Navy Fellas Realty Group

Real Estate, Residential sales and purchase

What’s Ahead For Mortgage Rates This Week – March 7, 2016

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What's Ahead For Mortgage Rates This Week - March 7, 2016Week in Review

Last week’s scheduled economic news included reports on pending home sales, construction spending and several jobs related readings including ADP Payrolls, the government’s Non-Farm Payrolls and the national unemployment rate.

Mortgage Rates, Weekly Unemployment Claims Rise

Mortgage rates rose across the board according to Freddie Mac’s weekly report. The average rate for a 30-year fixed rate mortgage rose two basis points to 3.64 percent; the average rate for a 15-year fixed rate mortgage rose by one basis point to 2.94 percent and the average rate for a 5/1 adjustable rate mortgage rose five basis points to 2.84 percent. Discount points were consistent at 0.50 percent for all three types of home loans.

Weekly jobless claims also rose to 278,000 new claims as compared to expectations of 270,000 new claims and the prior week’s reading of $272,000 new jobless claims. While an increase in new unemployment claims may seem discouraging, new claims for unemployment remain near pre-recession lows.

The four-week rolling average of new jobless claims dropped by 1750 claims to 270,250 and reached its lowest reading in three months. Analysts view the four-week reading as more reliable than week-to-week readings that can be volatile.

Pending Home Sales and Construction Spending

In other news, pending home sales fell by 2.50 percent as compared to December’s reading. Analysts expected an increase in pending sales of 0.50 percent; December’s reading was 0.10 percent higher than for November. Pending home sales represent sales contracts that have not yet closed and are considered an indicator of future closings and mortgage activity.

Home sales have been impacted in recent months by a shortage of available homes; this creates a backlog of would-be buyers who can’t find homes they want to buy and also causes rapidly escalating home prices in desirable areas. Bidding wars and cash sales can sideline buyers who can’t pay cash or are whose offers are outbid.

Analysts say that new home construction is a key component of easing the housing shortage. Construction spending increased by 1.50 percent in January, but month-to-month spending for residential projects was flat in January. Spending for residential projects was 7.60 percent higher year-over-year.

Labor Reports Reflect Stronger Economy

Federal and private sector reports on jobs indicate that job growth continues. The Department of Commerce reported that Non-Farm Payrolls grew by 242,000 jobs in February, which was higher than expectations of 195,000 new jobs and January’s reading of 172,000 new jobs. According to ADP, which tracks private sector payrolls, 214,000 new jobs were created in February as compared to expectations of 185,000 new jobs and January’s reading of 193,000 new jobs.

Improving jobs markets are a positive indicator for housing markets as stable employment is important to home buyers’ ability to qualify for mortgages. The National Unemployment Rate remained stable in February with a reading of 4.90 percent; the expected reading and prior month’s reading were also 4.90 percent.

What‘s Ahead

Next week’s scheduled economic reports include the NFIB Small Business Index and February’s Federal Budget along with regularly scheduled weekly reports on mortgage rates and new unemployment claims.

Thinking About Buying A Waterfront Home? Check Out These Important Tips!

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First Time Home Buyers: What You Really Need to Know About Buying a Beachfront HomeThe idea of an idyllic beachfront home is appealing for many people, but there are a number of factors involved in this type of home purchase that should be considered before getting serious. Whether it’s a home to live in full time, or a vacation property with investment potential, there are a number of issues to take note of. So, if you’re on the fence regarding waterfront property, here are some things you should keep in mind if beach life might be right for you.

The Ever-Shifting Shoreline

It goes without saying that the times are changing, and erosion of beachfront property is set to be a more pressing issue in the years ahead. If you’re planning on living in a house by the beach, you’ll want to research the surrounding area to ensure your investment will be sustainable over time. If significant shore erosion does occur, you could suffer a loss in regards to your most expensive asset.

In The Event Of Extreme Weather

Home insurance exists to cover you in the event of theft or fire, but if you’re planning on buying by the beach, it’s important to purchase an insurance package that will have you covered for many of nature’s calamities. Instead of leaving this to chance, double check that your home is protected against wind or water damage, as leaving this out could cost you a lot of money down the road.

Do Your Market Research

If you’re buying by the water and you’re looking to live there into the foreseeable future, it may not be necessary to do a lot of research, but if you plan on having renters it’s important to know that someone will be able to make your investment more feasible. If the market is down and people are not flocking to the beach during the months you’ll require renters, it may not be wise to invest huge amounts of money into a property.

