Navy Fellas Realty Group

Real Estate, Residential sales and purchase

What’s Ahead For Mortgage Rates This Week – January 12th, 2026

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The trade deficit dropped significantly this month, resulting in the smallest gap in the last 16 years. This has been entirely driven by the ongoing gold rush and, to a much less impactful degree, businesses working their way around high tariffs. The unemployment reports, however, have shed another light, showing a steady trend of unemployment rising and reaching a four-year high as of last week.

This is somewhat offset by consumer sentiment, which showed a slightly positive increase alongside relative improvements in the economy. All in all, the data points to mixed results for the broader market. The upcoming week will be a much greater indicator, with all major inflation reports in the PPI and CPI scheduled for release.

Trade Deficit

The U.S. trade deficit plummeted 39% in October to reach the lowest level in 16 years, but the steep drop stemmed from an ongoing gold rush of sorts as well as efforts by businesses to work around high tariffs. The trade gap shrank to $29.4 billion in October from $48.1 billion in September, the government said Thursday. The October report was delayed by the federal shutdown.

Consumer Sentiment

The University of Michigan’s gauge of consumer sentiment rose to 54 in a preliminary January reading from 52.9 in the prior month. This marked the second straight gain and the highest level of sentiment since September. “Consumers perceived some modest improvement in the economy,” the survey found, although sentiment remains nearly 25% below last January’s reading.

Jobs Report

The unemployment rate climbed to a four-year high of 4.6%, according to a mostly tepid November jobs report. The economy lost 105,000 jobs in October and added 64,000 new jobs in November, the government said, with the report skewed by deferred resignations of federal workers.

Primary Mortgage Market Survey Index

  • 15-Year FRM rates saw an increase of 0.02%, with the current rate at 5.46%
  • 30-Year FRM rates saw an increase of 0.01%, with the current rate at 6.16%

MND Rate Index

  • 30-Year FHA rates saw a decrease of -0.16%, with current rates at 5.69%
  • 30-Year VA rates saw a decrease of -0.17%, with current rates at 5.70%

Jobless Claims

Initial claims were reported at 208,000 compared to expected claims of 210,000. The prior week’s total was 200,000.

What’s Ahead

CPI and PPI inflation reports are the major releases for next week, along with the usual employment data.

How Virtual Tours Can Hide and Reveal Different Things Than Photos

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Virtual tours have become one of the most valuable tools in real estate. They give buyers the chance to explore a home from anywhere, view the layout at their own pace, and get a better sense of how the space flows. But virtual tours are not perfect. They can reveal things that standard listing photos cannot, and they can also hide details if you do not know what to look for. As real estate professionals, we help buyers understand how to use virtual tours wisely so they can make informed decisions before seeing a home in person.

See How Virtual Tours Reveal Flow, Space, and Layout
One of the biggest advantages of a virtual tour is the ability to understand the home’s actual layout. Photos only show pieces of a room, but a virtual tour lets you walk through the space and see how rooms connect. You can evaluate whether the kitchen feels open, whether the hallway is narrow, or whether the bedrooms are too close to each other. This sense of flow helps buyers decide if a home fits their lifestyle without the guesswork that comes from photos alone.

Notice What Photos Often Hide
Listing photos are designed to highlight the best angles and features. They rarely show awkward corners, cramped closets, low ceilings, or narrow spaces. A virtual tour, however, often reveals these details naturally. You can spot layout quirks that photos avoid, such as tight entryways, unusual room shapes, or spaces that feel smaller in person. This gives you a more honest view of the home before scheduling an in-person showing.

Understand What Virtual Tours Can Still Conceal
Even the best virtual tour cannot show everything. Lighting can still be adjusted, camera lenses can soften imperfections, and areas of the home may be skipped entirely. Virtual tours rarely show close-up details like chipped paint, worn flooring, or minor damage. They also may not reveal smells, noise levels, or the true condition of outdoor spaces. A virtual tour is powerful, but it should never replace an in-person walkthrough when you are serious about making an offer.

Look for Natural Light, Ceiling Height, and Room Proportions
Virtual tours allow you to evaluate parts of the home that photos sometimes distort. You can see how natural light moves through the space, notice whether ceilings feel tall or low, and understand how furniture fits within each room. These are important details that help you imagine how the home will feel once you are living in it. Virtual tours give a more realistic sense of scale than wide-angle listing photos.

