Navy Fellas Realty Group

Real Estate, Residential sales and purchase

What’s Ahead For Mortgage Rates This Week – September 25, 2023

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What's Ahead For Mortgage Rates This Week - September 25, 2023Last week’s economic reports included readings on U.S. housing markets, housing starts and building permits, and the scheduled post-meeting statement from the Federal Open Market Committee of the Federal Reserve. Data on sales of previously owned homes were released along with weekly reports on mortgage rates and jobless claims.

National Association of Home Builders: Rising Mortgage Rates Shake Builder Confidence

Homebuilders lost confidence in U.S. housing market conditions in September. September’s index reading was 45 as compared to the expected reading of 49.5 and August’s reading of 50. The combination of rising mortgage rates and high home prices presented obstacles to first-time and moderate-income buyers, while homeowners delayed listing homes for sale while awaiting lower mortgage rates. Low inventories of previously owned homes for sale drove would-be buyers to consider purchasing new homes.

Home builders offered price cuts averaging 25 percent to buyers in August; the price cuts were deeper in September with cuts averaging 32 percent. The NAHB said 59 percent of home builders offered buyer incentives other than price cuts.

Building Permits Rise as Housing Starts Fall in August

The Commerce Department reported 1.54 million building permits issued in August as compared to 1.44 million permits issued in July. The August reading exceeded analysts’ expectations of 1.45 million building permits issued in August. Housing starts fell to 1.28 million starts in August as compared to July’s reading of 1.44 million starts and the expected reading of 1.43 million housing starts in August.

Sales of previously owned homes fell to 4.04 million sales in August as compared to July’s reading of 4.07 million sales and the expected reading of 4.10 million sales.

Fed Leaves Key Interest Rate Range Unchanged

The Federal Open Market Committee of the Federal Reserve announced its decision to leave the federal funds rate range unchanged at 5.25 to 5.50 percent, but policymakers hinted at another rate hike before the end of 2023. FOMC members review a variety of domestic and global financial and economic data to inform their decision-making process.

Mortgage Rates Rise, Jobless Claims Fall

Freddie Mac reported fixed mortgage rates above 7 percent last week. The average rate for 30-year fixed-rate mortgages was one basis point higher at 7.19 percent. The average rate for 15-year mortgages rose by three basis points to 6.54 percent.

First-time jobless claims fell to 201,000 claims last week as compared to the previous week’s reading of 221,000 new claims and the expected reading of 225,000 claims filed.

What’s Ahead

This week’s scheduled economic reporting includes readings on new home sales, S&P Case-Shiller home price indices,  the Federal Reserve Chair’s speech, and reports on inflation. Weekly readings on mortgage rates and jobless claims will also be released.

 

House Hunting: Watch for These Five Small Signs That Can Indicate Much Bigger Problems with a Home

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House Hunting: Watch for These Five Small Signs That Can Indicate Much Bigger Problems with a HomeIt’s not uncommon for homebuyers to recount horror stories about properties that appeared to be fine at first glance, but were actually hiding very expensive problems. If you fail to do your due diligence, you might find your dream house turning into a nightmare. The next time you walk through a house, pay attention for these five signs that the property might be hiding a unfortounate secret or two.

Mold, Water Spots and Water Damage

Older and newer homes alike may develop a leaky pipe or another similar plumbing issue from time to time, but any type of water issue can result in mold growth inside the walls. Water spots and warped wood indicate that the property has had a water issue in the past, and this means that the property should be more thoroughly inspected for mold growth before you make a purchase.

Doors and Windows That Stick

One of the most common signs of a foundation issue is doors and windows that stick or that are difficult to open and close. As you walk through the home, open and close the doors at leisure to identify if they are not in the frame properly. The issue should be reviewed by a structural home inspector or foundation contractor.

Small Cracks in the Walls

Some cracks in both interior and exterior walls can indicate that the home’s foundation has shifted and is no longer flat and level. Significant issues may be indicated by molding or door frames that appear to have shifted after installation.

Fresh Paint on a Small Area of the Wall

Many property sellers will apply fresh paint to walls before listing a home for sale, and this is not necessarily a sign of damage to the home. However, when fresh paint is applied on one area of the wall alone, this may be a sign that the homeowner is attempting to conceal water damage or other related issues with the property. Further inspection of the property is in order.

