Navy Fellas Realty Group

Real Estate, Residential sales and purchase

What’s Ahead For Mortgage Rates This Week – November 18th, 2024

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With the release of the latest CPI and PPI data, inflation has increased month-to-month for the first time since March, marking the first rise in over seven months. The Federal Reserve has reiterated its goal of reducing inflation to a 2% target within a year. While this development doesn’t necessarily indicate an imminent interest rate hike, it suggests that current rates may remain unchanged for an extended period. Earlier optimism about a potential rate cut by the end of the year has significantly diminished in light of recent inflation figures and economic data. However, Retail Sales data presents a more positive outlook, showing continued economic growth ahead of the holiday shopping season.

Consumer Price Index

The consumer price index climbed 0.2% for the fourth month in a row, the government said Wednesday, matching the Wall Street forecast. The yearly rate of inflation crept up to 2.6% from 2.4%, marking the first upturn in seven months.

Producer Price Index

The PPI data met expectations overall but revealed that U.S. wholesale prices rose slightly faster in October. This suggests the Federal Reserve’s efforts to bring inflation back to low pre-pandemic levels may take longer than anticipated. Federal Reserve officials have described the recent uptick in inflation as a ‘bump,’ which could hinder the central bank from reducing high interest rates as quickly as Wall Street had hoped just a few months ago.

Retail Sales

Sales at retailers rose solidly in October and suggested the economy still has plenty of momentum heading into the holiday shopping season. Sales increased 0.4% last month, the government said Friday, and receipts in September were twice as strong as previously reported.

Primary Mortgage Market Survey Index

• 15-Yr FRM rates saw a decrease of -0.01% with the current rate at 5.99%
• 30-Yr FRM rates saw a decrease of -0.01% with the current rate at 6.78%

MND Rate Index

• 30-Yr FHA rates saw a 0.09% increase for this week. Current rates at 6.39%
• 30-Yr VA rates saw a 0.07% increase for this week. Current rates at 6.39%

Jobless Claims

Initial Claims were reported to be 217,000 compared to the expected claims of 220,000. The prior week landed at 221,000.

What’s Ahead

Preliminary S&P Global US Manufacturing PMI will be early on the release schedule marking the first large end-of-the-year preliminary report. Following that immediately is the University of Michigan Consumer Sentiment Report.

The Benefits of Buying an Unfinished Home for Your Family

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Purchasing a home is a major life decision, and for many homebuyers, the ideal property may not always come fully finished. An unfinished home offers a unique opportunity to create a space that suits your family’s needs while potentially saving money upfront. Whether you’re looking to save on your initial purchase or enjoy the flexibility of customizing your home, buying an unfinished house could be a great option.

If you’re considering an unfinished home as your next residence, here’s why it might be the right choice for you and your family.

Save Money on the Purchase Price

One of the primary advantages of buying an unfinished home is the potential for lower upfront costs. Unfinished homes are typically priced lower than fully completed homes, as they don’t include the final touches such as flooring, cabinetry, or fully completed rooms. This can provide you with the opportunity to purchase a larger home or a more desirable location, without the higher price tag.

The money saved on the initial purchase can be used to customize the property over time—whether you want to finish additional rooms, upgrade the kitchen, or add features that meet your family’s needs.

Customize the Home to Fit Your Needs

When you buy an unfinished home, you have the freedom to customize the space to fit your family’s unique needs and lifestyle. Many unfinished homes come with the basics—such as a foundation, walls, and basic infrastructure—leaving you with the flexibility to finish rooms the way you want.

For example, you might purchase a home with an unfinished basement or attic, which can later be turned into additional bedrooms, a home office, or even a family room. This gives you the chance to create the living spaces you’ve always wanted, without having to make compromises.

Additionally, unfinished homes often allow you to select your preferred finishes, such as flooring, paint colors, or fixtures, meaning you can tailor every detail to your personal taste.

Build Equity as You Complete the Home

Another benefit of buying an unfinished home is the potential to increase its value as you make improvements. As you finish the space—whether it’s completing the upper floor, installing flooring, or adding a bathroom—the home becomes more livable, and its value naturally increases.

