Category — Real Estate News & Tips

9 Tips For Creating A Family Friendly Home That Marry Form And Function

Having a kid and trying to make sure you don’t lose your sense of style as the home gets overrun by bouncy chairs and toys? Maybe you’ve been in kidland for several years and are looking to reclaim some of your style. It can be challenging.

“As tricky as it may be to live comfortably in a small one-bedroom or studio, decorating a big family home has its hurdles, too,” said MY DOMAINE. “There are so many questions to ask: What fabrics are kid- and pet-friendly? Which coffee tables won’t take my toddler’s eye out? How can I give myself a little privacy? Once you figure out what works best for your brood, the next big thing to consider is how to do it all in style.”

Here are some tips to help you navigate the space between form and function.

Fight against dirty walls

“There’s no getting around it: Walls take a beating with young ones around,” said HGTV. “Cleats are casually tossed against white baseboards. Bedroom doors become backboards for basketball practice. A fresh expanse of drywall morphs into a blank canvas for that new set of crayons. Sticky fingers trail along hallway walls.”

But that doesn’t mean you can’t have beautiful color. Just make sure you choose paint that is washable and wipeable. Some family-friendly favorites can be found here.

Watch those corners

Sharp corners are the bane of a new parent’s existence. You can mitigate them by using pool noodles or edge guards, but they’re not so stylish. A round coffee table instead of one that’s squared off can be a great addition to your living room, both from a functional and style perspective.


Rustica Hardware
Bring in a little fun

Adding in fun touches keeps your home lively. This chalkboard barn door does the trick, and it comes in a variety of different finishes and textures to match your unique style.

You can have the white couch

We always chuckle when we see home design shows that give a growing family a big white couch. That’s not happening in our house, where materials are chosen expressly for their ability to resist spills and dog hair, and colors chosen to best disguise dirty fingers and puppy stains. But, white can be done. You just need some washable slipcovers, a little diligence, and a good washing machine.


Wayfair
You don’t need a glider chair

It’s one of the first things new parents-to-be think about when preparing for their first child. And a glider chair is a great place to hold, rock, and nurse a baby. But, unless you’re planning on having several children in a row or see the chair melding into your décor beyond the baby stage (especially if you’re intending to put it in the middle of your living room), you might be able to do without – especially if you’re on a budget.

There’s a lot of back and forth about how much of a necessity (or not) a glider is, but if you’re on the fence, don’t want to spend the money, or would rather focus on something that better matches your style and long-term décor needs, you’re justified.

You don’t need duckies and bunnies or baseballs and mitts in the baby’s room

Nor do you need a gender-specific color. Check out the chic HGTV star Jillian Harris created for new baby, Leo.


Jillian Harris
Don’t go with a cheap rug

You might be worried about wear and tear and stains with kids, but a quality rug may be a better option than something cheap. “Invest in a wool rug,” said The Chriselle Factor. “Wool rugs generally come at a higher price point, but for the family-friendly home, they’re worth every penny. They’re soft underfoot, help break the tumbles and falls of the newly-walking, and they’re much more durable against foot traffic – so more often than not, you’ll be saving in the long run.”

Get creative with storage

Whether your kids are brand-new or heading into their teens, you always need more places to put stuff, and you want them to be as nice to look at as they are useful. If you’re in the market for a new kitchen table, consider a banquet with a lift-top bench or slide-out drawers. They make great places to store kitchen or dining items, bibs and towels, and kids’ art supplies.


Stylishoms
Coffee tables with drawers or ottomans you can slide under desks or taller tables are key for families and also make great options for extra seating in a pinch. But when it comes to toy storage, they can start to overrun your house.

One of the keys to a good design scheme is mixing it up with interesting shapes, colors, and textures, so consider this tip from Huffington Post: “Think outside of the box with your storage! Who says toys need to be stored in ugly plastic bins? There are so many gorgeous baskets (or even an unexpected roomy tote) at a range of price points. Storage that doubles as décor also makes cleanup a cinch.”


