Dec 30, 2013 | Mortgage Rates
The University of Michigan’s Consumer Sentiment Index was improved for December at 82.5, after the November reading was adjusted from 82.5 to 75. Analysts noted that consumers were relieved when legislative gridlock ended.
Durable goods orders reached their highest level since May with November’s reading of + 3.5 percent. Without the volatile transportation sector, the reading for November was +1.2 percent.
This could be a sign of economic recovery for manufacturing, as more orders are being placed. Economists expected an overall increase of 2.0 percent for overall durable goods orders.
The U.S. Commerce Department provided housing markets with good news with its New Home Sales report for November. 464,000 new homes were sold in November against expectations of 440,000 new homes sold.
This expectation was based on the original reading of 444,000 new homes sold in October, which has been revised to 474,000 new homes sold. The latest reading for October is the highest since July of 2008.
While rising mortgage rates slowed home purchases during the summer, analysts note that home buyers seem to be adjusting for higher mortgage rates by purchasing smaller homes in less costly areas.
Home Builder Confidence recently achieved its highest reading since 2005, a further indication of overall economic recovery and housing markets in particular.
After Wednesday’s holiday, the Weekly Jobless Claims report came in with a reading of 338,000 new jobless claims filed. This reading was lower than expectations of 345,000 new jobless claims and significantly lower than the previous week’s report of 380,000 new jobless claims.
This was the largest decrease in new jobless claims since the week of November 17, 2012. After seasonal volatility associated with the holidays, analysts expect new jobless claims to decrease at a slower rate in early 2014,
Freddie Mac released its Primary Mortgage Market Survey on Thursday. Although some economic analysts had expected a jump in mortgage rates after the Fed announced its plan to begin tapering its monthly securities purchases in January, mortgage rates showed little change.
The average rate for a 30-year fixed rate mortgage rose by one basis point to 4.48 percent with discount points unchanged at 0.70 percent. Average 15-year mortgage rates also rose by one basis point to 3.52 with discount points moving up from 0.60 to 0.70 percent.
The average rate for a 5/1 adjustable rate mortgage rose by 4.00 basis points to 3.00 percent, with discount points unchanged at 0.40 percent.
2014 shows promise of a steady economic improvements, and given the latest New Home Sales report, it’s possible that improving housing markets will continue leading the way.
What’s Ahead
As with last week, this week’s schedule of economic events is reduced due to the New Year holiday. Pending home sales for November will be released Monday, Tuesday’s economic reports include The Case/Shiller Housing Market Indices and the Consumer Confidence report.
After the holiday on Wednesday, Thursday’s scheduled reports include the Weekly Jobless Claims and Freddie Mac PMMS on mortgage rates. Construction Spending will also be released. There is no housing or mortgage-related economic reports set for release on Friday.
Dec 27, 2013 | Around The Home
With most of the country easing into full-on winter weather, last-minute outdoor projects need to happen soon. And what better way to enjoy a cozy holiday season than by drinking hot chocolate and roasting marshmallows at your very own outdoor fire pit.
In one weekend, the steps below can help you build an outdoor fire pit and get you fired up about the cold!
Determine The Size And Location
The first order of business is to choose where to build your outdoor fire pit. You want to make sure it’s not too close to the house or overhanging trees.
Once you’ve found the spot, lay out a ring of stones and mark it with a shovel before you dig the hole. You’ll want it to be between 35-45 inches in diameter. This will allow a roaring fire, but it will also feel cozy and intimate.
Dig The Pit And Make A Trench
Make a hole six inches deep within the circle your marked using your stones. You want the sides to be straight and the bottom flat. Then dig down an extra six inches around the perimeter.
This trench should be wide enough to fit a ring of stone blocks that will be the base of your wall. Fill the six-inch deep trench with drainage gravel until it’s level with the center of your pit.
Lay The Stone Blocks
Lay out the stone blocks on top of the gravel. Place the first one and use a level to make sure it’s sitting squarely. Set the second block next to it and so on. Use a level to ensure everything is even.
For the second layer, squirt masonry adhesive in a snaking pattern and center a block on top of the seam of the first layer. Build up the wall until it’s about one foot above ground level.
Finish It Off
Fill the pit with gravel until you reach ground level. The gravel will help the base of the walls set straight. If you want to cover the outside of the pit walls with stone cap pieces, then try to fix them together like a puzzle using masonry adhesive.
Then you can either build a fire on top of the gravel or insert an iron campfire ring into the center. Once you’re finished, then it’s time to bundle up and get those marshmallows roasting!
Dec 26, 2013 | Around The Home
Did you know that, according to the U.S. Department of Energy, 10% of air leaks out of the average house through the windows? Also, an estimate by Energy Star states that homeowners could save an annual 7-15% on their energy bills by replacing their own windows with more efficient models.
If you live in an old home, it might not be possible to replace all of the windows in your home. However, there are still many simple and cheap things that you can do that will help to insulate your windows.
Apply Rubber Weather Sealing
At your local hardware store you will be able to find some inexpensive strips of rubber weather sealing that is self adhesive. You can cut a long strip down to fit your window and then peel it off and stick it to the frame in order to close gaps and keep out drafts.
This is a cheap solution, but it can be very effective and it will not affect the appearance of the windows. Be very careful when you peel off the rubber strips later, as they can leave a stick residue.
Keep Some Draft Snakes Around As Pets
What is a draft snake? It is a soft plush fabric tube that you can use on a window sill or also underneath your doors to prevent cold air from creeping into your home.