Completing the home in stages also allows you to work within your budget and prioritize the most important areas first. This can give you a sense of accomplishment as you gradually transform the house into the perfect home for your family, all while building equity over time.

Flexibility in Making Cost-Saving Decisions

One of the best things about buying an unfinished home is the flexibility to make decisions that align with your budget and timeline. For instance, many unfinished homes come with plans for additional features like garages or extra rooms. If you don’t need these features right away, you can choose to leave them out, saving you money in the process.

For example, if there’s a planned garage or additional bedroom, but you don’t currently need or want the space, you can avoid the cost of building it. Instead, you could focus on completing other areas that are more important to your family, such as the kitchen or living room. This flexibility can help you save on the overall cost of the home while still creating a space that works for your family.

Things to Consider Before Buying an Unfinished Home

While buying an unfinished home can be an excellent option, it’s important to approach the process with a clear understanding of what needs to be completed and what you can afford. Here are some things to keep in mind:

1. Have a Realistic Budget for Finishing the Home

Before committing to an unfinished home, make sure you have a clear idea of how much you will need to spend to finish the property. Unfinished homes often require work in multiple areas, such as plumbing, electrical, flooring, and drywall. While these tasks can be completed gradually, it’s important to budget for them and plan how you’ll fund the work.

2. Check Bank Financing Options

Not all lenders are willing to finance unfinished homes. Many banks require that a home meets certain livability standards before they will approve a mortgage. This may mean that the home needs to have at least basic living spaces finished, such as a kitchen, bathroom, and bedroom. Be sure to check with your bank to ensure that the unfinished property will qualify for financing.

Some banks may offer loans specifically for homes in need of renovation, but it’s important to understand the specific requirements before you start the buying process.

3. Understand Local Building Codes and Permits

As you finish an unfinished home, you will need to ensure that all work is done according to local building codes. This means obtaining permits for electrical, plumbing, or structural work, and ensuring that any modifications meet safety standards. If you plan to do some of the work yourself, or hire contractors, be sure to consult with your local building department to understand the requirements.

4. Know What Work is Required to Make the Home Livable

When purchasing an unfinished home, it’s important to know what areas need to be completed to make the property suitable for daily living. You may need to finish entire floors, install flooring, complete the kitchen, or even put up walls. Additionally, some unfinished homes might lack essential utilities like heating, air conditioning, or running water in certain areas. Knowing what’s needed will help you determine whether this is a manageable project for you and your family.

Make an Unfinished Home Your Own

For many buyers, purchasing an unfinished home presents a unique opportunity to get into homeownership at a lower cost while creating a space that is tailored to their needs. Whether you’re looking for a larger home with room to grow, or simply want to customize every detail of your living space, an unfinished home can offer the flexibility to make your vision a reality.

The work might take time, but the result will be a home that’s uniquely yours—one where you can build memories for years to come.

Choosing the Right Homeowners Insurance for Your Needs

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Buying a home is one of the most significant investments you’ll make in your lifetime. But it’s not just about purchasing the property itself—it’s also about protecting it. Homeowners insurance is a crucial part of homeownership, offering financial protection against damage or loss caused by unexpected events like accidents, natural disasters, or theft.

Whether you’re a first-time homebuyer or an experienced homeowner, choosing the right homeowners’ insurance can be a challenge. Understanding your coverage options and finding a policy that suits your needs is essential to safeguarding your home, your belongings, and your financial future.

Why Homeowners Insurance is Essential

For most homebuyers, homeowners’ insurance is not just a recommendation; it’s a requirement. Lenders often require insurance as a condition of the mortgage loan because the property you’re purchasing is also their collateral. This means that, in the event of damage or loss, the lender needs assurance that their investment is protected.

Even if you’re not required by your lender, homeowners’ insurance is a smart way to protect your property. Without it, you could face significant financial hardship in the event of a fire, storm, break-in, or other unforeseen incidents. A solid homeowners insurance policy helps cover repairs, replacements, and legal fees, and it can also provide liability protection if someone is injured on your property.

