Sunrise Homes & Renovations, Inc.

What’s Ahead For Mortgage Rates This Week – July 10, 2017

by

Last week’s economic reports suggested that demand for homes is rising despite a jump in mortgage rates and rising home prices fueled by low inventories of homes for sale. Demand for homes rose by 1.40 percent as interest rates jumped after the 10-year Treasury rate rose by 10 basis points.

Construction spending was unchanged in May as compared to a -0.70 percent reading in April. Although builders express high confidence in housing market conditions, construction spending continued to lag behind spending levels based on builder confidence readings.

Home buyers received good news as major credit bureaus removed two key components from consumer credit reports. Fannie Mae and Freddie Mac raised the debt/to income ratio for home loans from 45 percent to 50 percent of gross income. This move was made to help would-be home buyers swamped with education debt. Doug Duncan, Fannie Mae’s chief economist, said that raising the debt to income ratio would not increase lender risk significantly.

Mortgage Rates, New Jobless Claims Rise

Mortgage rates rose last week. Freddie Mac reported that the average rate for a 30-year fixed rate mortgage rose eight basis points to 3.96 percent; the average rate for a 15-year fixed rate mortgage rose five basis points to 3.22 percent. The average rate for a 5/1 adjustable rate mortgage rose four basis points to 3.21 percent. Discount points averaged 0.60 percent for a 30-year fixed rate mortgage and held steady at 0.50 percent for 15-year fixed rate mortgages and 5/1 adjustable rate mortgages.

Jobless claims rose last week to 248,000 new claims from the prior week’s reading of 244,000 new claims, but this increase does not appear to be related to layoffs. Non-Farm Payrolls for June increased to 222,000 jobs added as compared to 180,000 jobs expected and May’s reading of 152,000 jobs added. Non-Farm Payrolls include public and private-sector jobs.

ADP Payrolls, which reports private-sector job growth, dipped in June to 158,000 jobs added as compared to 230,000 private-sector jobs added in June. Employers have repeatedly cited difficulty in finding skilled candidates for job openings, which makes it less likely that they’ll lay off employees who have needed skills. The national unemployment rate edged up in June with a reading of 4.40 percent against expectations of 4.30 percent and May’s reading of 4.30 percent.

What‘s Ahead

This week’s scheduled economic reports include testimony by Fed Chair Janet Yellen, readings on inflation and core inflation and retail sales. Mortgage rates and new jobless claims will be released along with a reading on consumer sentiment.

Buying a Home for the First Time? Five Real Estate Terms You’ll Need to Know

by

Buying a Home for the First Time? Five Real Estate Terms You'll Need to KnowThe terminology involved in the real estate market can be vexing for the newcomer, but if you’re getting prepared to buy a home, there are a few choice words you should take some time to learn. While it’s hard to learn the ins and outs in one article, here’s a place to begin with five terms you may be hearing a lot of in the future.

Amortization Period

It may sound like a very fancy term, but the amortization period or mortgage term is simply the length of time it will take you to pay off your mortgage loan by monthly mortgage payments. While 25 years is the standard amortization period, it varies from lender to lender.

Fixed Rate Mortgage

A fixed rate mortgage is one of the interest rate options you’ll have which involves a stable interest rate that remains unchanged. While this means your monthly payment will stay the same each month, it can also mean a higher amount paid overall since your fixed rate may be higher than the market rate over time.

Adjustable Rate Mortgage

Another option when it comes to mortgage interest rates is an adjustable rate, which means that your monthly payment will fluctuate along with the prime market rate. While this can provide a sense of insecurity since your mortgage payment will shift each month, it can end up being more economical than a fixed rate.

Closing Costs

Buying a home can cost enough with the loan, the down payment, and the interest, but closing costs will also be a part of the housing costs. Closing costs generally range anywhere from 2-5%, they include items like loan administration costs and title insurance costs that come part and parcel with the mortgage.

