Navy Fellas Realty Group

Real Estate, Residential sales and purchase

What’s Ahead For Mortgage Rates This Week – December 28, 2015

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Whats Ahead For Mortgage Rates This Week December 28 2015This week’s report of economic events is shortened due to the Christmas holiday. Economic news through Wednesday included Existing Home Sales, New Home Sales and Consumer Spending. The details:

Existing Home Sales Dip, New Home Sales Rise

According to the National Association of Realtors®, sales of previously owned homes dipped from October’s seasonally adjusted annual rate of 5.32 million sales to 4.76 million sales of pre-owned homes. This was considerably lower than analysts’ expectations of 5.30 million sales. Factors seen as contributing to November’s reading included pent-up demand caused by low inventories of available homes and affordability issues emerging as demand pushes home prices up. New regulations that extended the closing period for home sales were cited as causing some closings to be pushed into December. 

In contrast to lower sales for pre-owned homes, November sales of new homes rose by 4.30 percent from October to November based on a revised October reading of 470,000 sales. The original October reading was 495,000 sales of new homes, which provided the basis for analyst projections of 505,000 new homes sold on a seasonally-adjusted annual basis.

New home sales were up by 9.10 percent year-over-year in November. New home sales account for approximately 9.30 percent of home sales. Regional reports for new home sales were mixed. The Northeast region reported a drop of 28.60 percent, while the Midwest reported a gain of 20.50 percent. New home sales rose 4.50 percent in the South and fell 8.60 percent in the West. The good news about new home sales softened concerns about cooling housing markets caused by the abrupt drop in home resales.

Last week’s financial news ended on a positive note with December’s reading of 92.60 for consumer sentiment rose from November’s reading of 91.30 and also surpassed analysts’ expected reading of 92.

What’s Ahead

This week’s roster of economic reports includes Case-Shiller Home Price Indexes, Pending Home Sales and Consumer Sentiment for December. No reports will be issued Friday in observance of the New Year’s Day holiday.

Running out of Kitchen Space? 5 Storage Hacks That Will Help You Do More with Less

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Running out of Kitchen Space? 5 Storage Hacks That Will Help You Do More with LessWith all of the things that you need to fit into the kitchen, being economical with how you use your space can be a very important part of making it work. If you’re looking for some new ideas for how to use your space to maximum capacity, here are some hacks that might just make a marked difference!

Make Use of Magnets

Using magnets to hold up some kitchen essentials will not only be effective and functional, it will make for a quirky, modern space with personality. Whether you decide on a magnetized knife block for the side of the fridge or purchase some magnetized spices for easy access, this is a simple trick for storage that goes beyond the fridge.

Cue The Cutting Board Cover

One of the biggest problems with a small kitchen is the minimal counter space, but this is an easy problem to solve with a cutting board made to fit over your sink. Instead of having to move around items to make room on your counter, you’ll always have a convenient place to do your chopping that will be handy when you need it.

Maximize Your Ceiling Space

Pots and pans can take up a lot of cabinet space, but the purchase of an overhead rack can easily free up some of your shelves for a different use. By hanging pots, pans and even kitchen utensils from a rack, you’ll have a neat modern look that will add a twist on the traditional kitchen.

Arrange Your Drawers With Inserts

Everyone is familiar with the kinds of kitchen drawers that are in shambles, full of bottomless utensils that are hard to find when they’re needed. By purchasing a drawer insert, you will be able to organize your utensils according to type and utilize all of the drawer space that’s available.

Reconsider The Wine Rack

It’s generally the case that a wine rack is filled with wine bottles, but to add a funky and useful twist to your old rack, consider keeping all kinds of bottles in it. By adding in water bottles, soda, and even certain perishables, you can save room on your shelves and create a statement piece!

It can often seem impossible to make room for everything in a small kitchen, but there are lots of hacks that will free up more space for the items that are required. If you’re currently perusing kitchens on the real estate market, you may want to contact your local real estate professional for more information.

Existing Home Sales Dip More Than Expected

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The 3 Golden Rules of Staging - Follow These and Sell Your Home FasterNovember sales of pre-owned homes dipped lower than expected and prior month’s readings according to the National Association of Realtors® (NAR). Analysts expected existing home sales to slow to a seasonally-adjusted annual rate of 5.30 million sales, which was based on October’s reading of 5.32 million sales. Instead, November’s reading dropped to 4.76 million sales. November’s drop represented a decline of 10.50 percent drop in existing home sales month-to-month; existing home sales were 3.80 percent lower year-over-year.

November’s reading represented the first time since September 2014 that the year-over-year reading for sales of pre-owned homes was lower than for the previous month. November’s reading was also the sharpest dip in pre-owned home sales since July 2010 and was cited as a “statistical anomaly.” Such a sharp drop in sales is unusual except when housing tax credits expire and cause home sales to drop after a last minute increase in home purchases by home buyers rushing to gain a tax credit advantage.

Tight Supply of Homes, New Regulations Cited as Cause for Lower Sales

A lean supply of available homes has caused rising demand for homes in 2015; an inadequate supply of homes typically causes prices to rise and sales to fall as affordability decreases. First-time buyers accounted for 30 percent of all home buyers in November, but the first-time buyers usually account for 40 percent of buyers. The national average home price rose to $220,300 in November, which represents a year-over-year increase of 6.30 percent. Home prices are rising faster than wages, which presents a major obstacle for would-be home buyers.

There was a 5.1 month supply of existing homes for sale in November, while the average supply is six months. Lawrence Yun, NAR’s chief economist, said that new regulations that increased the closing period for many home sales may have pushed more sales into December that otherwise would have closed in November.

