Jun 3, 2022 | Real Estate Tips
The coronavirus pandemic has had a significant impact on individuals and families across the world, and it has permanently changed the way we live our lives. We will continue to wash our hands more frequently than before, we will probably avoid people if we are the slightest bit ill, and the way our homes work has been changed forever. In particular, open-concept living might not be as popular as it once was.
Why Is Open Concept Living Less Popular Than Before?
The biggest reason why open-concept living might now be less popular than it once was is that people are spending more time at home than they were before. Parents are working from home, children have to go to school from home, and chores around the house still have to get done. It can be difficult for parents to have a conference call if kids are going to school right next door. When this is combined with pets people have at home, it is easy to see why open-concept living could be a problem. The noise coming from the TV, the computer, fighting kids, and barking dogs can be incredibly distracting.
Why Open Concept Living Might Still Be Popular
Even though there are certainly some downsides that people discovered to open concept living, the advantages still remain. Open concept living creates more space to entertain, it lets in more natural light, and it allows family members and friends to feel more together even if they are in different rooms. To some, open-concept living might continue to be appealing, even if families with young children have a few downsides to overcome.
Open Concept Living Is A Lifestyle Choice
Ultimately, the pandemic has shown us that open concept living is a lifestyle choice. It is not something to be tossed to the side, and it is not something that is required. People simply need to decide whether an open-concept lifestyle is right for them. They need to think about what their lives look like today as well as what they will look like in the future. Keep in mind that nothing is permanent. There are ways for people to make changes to their homes to make them better suit their needs.
Jun 2, 2022 | Home Buyer Tips
One of the most significant challenges that many people face when preparing to buy a first home relates to saving money for a down payment. While there are many different loan programs with varying down payment requirements, the fact is that it can still be difficult to save up a large sum of money. Some programs may require you to save as much as 10 percent or 20 percent of the sales price of the home.
You can employ a few different tips and techniques to save money for a down payment more quickly, and these are some of the options that others have successfully used to save money for their home purchase.
Make Saving Automatic
One idea that works well for many people is to make saving for your new home automatic. This may be as simple as scheduling a regular draft or transfer from your checking account when your paycheck is deposited into your savings account. Some employers may even facilitate this process by contributing some of your funds into a savings account on your behalf. With this option, the money would go directly into your savings account without you having a chance to spend it.
Take Advantage of Retirement Accounts
If your employer provides you with the option of investing in an employer-sponsored retirement account, you should take advantage of this option. Many will offer a dollar-for-dollar matching program, and this may essentially double the amount of money that is saved in the account.
More than that, the funds from many retirement accounts may be withdrawn without penalty if they are used for a first-time home purchase. There are some rules and regulations regarding this, so you should research this option more thoroughly.
These are among the two best options for saving money for a down payment for your first home purchase. There are other ideas that you can consider as well. For example, you may borrow from a whole life insurance policy, obtain a gift from a family member or even sell some of your personal belongings that you no longer need or use.
When you combine many of these ideas together, you may be surprised how quickly your down payment fund can grow. You can also speak with a professional to learn more about the actual amount of money that you may need for the down payment and closing costs.
Jun 2, 2022 | Home Buyer Tips
One of the most significant challenges that many people face when preparing to buy a first home relates to saving money for a down payment. While there are many different loan programs with varying down payment requirements, the fact is that it can still be difficult to save up a large sum of money. Some programs may require you to save as much as 10 percent or 20 percent of the sales price of the home.
You can employ a few different tips and techniques to save money for a down payment more quickly, and these are some of the options that others have successfully used to save money for their home purchase.
Make Saving Automatic
One idea that works well for many people is to make saving for your new home automatic. This may be as simple as scheduling a regular draft or transfer from your checking account when your paycheck is deposited into your savings account. Some employers may even facilitate this process by contributing some of your funds into a savings account on your behalf. With this option, the money would go directly into your savings account without you having a chance to spend it.
Take Advantage of Retirement Accounts
If your employer provides you with the option of investing in an employer-sponsored retirement account, you should take advantage of this option. Many will offer a dollar-for-dollar matching program, and this may essentially double the amount of money that is saved in the account.
More than that, the funds from many retirement accounts may be withdrawn without penalty if they are used for a first-time home purchase. There are some rules and regulations regarding this, so you should research this option more thoroughly.
