Mortgage Interest Rates Reverse Course in 2017

 To start the year, housing experts all agreed on one thing: 2017 was going to be the year we would see mortgage interest rates begin to rise. After years of historically low rates, and an improving economy, the question wasn’t if they would increase but instead how much they would increase. Some thought we could see rates hit 5-5.5% by the end of the year. However, the exact opposite has happened. Instead of higher rates as we head into the middle of 2017, we now have the lowest rates of the year (as reported by Freddie Mac). Here is a graph of mortgage rate movement since the beginning of the year: 

Projections still call for an increase…

Four major entities (Freddie Mac, Fannie Mae, the Mortgage Bankers Association and the National Association of Realtors) are still projecting that rates will increase by the fourth quarter of the year. 

Bottom Line

No one knows for sure where interest rates will be in six months. However, if you are thinking about buying your first house or trading up to the home of your dreams, you can still get a mortgage at historically low rates RIGHT NOW.

The Impact Your Interest Rate Makes [INFOGRAPHIC]

Projects to Boost Your Home’s Curb Appeal

4 Tips to Boost Curb Appeal Exterior maintenance matters. Here are four projects that will boost your home’s curb appeal while curbing the need for costly maintenance down the road. Given the amount of time homeowners spend inside their homes, it’s no surprise that most remodeling dollars end up indoors. But neglecting your home’s exterior can leave it looking tired and rundown. Here are four projects that will boost your home’s curb appeal and ensure that the outside of your home looks as good as the inside. 1. Liven Up Your Landscaping If you’re ready to spruce up your landscaping, you’ll want to do so when the temperatures are relatively cool. While you’re planning your project, be sure to take a look at the grade surrounding your home. Over time, it can become compacted and slope toward your house. Poor grading causes water to flow toward your home, putting your foundation at risk. 2. Touch It Up If left untouched, your siding could start to rot, mold or warp. Thankfully, a little preventative maintenance can help you avoid any costly siding repairs. If you notice chipping or peeling paint, it’s time to break out the sandpaper, primer, paint and paintbrushes. Most of the time, painting is a project that you can accomplish in an afternoon. But, your project could involve more work than you have time for. If that’s the case, now is a good time to start talking to pros. Pro Tip: Pressure washing your home each spring removes dirt and can help prevent mold and mildew infestations. 3. Repair Your Roofing and Gutters Missing shingles and sagging gutters do more than make your home look shoddy — they can cause seriously pricey problems. If you notice that your gutters are having trouble moving water away from your foundation, or if it’s been a while since you’ve had your roof inspected, it’s a good idea to have a roofing pro stop by for an inspection. 4. Fantastic Fencing Has your fence seen better days? If so, taking the time to make repairs now could prevent you from having to replace your entire fence later down the road. In many cases, repairs are minor. Unless your fence is really worse for wear, you should be able to tackle the repairs in a weekend.

If Your Home Hasn't Sold Yet... Definitely Check the Price!

 The residential housing market has been hot. Home sales have bounced back solidly and are now at their fourth highest pace over the past year. Demand has remained strong ­throughout spring as many real estate professionals are reporting bidding wars with many homes selling above listing price. What about your house? If your house hasn’t sold, it could be the price. If your home is on the market and you are not receiving any offers, look at your price. Pricing your home just 10% above market value dramatically cuts the number of prosp­­ective buyers that will even see your house. See chart below.  Bottom Line The housing market is hot. If you are not seeing the results you want, sit down with your agent and revisit the pricing conversation.

More Americans Chose to Own a Home Than Rent in Q1

 According to the latest report from the US Census Bureau, more Americans chose purchasing a home over signing a lease to rent in the first quarter of 2017. This marks the first time since 2006 that the number of new homeowner households outpaced the number of new renter households. Of the 1.22 million new households that were formed in the first quarter, 854,000 were new-owner households making the jump straight to homeownership rather than renting first. That means that the homeownership rate amongst new households was 70%! This is huge news as the national homeownership rate is currently 63.6% and has only ever come close to this figure in the second quarter of 2004 when the homeownership rate reached an all-time high of 69.2%. A recent Wall Street Journal article pointed to the uptick in first-time homebuyers coming to market as a reason for the jump: “The return of first-time buyers is accelerating. In all they have accounted for 42% of buyers this year, up from 38% in 2015 and 31% at the lowest point during the recent housing cycle in 2011, according to Fannie Mae, which defines first-time buyers as anyone who hasn’t owned a home in the past three years.” Ralph McLaughlin, Trulia’s Chief Economist, had this to say about what a bump in new homeowner households could mean for the housing market: “Strong renter household formation is one of the reasons why the homeownership rate has continued to drop since the onset of the housing crisis, so any sign this trend is reversing is something to take note of. We look forward to future releases of these data to determine whether this is a statistical blip or a trend.” Bottom Line As more and more potential first-time buyers realize their ability to buy a home without having to rent first, not only will the homeownership rate benefit, but so will the overall economy

