Navy Fellas Realty Group

Real Estate, Residential sales and purchase

What’s Ahead For Mortgage Rates This Week – May 9, 2016

by

Closing Paperwork: How to Read and Understand the Truth-in-Lending Disclosure Statement

Mortgage rates fell across the board last week according to Freddie Mac’s Primary Mortgage Market Survey. Other economic news included reports on construction spending, public and private sector employment and national unemployment.

Construction Spending Grows in March

The Commerce Department reported that the growth rate for construction spending fell in March to 0.30 percent/Analysts expected a reading of 0.70 percent based on February’s upwardly revised growth rate of 1.0 percent. Construction spending was propelled by a 1.50 percent increase in residential construction spending; this is good news for would-be home buyers who’ve been shut out of the market due to high demand and low inventories of available homes.

Housing market analysts have repeatedly said that new home construction is the answer to short supplies of homes and high buyer demand. Year-over-year, construction spending is up 8.0 percent overall; residential construction spending grew by 7.60 percent year-over-year.

Mortgage Rates Dip

Average mortgage rates were lower last week. The rate for a 30-year fixed rate mortgage fell by five basis points to 3.61 percent; the average rate for a 15-year fixed rate mortgage was three basis points lower at 2.86 percent and the average rate for a 5/1 adjustable rate mortgage dropped six basis points to an average of 2.80 percent.

While any drop in mortgage rates is welcomed by home buyers, the high demand for homes continues to drive prices up and has raised concerns about affordability of single-family homes in many communities.

Jobs Growth Slows

The national unemployment rate held steady at 5.0 percent in April, but job growth slowed in public and private sectors. ADP reported private sector jobs increased by 156,000 jobs as compared to 194,000 jobs added in March. According to the Bureau of Labor Statistics, Non-Farm Payrolls increased by 160.000 jobs as compared to expectations of 203,000 jobs added and March’s reading of 208,000 jobs added. Non-Farm payrolls measure public and private sector job growth.

New jobless claims rose by 17,000 to 274,000 new claims, but remained below the benchmark of 300,000 new claims for 61 consecutive weeks. Analysts projected that new claims would grow by 265,000 new claims based on the prior week’s reading of 257,000 new claims. The less volatile four-week rolling average of new jobless claims indicated that 258,000 new claims were filed. The labor force participation rate dropped from 65 percent to 63 percent in March. Retiring baby boomers contributed to some but not all of this workforce decline.

What’s Ahead

This week’s scheduled economic news includes weekly reports on mortgage rates and new jobless claims along with a report on consumer sentiment.

4 Neglected Home Maintenance Tasks That Are a Must

by

4 Neglected Home Maintenance Tasks That Are a MustThere are a number of home maintenance tasks that are easy to forget about in favor of more obvious renovations, but forgetting to do some of them can end up costing you a lot down the road. If you’re hoping to keep your home in tip-top shape, here are a few tasks that you shouldn’t forget about.

Sealing Off Access Points

Small rodents and insects can wreak havoc on your home if they gain access, so ensure that you maintain the foundation of your home and seal off any areas where these pests might get inside. Check all the windows and doors, and survey the foundation of your home, making sure to patch up any areas where sealant or mortar has come loose.

Cleaning The Shingles

The reality of algae eating away at your roof shingles can be an unpleasant, expensive renovation, so clean your roof on a regular basis before any black streaks can take your shingles with them. Simply mix together hot water, bleach and detergent and spray this from your garden hose on a cooler day so you can save your roof from rot. This will also save you the cost of having to hire a professional

Maintaining Your Wood Deck

There are few things that will age your yard like a poorly maintained deck, so take the time to re-stain and seal your deck so it doesn’t quickly see the effects of time and weather. While harsh weather can have an ill effect on your deck’s appearance, properly maintaining it will mean you can avoid the high cost of replacement that will be required.

Keeping It Clutter Free

Many homeowners get pretty comfortable in their home, and this can often mean that many boxes of unused items get stored away. Instead of keeping old items though, do a clean out once every 6-12 months to get rid of the things you don’t use. By having a clean basement and garage, you’ll also have the ability to notice many other maintenance issues that might not be visible with all the extra stuff.

