Dec 20, 2013 | Around The Home
It’s Christmas time, it’s Christmas time – which means it’s time to get a tree for your home. Whether you get a real tree or an artificial one, it’s also time to think about Christmas tree safety.
Prevent A Fire Hazard
There’s a potential fire hazard that comes with real trees, a danger that’s lessened with artificial trees, but artificial trees have their own safety issues.
For instance, those that spin on their bases shouldn’t be left to rotate on their own. Make sure the motor is turned off whenever you leave the room.
Even though safety precautions are more necessary with real Christmas trees, sometimes you can’t resist the fresh pine smell filling your home. Should you decide to go with a real Christmas tree, here are some safety precautions that should be followed to avoid fire hazards.
Safety Precautions For That Tree Of Yours
1. Place the tree as far from any heat sources as possible. While it may seem picturesque to have your tree close to the fireplace, the heat can dry out the tree and make it more susceptible to burning.
2. Fresh cut the tree. While you may have cut the tree down before bringing it home, you still need to cut a little bit more off the bottom just before you put it in the Christmas tree stand. This gives the tree a better ability to absorb the water in the stand, which stops it from drying out.
3. Don’t let the water run out. It’s important to stress that your Christmas tree needs to stay moist and green. To check for dryness, lightly grab the end of a branch and pull on it. If several needles come off, it’s time to take it down.
4. Don’t burn the tree to get rid of it. A dry tree blaze is hard to control, and pine generates a lot of creosote that can catch fire. There are safer ways to dispose of your tree including recycling your Christmas tree. To learn more about safe disposal of your tree, contact your local city or state.
Have fun decorating your home and tree and for Christmas. Just remember to be safe as you celebrate the season! If a new home is on your Christmas list, contact your trusted real estate professional today.
Dec 19, 2013 | Federal Reserve
Housing Starts exceeded expectations and also beat October’s reading of 889,000. November housing starts were posted at 1.09 million against a consensus of 963,000.
This reading is more in line with the NAHB/Wells Fargo Home builder Market Index, which reached a four month high with December’s reading.
With that threat resolved and a new federal budget passed, builders can now proceed without worrying about setbacks caused by government shutdowns and legislative gridlock.
Building permits issued in November were slightly lower at 1.01 million than October’s reading of 1.04 million. Viewed as an indicator of future construction, and ultimately, available homes, it is not unusual for construction and permits to slow during the winter months.
FOMC Statement And Chairman Bernanke’s Last Press Conference
Throughout 2013, strong signs of economic recovery have led to predictions of the Federal Reserve tapering its quantitative easing program.
As each FOMC meeting approached, analysts predicted that the Fed would start reducing its $85 billion purchases of Treasury and mortgage-backed securities.
The asset purchases are part of the government’s quantitative easing program that was implemented to keep long-term interest rates and mortgage rates low.
The cut finally came on Wednesday as the FOMC made its customary post-meeting statement. Effective in January 2014, the Fed will reduce its monthly purchases by $10 billion.
The QE purchase will be split between $40 billion in Treasury securities and $35 billion in MBS. The Fed expects that the economy will continue recovering at a moderate pace.
The FOMC statement noted that the Fed will continue monitoring inflation, which remains below the Fed’s target rate of 2.00 percent, and the national unemployment rate, which remains above the Fed’s target rate of 6.50 percent.
The statement noted that asset purchases are not on a predetermined course, and that the Fed will continue to closely monitor labor market conditions, inflation pressure and economic developments in the U.S. and globally.
The Fed did not change its target federal funds rate of 0.00 to 0.25 percent, and would not do so at least until unemployment falls to 6.50 percent. Changes to policy accommodation are made with the Fed’s dual goal of achieving an inflation rate of 2.00 percent and achieving maximum national employment goals.
Bernanke Press Conference
Mr. Bernanke repeated key points of the FOMC statement, and noted that “highly accommodative monetary policy and waning fiscal drag” is helping with the economic recovery, but that the economy has much farther to go before it can be considered fully recovered.
Mr. Bernanke said that FOMC members saw the unemployment rate dropping from 7.00 percent in November 2013 to 6.30 to 6.60 percent in the fourth quarter of 2014. Improving labor markets and rising household spending were cited as signs of economic recovery.
Mr. Bernanke mentioned concerns about the high unemployment and underemployment rates and said that the Fed’s benchmarks for unemployment and inflation would not automatically trigger reductions in its QE asset purchases.
He also said that the committee did not expect to adjust the target federal funds rate immediately after the national unemployment rate reaches 6.50 percent.
Mr. Bernanke repeated that the Fed’s actions regarding monetary policy and QE would be dependent on in-depth review of ongoing financial and economic developments, but said that further tapering of QE purchases is likely if the economy stays on its present course of moderate improvement.
Dec 18, 2013 | Housing Analysis
According to the National Association of Homebuilders/Wells Fargo Homebuilders Market Index for December, builder confidence recovered in with a reading of 58. This surpassed both expectations of 56 and last month’s reading of 54.
Analysts noted that builder confidence has steadied after the government shutdown. December’s reading was the highest in four months. Dave Crowe, NAHB chief economist, said that his organization was expecting a “gradual improvement in the housing recovery” in 2014.
Any reading above 50 indicates that more builders are confident about overall housing market conditions than not.
Builder Confidence – Highest Reading Since 2005
Pent-up demand for housing is driving housing markets in spite of higher mortgage rates. Three components of builder confidence used to calculate the overall reading also rose in December. Builder confidence in current home sales rose to 64 from a reading of 58 in November; this is the highest reading since 2005.
Confidence levels in housing markets over the next six months rose to 62 from last month’s reading of 60. Builder confidence also grew in the area of buyer foot traffic in new developments and gained three points to a reading of 44.