Everybody Loves The Beach

It’s important to do research before you decide to invest in a beachfront home, but you will want to keep in mind that a home by the water will probably end up being more valuable than a home in the same town that doesn’t sit on a patch of sand. If you’ve done your research and everything looks good, this may be an investment well worth it.

Beachfront property has its own set of risks and rewards, but if you do your homework it can be an ideal investment. If you’re looking for homes in your area and are interested in waterfront property, you may want to contact your local real estate agent for more information.

Thinking About Selling in 2016? 3 Reasons You’ll Absolutely Need a Great Real Estate Agent

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Thinking About Selling in 2016? 3 Reasons You'll Absolutely Need a Great Real Estate AgentWhether you’re familiar with the market or you’ve never sold a home before, an effective real estate agent can be exactly the thing you need to make for a positive market experience. With the world of real estate in a constant state of flux, here are a few reasons why the right agent can successfully guide you through the muddled waters of the market.

A Skill For Communication

In the case that the real estate market makes you nervous, it’s particularly important to have the kind of agent who will keep you in the loop and give you the information you need to make an informed selling decision. An agent with the powers of communication will be able to give you honest advice when it’s required, like if it’s time to lower the price of your house, so that you can have success in achieving the offer you’re looking for.

A Willingness To Work Hard

There are many agents out there who won’t be willing to put in additional effort for a client, but the kind of agent you’ll want to choose should be someone who is a go-getter and will chase potential business for you. Instead of waiting around, an ideal agent should be following up with potential buyers and ensuring that they’re chasing any leads that may guarantee the purchase of your home. If you have to ask them to be proactive, they’re probably not the right person for the job.

A Bevy Of Client References

A real estate agent that is worth their salt should not hesitate to provide you with client references so you can make an informed, educated decision. Instead of asking for their personal references, though, request the names of their last ten clients as this should give you a pretty good grasp of what their capacities as an agent are, and how they will serve you. If they are cagey about providing references, you’ll want to move on to your next potential agent.

The real estate market is rife with a lot of things to know and it can be complicated to jump into the tides, but the right agent can actually make the process of selling your home a lot less stressful. If you’re currently looking for homes and are not sure where to turn, you may want to contact one of our real estate professionals for more scoop on the market.

Smart Appliances Get Smarter: Here’s What We Saw at the 2016 Consumer Electronics Show

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Smart Appliances Get Smarter: Here's What We Saw at the 2016 Consumer Electronics ShowWith technology advancing at a mile a minute, the 2016 Consumer Electronics Show is a great place to see what’s new to the market and what will be sure to turn heads in the year to come. If you couldn’t make it to the show yourself but are curious about the highlights of the event, here are some of the hottest items in technology that appeared in Las Vegas this year.

Make It Molecular With A Spectrometer

Designed by Consumers Physics, the SCiO is a modern, small-sized molecular sensor that can give you volumes of information about your food that you’ve never had before. Instead of consulting the nutritional information, you can easily obtain all of the products contained in your food (or any other product, really) by simply pointing it at the item in question. This information will then be transferred to the product’s associated app for you to review.

Forgot To Lock? Grab Your Phone!

We’ve all experienced the fear here and there of thinking we forgot to lock the door, but with the innovative Kwikset Premis door lock, you can easily put this former fear to rest. Instead of having to rush home with key in hand, the Kwikset allows you to easily control its locking mechanism with a PIN number using your smart phone. So, the next time you’ve think you’ve forgotten to lock the door behind you, you can instantly access your smartphone and put your mind at ease.

Wake Up To Your Favorite Scent

Waking up is often associated with the uncomfortable sensation of a beeping clock, but with the Sensorwake the first few minutes of the morning don’t have to seem like such a chore. Instead of beeping, you can insert an aroma module into your Sensorwake that will release the scent you choose, whether it happens to be espresso, croissant or peppermint. If you don’t think this will be enough to wake you up, you can also arrange for an audible alarm that will come on a little bit later.

The Consumer Electronics Show in Las Vegas is one of the best events of the year for interesting, new technology, but if you missed it there are plenty of exciting gadgets that will soon be available on the market. If you happen to be looking for a new home that has all of the gadgets on the horizon, you may want to contact your local real estate agent for help in your search.

Dream Renovations: Upgrading Your Bathroom from ‘Regular’ to ‘In-Home Spa’

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Dream Renovations: Upgrading Your Bathroom from 'Regular' to 'In-home Spa'There are times you might long for the relaxed leisure of the spa experience, but with the cost of a manicure it’s not always a pleasure one can afford. If your current bathroom set-up isn’t the optimal place for rest and relaxation, here are some cues for how you can turn it from a bit of a problem to a consummate pleasure.