Understanding the Different Types of Coverage

Homeowners insurance policies typically offer several different types of coverage, and choosing the right one depends on the value of your property and what you want to be protected against. Here are some of the key types of coverage:

  • Dwelling Coverage: This covers the structure of your home—walls, roof, floors, and built-in features—against damages from events like fire, wind, or vandalism.
  • Personal Property Coverage: This protects your personal belongings, such as furniture, electronics, clothing, and valuables. If your possessions are damaged, lost, or stolen, this coverage helps you replace them.
  • Liability Coverage: If someone is injured on your property or if you accidentally damage someone else’s property, liability coverage helps protect you from legal and medical costs.
  • Additional Living Expenses (ALE): If your home becomes uninhabitable due to a covered event, this coverage helps with temporary living costs, such as hotel bills or rent.
  • Natural Disasters and Flood Insurance: Standard homeowners’ insurance does not cover flooding, earthquakes, or other natural disasters in some regions. These policies can be purchased separately or as add-ons.

Assessing the Right Coverage for You

Before choosing a policy, it’s important to assess the value of your home and belongings. Take inventory of everything you own, including furniture, electronics, and valuables. You should also consider the cost of replacing your home if it were to be completely destroyed. A home appraisal may be helpful to determine the replacement value of your property, and you can use this figure to guide your coverage needs.

Next, evaluate the types of risks you may face based on your location. If you live in an area prone to floods, wildfires, or severe storms, additional coverage for those risks may be necessary. For example, if you live in a flood zone, you’ll need to purchase flood insurance separately.

Choosing the Right Policy and Provider

Once you’ve assessed your needs, it’s time to shop around for the best homeowner’s insurance policy. Look for a policy that offers the right amount of coverage for your home and belongings at a price you can afford. Consider the insurer’s reputation for customer service, claims handling, and overall satisfaction. An insurance agent or broker can help you navigate the options available and recommend the best policy for your situation.

It’s also important to review the policy details carefully, paying attention to exclusions and deductibles. For instance, some policies may not cover certain types of damage or may have higher deductibles for specific risks. Understanding these details upfront will help you avoid surprises later on.

Homeownership is a significant investment, and homeowners’ insurance is a vital tool in protecting that investment. With the right coverage, you can have peace of mind knowing that if something unexpected happens, you’re financially prepared. By assessing your needs, understanding the coverage options available, and working with a trusted insurance provider, you can choose the right homeowner’s insurance to protect your home and everything in it.

Understanding Your Home Ownership Papers

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When it comes to homeownership, one of the most important aspects of the process is ensuring you have the proper legal documentation that proves your ownership. This documentation usually comes in the form of a title or a deed. These documents not only provide proof of ownership but also serve as a way to protect your rights to the property. Whether you’re buying your first home or adding to your real estate portfolio, understanding the difference between titles and deeds is essential to securing your investment.

What is a Title?

The title is a legal document that proves you are the rightful owner of a property. When you have a title, it means that you have legal rights to the property and are recognized as the owner by your local jurisdiction. In many cases, the title is recorded with a local government agency, which keeps track of ownership and any claims or liens on the property.

The title not only confirms your ownership, but it also indicates that you are the party legally entitled to make decisions about the property—whether that’s selling, leasing, or modifying the property. A title may also come with certain rights or restrictions tied to it, which are often recorded in public records for transparency and legal purposes.

What is a Deed?

A deed, on the other hand, is a legal document that transfers ownership of the property from one party to another. It’s often used during the buying and selling process to officially transfer ownership from the seller to the buyer. While a title shows that you own the property, a deed is the official document that records the transfer of ownership.

When you purchase a home, you typically receive a deed as part of the transaction process. The deed will outline important details such as the property’s legal description, the buyer and seller’s names, and the terms of the transaction. There are several different types of deeds, but the most common include:

  • Warranty Deeds: These offer the highest level of protection for the buyer. They guarantee that the seller has legal ownership of the property and has the right to sell it.
  • Quitclaim Deeds: These are often used to transfer property between family members or in situations where the seller is not guaranteeing the title. Quitclaim deeds only transfer whatever interest the seller has in the property, which could be limited.

