Navy Fellas Realty Group

Real Estate, Residential sales and purchase

What’s Ahead For Mortgage Rates This Week – May 27th, 2025

by

Despite the recent pause on tariffs for Europe and progressing talks with China, the economic outlook remains largely negative across all sectors and markets. Although this week was relatively light on economic reports, the most notable was the Leading Economic Indicators, which showed a significant decline in every measurable category for April. This decline is largely attributed to the tariff policies implemented recently. Overall, the outlook remains pessimistic, despite other markets showing a more favorable reaction to the recent pauses on tariffs.

U.S. Leading Economic Indicators

The Conference Board Leading Economic Index (LEI) for the US fell sharply by 1.0% in April 2025 to 99.4 (2016=100), after declining by 0.8% in March (revised downward from the -0.7% originally reported). The LEI declined by 2.0% in the six-month period ending April 2025, the same rate of decline as over the previous six months (April–October 2024).

“The U.S. LEI registered its largest monthly decline since March 2023, when many feared the US was headed into recession, which did not ultimately materialize,” said Justyna Zabinska-La Monica, Senior Manager, Business Cycle Indicators, at The Conference Board. “Most components of the index deteriorated. Notably, consumers’ expectations have become continuously more pessimistic each month since January 2025, while the contribution of building permits and average working hours in manufacturing turned negative in April.

Primary Mortgage Market Survey Index

• 15-Yr FRM rates saw an increase of 0.09% for this week, with the current rate at 6.01%
• 30-Yr FRM rates saw an increase of 0.05% for this week, with the current rate at 6.86%

MND Rate Index

• 30-Yr FHA rates saw an increase of 0.18% for this week. Current rates at 6.53%
• 30-Yr VA rates saw an increase of 0.17% for this week. Current rates at 6.54%

Jobless Claims

Initial Claims were reported to be 227,000 compared to the expected claims of 230,000. The prior week landed at 229,000.

What’s Ahead

PCE Index data release, the Federal Reserve’s inflation indicator, the FOMC minutes giving us forward guidance for the Federal Reserve’s policy, and Univ. of Michigan Consumer Sentiment will be the most impactful releases of next week.

Honoring Our Heroes and Celebrating the Meaning of Home

by

This Memorial Day, we pause to remember the brave men and women who gave their lives in service to our country. Their courage, sacrifice, and commitment to freedom have made it possible for all of us to pursue our dreams, including the dream of home ownership.

What Home Truly Means
Home is more than four walls and a roof, more than a place to lay your head at night, it is where memories are made, milestones are reached, and futures are built. It is the front porch where your friends and neighbors gather, the backyard where barbecues bring families together, and the neighborhood that welcomes you. None of that would be possible without the dedication of those who fought to preserve our freedom.

Our Role in Building Dreams
In both the real estate and mortgage world, we have the privilege of helping individuals and families find a place to call home, a place they can grow, thrive, and live out the freedom so many fought to protect.

With Gratitude to the Families
On this solemn day, we also extend our deepest gratitude to the families of fallen heroes. Your strength and sacrifice do not go unnoticed. As we help our clients find homes and build futures, we carry that gratitude with us in everything we do.

Support for Those Who Serve
If you or someone you know is a veteran or active-duty service member, don’t forget there are special mortgage programs available to make homeownership more accessible. It’s one small way we can give back to those who have given so much.

Looking Ahead with Purpose
This Memorial Day, as we honor the past, we also look forward to helping build a future, one home, one family, and one dream at a time.

Wishing you peace, reflection, and time with loved ones on this Memorial Day holiday.

Inspecting Foreclosures Before You Buy

by

If you have been thinking about investing in a foreclosure property, you will want to make sure the home you choose does not have major hidden issues. Before hiring a professional inspector, you can do a preliminary check by looking out for some of these common problem areas:

Ceilings
Ceilings are typically made of plaster or plasterboard. Keep an eye out for:

  • Cracks, holes, or uneven areas
  • Dampness or mold growth
  • Crumbling surfaces
  • Bulging or cracked spots

Walls
Walls may show similar signs of damage as ceilings, but also look for:

  • Loose skirting boards
  • Dampness or rot
  • Discoloration, blisters, or peeling wallpaper
  • Hazardous materials like asbestos or painted polystyrene tiles (always consult a pro if you suspect asbestos)

Floors
Regardless of the flooring type, structural supports are key. Watch for:

  • Uneven surfaces
  • Cracks, movement, or lifted tiles
  • Loose boards or coverings
  • Large gaps between floorboards
  • Missing or broken tiles

Plumbing
Check both the kitchen, bathrooms, and elsewhere for:

  • Rusty or leaky pipes
  • Pipes that bang or knock
  • Lead piping
  • Poorly supported water tanks

Wiring
Outdated or damaged electrical systems can pose serious risks. Look for:

  • Rubber or exposed wires
  • Failing or blackened sockets
  • Brittle or cracked wiring
  • Overheating plugs

No matter how thorough your personal inspection is, always follow up with a licensed home inspector before making a purchase. A professional can ensure the home is safe and free from costly surprises.

Are you ready to find a great deal on a foreclosure property? We specialize in helping buyers through the process with confidence. Give us a call — we would love to help you get started today!

