Navy Fellas Realty Group

Real Estate, Residential sales and purchase

What’s Ahead For Mortgage Rates This Week – May 5th, 2025

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Last week featured a slew of releases, but the most important one as of this writing is the GDP estimates. Both the GDP and GDP deflator data have started to reverse their previous trends, raising serious concerns that the economy may be experiencing deflationary effects.

This is somewhat offset by the Personal Income and Spending reports, which showed favorable numbers, as well as the Non-farm Payroll figures, which have also increased during this period.

The impact of the latest tariffs and trade wars has already appeared in estimates and data releases across numerous markets. There is strong expectation that the Federal Reserve will need to respond with support to ensure market stability, chiefly by reducing interest rates. Additionally, Consumer Confidence reports have shown a consistent downward trend for the fifth month in a row.

Consumer Sentiment

The consumer-confidence index sank in April to the lowest level since the depths of the COVID-19 pandemic, the Conference Board said Tuesday. Confidence fell 7.9 points to 86.0 in April, the fifth straight monthly decline.

Consumer Spending

Consumer spending rose briskly in March, but not because Americans are gung-ho on the economy. Many bought new cars or other items to avoid potential price increases tied to U.S. trade wars. Personal spending rose 0.7% last month, the government said Wednesday, a few ticks above the forecast of economists polled by The Wall Street Journal.

Gross Domestic Product

The U.S. economy contracted in the first quarter of 2025 for the first time in three years, reflecting a surge in imports ahead of President Donald Trump’s tariffs and a slowdown in consumer spending. Gross domestic product, the official report card on the economy, shrank at a 0.3% annual rate from January to March, the government said Wednesday. It’s the first contraction in GDP since early 2022.

Non-Farm Payrolls 

The U.S. added a stronger-than-expected 177,000 new jobs in April, suggesting the labor market was largely unscathed last month by the Trump trade wars, for the time being. The increase in jobs exceeded the 133,000 forecast of economists polled by the Wall Street Journal. Many economists had expected to see signs of damage from the trade wars in the report.

Primary Mortgage Market Survey Index

• 15-Yr FRM rates saw a decrease of -0.02% for this week, with the current rate at 5.92%
• 30-Yr FRM rates saw a decrease of -0.05% for this week, with the current rate at 6.76%

MND Rate Index

• 30-Yr FHA rates saw an increase of 0.03% for this week. Current rates at 6.28%
• 30-Yr VA rates saw an increase of 0.03% for this week. Current rates at 6.30%

Jobless Claims

Initial Claims were reported to be 241,000 compared to the expected claims of 225,000. The prior week landed at 223,000.

What’s Ahead

Historically, it has been less relevant, but the Trade Balance reports will help shed light on some previously unknown data. Next week will also be lighter due to the upcoming FOMC rate decision, although a rate change is not expected.

Why Some Homes Come with Deed Restrictions You Shouldn’t Ignore

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When buying a home, most buyers focus on location, price, and features. However, deed restrictions—legally binding rules that dictate how you can use your property—are equally important. Ignoring them can lead to unexpected limitations and challenges.

What Are Deed Restrictions?

Deed restrictions, also known as restrictive covenants, are rules placed on a property’s deed by developers, homeowners’ associations (HOAs), or local governments. Unlike zoning laws, which are enforced by municipalities, deed restrictions are upheld by private entities like HOAs or developers. Violating them can result in fines, legal action, or forced compliance.

Common Deed Restrictions

Understanding deed restrictions before purchasing a home is crucial. Here are some common restrictions:

  1. Home Modifications & Renovations
    • Requiring HOA approval for exterior paint colors or structural changes.
    • Setting height limits on fences or additions like sheds and pools.
  2. Business & Rental Restrictions
    • Prohibitions on home-based businesses with customer traffic.
    • Bans on short-term rentals like Airbnb.
    • Limits on parking work-related vehicles in residential areas.
  3. Pet & Livestock Regulations
    • Breed or size restrictions for dogs.
    • Limits on the number of pets allowed.
    • Bans on farm animals like chickens or goats.
  4. Landscaping & Outdoor Features
    • Restrictions on specific plant types, trees, or grass varieties.
    • Approval requirements for solar panels or satellite dishes.
    • Rules on sheds, gazebos, or outdoor structures.
  5. Parking & Vehicle Rules
    • Where you can park boats, RVs, or trailers.
    • Whether overnight street parking is allowed.
    • Garage vs. driveway parking requirements.

Why Deed Restrictions Matter

  • They Are Legally Binding: Once you buy a home with deed restrictions, you must follow them.
  • They Can Impact Resale Value: Buyers may avoid homes with excessive limitations.
  • They May Conflict With Your Plans: Restrictions can prevent renovations, rentals, or business operations.

How to Check for Deed Restrictions

  • Review the Property Deed: The deed outlines any restrictive covenants.
  • Request HOA Documents: Obtain the bylaws and CC&Rs (Covenants, Conditions, and Restrictions).
  • Consult a Professional: A real estate agent or attorney can clarify complex restrictions.
  • Check Local Regulations: Some restrictions may be enforced at the municipal level.

