May 1, 2020 | Real Estate
For most people, their home is the most valuable investment they are ever going to make. Therefore, it should make sense that people will want to improve its value over time. In this case, people are going to need to invest in power tools. Those who are interested in home improvement projects need to know about the five most important power tools available in today’s market.
A Power Drill
While this might seem obvious, many people do not own a power drill. This is almost always at the top of the list of the best power tools on the market. It is a versatile tool that can handle everything from hanging pictures to putting in a fence. People need to make sure they know about the various options for drills on the market and find the one that is right for their needs.
A Jigsaw
A jigsaw is a unique but versatile saw that can help people with a variety of home improvement projects. This type of saw is great for helping people cut shapes and curves as well as straight lines. Try to find a jigsaw that has a variety of orbital settings. This will provide the user with added accuracy and speed.
A Circular Saw
This is another saw that is important for homeowners to have. This is great for heavier cutting jobs. They have the ability to cut through thick materials easily. There are both cordless and corded options and they pack a punch. Cordless varieties are a bit heavier but they provide the user with access to tight spaces
A Cordless Screwdriver
Traditional screwdrivers can pose a bit of a challenge and get uncomfortable over time. This is where a cordless screwdriver is helpful. This removes a significant amount of effort and makes projects go by more quickly. These screws can be used to both tighten and loosen screws.
A Rotary Tool
Finally, a great power rotary tool is a must. This is used to help people with cutting, grinding, sanding, and more. This is great for performing a variety of tasks around the home and can help people with numerous accessories. Do not overlook the value of a powerful rotary tool.
Apr 30, 2020 | Market Outlook
Home prices continued to grow in February according to the Case-Shiller Home Price Indices. National home prices grew at a seasonally-adjusted annual pace of 4.20 percent as compared to national home price growth of 3.90 percent in January. Case-Shiller’s 20-City Home Price Index showed higher home price growth rates in February with average annual home price growth of 3.50 percent. January home prices grew by 3.10 percent for cities included in the 20-City Index.
The lowest year-over-year home price growth rates were posted by Chicago, Illinois with 0.70 percent; New York City posted 1.50 percent growth, and Dallas, Texas with 2.50 percent home price growth.
Phoenix, Arizona home prices grew by a seasonally-adjusted annual rate e of 7.50 percent; Seattle, Washington home prices grew by 6.00 percent year-over-year. Tampa, Florida’s home price growth was tied with Charlotte, North Carolina’s home price growth rate of 5.20 percent. Analysts said that long-standing market conditions of high buyer demand, low inventories of available homes, and mortgage rates near record lows contributed to February’s home price growth.
Gains Across 20 City Composite
Craig Lazzara, managing director and global head of index investment strategy at S&P Dow Jones Indices, said February results “were broad-based with gains in every city in our 20-City Composite; 17 of 20 cities saw accelerating prices.”
February readings were based on home sales completed before the Coronavirus impacted the U.S. economy and government restrictions on all but essential activities reduced buyer traffic and slowed home sales. Areas supported by tourism and recreation were expected to see sharp declines in home prices and sales.
Fed Promises to Use All Remedies as Coronavirus Crisis Grows
The Federal Reserve’s Federal Open Market Committee said it would use all available tools to steady economic conditions destabilized by the Coronavirus pandemic. The FOMC said in its post-meeting statement that “The ongoing public health crisis will weigh heavily on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook in the medium term.”
Committee members did not change the current federal interest rate range of 0.00 to 0.25 percent and pledged to hold the Fed rate steady until the economy has weathered the public health crisis and was on track to achieve the Fed’s dual mandate of full employment and price stability.
Apr 29, 2020 | Mortgage
Whether you’re a buyer or a seller, a home appraisal is a critical component of the home selling process. An appraisal is also required in situations where a home is gifted to a family member, so it’s important to have a clear understanding of what it entails.
What Is A Home Appraisal?
A home appraisal is an unbiased estimate of a home’s fair market value conducted by a professional appraiser. All 50 states require that appraisers be licensed and/or certified and demonstrate knowledge of the specified area. The purpose of a home appraisal is to determine whether the home’s asking price is appropriate based on its location, condition, size, and amenities.
Appraisals are done in almost all purchase, sale and refinance transactions, with the exception being when a buyer uses cash and doesn’t have a mortgage. They are typically coordinated by the mortgage lender to ensure the loan isn’t too large in relation to the home’s value.
How Are Appraisal Values Determined?
Licensed appraisers calculate a home’s value based on comparable recent sales in the area and current market trends. Factors such as the home’s floor plan, size, number of rooms, and any upgrades or amenities are also considered. Upgrades and amenities could include things such as a pool, an expanded garage, or a remodeled kitchen.