Distressed property sales involving bank-owned homes and short sales increased in November, but this was due to financial institutions offering more homes for sale than in previous months. Analysts said that the increase in distressed sales did not represent an increase in mortgage default and foreclosure rates.

NAR forecasts that existing home sales will reach 5.20 million during 2016; this represents an increase of 2.90 percent. Upcoming reports on new and pending home sales will help provide a general picture of housing market trends as 2015 winds down.

The 3 Golden Rules of Staging – Follow These and Sell Your Home Faster

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The 3 Golden Rules of Staging - Follow These and Sell Your Home FasterWhen it comes to staging your home to sell, it can sometimes seem like there are so many things to do that it’s hard to know what will make a real difference. Since staging is such an important aspect of successfully selling your home, here are the three golden rules for how you can make it work for you!

Don’t Forego The Front

Homeowners often spend so much time inside of their home that it’s the first thing they think about when it comes to staging, but the first thing a potential buyer is going to notice is the exterior so it’s very important to keep this in mind. Ensure that the grass is cut and any stray plants or weeds are trimmed or pulled. If you’ve left out any old, ugly furniture or the kids toys are strewn about the lawn, you’ll want to clean these up so the house is polished and enticing right from the start.

Make It Match With Your Décor

There are no certainties that the design aesthetic you have is going to appeal to your potential buyers, but they will notice if your home is completely out of touch with its accents. If you’ve got a comfy, family style place, make sure you deck it out in durable but well-maintained duds that will complement the buyer you’re trying to capture. On the other hand, if you’ve got sleek hardwood floors and a stylish accent wall, you should be able to get away with a modern decorative style that can only enhance your home’s natural charms.

Keep A Handle On The Accessories

It’s certainly true that a personal style that gives off the sense that you really live in your home will draw in the offers, but you’ll want to keep some of it at bay so your decorating is not distracting the viewers. Instead of going for big, over-the-top pieces, stick to a style that’s neat and tidy with some quaint accents that will play it up. A few brightly cultured coffee table books or a quirky light fixture can go a long way in adding interest to your living space!

It may seem like a lot is required to properly stage a home, but by using these golden rules you should be well on your way to a successful sale. If you’re currently in the process of selling your home and have questions about entering the real estate market, you may want to contact your local real estate professional for more information.

What’s Ahead For Mortgage Rates This Week – December 21, 2015

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Whats Ahead For Mortgage Rates This Week December 21 2015Last week’s scheduled economic reports included the NAHB Housing Market Index, Housing Starts, FOMC statement and Fed Chair Janet Yellen’s press conference. In addition to weekly reports on jobless claims and mortgage rates, inflation reports were also released.

Builder Confidence Slips, Housing Starts Increase

According to the NAHB / Wells Fargo Housing Market Index for December, home builder confidence slipped by one point to a reading of 61 as compared to an expected reading of 63 and November’s reading of 62. December’s reading was three points higher year-over-year. Readings over 50 indicate that more builders than fewer are confident about housing market conditions. December’s confidence reading remained higher than 2015’s average reading of 59.

Components used in comprising the NAHB HMI also slipped in December. Builder confidence in current market conditions fell one point to a reading of 66; the six months sales outlook fell two points to 67 and the reading for buyer foot traffic in new developments also decreased by two points to a reading of 46. The reading for buyer foot traffic has consistently remained below the neutral benchmark of 50 since the housing bubble ended.

While builder confidence eased, housing starts rose in November with 1.17 million starts reported. Analysts expected a reading of 1.14 million starts based on October’s reading of 1.06 million housing starts. During much of 2015, demand for homes accelerated due to slim inventories of available homes; new construction is seen as essential to easing demand.

Fed Raises Interest Rates, Mortgage Rates Higher

The Federal Open Market Committee of the Federal Reserve raised its target federal funds rate from a range of 0.00 to 0.25 percent to a range of 0.25 percent to 0.50 percent. While the Fed’s increase is expected to affect consumer lending rates for auto loans and credit cards more than mortgages, Freddie Mac reported that rates for fixed rate home loans rose last week. The average rate for a 30-year fixed rate mortgage rose by two basis points to 3.95 percent and the average rate for a 15-year fixed rate mortgage increased by three basis points to 3.22 percent. The average rate for a 5/1 adjustable rate mortgage was unchanged at 3.03 percent. Discount points were unchanged for fixed rate mortgages at 0.60 percent and 0.50 percent respectively while average points for a 5//1 adjustable rate mortgage dropped to an average of 0.40 percent.

Weekly jobless claims fell to 271,000 new claims against expectations of 275,000 new claims and the prior week’s reading of 282,000 new claims.

What’s Ahead

Next week’s economic reports include reports on new and existing home sales, consumer spending and consumer sentiment. Weekly jobless claims and Freddie Mac’s mortgage rates report will also be released as scheduled. No reports will be released on Friday due to the Christmas holiday.

Video: What Do Lenders Have To Tell You About Your Real Estate Loan?

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What Do Lenders Have To Tell You About Your Real Estate Loan?

Federal “disclosure” forms define the information that creditor businesses MUST provide to consumers applying for real estate loans.

As of Oct 1, 2015 lenders must provide TWO New “TRID” disclosure forms. for the most common kinds of real estate loans First, the Loan Estimate, which covers the key features, costs and risks of a mortgage loan.

For an approved loan this must be returned to the consumer within 3 business days of loan application. If the loan goes forward, the Closing Disclosure form, covering key transaction costs, must be delivered at least 3 business days before loan consummation.

What Do Lenders Have To Tell You About Your Real Estate Loan