These are among the two best options for saving money for a down payment for your first home purchase. There are other ideas that you can consider as well. For example, you may borrow from a whole life insurance policy, obtain a gift from a family member or even sell some of your personal belongings that you no longer need or use.
When you combine many of these ideas together, you may be surprised how quickly your down payment fund can grow. You can also speak with a professional to learn more about the actual amount of money that you may need for the down payment and closing costs.
Jun 1, 2022 | Real Estate
If you are in the market for a home, it is important for you to think about what is most critical to your housing search. Unless you have an unlimited budget, you will probably have to compromise somewhere to make a competitive offer on a house you can afford. Every buyer is different, but there are a few common themes regarding where buyers tend to compromise when looking for a house.
The Condition Of The Home
One area where buyers tend to compromise is the condition of the house. Most buyers would prefer to purchase a new house that is move-in ready, but you may notice that it can be difficult to find a new house that is within your budget. If you are willing to purchase a house that is a bit older, you might be able to save money. Then, you can put this money towards home improvements.
The Size Of The Home
If you want to keep your housing search under a certain budget, you may need to compromise on the size of the house. Particularly in an overheated market, you might be able to scale back the home’s square footage to make a more competitive offer on a house. This is particularly true if you are looking for a house in a specific school district.
The Style Of The Home
You might have always dreamed of living in a mid-century colonial home, but it might not always be possible to find a house of this style that checks the other boxes. If you are willing to purchase a house that doesn’t quite match your style, you might be able to find a home that has the other characteristics you need.
Select The Right House
Everyone is different, and the right house for one person is not going to be the same as the right house for you. As you take a look at the houses available, think about what is most important to you. What do you need to have when you look for a home, and where are you willing to compromise? This can help you put yourself and your family in the best position possible to be successful during your housing search.
May 31, 2022 | Financial Reports
Last week’s economic reporting included readings on new and pending home sales, minutes from the Federal Reserve’s recent Federal Open Market Committee meeting, and data on inflation. Weekly readings on mortgage rates and jobless claims were also released.
New and Pending Home Sales Fall
The annual pace of new home sales fell in April according to the Commerce Department. Year-over-year sales of new homes fell to a pace of 591,000 sales as compared to the March reading of 709,000 sales of new homes. Analysts expected a year-over-year pace of 750,000 new home sales in April. Rising home prices and mortgage rates challenged first-time and moderate-income home buyers, which caused falling sales.
Readings for pending home sales fell by -3.90 percent in April; analysts expected a reading of -2.00 percent based on the March reading of -1.60 percent. High home prices and recently rising mortgage rates cooled prospective buyers’ interest as concerns over rising inflation and economic conditions sidelined low and moderate-income home buyers. Lawrence Yun, the chief economist for the National Association of Realtors®, said that rising mortgage rates have increased monthly mortgage payments by as much as $500. A secondary effect of fewer home sales is fewer sales of goods and services associated with home ownership.
The Federal Reserve’s Federal Open Market Committee minutes documented the Fed’s decision to raise its key interest rate range to 0.75 to 1.00 percent. FOMC members expect ongoing rate range increases as the Fed continues its efforts to control inflation.
Mortgage Rates, New Jobless Claims Fall
Freddie Mac reported lower average mortgage rates for the second consecutive week. Rates for 30year fixed rate mortgages fell by 15 basis points to 5.10 percent and rates for 15-year fixed rate mortgages fell by 12 basis points to 4.31 percent. The average rate for 5/1 adjustable rate mortgages rose by 12 basis points to 4.20 percent. Discount points averaged 0.90 percent for 30-year fixed-rate mortgages and 0.80 percent for 15-year fixed-rate mortgages. Discount points for 5/1 adjustable rate mortgage rates averaged 0.30 percent.
New jobless claims fell to 210,000 claims filed from the prior week’s reading of 218,000 initial claims filed. Analysts expected 215,000 new jobless claims. Continuing jobless claims rose to 1.35 million ongoing claims filed as compared to 1.32 million ongoing claims filed.
The University of Michigan’s Consumer Sentiment Index fell to an index reading of 58.40 in May as compared to April’s reading of 59.10. Readings over 50 are considered positive.
What’s Ahead
This week’s scheduled economic reports include readings on home prices and construction spending along with labor sector readings on job growth and the national unemployment rate.