All of this is good news, but the NAHB said that a gap remains between higher home builder confidence and the rate of new home construction. A seasonal lull in home construction is not unusual especially in areas experiencing harsh weather.
More Jobs, Low Refinance Numbers Could Mean More Mortgages Available
MarketWatch analysts suggest that if the economy continues to add jobs “at a brisk pace” and mortgage lenders ease lending requirements next year, the demand for homes could further strengthen the U.S. housing market next year.
Low numbers of refinance mortgages in 2013 may cause some lenders to loosen mortgage credit requirements, which were tightened after the housing bubble burst.
Economic News scheduled for today may provide a broader picture of economic health and likely trends for 2015. The Federal Reserve’s Federal Open Market Committee will provide its expected statement after its meeting, and Fed Chairman Ben Bernanke will give his last press conference as Fed chair as well.
Any indication of plans to reduce the Fed’s current quantitative easing program could upset financial and mortgage markets, but most economic analysts don’t expect an announcement of tapering the Fed’s asset purchases before next year.
Data on November Housing Starts and Building Permits will also offer clues as to how housing markets and the general economy are doing.
Dec 17, 2013 | Around The Home
It’s coming up on Christmas time, which means that people are decorating their home with lights and tinsel. It also means that it’s time to pick a Holiday tree. If you’ve never had a real Holiday tree or you never seem to get it quite right, these tips and tricks can help you pick the perfect tree:
Buying Your Tree
- Measure where you’re going to place the tree in your home, from ceiling to floor. You’ll want your tree to be at least a foot shorter than the ceiling, so take a measuring tape with you when you shop for your tree.
- When measuring for height, adjust for the star, angel or topknot that you’ll be using; most can add as much as twelve inches to the height of your tree.
- Measure the opening of your tree stand, so you know how wide the base of the tree can be.
- The base of the tree should be straight and at least six inches long to fit nicely into your tree stand.
- Run your fingers along the needles of the tree you’re looking at, and give the tree a shake. Very few needles should fall off.
- For the best shape, full branches, rich color and good needle retention on trees, choose a Balsam fir, Douglas fir, Fraser fir, Noble fir or Scotch pine.
- Buy as soon as you can for the best quality, or wait longer for best price.
Taking Care Of Your Tree
- After you get it home, cut an inch off the base so your tree can take in water more easily. Make sure the cut is straight.
- Use a stand that holds at least one gallon of water.
- Make sure you water your tree often. This keeps the needles from drying, as well as keeping the fragrance strong. Check the water level every few hours.
- Don’t add anything to the water – no aspirin, soda water, bleach, etc. – to keep it fresh. According to the experts, lots of plain water is best.
Keep cheerful Holiday spirit alive by having the perfect Holiday tree in your home, one that’s lush and brightly decorated. Want a new home to decorate? Call your trusted real estate professional. Have a Happy Holiday!
Dec 16, 2013 | Mortgage Rates
Mortgage Debt Rises For First Time Since Recession
Last week was relatively quiet concerning scheduled housing-related news, but the Federal Reserve’s financial accounts report, released on Monday, indicated that mortgage debt in the U.S. had increased for the first time since the first quarter (Q1) of 2008.
Mortgage debt increased by a seasonally-adjusted annual rate of $87.4 billion, or 0.90 percent. Mortgage debt remains approximately 12.00 percent below pre-recession levels.
Increasing debt is not often considered good news, but in the case of mortgage debt in today’s economy, it suggests economic recovery in the form of higher home prices and fewer foreclosures.
Another instance of counter-intuitive economic results was released Tuesday. The Bureau of Labor Statistics (BLS) released its Job Openings and Labor Turnover Survey (JOLTS) report for October.
JOLTS indicated that 2.39 million workers quit their jobs in October. This was the highest number of jobs quit since 2008. While this may appear counter-productive to a growing economy, it indicates that workers are leaving their jobs for better positions.
Mortgage Rates Fall, Federal Budget Deficit Shrinks
On Wednesday the U.S. Treasury announced that November’s federal budget deficit had shrunk to -$135 billion from November 2012’s deficit reading of -$172 billion. This represents a year-over-year deficit decrease of 21 percent.
Freddie Mac’s Primary Mortgage Market Survey (PMMS) report provided good news as average mortgage rates fell last week. The average rate for a 30-year fixed rate mortgage fell from 4.46 percent to 4.42 percent. Discount points rose from the previous week’s reading of 0.50 percent to 0.70 percent.
15-year fixed rate mortgage rates fell from 3.47 percent to an average reading of 3.43 percent, with discount points rising from the prior week’s reading of 0.40 percent to 0.70 percent.
The average rate for a 5/1 adjustable rate mortgage dropped from 2.99 percent to 2.94 percent with discount points unchanged at 0.40 percent.
Lower mortgage rates are good news for home buyers facing higher home prices.
Weekly jobless claims rose last week. The previous week’s reading of 300,000 new jobless claims was short-lived as the reading for new jobless claims rose to 368,000 last week and surpassed a consensus of 335,000 new jobless claims.
Financial analysts cautioned that employment data can be volatile during the holidays, and noted that the four-week average of new unemployment claims rose by 6000 to 328,750.
What‘s Coming Up
There are several significant releases set for housing-related news. The NAHB housing market index, Housing Starts, and Building permits indicate how current builder confidence and new construction may impact the supply of available homes.
On Wednesday, the FOMC will issue its usual statement at the conclusion of its two-day meeting. Some analysts expect an announcement concerning the Fed’s quantitative easing policy; Outgoing Fed Chair Ben Bernanke is set to give a press conference after the FOMC statement.
In addition to the weekly jobless claims report and Freddie Mac’s PMMS, Reports on Existing Home Sales and Leading Economic Indicators will also be released.