Should You Get a 15-Year Mortgage?

by

There are a lot of financing options available to help you purchase real estate, especially if you meet credit guidelines.

Most lenders prefer to offer 30-year mortgage loans. With a longer loan term, they collect more money in interest over the life of the loan, but if you have strong credit, a 15-year mortgage may be a better option, and one worth considering. Here’s a breakdown of the two:

What About a 30-Year Mortgage?
Thirty-year mortgages are the most common option for homebuyers. Monthly payments are typically more affordable, which is why lenders frequently recommend them. You may even qualify for a larger loan amount with a 30-year term. However, you’ll usually end up paying a higher interest rate over time, and significantly more in total interest.

What Are the Benefits of a 15-Year Mortgage?
A 15-year mortgage can save you a substantial amount of interest. While the monthly payments are higher, the loan term is cut in half and so is much of the interest you’d otherwise pay.

After just 16 years, you could be mortgage-free and ready to redirect that money into investments, other real estate properties, or long-term financial goals. Building wealth becomes easier when you are no longer tied to a three decade-long mortgage.

What About Prepayments?
Even if you decide on a 30-year loan, you can still benefit from early repayment strategies. Making extra payments toward the principal allows you to shorten the life of the loan, often dramatically, while maintaining the flexibility of lower minimum payments. Just check with your lender first to ensure there are no penalties for prepaying.

A 15-year mortgage is often the better financial choice because of the potential to save thousands in interest. You’ll pay off your home faster, build equity quicker, and gain more financial freedom in the long run.

No matter how you decide to finance your real estate purchase, we can help you find the best fit. Give us a call today!

What Do Points Have to Do With Real Estate?

by

You may have heard of points when looking for real estate. Maybe your loan officer told you that you can trade points for a better interest rate. That sounds good, but just what are points? We’ll give you a better idea of just what points are and how they work.

What Are Points?
Points, more specifically discount points, are a percentage of the total loan amount for the house that is pre-paid to the lender. Each point is worth one percent. Your lender may offer a lower interest rate for your mortgage loan if you buy discount points. 

What do Discount Points Cost?
The cost of each point is equal to one percent of the loan amount. For instance, for a $200,000 loan one discount point equals $2,000.

For example, you are trying to buy real estate worth $200,000. The lender may tell you that if you buy 2 points at $2,000 each, you’ll get an interest rate two percent better.  

Should I Buy Discount Points?
Some lenders will allow you to purchase discount points to be approved for the loan. By buying a discount point, you’ll get a lower interest rate. This can reduce your monthly payments, which could put your credit to debt ratio in the right range.
    
You have to know how long you will live in the house or you could lose money purchasing the discount points. If you sell or refinance before you reach the break-even point, you will wind up with a net loss. Use an online mortgage point calculator to help you determine if buying discount points is a money saving proposition for you.

Points may be a good way for you to save money on your real estate if you plan to stay in your home for a long time. Want one more benefit? Discount points are tax deductible in the year in which they are paid.

Need help understanding mortgage and real estate terms? Feel free to reach out! We can help explain the process.

How To Save Money Moving Into Your New Home

by

Moving into a new home is exciting, but it can also come with unexpected expenses that quickly add up. Between packing supplies, transportation, and time off work, costs can spiral before you even settle in. But with a bit of planning and resourcefulness, you can cut down on unnecessary spending and keep more cash in your pocket.

Plan Ahead and Get Creative
The key to saving money during a move is preparation. Start gathering your moving supplies weeks in advance. The closer you get to moving day, the more likely you are to overspend in a panic.

Save Money on Boxes
Boxes may seem like a minor expense, until you realize you need dozens of them. Buying brand-new moving boxes from a store or moving company can cost $2 to $5 each. Multiply that by 30 or 40, and you have spent a small fortune just on cardboard.

Here’s how to get boxes without blowing your budget:

  • Check Craigslist or Facebook Marketplace: Many people offer gently used moving boxes for free or cheap. They’ll often be happy to let them go just to free up space.
  • Look on eBay: Some sellers offer bulk moving boxes at discounted prices. Just be sure to account for shipping before checking out.
  • Ask local stores: Grocery stores, liquor stores, and big-box retailers regularly receive shipments and may have sturdy boxes available. Just ask a manager if they can set some aside for you.

Save on Packing Materials
Professional movers offer packing services, but they come at a premium. Labor, materials, and time all factor into the cost, and it can add hundreds to your final bill.

Instead, do the packing yourself and use items you already have:

  • Use newspaper for breakables like dishes, mugs, and wine glasses.
  • Wrap items with soft belongings such as towels, blankets, and T-shirts.
  • Use socks to fill gaps in boxes or cushion fragile items, just as effective as packing peanuts, and they’re already paid for.

Save on Transportation
Renting a moving van or hiring movers is often the biggest cost. Before committing, check with friends and family first. Someone may have a truck or trailer you can borrow or rent at a much lower rate than a commercial service.

Offer to pay for their gas or treat them to lunch, it will still be a fraction of the cost of a rental.

By planning ahead and being a little thrifty, you can cut moving costs significantly and reduce stress. Every dollar saved on moving is a dollar you can put toward making your new home feel like home.

Are you ready to start your next chapter? We can help you find the perfect home that fits your budget, lifestyle, and goals. Call today to begin the journey!