There are a number of maintenance tasks around the home that people often forget, but neglecting to complete them can often times cost a pretty penny down the road. If you’re doing a few home renovations before putting your house on the market, contact your local real estate professional for more information.

How to Determine the Price of Your Home for Sale

by

How to Determine the Price of Your Home for SaleMany people rely on the price they paid for their home as a starting point for selling, but with the ever-shifting tides of the real estate market, the price paid is not always the best metric to go by. If you’re putting your home up for sale and are looking for the ideal price point, here are some ways you can arrive at a number that will keep potential buyers interested.

Check Out Your Neighborhood

Your house may have a lot of different features than the homes of your neighbors, but checking out what real estate in your area is selling for can still be a good means of determining the price you’ll be able to ask for. Instead of just perusing the pricing, ensure you’re looking at the listings for what’s been successfully sold in your neighborhood as only this will allow you to determine the conditions of the market and what people will be prepared to offer.

Complete A Home Inspection

Instead of being surprised by repairs that need to be completed after an offer price has been accepted, organizing a home inspection before your home is sold can make a difference in the price you’re able to ask for. Not only will this provide you with a determination of what needs to be repaired or overhauled, it can be a boon to potential buyers who won’t have to worry about your inspection revealing any hidden flaws.

Utilize Your Agent’s Advice

Even if you’ve done your research and carefully considered the value of your home, it can still be complicated to come up with the right price, so be sure to enlist an agent who will be able to determine a fair amount with you. Since your agent has no attachment to your home, they’ll be able to objectively strike the right balance between what won’t sell and what’s too low. The right price, after all, may mean you’ll get to spend a lot less time selling it.

There are a lot of factors that go into arriving at the proper asking price for your home, but by organizing a home inspection and being aware of what’s going on in the market, you should be able to arrive at a reasonable sum. If you’re planning on putting your home on the market soon, contact your local real estate professional for more information.

Thinking about Renovations?: 5 Considerations Before Hiring a Home Improvements Contractor

by

Thinking about Renovations?: 5 Considerations Before Hiring a Home Improvements ContractorWith the pre-summer enthusiasm and the milder weather, springtime can be one of the best times of the year to take on home renovations that aren’t as easy in other months. If you happen to have some projects in mind and are considering taking the work on yourself, here are a few questions you’ll need to ask.

What Can You Take On?

If you have specific renovations in mind for the coming months, it’s very important to decide what you can reasonably take on and what you could pass on to a contractor. While some projects and fix-ups may be easier to complete on your own, some will require a greater degree of expertise.

What’s Your Skill Level?

You may have something that you think you can take on yourself, but if you’re new to renovating, it may be worth hiring a contractor who will be able to complete the job without incident. It can be a great learning experience to do many fix-ups on your own, but this can take a lot of time and energy too if you don’t know the details.

What’s Your Price Point?

Before deciding to hire a contractor, it’s important that you’ve thought about the potential costs associated with what you want to do. It can be pricy to hire someone if you have a lot that needs to be done, but someone else’s expertise can also end up being worth the money spent.

Do You Have A Timeline?

Many people renovate in the spring and summer months, and this means that your ideal contractor may not have a lot of time available. While this may end up working out for you, you’ll want to consider when you want it done so your expectations are not unreasonable.

Is A Second Opinion Helpful?

It’s great if you can handle all your home renovations on your own, but no one will be able to offer you the knowledgeable opinion that a contractor will. While a professional will undoubtedly be able to complete the work you’re requesting, they may also have helpful suggestions for you that may make for an even better home improvement.

Spring is an ideal season for home renovations, but before taking anything on you’ll want to carefully consider whether or not you’ll need to hire someone. If you’re renovating to put your home on the market, contact your local real estate professional for more information.