They are sold online or you can make your own by filling a tube of fabric with rice or beans. They are cheap and simple, but of course they will only insulate the window sill and not the rest of the glass.
Add Insulating Window Film
Another option for insulating your windows in the winter is to use insulating window film. This is a transparent product that sticks directly to your window and gives them an extra layer of protection.
This means that your windows will not be perfectly transparent, as the film will affect the view somewhat, so you might only want to use them in some parts of the house.
These are just a few simple ways that you can insulate your windows and save money on your energy bill this winter at your home. For more helpful tips, contact your trusted real estate professional.
Dec 24, 2013 | Around The Home
Christmas lights can be the most festive of holiday decorations, but actually putting them up can be a huge pain. With these easy step-by-step instructions, you can safely hang Christmas lights outside your house in no time. That way you can get back to what’s important, family time.
Buy Your Lights
You’ll need Christmas lights of course. There are a lot of options. You can get colorful lights or classic white lights. There are icicle lights, blinking lights, classic large bulb lights, and more. Just pick whatever looks good. Remember that consistency is important.
Pick one or two types and stick with them. Also remember to measure your roof, bushes, trees, or whatever you plan to cover with lights. Without proper measurements you won’t know how many lights to buy.
Test The Lights
Be sure to test the lights before you hang them up. Nothing is more frustrating than hanging up all the lights and finding that they don’t work. There are several testers that you can buy or you can even make your own, but I recommend simply plugging in each strand individually before you hang them up.
Get Some Clips
You’ll also need clips to help attach the lights to the roof or the gutter. I recommend buying the more expensive clips. The cheap ones break, and cause more frustration than they’re worth. Make sure you measure the thickness of your gutter as well. The clips come in different sizes.
Automatic Timers Are Your Friend
Finally, you’ll need surge protector with a built-in timer. It’s important to turn off the lights during the day to save energy and keep your bulbs from burning out, but unless you want to be plugging and unplugging your lights all the time, get a timer. They’re cheap, easy to use, and convenient.
Find A Friend
Hanging lights by yourself is a bad idea. It requires a lot of climbing up and down the ladder and that can be dangerous. Have someone else hand you the lights up the ladder, and hold it steady so you can focus on clipping on the lights.
Also, hang them up during the day. They might look prettier at night, but you can wait. Putting them up at night can be a risky venture.
Christmas can be the happiest time of the year, and the lights and decorations are a big part of that. Don’t think of hanging lights as a chore. Get the whole family involved and make it a Christmas activity.
Just be sure you have all your materials ahead of time, you’ve measured out how much you need, and you’ve got a timer to turn them off and on for you. That way when it’s time to hang up the lights, it will take no time at all.
Dec 23, 2013 | Mortgage Rates
According to December’s NAHB/Wells Fargo Housing Market Index, home builder confidence rose by four points to a reading of 58; this surpassed the consensus of 56 and November’s reading of 56.
November Housing Starts were released Wednesday and also exceeded expectations and the prior month’s reading. 1.09 million housing starts were reported for November against expectations of 963,000 and October’s reading of 889,000 housing starts.
Building permits issued in November came in at 1.01 million and fell short of October’s reading of 1.04 million permits issued. November’s reading exceeded expectations of 990,000 permits issued.
The week’s big news emerged after the conclusion of the Federal Reserve’s FOMC meeting. The committee announced that it would begin tapering the Fed’s $85 billion purchases of securities. The taper was modest; the Fed will reduce its rate of purchases to $75 billion monthly, with a split of $40 billion in Treasury securities and $35 billion in mortgage-backed securities.
Fed Chairman Ben Bernanke gave his final press conference as Fed chair. He noted that the FOMC was confident that the economy would continue to improve at a moderate rate and that the Fed would continue monitoring economic and financial developments to guide future adjustments in its monthly purchase of securities.
Mortgage rates were expected to rise after news of the Fed’s tapering of its quantitative easing program, as the program was intended to hold down long-term interest rates and mortgage rates.
Mortgage Rates, Jobless Claims Rise
Freddie Mac’s Primary Mortgage Market Survey confirmed expectations of higher mortgage rates. Average mortgage rates ticked upward by five basis points to 4.47 percent for a 30-year fixed rate mortgage; the average rate for a 15-year fixed rate mortgage rose by eight basis points to 3.51 percent.
Discount points for a 30-year mortgage were unchanged at 0.70 percent for a 30-year mortgage and dropped from 0.70 to 0.60 percent for a 15-year fixed rate mortgage. The average rate for a 5/1 adjustable rate mortgage rose from 2.94 percent last to 2.96 percent with discount points unchanged at 0.40 percent.
Weekly Jobless Claims came in at 379,000 and were higher than projections of 338,000 and the prior reading of 369,000 new jobless claims. Although the reading was the highest since March, analysts attributed the higher reading to changes in work schedules during the holidays.
Sales of existing homes slipped to their lowest levels in close to a year. The NAR reported that existing home sales fell from 5.12 million in October to 4.90 million in November.
Projections were set at 5.00 million sales for November, but a shortage of available homes and rising mortgage rates were seen as reasons for fewer sales. The approaching holiday season and cold weather typically contribute to a lull in home sales during the winter months.
What’s Ahead
This week’s scheduled economic news is light due to the Christmas holiday, but Monday’s releases include consumer spending, personal spending and the University of Michigan’s Consumer Sentiment Index.
New Home Sales for November will be released Tuesday. The week’s scheduled news will conclude with Weekly Jobless Reports on Thursday, as no further economic news is scheduled for Friday.