Huffington Post
Keep the big picture in mind

There are several great tips in this chic living room: Ottomans keep it cushy and can be moved out of the way for floor play. Bookcases stuffed with games and toys put everything your little one wants at arm’s reach and are easy to put back for a tidy space. The concrete table is “perfect for kids’ crafts,” said MY DOMAINE. And bright pops of color and a ship chandelier keep it all interesting.


MY DOMAINE

Written by Jaymi Naciri on Sunday, 30 October 2016
Source: http://realtytimes.com/consumeradvice/homeownersadvice1/item/48360-20161031-9-tips-for-creating-a-family-friendly-home-that-marry-form-and-function

November 1, 2016   No Comments

Homebuying Sentiment Rises

by Steve Randall
08 Jan 2016

Sentiment among homebuyers rose in December following a strong 2015. Fannie Mae’s analysis shows that buyers had increased confidence in the US economy and their own personal finances and its sentiment index rose 2.4 percentage points to 83.2. The net share of respondents who believed that now was a good time to buy stayed at 35 per cent while 8 per cent felt it was a good time to sell, doubling the previous month’s percentage. Job security and personal finances showed increased optimism along with expectation of higher real estate prices, although fewer respondents felt that mortgage rates will go down.

30-year FRM rates down
Mortgage rates have started 2016 lower according to analysis from Freddie Mac. It’s Primary Mortgage Market Survey showed that average rates for a 30-year FRM were down to 3.97 per cent for the week ending Jan. 7 compared to 4.01 per cent a week earlier. For 15-year FRM’s the average was slightly higher than last week, rising to 3.26 per cent from 3.24. 5-year ARM’s averaged 3.09 per cent (up from 3.08).

Mortgage credit availability slipped in December
Figures from the Mortgage Bankers’ Association show that mortgage credit availability decreased in December. Its Mortgage Credit Availability Index declined 2.4 per cent to 124.3 with conventional and jumbo loans seeing the largest declines.
Although tightening of lending are usually the reason behind a decline in the MCAI there were additional issues in December: a large part of the decline was driven by a technical issue related to implementation of affordable, low down payment, loan programs,” said Lynn Fisher, MBA’s Vice President of Research and Economics. “Many investors discontinued existing low down payment loan programs only to replace them with new iterations of similar programs that were discontinued.”

Apartment vacancies higher in Q4
The level of apartment vacancies across the US in the fourth quarter rose to 4.4 per cent according to data from New York-based researcher Reis. The slim rise (from 4.3 in the previous quarter) was the first time since 2009 that the rate has risen in two straight quarters. Older properties are in demand whereas some pricier new urban developments are struggling. “It’s taking a lot longer for new projects to lease up,” Ryan Severino, a senior economist at Reis, told Bloomberg. “Vacancies are rising predominantly because a lot of shiny, sexy new Class A projects are having a harder time leasing up relative to a few years ago.”

Source:  http://www.mpamag.com/news/morning-briefing-homebuying-sentiment-rises-27520.aspx

January 8, 2016   No Comments

What a Fed Rate Hike Could Mean to Mortgage Borrowers

December 14 at 7:00 AM

(Gene J. Puskar/AP)

This week’s expected rate increase by the Federal Reserve should not cause home buyers to panic, if history is any indication.

Back in the early 2000s, after the tech bubble burst, the Fed dropped its benchmark rate to 1 percent. Then in the summer of 2004, it began raising it by a quarter percent. At the time of the central bank’s first increase, the interest rate on a 30-year fixed-rate mortgage was around 6.3 percent. During the next four months, it dropped to 5.7 percent.

As the Fed continued to raise the benchmark rate, the rate on a 30-year fixed-rate mortgage declined, falling to 5.58 percent in June 2005. By the time of its last increase in the summer 2006, the rate on a 30-year fixed-rate mortgage was at 6.68 percent. It had gone up less than a half percent even though the benchmark rate had climbed from 1.25 percent to 5.25 percent.

Could mortgage rates follow the same course this time around? Possibly. But keep in mind the Fed hasn’t raised its benchmark rate in nearly a decade. It’s hard to predict how the market will react to such a momentous change.