‘Free Pizza for Life’ and Other Crazy Home Sales Gimmicks from Across the Nation

by

'Free Pizza for Life' and Other Crazy Home Sales Gimmicks from Across the NationWith the real estate market going through constant fluctuations, it can sometimes be a matter of strife to sell a home. Some will take the familiar road of staging and hope the offers come in, while others will do some crazy things to prove their home is worth buying. While you may not want to take the risk of making these bold moves yourself, here are the unusual things that some people did in hopes of getting their home off the market a little sooner.

The Perk Of Added Incentives

While there are a variety of goods that can be an added incentive to purchasing a home, one homeowner in Virginia Beach offered a 42-inch flat screen television to the lucky person who would make them an offer that couldn’t be refused. While this owner managed to sell in just a couple of weeks, other offers like expensive cars and gift certificates have long been attached to houses in the hopes of getting a more spontaneous sale.

A Real Ingenious Raffle

In the state of Maryland, log cabin owners Tom and Diane Walter opted to host a raffle so they could raise enough money to pay off the loan on their home. While the winning raffle ticket buyer would go away with a new home for only $50.00, the profits from the raffle would go to a local non-profit and the Walters loan fund. With the toughness of the real estate market, it’s a tactic that has gained popularity given the excitement of getting a house at a very economical price.

Testing Out The New Home

It’s certainly the case that being able to test something out might lead to more sale success, but a local builder in Portland, Oregon took it a little bit further than usual. Instead of offering up a staged suite, potential buyers were provided with a stay in a home at Atwater Place that was free of charge and included restaurant gift certificates, a gym pass and a lovely view of Mount Hood.

Staging a nice home at a reasonable price is always a great way to achieve selling success, but some have gone out on a limb to offer things that went well beyond the benefits of a new home. If you’re interested in things you can do to increase your chance of selling success in the market, contact your local real estate professional for more information.

What’s Ahead For Mortgage Rates This Week – May 2, 2016

by

Whats Ahead For Mortgage Rates

Last week’s economic news included Case-Shiller Home Price Indices, along with new and pending home sales readings. The Federal Open Market Committee of the Federal Reserve met analyst’s expectations and did not raise the target federal funds rate, which remains at 0.25 to 0.50 percent. Freddie Mac’s mortgage rates survey and the Labor Department’s weekly jobless claims report were also released.

Case-Shiller: Home Price Growth Slows in February

Average home prices growth slowed in February according to the S&P Case-Shiller Home Price Index. Home prices fell from January’s year-over-year reading of 5.70 percent to 5.40 percent. 13 of 20 cities included in the index showed slower growth in home prices. Portland, Oregon showed the highest year-over-year price gain at 11.90 percent followed by Seattle, Washington at 11.00 percent and Denver, Colorado at 9.70 percent

Washington, DC had the slowest year-over-year growth rate of 1.40 percent; Chicago, Illinois and New York, New York where home prices grew 1.80 percent and 2.10 percent respectively. S&P Index Chairman David Blitzer said that tight inventories of available homes continued to drive home prices. Analysts are concerned with shrinking affordability, which keeps first-time and moderate income buyers from buying homes. Analysts caution that first-time and moderate-income buyers are the “bread and butter” of housing markets. Without their participation, current homeowners cannot sell and move up to larger homes.

New Home Sales Lower after February Reading Revised

New home sales dipped in March to a seasonally-adjusted annual rate of 511,000 after February’s reading was revised upward to 519,000 sales. Regional results for new home sales were mixed. The Northeast posted flat sales in March; The Midwest posted the highest year-over-year growth in home prices at 18.50 percent followed by the South with a year-over-year gain of 5.00 percent. New home sales fell by 23.60 percent in the West, which was likely due to rapidly escalating home prices in high-cost metro areas.

Pending home sales for March grew by 1.40 percent for a second consecutive monthly increase. Analysts viewed March’s reading as positive for a healthy spring season for home sales. Pending home sales forecast future closings and mortgage lending.

Mortgage Rates, New Jobless Claims Rise

Freddie Mac reported higher mortgage rates last week with the average rate for a 30-year fixed rate mortgage seven basis points higher at 3.66 percent. 15-year fixed mortgage rates were four basis points higher at 2.89 percent; the average rate for a 5/1 adjustable rate mortgage was five basis points higher at 2.86 percent. Discount points averaged 0.60, 0.50 and 0.50 percent respectively.