Use Virtual Tours as a First Filter, Not the Final Decision
Virtual tours are excellent for narrowing your search. They help you eliminate homes that clearly do not fit your needs and highlight the ones worth seeing in person. Use them as a first filter but always pair them with an on-site visit. Nothing replaces walking through a home yourself, noticing details with your own eyes, and evaluating the neighborhood around it.

Virtual tours make house hunting more efficient, flexible, and informative. By understanding what they reveal and what they miss, you can use them as a powerful tool in your home search and make confident decisions when it is time to schedule an in-person showing.

What to Ask About Insurance Before Falling in Love With a Home

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When you find a home you love, it is easy to get swept up in the excitement. But before you picture furniture placement or favorite paint colors, it is important to understand what the insurance landscape looks like for the property. Homeowners insurance is not only required by most lenders, it also protects your investment, your finances, and your peace of mind. As real estate professionals, we advise buyers to ask key insurance questions early so they avoid surprises and choose a home that fits their long-term budget.

Ask About the Home’s Insurance History
A home’s insurance past can tell you a lot about its true condition. Claims for water damage, fire, storm issues, or mold can signal long-term problems. While sellers may disclose major issues, insurance history adds another layer of clarity. Some claims can even affect your future premiums. Asking about past claims helps you understand what repairs were made and whether the home has had recurring issues.

Find Out if the Home Is in a High-Risk Zone
Location plays a major role in insurance costs. Ask whether the property is in a flood zone, wildfire-prone area, hurricane zone, or region with high winds. Homes located in high-risk zones usually require additional coverage, which increases premiums. Understanding risk zones helps you decide whether the ongoing insurance cost aligns with your budget and comfort level.

Check the Roof Age and Condition
Insurance companies care about roof condition because it is one of the biggest sources of claims. Older roofs may lead to higher premiums or limited coverage until repairs are made. Ask the seller or your real estate professional about the roof age, materials, and maintenance history. A well-maintained roof can keep premiums lower and reduce the chance of future issues.

Ask About the Age of Major Systems
Insurance rates often reflect the condition of big-ticket systems such as electrical wiring, plumbing, and HVAC. Outdated electrical panels or old plumbing can raise premiums or require upgrades for coverage. Knowing the age and condition of these systems helps you understand both potential repair expenses and insurance implications.

Get an Insurance Quote Before Making an Offer
Many buyers assume insurance costs will be similar across homes, but that is not always the case. Two homes in the same neighborhood can have very different insurance premiums based on age, construction, risk, or claim history. Getting a quote early gives you a clearer picture of the full cost of homeownership. This step prevents budget surprises and confirms the home fits your long-term financial plan.

Asking the right insurance questions before falling in love with a home will protect your budget and help you avoid unpleasant surprises. By understanding the home’s risk factors, system condition, and insurance history, you can make a confident, informed decision that aligns with your goals.

Small Smells, Big Problems, Odors Buyers Should Not Ignore

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When you walk into a home, the smell is one of the first things you notice, even before you fully take in the layout or the finishes. Most buyers do not realize how much odors can reveal about a home’s condition. As real estate professionals, we encourage buyers to pay close attention to unusual smells, because even small odors can signal bigger problems hiding beneath the surface. Knowing which smells to take seriously can save you time, money, and future headaches.

Pay Attention to Musty or Damp Smells
A musty smell is one of the most common red flags buyers encounter. It often indicates moisture issues, which can lead to mold, mildew, or leaks behind walls. Basements, bathrooms, and laundry rooms are the usual suspects, but musty odors anywhere in the home deserve attention. Moisture problems can be costly to fix and may affect your ability to move in right away. If you smell dampness, a deeper inspection is essential.

Take Note of Strong Pet Odors
Pet odors may seem harmless, but strong smells can mean damage beneath the surface. Carpet padding, subflooring, and baseboards may have absorbed odors over time. While fresh paint or air fresheners may hide the smell during a showing, it often returns later. Removing severe pet odors can require replacing flooring and treating the subfloor. If the smell is strong, consider how much work you are willing to take on after moving in.

Recognize When Chemical Scents Are a Warning
Overly strong air fresheners, candles, or chemical scents may be used to hide something. Sellers sometimes mask odors from smoke, mold, or pets instead of fixing the underlying issue. A home that smells too artificially clean or heavily fragranced may need a closer look. Pay attention to areas where the smell is strongest and consider whether the home needs deeper inspection before you proceed.