The appraiser conducts a visual inspection to appraise a home, noting the home’s condition and whether any major repairs are needed. It’s important to note that this differs from a home inspection in that the appraisal assesses a home’s value, while an inspection assesses its condition. In an inspection, the home inspector actually makes repair recommendations. During an appraisal,the appraiser notes any necessary repairs but does not make recommendations.
When Is An Appraisal Done?
After an offer is made, an appraisal is one of the first steps in the closing process. Everything will proceed as planned as long as the appraisal value comes in at or above the price in the contract. If it appraises for below that amount, closing can be delayed or canceled altogether.
What Does A Home Appraisal Cost?
Costs vary based on the mortgage type, but a home appraisal generally costs $300-500. It is almost always paid for by the borrower as part of closing costs.
Apr 28, 2020 | Mortgage
Those who are involved in the real estate industry likely know that mortgage rates are at an all-time low. At the same time, nobody wants to pay more for a house than they have to. Some of the most important factors that dictate how much someone is going to pay for a house include points and interest rates.
While interest rates are incredibly low, there is a way to make them lower. This comes in the form of points. This is additional money that is paid upfront to get a better deal over the life of the loan. Even though this sounds great in theory this might not be the best option for everyone. There are a few important points to keep in mind.
What Are Points?
Often, the lender is going to offer someone the option of paying points when the mortgage is created. This should be viewed as paying interest on the loan in advance. In exchange for paying interest upfront, the lender should offer to lock in a lower interest rate over the life of the loan. The more points someone purchases, the better the rate.
For example, paying one point of interest may reduce the interest rate on the loan by 0.25 percent. This is standard. Take, for example, a $200,000 home. One point on this loan would cost someone about $2,000. In exchange, the interest rate on the loan is going to drop by 0.25 percent. This might be worth it in the long run.
Discount Points
Other people might have heard about something called discount points. This is another term for mortgage points. The two terms can be used interchangeably. Typically, people can purchase as many discount points as they want, up to the limit of the lender.
An Overview Of Origination Points
Another type of points that people might have heard about is origination points or origination fees usually expressed by a percentage of the loan amount. These are points that are charged to the borrower to cover the of processing, or originating, the mortgage loan. These fees are included in the total closing costs disclosed when you apply for your home loan.
Origination points are almost always negotiable. The number of origination points that a lender is going to charge can vary from place to place. Therefore, always be sure to ask about origination points. There might be a way to get these points waived, saving the borrower a significant amount of money.
Apr 27, 2020 | Financial Reports
Last week’s scheduled economic news included readings on sales of new and previously-owned homes and consumer confidence. Weekly readings on mortgage rates and new jobless claims were also released.
COVID-19 Requirements Impact Home Sales
Widespread state and local requirements for sheltering at home negatively impacted home sales in March. New homes sold at an annual pace of 627,000 sales as compared to 741,000 sales reported in February. Analysts estimated 628,000 sales for March according to the Commerce Department.
The National Association of Realtors® reported lower sales of previously-owned homes in March with an annual pace of 5.27 million sales. February’s annual sales rate was 5.76 million homes. Sales of pre-owned homes exceeded analysts’expectations of 5.24 million existing homes sold annually.
Annual sales calculated for March were 8.50 percent lower than February’s reading. Lawrence Yun, the chief economist of the National Association of Realtors®, said that the organization expected home sales to fall in March and expected fewer home sales in April.
The COVID-19 outbreak impacted both home sellers and buyers as restrictions on open houses and home tours limited sellers’ability to show their homes; prospective buyers delayed their home shopping activities due to COVID-19 restrictions and job losses related to business closures.
Mortgage Rates Mixed, Jobless Claims Lower
Freddie Mac reported higher fixed mortgage rates last week; rates for 5/1 adjustable rate mortgages dropped. The average rate for 30-year fixed-rate mortgages rose two basis points to 3.33 percent; rates for 15-year fixed-rate mortgages rose six basis points and averaged 2.86 percent. Rates for 5/1 adjustable rate mortgages fell by six basis points on average to 3.28 percent. Discount points averaged 0.70 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.
First-time jobless claims remained far above average last week but were lower than the prior week. 4.43 million initial unemployment claims were filed last week as compared to 5.24 million claims filed the prior week. Analysts expected a reading of four million new claims filed last week.
April’s Consumer Sentiment Index reading fell to an index reading of 71.8 from the March reading of 89.1 Analysts expected a reading of 69.3. The University of Michigan said that the Index reading from March to April showed the steepest drop in Index history. Analysts said that April’s reading indicated an economic recession.
What’s Ahead
This week’s scheduled economic reports include Case-Shiller Home Price Indices, pending home sales, and the post-meeting statement of the Fed’s Federal Open Market Committee. Fed Chair Jerome Powell will give a press conference after the FOMC statement. Construction spending data will be released along with weekly readings for mortgage rates and new jobless claims.