New jobless claims also rose last week with 257,000 new claims filed as compared to expectations of 260,000 new claims and the prior week’s reading of 248,000 new claims filed. Analysts said that fewer layoffs suggest strengthening job market. Last week’s four-week average of new jobless claims was 256,000 new claims, which was the lowest reading since December 1973. Improving labor markets can encourage would-be home buyers to become active buyers.

What’s Ahead

This week’s scheduled economic news includes reports on construction spending, private sector employment, non-farm payrolls and the national unemployment rate. Weekly reports on new jobless claims and mortgage rates will be released as usual.

Fed Holds Steady on Federal Funds Rate

by

In its post-meeting statement, the Federal Open Market Committee (FOMC) of the Federal Reserve announced its decision not to raise the current federal funds rate of 0.25 to 0.50 percent. Although FOMC members acknowledged further improvement in the U.S. economy and jobs markets, the committee cited the following as influencing its decision not to raise the current federal funds rate:

  • Household income continued to rise, but consumers have “moderated” their spending.
  • Inflation is expected to remain below the Fed’s goal of two percent in the near term.
  • Temporary influences including low energy and import prices are expected to ease.

FOMC monetary policy decisions made in April’s meeting were guided by the Fed’s dual mandate of achieving maximum employment and its inflation goal of two percent. Labor markets improved since the Committee’s March meeting, but inflation is not expected to reach the Fed’s goal in the near term.

No Fed Rate Increase in April; Moderate Increases Expected

While the FOMC did not raise the federal funds rate, its statement suggested that future rate increases are likely. Potential increases in the federal funds rate would be gradual into the medium term. FOMC’s April statement hinted that incremental rate increases over time would be expected to facilitate further economic growth and help achieve the two percent inflation goal. According to the statement, any potential increases in the federal funds rate would be “accommodative.” This indicates that FOMC members do not want to raise rates too quickly, which could interfere with current economic growth.

Fed Concerns over Global Economy Ease

Notably absent from April’s FOMC statement were concerns over global economic conditions and developments. In March, the Fed characterized global economic and financial conditions as a risk to U.S. economic growth, but April’s statement said that FOMC members would continue monitoring global news and developments with no mention of potential risks.

Analysts said that the Fed could have been “more hawkish” in its position, but also said that a rate increase could occur in June if FOMC members conclude that economic conditions are favorable. FOMC statements typically indicate that monetary policy decisions are pre-determined way, but rely on the committee’s ongoing review of global and domestic financial and economic developments.

Unless economic developments intervene, Fed policy makers opened the door to a rate increase in June. Past FOMC statements indicated plans to raise the federal funds rate up to four times in 2016, but these plans were revised to two potential rate increases for 2016.

5 Tips to Reduce Your Monthly Mortgage Payment

by

5 Tips to Reduce Your Monthly Mortgage PaymentBuying a home isn’t cheap – and even though mortgage rates are low, your own financial circumstances may mean that your monthly payment is more than you can afford. Whether you’re a new buyer looking to save money or a cash-strapped owner who needs to free up extra income, there are several ways you can lower your monthly payments – here are just five of them.

Make 13 Payments Every Year

If you have some extra money and you’re looking to pay down more of your principal amount, making 13 annual payments instead of the usual 12 is a great way to not only reduce what you owe, but also lower your monthly costs. Most lenders will allow you to make one additional lump sum payment per year on top of your regular monthly payments. Pro tip: Combine your tax refund and Christmas bonus into one big lump sum to pay down your mortgage.

Still Paying PMI? Ask Your Lender To Cancel It

Private mortgage insurance is a standard cost that you’re legally obligated to pay if your down payment was less than 20% of your home’s value. But once you’ve paid off that 20%, you’re no longer required to have PMI on a conventional mortgage. If you’ve built up 20% equity, talk to your lender about removing PMI from your mortgage agreement – it could save you thousands.