There are many terms in the world of real estate, but by making yourself aware of a few and doing your research, you can begin to understand what they mean for you. If you’re ready to invest in a home, contact your local real estate professional for more information.

Buyer Beware: Three Major Red Flags to Watch for When Visiting Open Houses

by

Buyer Beware: Three Major Red Flags to Watch for When Visiting Open HousesAn open house is a good opportunity to get out and about to see what kind of home you’re looking for and if it will work for you. Fortunately, they can also be a good opportunity to find out some things about the house you’re looking at that might not be listed on the website and may be less than flattering. If you’re wondering what red flags to watch out for, pay attention to the following things the next time you’re at a showing.

Strong Odors

Many home sellers try to engage the senses in order to entice buyers by baking cookies or spraying air freshener. However, a lot of air freshener or scent can also be a means of hiding less than pleasant smells that are a giveaway for big problems. If you notice a lot of scents when visiting an open house or if there’s an odor, you may want to look for mildew or mold as this can mean a huge house-owning hurdle to deal with down the road.

An Abundance Of Fix-Up

A small maintenance issue here and there may not be a big deal, whether it’s a doorknob that doesn’t catch or peeling paint on the wall. Unfortunately, an abundance of small issues can signal a certain attitude towards general maintenance that should be approached with caution. While it may just be a few details that were forgotten about, it’s important to pay attention as there may be a lot of more important maintenance issues that are not being taken care of if the minor ones are visible.

Issues With the Foundation

There are many issues that will hopefully come to the forefront at the home inspection, but it’s not worth it to get invested in a home only to back out due to a failing foundation. Instead of leaving it up to the due diligence of the home inspector, check for large gaps in the home’s foundation to unveil any issues on this front. The foundation can be a huge issue if it requires a fix-up, and it’s one you probably won’t want to deal with in your new home.

Open houses can provide a great sense of what it’s like to live in a home, but they can also be a good opportunity to take note of any major issues with a future home. If you’re currently preparing to buy a home, contact your local real estate professional for more information.

5 Surprisingly Stylish Ways to Improve Your Living Room’s Look Using Wallpaper

by

5 Surprisingly Stylish Ways to Improve Your Living Room's Look Using WallpaperFrom a sophisticated couch to a stunning art print, there are plenty of ways that you can dress up your living room and instantly change its vibe. You may not realize it, but wallpaper is back in fashion and becoming another popular way to instantly revamp a room. If you’re contemplating ways that wallpaper can benefit your space, here are some options you may want to try out.

Add An Accent

A brightly colored accent wall may have been a popular trend a few years ago, but a way to bring your wall into current fashion can be to add wallpaper. In addition to a fun print, wallpaper can instantly add elegance without overpowering the look of your living room.

Cover The Closet Doors

If you’ve come across a wallpaper pattern you like, try applying it to the front of the closet doors. It will be an easy way to dress up your doors without adding a coat of paint and will add a subtle effect that will go with your room’s décor.

Add In Some Personality

With wallpaper making a comeback, there are so many options that allow you to personalize your wallpaper and make the room your own. Posters of your favorite rock band may be a thing of the past, but unique wallpaper can be a great way to inject your own passions into your favorite room.

Make It Your Wall Art

Many homeowners struggle with how to dress up their walls appropriately, but choosing wallpaper can be a great means of avoiding this dilemma. Instead of an art piece, you can choose strips of wallpaper to provide visual interest or paper a whole wall that will act as the focal point of your room.

Upgrade Your Coffee Table

It’s often the case that people buy oversized books to decorate their coffee table, but you may want to utilize wallpaper if you have a glass surface on your table. Instead of leaving your table neutral, add a patch of wallpaper under the glass for an instant designer look.

With wallpaper making a comeback, there are plenty of ways to dress up your room for little cost that will make a huge difference in the look of your space. If you’re currently in the market for a new home, contact your trusted real estate professional for more information.