Floors That Slant

Any time a floor slants to a level that you feel as though you are walking up or down across the home, this is a significant indicator that the foundation has shifted. Foundation issues result in the movement of the foundation that the entire home rests on, and this can result in an uneven feeling when you walk across the floor. If you notice that the floors in a property slant, you should schedule an inspection of the foundation.

These small signs are symptoms of large problems, and they should concern you. If you notice any of these problems on a walkthrough, walk away from the home and contact a real estate professional for assistance.

Autumn Home Staging: How to Set Your Home Up to Match the Warm, Rich Colors of Autumn

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Autumn Home Staging: How to Set Your Home Up to Match the Warm, Rich Colors of AutumnCan you believe that autumn is already here? Autumn is not only a great time to enjoy some cooler weather, but it is also a perfect time to sell a home. If you want to sell your house this autumn, these home staging tips will have buyers pounding down your door.

Improve Your Curb Appeal

Curb appeal is easily the most important factor when it comes to selling a home, and it is even more important in the autumn. Maintaining great curb appeal can be difficult in autumn because of all the falling leaves.

Raking the leaves and planting some autumn flowers will make your home inviting to buyers. You can even add some pumpkins around the porch, if you desire.

Brighten Up The House

The shorter days of autumn make lighting more important when staging a home, because nobody wants to walk into a dark and depressing house. The best way to brighten up any house is by opening the blinds and turning on every light.

While it may not be great for the electric bill, the extra lighting will help the home sell quicker. You can even place some spotlights on the floor behind furniture to brighten up the darker rooms.

Make It Feel Comfortable

There is something about the cooling weather of autumn that makes people want to stay inside. Showing off how comfortable your home is will definitely pique buyers’ interest. A great way to make your home more cozy during a showing is by playing seasonal music and handing out some fresh baked cookies – it adds a personal touch and a subtle sense of coziness.

Accent The Home With Autumn Colors

While it is impossible to change the color scheme of your home to fit the season, you can add some accent colors throughout the house. If you have a neutral colored couch, then you can easily throw some red or orange pillows on it to make it really stand out. Adding some autumn decorations to each room is also a great way to accent your home with autumn colors.

Autumn is an extremely popular time to buy or sell a house, and for good reason. Taking advantage of autumn’s vibrant colors when you stage your home will give your house an irresistible appeal. For more information about how to sell your home in the autumn, or if you’d like to list your home for sale, contact an experienced real estate professional today.

Thinking About a New Floor? Five Excellent Reasons to Choose Hardwood Flooring when Remodeling

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Thinking About a New Floor? Five Excellent Reasons to Choose Hardwood Flooring when RemodelingIf you’re remodeling, you should seriously consider updating your flooring. A new hardwood floor will give your home an impressive look and prevent scratches and stains. Here are five very good reasons why you should consider a hardwood floor for your next remodeling project.

Hardwood Is More Durable Than Other Materials

Hardwood is much more durable and longer lasting than many other flooring materials. If there’s a lot of traffic in your home, hardwood floors are less likely to get scratches and dents than vinyl tiles or laminated floors. On weaker floors, damage is often permanent – but with hardwood floors, any imperfections can be sanded and refinished to make your floor look as good as new.

Hardwood Offers A Wide Array Of Styles

Hardwood flooring is very versatile, and it comes in a wide assortment of styles and colors. Hardwood is also available in a variety of textures to compliment any decor or color scheme. It’s easy to buy small area rugs that match the flooring rather than having wall-to-wall carpeting installed that may have to be replaced when it gets worn.

It’s A Good Long Term Investment

Hardwood flooring is one of the most practical investments you can make in your home. Carpeting, vinyl tile, linoleum, and laminate flooring will eventually need to be replaced. Although the initial investment of installing hardwood floors in your home is more than you’d spend on some of the alternatives, hardwood lasts much longer than other materials – so you spend less money in the long run.

Selling Your Home Is Easier

Hardwood flooring is an extremely attractive material that a lot of homeowners love. It also increases your home’s value. If you put your home on the market, you’re making a good investment by making your home more appealing to buyers.

You’ll Experience Fewer Allergy Problems

Carpeting can cause symptoms from allergies to get worse, because dust and other allergens like pet dander can get trapped in the fibers. Doctors often recommend that patients with severe allergies get rid of the carpeting in their home and replace it with hardwood flooring. With this type of flooring, it’s a simple matter to sweep or mop the floor, so allergies are no longer an issue.