Be Cautious of Sewer, Drain, or Gas Odors
Sewer or drain smells can indicate plumbing problems, clogged lines, or issues with the home’s venting system. These repairs can be expensive, and some require urgent attention. Gas odors are an immediate safety concern and should never be ignored. If you detect any smell resembling rotten eggs, leave the home and notify your agent and inspector immediately. Safety always comes first during a showing.

Trust Your Instincts When Something Seems Off
Even if you cannot identify the source of an odor, it is worth investigating if something feels off. Strange smells can come from water damage, pests, HVAC issues, or outdated systems. Bring up any concerns to your real estate professional so they can guide you toward further inspection. Your nose can be one of your best tools when evaluating a home’s true condition.

Small smells can reveal big problems. When you know which odors to take seriously, you can avoid homes with expensive hidden issues and focus on properties that offer both comfort and long-term value.

Real Estate Considerations for Areas With Extreme Heat

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Buying a home in an area with extreme heat comes with unique challenges that many buyers do not think about until after they move in. Hot climates can affect energy costs, home maintenance, long-term comfort, and even property value. As real estate professionals, we help buyers understand what to look for and how to choose a home that stays comfortable, safe, and cost-efficient in hotter regions. With the right preparation, you can make a smart purchase that supports your lifestyle and protects your investment.

Evaluate the Home’s Cooling System
The cooling system is one of the most important features in an area with extreme heat. Look for a well-maintained HVAC unit, proper insulation, and updated ductwork. Ask about the age of the system, its maintenance history, and the expected remaining lifespan. Older systems can lead to higher energy bills and expensive repairs. Choosing a home with an efficient cooling system can save you money and keep your home comfortable during heat waves.

Check the Home’s Insulation and Energy Efficiency
Insulation is not only for cold climates. In hot areas, proper insulation helps keep cool air inside and hot air outside. Check attic insulation, window quality, and weather stripping around doors. Features such as double-pane windows, energy-efficient roofs, and insulated garages add value and reduce cooling costs. These upgrades also help stabilize indoor temperatures, which is essential for long-term comfort.

Consider How Sun Exposure Impacts the Home
The direction a home faces can influence how much heat it absorbs. West-facing homes often receive intense afternoon sun, which can make certain rooms hotter and increase cooling costs. Look at how the home is positioned, check for shade structures, and consider whether the backyard becomes overly hot during peak temperatures. A home’s exposure can affect everything from utility bills to outdoor enjoyment.

Review Landscaping and Exterior Features
Landscaping can significantly impact heat management. Mature trees, covered patios, and shaded outdoor areas provide natural cooling and reduce heat buildup. Certain exterior materials, such as lighter roof colors or reflective coatings, also help keep a home cooler. These features improve comfort, reduce energy usage, and enhance the property’s long-term value in hot climates. Homes with thoughtful landscaping tend to perform better against extreme heat.

Understanding the Long-Term Maintenance Needs
Extreme heat can accelerate wear and tear on roofs, exterior paint, windows, and HVAC systems. When evaluating a home, consider the long-term maintenance costs associated with the climate. Routine roof inspections, regular HVAC tune-ups, and timely exterior maintenance are essential to prevent heat-related damage. Planning for these costs helps you avoid surprises and keeps your home in strong condition year after year.

Choosing a home in an area with extreme heat requires careful evaluation and smart planning. By focusing on energy efficiency, cooling systems, sun exposure, and long-term maintenance, you can make a confident real estate decision and enjoy a comfortable home that performs well in even the hottest seasons.

What’s Ahead For Mortgage Rates This Week – January 5th, 2026

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With the only notable item on the schedule being the release of the Federal Reserve minutes, which reflect the current stance of the Fed, virtually nothing has changed since the last rate cut. The Federal Reserve is expected to continue its wait-and-see approach.

Primary Mortgage Market Survey Index

  • 15-Yr FRM rates saw a decrease of -0.06% with the current rate at 5.44%
  • 30-Yr FRM rates saw a decrease of -0.03% with the current rate at 6.15%

MND Rate Index

  • 30-Yr FHA rates saw no change for this week. Current rates at 5.85%
  • 30-Yr VA rates saw no change for this week. Current rates at 5.87%

Jobless Claims

No release of data due to the holidays.

What’s Ahead

The upcoming week will feature the usual data releases, with the major ones being the Trade Deficit, Consumer Credit, and Consumer Sentiment from the University of Michigan.