Deed restrictions are designed to maintain community standards and protect property values, but they can also limit how you use your home. Before buying, carefully review any restrictions to ensure they align with your lifestyle and long-term plans. Taking the time to understand these rules can prevent costly surprises and help you make an informed decision.

Why Some Homebuyers Are Prioritizing Personal Libraries Over Extra Bedrooms

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In a world where home preferences are constantly evolving, a surprising trend has emerged among homebuyers: many are prioritizing dedicated personal libraries over additional bedrooms. While traditional real estate advice has often emphasized the value of extra bedrooms for resale potential, today’s buyers are shifting their focus to spaces that enhance their lifestyle, productivity, and personal enjoyment.

As more people embrace remote work, digital minimalism, and personalized home design, the idea of a home library has become increasingly appealing. A designated space for books, study, and quiet reflection offers an escape from daily distractions and a retreat for those who value learning and creativity.

For avid readers, collectors, and professionals who work from home, a personal library provides a structured and inspiring environment. Instead of dedicating an extra bedroom to occasional guests or storage, many homebuyers prefer to transform these spaces into reading sanctuaries.

Enhanced Productivity and Focus: With more individuals working remotely or pursuing creative projects, a home library can serve as a private workspace, free from household distractions. Unlike a multi-purpose home office, a library fosters deep focus and intellectual engagement, making it an ideal setting for writers, researchers, and remote professionals.

Aesthetic and Personal Expression: Books are not just sources of knowledge; they also reflect a homeowner’s personality and interests. A home library allows buyers to showcase their collection, incorporating unique shelving, cozy reading nooks, and carefully curated décor. This level of personalization adds character to a home in a way that an extra bedroom rarely does.

A Shift in Lifestyle Priorities: As families rethink their living spaces, the emphasis on quality over quantity has become a defining factor in homebuying decisions. Many people are opting for homes that cater to their daily needs rather than just maximizing bedroom count for resale purposes. For those who do not require multiple guest rooms or additional sleeping areas, repurposing space for a library is a meaningful investment.

Mental Well-Being and Relaxation: Reading has long been associated with stress reduction and mental stimulation. A dedicated library space creates a quiet retreat where homeowners can unwind, disconnect from technology, and enjoy a sense of peace. The ability to step away from screens and immerse oneself in a good book has become a priority for many looking to improve their work-life balance.

A Smart Investment in Home Value: While extra bedrooms often boost a home’s marketability, a well-designed library can also add unique appeal. Buyers who appreciate custom features and intentional spaces may be drawn to homes with dedicated libraries, viewing them as an asset rather than a compromise. In high-end real estate markets, built-in bookshelves and reading alcoves can increase a property’s desirability.

As homebuyers continue to redefine what is essential in a living space, personal libraries are gaining popularity as a must-have feature. Whether it is a small reading nook, a full-scale library with floor-to-ceiling shelves, or a hybrid office-library space, the trend reflects a broader shift toward designing homes that cater to personal fulfillment rather than just practicality.

For those considering a home purchase or renovation, thinking beyond traditional layouts can lead to a more fulfilling and functional living environment. As the demand for dedicated libraries grows, this trend may reshape the way homes are designed, proving that sometimes, a quiet retreat filled with books can be more valuable than an extra bedroom.

The Growing Demand for Homes with Dual Kitchens

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The real estate market is witnessing a rising trend: homes with dual kitchens. Once considered a luxury, dual kitchens are becoming a sought-after feature for buyers looking for functionality, convenience, and lifestyle adaptability. Whether it’s for multi-generational living, entertaining, or rental potential, homes with two kitchens are proving to be a smart investment.

A dual kitchen home features two separate cooking areas, which may include a primary kitchen and a secondary kitchen, also known as a prep kitchen, spice kitchen, or butler’s kitchen. These kitchens may be fully equipped or designed for specialized use, depending on the homeowner’s needs.

The increasing demand for dual kitchens is driven by several factors, including lifestyle changes, cultural preferences, and investment potential.

  1. Multi-Generational Living: With more families choosing to live together under one roof, dual kitchens offer a way for different generations to maintain independence while sharing a home. Parents, adult children, or extended family members can have their own space to cook and eat, creating a harmonious living arrangement.
  2. Enhanced Cooking and Entertaining Experience: For homeowners who love to entertain, an additional kitchen provides extra prep space and allows for seamless hosting. The main kitchen remains presentable for guests while the secondary kitchen handles cooking and cleanup. This setup is particularly appealing to those who frequently host gatherings or formal events.
  3. Cultural and Culinary Preferences: Many cultures place a strong emphasis on home cooking and require separate spaces for preparing certain types of food. A spice kitchen, for example, is popular among homeowners who cook with strong aromas and want to keep the main living areas free from lingering smells.
  4. Increased Home Value and Rental Potential: Homes with dual kitchens often attract higher resale values due to their versatility. They are particularly appealing for:
    • Investors looking to create rental opportunities: A separate kitchen makes it easier to rent out part of the home while maintaining privacy.
    • Short-term rental potential: Homeowners who list part of their home on platforms like Airbnb can offer a fully independent living space.
  5. Greater Convenience for Busy Households: Larger families or those with different schedules benefit from having two kitchens to avoid overcrowding in the main cooking area. It provides more efficiency for meal prep, storage, and cleanup.