Hardwood flooring is a highly popular interior design choice that is taking modern homes by storm. If you’re renovating your home in the near future, consider installing hardwood flooring as a means of giving it a classic floor that you and your guests will adore. For more great design ideas that will increase your home’s value, contact a local real estate agent today.

Does My Current Debt Affect Getting A New Mortgage?

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Does My Current Debt Affect Getting A New MortgageWhen you apply for a new mortgage, the lender will evaluate your creditworthiness to determine whether to approve your application and what terms and interest rate to offer you. Your existing debt can affect your creditworthiness in several ways:

Debt-to-income ratio (DTI): Your DTI ratio is the percentage of your monthly income that goes towards paying off debt. Lenders typically want to see a DTI ratio of 43% or less, meaning your debt payments don’t exceed 43% of your gross monthly income. If your existing debt is high, your DTI ratio will be high, and lenders may view you as a riskier borrower. This can make it more difficult to qualify for a new mortgage or result in a higher interest rate.

Credit score: Your credit score is a numerical representation of your creditworthiness, based on your credit history. If you have existing debt and have been making late payments or defaulting on payments, your credit score may have taken a hit. This can make it more difficult to qualify for a new mortgage or result in a higher interest rate.

Payment history: Your payment history is a record of how consistently you have made payments on your existing debt. If you have a history of late payments or defaulting on payments, this can signal to lenders that you may be a riskier borrower, which can make it more difficult to qualify for a new mortgage or result in a higher interest rate.

Available funds for down payment: If you have existing debt, you may not have as much money available for a down payment on a new mortgage. This can make it more difficult to qualify for a new mortgage or result in a higher interest rate.

Overall debt load: Lenders will also consider your overall debt load when evaluating your creditworthiness. If your existing debt is high relative to your income and assets, this can make it more difficult to qualify for a new mortgage or result in a higher interest rate.

In summary, your existing debt can affect your ability to qualify for a new mortgage by increasing your DTI ratio, lowering your credit score, affecting your payment history, limiting your funds for a down payment, and increasing your overall debt load.

It’s important to manage your debt carefully and maintain a good credit score if you’re planning to apply for a new mortgage. By evaluating the following and staying on track, you can ensure that you’re ready for the financial responsibilities of a mortgage and can make an informed decision about homeownership.

Selling Your Home? Here’s 3 Reasons Why You Won’t Want to Handle the Sale Yourself

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Selling Your Home? Here's 3 Reasons Why You Won't Want to Handle the Sale YourselfAre you thinking about selling your home? If so, you may be weighing the pros and cons of working with a professional real estate agent. Let’s take a quick look at three great reasons why you won’t want to handle the sale yourself.

You Won’t Save As Much As You Think

Let’s start with the most common and obvious reason that homeowners try to handle their home sale: the cost. It’s true that selling your home using the services of a real estate professional isn’t going to be free. Depending on the value of your home, their commission might range from two to four or five percent of the final sale price. However, the entire reason you’re paying commission is that you’re contracting with a professional to do a job. Your real estate agent is there to both share their experience and handle all of the tasks and responsibilities with your sale. Without them, you’ll be responsible for everything from creating an online listing for your property to figuring out how to host an open house.

So while you may believe you are saving money by not paying commission, you’re going to be burning a lot of your time. If you’re already busy in your career or as a parent, that may end up costing you more in the long run.

A Professional And Objective Eye Is A Huge Plus

Objectivity is another great reason to work with a real estate professional when selling your home. If you had to answer right now, would you say your home is better than your neighbor’s? Better than all the houses on your street, even? The majority of home sellers do believe their home is “above average,” which is of course statistically impossible.

When someone has been the one painting, renovating and putting love into her home for so long, it is no surprise that she becomes attached to it. A real estate agent’s objective eye can offer a nice dose of reality and help to keep the sale moving.

Many Buyers Will Automatically Avoid Owner Sales

Are you a professional salesperson? If not, do you have experience dealing with the public? Selling your home is a significant financial transaction in which you’re going to have to meet with buyers. Moreover, from their perspective, it’s likely that your home is not the only one they’re viewing. Many homebuyers will prefer to work with a seller agent as they know the process will be smooth and professional rather than trying to negotiate directly with an owner.

These are just a few of the reasons you won’t want to go it alone when you sell your home. For more information about local home sales, contact your local real estate professional today.