Recast Your Mortgage

If you’ve been diligently paying your mortgage for years but suddenly run into money problems, recasting your mortgage is a great way to make your monthly payments easier to manage. Recasting is fairly simple – it takes your remaining loan balance and stretches it across your original loan term. For example, if you’re 15 years into a 30-year mortgage that has half of its balance remaining, you can recast your mortgage to pay off the balance over another 30-year period.

Facing Financial Hardship? Get A HAMP Modification

If you encounter financial hardship, you can ask your lender if they offer a Home Affordable Modification Program (HAMP). HAMP is a government program designed to make housing more affordable for low-income citizens. It’s possible to save a significant amount of money with a HAMP modification.

Contact your trusted real estate professional to learn more about getting the most from your home financing.

Homeowner Association Rules: How They May Affect Your Buying Decision

by

Homeowner Association Rules: How They May Affect Your Buying DecisionBeyond the mortgage, maintenance and property taxes of a new home, you may not be aware that many newer communities require you to be part of the Homeowner Association (HOA). If you’re wondering about what the HOA entails and how this can impact the home and community you live in, here are some facts that may be important to know before you buy.

What Is A HOA?

If you happen to have a Homeowner Association present in your new community, it’s important to know that this body works to enforce the rules of the neighborhood. Made up of a group of volunteers that live within a given area, different community members will be responsible for different aspects of the community. While there are annual fees for an HOA and they vary from place to place, communities with this type of association often come with a higher price tag on the market.

The Types Of Rules Enforced

The rules that are enforced by a HOA differ depending on the community, but they can range from issues as diverse as the height of fences to the number of pets per residence to the amount owed for fines. While you may have found your ideal home in a great community, it can be worth looking into the rules of your local HOA so that you can determine if they’ll work for you. If there are any red flags, you may want to consider your options or decide if the sacrifice is worth it.

Dealing With The Rules

It’s important to stick to the rules of the community you live in because you can be taken to small claims court if you don’t pay your fees or respond appropriately to complaints. If you’re in a position where you disagree with the rules and would like to pursue another option, you will want to make a written request to the board and wait it out. You may not get a response very quickly due to the voluntary nature of most HOA, but it’s important to be compliant with the regulations until your request is approved.

It’s great news if you’ve found your dream home in a nice new community, but it’s important to be aware of the HOA rules that you’ll have to comply with. If you’re currently on the market for a new home, contact your local real estate professional for more information.

5 Fun Ways to Spring Clean with the Kids

by

5 Fun Ways to Spring Clean with the Kids Spring-cleaning might seem like a necessity if you’ve accrued a lot of stuff through the fall and winter seasons, but it can be hard to determine how to get your kids involved. If you’re looking for tips on how to get this task done and engage your children at the same time, here are a few fun ways.

Play Some Tunes

It goes without saying that almost everything is more fun with music, and kids will readily agree with this! Instead of silence, pique your children’s interest with their favorite album and encourage them to take the duster or mop along with them.

Offer Up A Reward

It’s important that your children understand that helping out around the house is everyone’s job, but offering them a treat can be a good means of getting them involved. Whether it’s a couple of dollars or a trip to the ice cream parlor, a little work for a reward has always been a positive thing.

Give Them A Choice

Most kids don’t like to be told what to do, so providing them with the opportunity for leadership can be a great thing when it comes to the task of spring-cleaning. Not only will they be happy to help you along if they can direct, it will give them confidence in their own capabilities.

Make Room For New Duds

Getting rid of old clothing isn’t always fun, but if it makes way for a new outfit or toy many kids will spring at the chance. Instead of large scale, let your children tackle their own space to clear away stuff they no longer use. It will make them aware of what they need and what they can get along without.

Get Out The Gear

Outside of a damp cloth, most adults don’t have any specific clothes for cleaning the house, but dressing up is always a fun activity for kids! Whether it’s overalls, a cap and some rubber gloves, making cleaning a game of dress up is an easy way to appeal to the imagination of your children.

Spring-cleaning may not always seem like the most fun, but there are a few simple ways you can make it appealing to your kids and liven up an old activity for yourself. If you’re perking up your home in the hopes of a summer sale, you may want to contact trusted local real estate professional for more information.