The Process of Receiving a Title or Deed

Before you can officially claim your home as your own, there are a few necessary steps to complete. Here’s a breakdown of what you’ll need:

  1. Proof of Insurance: Most mortgage lenders will require proof that you have homeowner’s insurance in place before they finalize the loan. Insurance protects both you and the lender in case of damage to the property.
  2. Proof of Purchase: You’ll need copies of documents that show you’ve completed the transaction, such as the purchase agreement, invoices, and receipts from the mortgage. These documents help verify that you have legally purchased the property.
  3. Seller’s Documents: The seller of the property must also provide certain documents, including proof of ownership, to ensure that the property is legally theirs to sell. These may include tax records, mortgage payoff statements, and other paperwork related to the property.
  4. Closing the Deal: Once all the documentation is in order, the final step is closing the transaction. This is when the title or deed is officially transferred, and you become the legal owner of the property. After closing, the deed or title will be recorded with the local government office, making the transaction official and legally binding.

Securing Your Property

The title and deed are crucial documents that prove your ownership of a property and protect your legal rights as a homeowner. Once you receive these papers, your home is officially yours, and you can move forward with confidence knowing that your investment is secure. Understanding the process and ensuring that all necessary steps are followed will help you navigate the complexities of real estate transactions and make sure everything is in order.

By preparing in advance and working with professionals—such as real estate agents, title companies, and attorneys—you can ensure a smooth process and successfully transition from being a buyer to a homeowner.

 

What’s Ahead For Mortgage Rates This Week – November 12th, 2024

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Big inflation reports for the coming week with both CPI and PPI on the schedule. We should expect the data to remain within expectations given the latest reports from both the PCE Index and GDP estimates. The Federal Reserve has still remained hawkish and the last rate decision the expectation is the current rates should maintain. However with the inflation being very close to the Federal Reserve’s target inflation rate and the expected “soft landing” on the horizon. The outlook is optimistic for another round of rate cuts in future.

Federal Reserve Rate Decision

In the face of slowing inflation and strong consumer spending, the Federal Reserve announced that it will keep the interest rate steady, holding the benchmark borrowing rate to a range of 5.2%5 to 5.5%.

Consumer Credit

The numbers: The amount of borrowing by U.S. consumers in September rose a scant 1.4%, but the increase was tied mostly to student loans as Americans scale back on the use of credit cards. Consumer credit increased by $6.0 billion in September, Federal Reserve data showed. Economists had expected a $13 billion increase, according to a Wall Street Journal forecast.

Primary Mortgage Market Survey Index

?15-Yr FRM rates seeing a week-to-week change of 0.01% with the current rate at 6.00%.
?30-Yr FRM rates seeing a week-to-week change of 0.07% with the current rate at 6.79%

MND Rate Index

?30-Yr FHA rates week to week seeing a -0.32% change for this week. Current rates at 6.30%
?30-Yr VA  rates week to week seeing a -0.32% change for this week. Current rates at 6.32%

Jobless Claims

Initial Claims were reported to be 221,000 compared to the expected claims of 220,000. The prior week was 218,000.

What’s Ahead

Consumer Price Index and Producer Price Index inflation ahead. There are no other influential reports on the schedule.

Honoring Veterans Day With A Message of Gratitude

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Today, on Veterans Day, we pause to honor and express our deep appreciation for the brave men and women who have served and protected our nation. Your courage, sacrifice, and dedication embody the very best of who we are as a country, and we are forever grateful for your service.

As real estate professionals, we understand that finding a place to call home is more than just a transaction—it is a fundamental part of building a life, creating memories, and feeling secure. For many veterans, the journey to homeownership may be part of their transition back to civilian life, a step towards stability, or a dream they have long worked for. We are privileged to play a role in this process, helping to guide and support our nation’s heroes as they seek a home that reflects their service and sacrifice.

On this day, we pledge to continue serving veterans and their families with dedication, understanding, and the respect you have earned. Thank you for your service, your strength, and your unwavering commitment to our country. We honor you today and always.