If you’re in the market for a home with two kitchens, here are some key considerations:

  • Local zoning laws: Some areas have regulations on homes with multiple kitchens, especially for rental purposes.
  • Plumbing and electrical capacity: A second kitchen requires adequate infrastructure to support additional appliances and fixtures.
  • Resale market demand: While dual kitchens are gaining popularity, understanding the demand in your specific location is important for long-term value.

The demand for homes with dual kitchens is steadily rising, offering increased flexibility, enhanced lifestyle benefits, and strong resale value. Whether you’re a homebuyer seeking functionality or an investor looking for rental opportunities, this feature could be a valuable addition to your property search.

The Best Home Upgrades for Lasting Value

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When it comes to increasing your home’s long-term value, not all upgrades are created equal. While stylish kitchens and luxurious bathrooms may attract attention, the smartest investment is one that continues to pay off for years to come: energy efficiency.

Unlike cosmetic updates that can lose appeal over time, energy-efficient upgrades provide lasting benefits. They lower utility costs, increase property value, and make your home more appealing to buyers.

  • Higher Property Value: Energy-efficient homes often sell at a premium. Buyers are increasingly eco-conscious and willing to pay more for homes that promise lower energy bills and a reduced carbon footprint.
  • Lower Utility Costs: Improvements like upgraded insulation, energy-efficient appliances, and smart thermostats reduce daily energy consumption, leading to significant savings over time.
  • Tax Incentives and Rebates: Many energy-efficient upgrades, such as solar panels and smart home systems, qualify for government tax credits and rebates, making them even more affordable.

Not sure where to start? Here are some of the most impactful improvements:

  • Better Insulation: Sealing air leaks and adding insulation in walls, attics, and floors can reduce energy loss, keeping your home comfortable year-round.
  • Energy-Efficient Windows: Replacing single-pane windows with double- or triple-glazed options cuts heating and cooling costs while reducing outside noise.
  • Solar Panels: While the upfront cost is high, solar panels significantly reduce electricity bills and can even generate extra income through energy buyback programs.
  • Smart Home Technology: Devices like smart thermostats and energy-efficient LED lighting help optimize energy use without sacrificing comfort.

Investing in energy efficiency is one of the smartest decisions a homeowner can make. Not only does it lower costs and boost property value, but it also helps create a sustainable future. Plus, energy-efficient homes often sell faster in today’s market, making them a win-win investment.

What’s Ahead For Mortgage Rates This Week – April 28th, 2025

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While many useful indicators are set to be released this week, the previous week left us only with the Leading Economic Indicators, which showed signs of the economy slowing down in the future. Consumer Sentiment reports also indicated widespread dissatisfaction across all levels of income and education, largely due to the impacts of recent tariff decisions, which have been on hold.

We should expect next week to provide a clearer picture as decisions are made in the trade war between China and the United States. The PCE Prices, Non-farm Payrolls, Chicago Manufacturing PMI, Personal Income, and GDP estimates will offer more insight into the impact of the tariffs.

Concerns about inflation remain, but given the current stance on monetary policy, the Federal Reserve is much more likely not to react to inflation immediately, keeping its focus largely on the policies being set by the current administration.

Leading Economic Indicators

Leading Economic Index (LEI) for the US declined by 0.7% in March 2025 to 100.5, after a decline of 0.2% (revised up from -0.3%) in February. The LEI also fell by 1.2% in the six-month period ending in March 2025, smaller rate of decline than its -2.3% contraction over the previous six months.

Consumer Sentiment

Consumer sentiment plunged 8% in April from the prior month, to a final reading of 52.2, the University of Michigan said in its latest survey released Friday. That was a slightly smaller decline than a preliminary reading from earlier this month, which didn’t capture people’s reaction to Trump’s 90-day tariff delay announced on April 9.

Primary Mortgage Market Survey Index

• 15-Yr FRM rates saw a decrease of -0.09% for this week, with the current rate at 5.94%
• 30-Yr FRM rates saw a decrease of -0.02% for this week, with the current rate at 6.81%

MND Rate Index

• 30-Yr FHA rates saw a decrease of -0.11% for this week. Current rates at 6.25%
• 30-Yr VA rates saw a decrease of -0.11% for this week. Current rates at 6.27%

Jobless Claims

Initial Claims were reported to be 220,000 compared to the expected claims of 220,000. The prior week landed at 216,000.

What’s Ahead

PCE Prices, Non-farm Payrolls, Chicago Manufacturing PMI, Personal Income, and GDP estimates are set to release next week. With other releases in the Global US Manufacturing PMI which historically isn’t a significant indicator but with a major shift in the dynamics of world trade, we can see major changes in those data release.