5 Reasons to Hire a Real Estate Professional When Buying or Selling!

 Whether you are buying or selling a home it can be quite an adventurous journey, which is why you need an experienced real estate professional to guide you on the path to your ultimate goal. In this world of instant gratification and internet searches, many sellers think that they can For Sale by Owner or FSBO. The 5 reasons you NEED a real estate professional in your corner haven’t changed, but have rather been strengthened by the projections of higher mortgage interest rates & home prices as the market continues to pick up steam. 1. What do you do with all this paperwork? Each state has different regulations regarding the contracts required for a successful sale, and these regulations are constantly changing. A true real estate professional is an expert in his or her market and can guide you through the stacks of paperworknecessary to make your dream a reality. 2. Ok, so you found your dream house, now what? There are over 180 possible steps that need to take place during every successful real estate transaction. Don’t you want someone who has been there before, someone who knows what these actions are, to make sure that you achieve your dream? 3. Are you a good negotiator? So maybe you’re not convinced that you need an agent to sell your home. After looking at the list of parties that you will need to be prepared to negotiate with, you’ll soon realize the value in selecting a real estate professional. From the buyer (who wants the best deal possible), to the home inspection companies, to the appraiser, there are at least 11 different people who you will need to be knowledgeable of, and answer to, during the process. 4. What is the home you’re buying/selling really worth? It is important for your home to be priced correctly from the start to attract the right buyers and shorten the amount of time that it’s on the market. You need someone who is not emotionally connected to your home to give you the truth as to your home’s value. According to the National Association of REALTORS, “the typical FSBO home sold for $185,000 compared to $245,000 among agent-assisted home sales.” Get the most out of your transaction by hiring a professional. 5. Do you know what’s really going on in the market?There is so much information out there on the news and the internet about home sales, prices, and mortgage rates; how do you know what’s going on specifically in your area? Who do you turn to in order to competitively, and correctly, price your home at the beginning of the selling process? How do you know what to offer on your dream home without paying too much, or offending the seller with a lowball offer? Dave Ramsey, the financial guru, advises: “When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.” Hiring an agent who has his or her finger on the pulse of the market will make your buying or selling experience an educated one. You need someone who is going to tell you the truth, not just what they think you want to hear. Bottom Line You wouldn’t replace the engine in your car without a trusted mechanic. Why would you make one of the most important financial decisions of your life without hiring a real estate professional

Three Keys to Selling Your Home

1. Marketing Your Home On The Inside Most home sellers are aware of the need to spruce up their home so that it sells, but often have no idea where to begin or how to prioritize the improvements. According to a recent poll of over 3500 homes professionally staged, the average staging investment that is between 1 and 3 percent of the home's asking price will generate a return of 8 to 10 percent of the sale price of the home!!! In today's real estate market, it simply means you will be able to attract more buyers and sell your home quickly because it appeals to the broadest range of buyers. Home sellers know they need to spend; they just need professional guidance in knowing where to spend those staging dollars in order to have the greatest return on their investment. 2. Marketing Your Home To The Public Your online photo presentation is Key Number Two in selling your home fast and for the best price!! 95% of homebuyers are ONLINE first looking at photos of the homes, before they decide to drive by and visit 84% of buyers reported the photos to be the most useful information The number ONE action taken after viewing a home online was to drive by or visit the home Your home's online photo presentation is competing against many other homes for the buyer's attention. Staging your home makes your photos standout from the rest!! 3. Price the Home Right the First Time Real estate agents are experts on the marketplace and at reading and understanding comparable homes nearby. Statistically, a home that "sits" on the market loses its new listing buzz and ends up selling for a lower price down the road. In fact, according to a National Association of Realtors survey, the longer a home stays on the market, the further below list price it drops.  Homes that sold in the first 4 weeks averaged 1 percent more than the list price: 4 to 12 weeks averaged 5 percent less; 13 to 24 weeks averaged 6.4 percent less than the list price; and 24 weeks averaged more than 10 percent less than list price. The combination of "Home Staging" And "Pricing" your home right the first time, will help sell your home in a shorter amount of time and for more.