What’s Ahead For Mortgage Rates This Week – July 3, 2017

by

Last week’s economic news included Case-Shiller Home Price Indices, pending home sales and inflation. Weekly readings on mortgage rates and new jobless claims were released along with a reading on consumer sentiment. Case-Shiller and pending home sales readings suggested that recent rapid growth in home prices and home sales may be easing. High demand for homes coupled with low inventories of homes for sale has created an artificially high rate of home price growth and competition among buyers for a limited number of homes.

Home Price Growth Rate, Pending Home Sales Slow

Case-Shiller Home Price Indices for April showed lower home price growth than in March. April’s 20-City Home Price Index slipped from a seasonally-adjusted year-over-year rate of 5.60 percent to 5.50 percent. Analysts noted that high home prices and a limited inventory of homes on the market have sidelined some buyers.

According to the Commerce Department, pending home sales remained in negative territory in May with a reading of -0.80 percent as compared to April’s reading of -0.90 percent. While this is an improvement, home sales typically pick up during spring and summer months; a negative reading in pending home sales suggests that would-be buyers are waiting for home prices to ease and for more homes to become available.

Mortgage Rates Mixed, New Jobless Claims Rise

Freddie Mac reported 30-year mortgage rates were two basis points lower at an average of 3.88 percent, while the average rate for a 15-year fixed rate mortgage was unchanged at 3.17 percent. The average rate for a 5/1 adjustable-rate mortgage rose three basis points to 3.17 percent. Discount points were unchanged at an average of 0.50 percent for all mortgage types.

First-time unemployment claims were higher last week at 244,000; analysts estimated a reading of 243,0000 new claims based on the prior week’s reading of 242,000 new claims.

Consumer spending declined by 0.30 percent to 0.10 percent in May, which matched analyst’s expectations. Core consumer spending met expectations and held steady in May with a reading of 0.10 percent growth. Consumer sentiment rose in June to an index reading of 95.10 as compared to expectations of 94.50, which matched April’s reading of 94.50

What‘s Ahead

This week’s economic news releases include readings on construction spending, ADP and Non-Farm payrolls and the national unemployment rate. Weekly readings on mortgage rates and new jobless claims will also be released.

Understanding Why the Highest Offer Isn’t Always the Best One When Selling Your Home

by

Understanding Why the Highest Offer Isn't Always the Best One When Selling Your HomeWhen it comes to the real estate market, nothing is better than putting your home up for sale and finding a potential homebuyer who offers you the price you’re looking for. However, while the right offer is ideal, there are a lot of things that may come along with a high offer that may be less than perfect. If you’re wondering what kinds of things can hamper a good offer, you may want to watch out for the following.

What’s The Timeline?

If you’re almost packed and you’re prepared to go, there won’t necessarily be any inconvenience in dealing with a 30-day closing period. However, if you’re not quite ready to move, having to close quickly can add a lot of pressure to a stressful situation. While it may be do-able to make the arrangements to move in a short amount of time, if it’s not the way you want to leave your old house and move on, you may want to go with a more flexible offer.

The Details On Cash

The right price is indeed a good offer, but when it comes to homebuyers who can pay with cash, there’s a lot less to worry about on the back end. As a result, cash can easily trump many other offers for the convenience of not having to deal with lenders or many other factors involved in closing the purchase. While it might not seem like most people have the available cash on hand, cash purchases on real estate are becoming more common, and with less complication, they can be more enticing.

Are There Contingencies?

If you’re experiencing a bidding war with your home, it’s important to look at all the details of the offers and ascertain which one can best be relied upon. That’s why it’s important to look at any contingencies on the home sale that may have to do with the financing, appraisal or inspection. An offer may be more than a little striking at the start, but if there are a lot of strings attached, there may be a bidder with a lower offer who’s less likely to back out.

It’s easy to get snared by the highest offer when selling your home, but it’s important to be aware of your timeline and any contingencies before accepting an offer. If you’re currently preparing to put your home on the market, contact your local real estate professional for more information.