Install A Vintage Vanity

The look of slick steel and porcelain can certainly be classy, but if you’re looking for an upscale room you’ll love to spend time in, consider a vintage dresser that you can turn into your very own unique vanity. While you’ll need to develop some plumbing and woodworking know-how to make this dream a reality, it will easily fancy up your bathroom and lend for an elegant, everyday experience.

Spring For A Bold Color

Part of the spa experience is often the palette of jewel-toned colors that are used on the walls, but it can often be considered a risk to take on such an intense tone in one’s own bathroom. However, if you have a smaller sized bathroom and can find a brilliant color you really love that will work with your decor, it may make for a unique and singular spa-style experience.

Add An Accent With Tile

A sizeable Jacuzzi that you can really get comfortable in is a great start for an in-home spa experience, but there are some stylish ways you can add to it that will make for a particularly sophisticated look. Instead of taking out the tub, pick a colorful tile that will mesh with the other colors and textures of your bathroom to add an accent. It’s not necessarily a simple fix but it will add a lot of oomph.

Work A Walk-In Shower

It goes without saying that a shower curtain does not always provide for the most sublime of bathroom experiences, so one step towards your own ‘in-home Spa’ may involve the addition of a walk-in shower. While this can be an expensive upgrade, it can completely change the look and feel of your bathroom, and might just mean you’ll save on manicures.

The spa experience can be enticing for the relaxation and comfort it offers, but you can create a similar experience in your own bathroom with a few changes that will elegant it up. If you happen to be renovating your home because and would like to look at financing options, you may want to contact your trusted real estate professional for more information.

What’s Ahead For Mortgage Rates This Week – February 29, 2016

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Whats Ahead For Mortgage Rates This Week February 29, 2016Last week’s economic reports included Existing and New Home Sales and Consumer Confidence along with regularly scheduled weekly reports on mortgage rates and new jobless claims.

Sales of Pre-Owned Homes Exceed Expectations

January sales of previously owned homes rose to an annual level of 5.47 million sales against expectations of 5.30 million sales and December’s reading of 5.45 million sales. Existing home sales rose by 0.40 percent month-to-month, which was the second-highest month-to-month reading since existing home sales were first tracked. Sales of existing homes had a strong showing with sales 11 percent higher year-over-year.

Real estate markets continue to face challenges as a severe shortage of available homes reached a four-month supply; real estate pros typically consider a six-month supply of available homes a normal reading. The shortage of homes for sale has caused home prices to escalate quickly in many markets; this creates affordability issues for would-be buyers. National Association of Realtors chief economist Lawrence Yun expressed concerns that rapidly rising home prices may not be good for the economy, but there was some positive news.

Nearly 32 percent of existing homes were bought by first-time buyers in January according to the National Association of Realtors. This is good news as first-time and moderate income buyers accommodate homeowners’ ability to move up to larger homes.

New home sales dipped in January to 494,000 sales as compared to expectations of 520,000 new home sales and the prior annual rate of 544,000 new homes sold. As the shortage of available homes continued, analysts said that the market is unbalanced in favor of sellers as offers from cash buyers make it difficult for offers from less qualified buyers to compete. Analysts said that low supplies of pre-owned homes drive buyers to purchase new homes. The number of homes purchased but not yet built is near a ten-year high.

Mortgage Rates Lower And Jobless Claims Rise

Freddie Mac reported lower mortgage rates last week. The average rate for a 30-year fixed rate mortgage was three basis points lower at 3.62 percent; the average rate for a 15-year fixed rate mortgage fell by two basis points to 2.93 percent and the average rate for a 5/1 adjustable rate mortgage dropped by six basis points to 2.79 percent. Average discount points were 0.60, 0.50 and.50 percent respectively.

Weekly jobless claims rose to 272,000 new claims as compared to expectations of 270,000 new claims and the prior reading of 262,000 new claims. The four-week rolling average of new claims also posted a reading of 272,000 new claims, which was lower by 1250 new claims. In spite of the higher week-to-week reading, new jobless claims remain near historical lows. Low readings for new jobless claims indicate a low rate of layoffs, which analysts said indicates that employers are maintaining staff levels in spite of conditions suggesting a slower economy.

Consumer confidence dropped more than five points in February. The Conference Board reported an index reading of 92.20 percent as compared to an expected reading of 97.20 and the prior month’s reading of 97.80. Consumers indicated growing concerns about business, personal finances and the labor market.

What’s Ahead This Week

This week’s scheduled economic news includes reports on pending home sales, construction spending, ADP Payrolls, federal Non-Farm Payrolls and the national unemployment rate.

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