic growth.

The optimistic news for prospective home buyers is that wage growth appears to be gaining on home costs. As the gap closes, it’s likely that more and more people will be financially able to secure the American Dream of owning a home.

If you are in the market for a new home, be sure to contact your trusted real estate professional!

Ways to Stay Safe During the Holidays

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Ways to Stay Safe During the HolidaysThe arrival of fall, with cooler temperatures followed by a season of holiday celebrations, means getting cozy at home, spending more time cooking and enjoying friends and family in front of a blazing fire, and lighting up your home for a series of holidays. Sadly, though, it is also a time that carries a higher risk of property losses due to fire and accidental injuries.

Here are some guidelines about how to reduce those risks and stay safe this winter:

Keep The Kitchen Safe

Serious burns and kitchen fires can dampen any holiday celebration. Statistics show that Thanksgiving and Christmas holidays can be especially prone to accidental kitchen fires and injury. If you have guests helping out, or children in the kitchen, be especially watchful. Don’t overload circuits and never let electrical cords dangle over counters. Supervise young helpers, and know what to do in case of a stovetop grease fire or a sparking appliance.

Check The Fireplace

There’s nothing as cozy as a roaring fire on a chilly winter evening. But follow the rules for fireplace safety: Have a proper screen, don’t throw paper into the fire, and check the damper and chimney spark arrestor. Whether you have a traditional fireplace or a gas-fueled metal firebox, perform a pre-season check to assure that everything is operating properly before lighting that first fire.

Candle Safety

Candles are a huge risk during the holiday season, from Halloween on through New Years. As pretty as they are, wax candles should never be left to burn unattended, indoors or out. If you want to line your sidewalk with jack-o-lanterns or create a glowing pathway for winter guests, consider battery-operated candles for safety. Indoors, keep candles away from draperies, drafts and flammable decorations, and don’t ever place candles on a Christmas tree or among pine boughs on a mantel or dining room table. It’s simply too dangerous.

Trees And Home Decorations

If lighting up the home for the holidays is a tradition for your family, check the UL label for both indoor and outdoor lighting and never overload a circuit. Use care when stringing lights, and turn them off when you’re not at home. Check ornament labels — look for flame retardant and non-flammable certification. Always turn lights off at night or when you’re not at home.

General Safety Precautions

Autumn is also the prime time to test your home’s smoke alarms. It’s smart to stage a family fire drill. Go over your escape plan in case of fire, and be sure to inform guests about what to do in case of emergency. In addition, if you don’t already have a carbon monoxide detector, why not consider installing one this fall?

Staying safe is a family responsibility, one that you should take seriously!

Whether you are looking for a new home or want to list your current property this winter, your trusted real estate agent has home safety and home improvement ideas that will help to make your next home transaction a wonderous success!

 

Winterizing Your Yard: 3 Landscape Tips

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Winterizing Your Yard: 3 Landscape TipsIn some parts of the country, it has already started snowing! But, even if you live in an area with a moderate climate, your lawn and garden are about to take a “winter break.” 

Here are 3 tips to assure that your yard will not only survive the winter, but flourish during the dormant season. They’ll assure that your landscape will greet spring full of life and beauty.

Fertilize The Lawn As Recommended

Most types of grass and landscape plants have a kind of built in “alarm clock” that helps them prepare for the changing seasons and the onset of winter. Many lawns, though, benefit greatly from a a fall “feeding” in order to supply proper nutrients to help roots survive during the cold and be ready to start growing again above ground in the spring.

Applying the proper fertilizer this fall is a simple and cost-effective way to get a jump on next year’s beautiful lawn. When and whether you fertilize will depend on your specific type of grass and your location.

Baby Your Plants

Autumn is the time you’ll want to pamper your plants — from rose bushes to winter squash, kale or potatoes — and different plants require varied treatments to protect them from the cold and frost. If you’re not a master gardener yourself, your local nursery should be able to offer advice. The top three things to remember are that plants need to be well-hydrated in order to prevent stress, that they might need extra nutrition (fertilizer) during the cold season, and that most plants like an extra blanket (in the form of additional mulch) during the winter.

Again, specific solutions will depend on the types of plants in your garden, but a little extra effort this fall will help even your traditional flower garden bloom even more beautifully come spring!

Extend The Growing Season

If you have a backyard vegetable garden or a raised bed full of herbs and spices, and you live in an area with mild to moderate winters, you might be able to extend the growing season indefinitely by covering your beds or tenting the garden. Learn how to protect your plants from freezing by using a frost blanket or rotating row covers. It’s not really that difficult, and the difference of only a few degrees can make a big difference. 

Although frost blankets can top plants directly, you can make them even more effective if you build a simple framework — something like a miniature greenhouse — to give your plants a winter home that allows air to circulate.

For additional information, check with a local greenhouse or nursery, or just experiment with different ideas. No matter what you plan to do, the time to begin is now!

If you are interested in putting your house on the market, your trusted real estate agent has tips and tricks to make the outside and inside of your home shine for potential buyers.

 

What’s Ahead For Mortgage Rates This Week – October 15th, 2018

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What's Ahead For Mortgage Rates This Week - October 15th, 2018Last week’s economic reports included releases on inflation, consumer sentiment. Weekly readings on mortgage rates and new jobless claims were also released.

Inflation and Consumer Sentiment Dip

The Commerce Department reported slower growth in inflation for September. The Consumer Price Index for September showed a growth rate of 0.10 percent. Analysts projected a reading of 0.20 percent growth, which was based on August’s reading of 0.20 percent.

This was the sixth consecutive month-to-month increase in the inflation rate. Year-over-year, inflation has grown 2.30 percent as compared to the prior year-over-year rate of 2.70 percent.

Analysts said that rising rents and homeownership costs drove consumer prices higher, but consumer prices in other sectors eased.

Core inflation, which excludes volatile food and energy sectors, was unchanged at 0.10 percent growth month-to-month. Analysts expected CPI to increase to 0.20 percent.

According to the University of Michigan Consumer Sentiment Index for October, Consumer confidence slipped to an index reading of 99.00 as compared to September’s reading of 100.1 and expectations for an October reading of 100.6.

October’s reading exceeded the average reading of 98.50 for 2018.Analysts attributed October’s lower reading to consumer concerns over their finances as inflation rises and income remains relatively unchanged.

Mortgage Rates, New Jobless Claims Rise

Freddie Mac reported higher mortgage rates last week. The average rate for 30-year fixed rate mortgages rose 19 basis points to 4.90 percent. 15-year fixed rate mortgage rates were 14 basis points higher and averaged 4.29 percent.

Rates for 5/1 adjustable rate mortgages averaged 4.07 percent and rose by six basis points. Last week’s average mortgage rates were the highest rates seen since April 14, 2011.

First-time jobless claims rose by 7,000 new claims filed to 214,000 new claims. Analysts expected a reading of 205,000 new claims filed based on the prior week’s reading of 207,000 first-time claims filed.

Last week’s reading was attributed to effects of Hurricane Florence, but economists said that the reading was close to low readings seen in the late 1960s.

What‘s Ahead

This week’s scheduled economic news includes readings on sales of pre-owned homes, the National Association of Home Builders Housing Market Index, Commerce Department reports on housing starts and building permits issued. The Fed’s FOMC meeting minutes will also be released, along with weekly readings on mortgage rates and first-time jobless claims.