“You’ve got 33-year-old bond traders who’ve never in their career seen” the Fed raise its benchmark rate, said Bob Walters, chief economist at Quicken Loans, the largest non-bank mortgage originator.

“You’ll clearly have some reaction in the market, even though [the rate increase is] expected. Just the reality of it plopping in their laps is going to create some volatility, not only in the bond markets but also the equity markets as people try to sort this out. People should expect prices of bonds and equities to start to gyrate.”

John Wake, a self-described “geek-in-chief” at Real Estate Decoded and a real estate agent in Arizona, believes that in 2004 when the Fed increased the benchmark rate it caused an already frenzied housing market to become more manic. Home buyers, worried that rising rates would prevent them for affording a house, became desperate to buy right away.

“The real estate economy is more sensitive to interest rates than most of the economy,” Wake said. “An interest rate low enough to move the needle on the national economy may cause the real estate economy to overheat. We may have seen a bit of that the last couple of years. And because real estate is more sensitive to interest rates, expectations of higher rates have a bigger impact on real estate than most of the economy.”

Wake points out that often what people expect determines what they do. If home buyers expect mortgage rates to increase, they will act as if rates are increasing even if they don’t.

“That could get people to buy sooner rather than later, which could drive prices up even more next year, which is what I am worried about,” he said.

Walters doubts a slight mortgage rate increase will have much impact on the housing market.

“I don’t think most people are going to run out and make a life decision for a quarter of a point interest rate,” he said.

As the chart from the Federal Reserve Bank of St. Louis shows, a very loose connection exists between the benchmark rate and a 30-year fixed-rate mortgage. Mortgage rates are more closely linked to 10-year U.S. Treasury yields, and bonds tend to move ahead of, rather than after, central bank decisions. As a general rule, when 10-year Treasury yields go up, mortgage rates go up. According to Freddie Mac’s national survey of lenders, the 30-year fixed-rate average was 3.95 percent last week. It has remained below 4 percent since late July.

“Long-term rates are determined by the marketplace every day, by traders buying and selling bonds,” Walters said. Traders are “thinking about the returns they are going to get over time. Primarily what they are thinking about, especially on longer term bonds, which a 30-year mortgage goes into, they’re thinking about inflation.”

Inflation has been hovering below the Fed’s 2 percent target. The U.S. economy has been doing fairly well lately, despite turmoil in the global economy, its effect on the dollar and low oil prices.

“You’re seeing a complete decimation of commodity prices right now,” Walters said. “That will influence inflation a great deal. It makes pricing power for wages almost impossible. And if you can’t get wage increases, it’s tough to have inflation. If you don’t have inflation, it’s tough to see rates go higher. That’s the world we’ve been in for [nearly] a decade. That’s not going away anytime soon. We’ve essentially been at zero percent short-term interest rates for seven or eight years. There’s not even a whisper of inflation. That’ll tell you really how challenging it is for price increases to take hold. And as long as that’s the case, long-term interest rates will stay down.”

No matter what the Fed does this week, it is likely that uncertainty in the global economy will continue to put downward pressure on long-term rates. The Mortgage Bankers Association is predicting the interest rate for 30-year fixed-rate mortgage will be around 4.8 percent at the end of 2016, that’s an increase of less than one percent.

“We have a fairly weak global economy right now,” said Michael Fratantoni, MBA’s chief economist. “You have many global investors parking their money in U.S. Treasury securities or other safe assets and that is keeping our longer term rates lower than they otherwise would be.”

What Fratantoni wonders about is what will happen after the Fed raises the benchmark rate, what its plan will be going forward.

“It really is not just when the Fed is going to make their first move,” he said. “It’s how that first move translates into market expectations about the future path of rates. It gets very complicated because it’s not just what they do, but how they talk about it and how investors anticipate how the Fed might act going forward.”

Fratantoni is especially curious about what the Fed will do with its balance sheet. The central bank pumped trillions of dollars in stimulus into the market in the wake of the financial crisis, buying mortgage-backed securities. Pre-crisis, the central bank’s balance sheet was about $800 billion, primarily in short-term Treasury bills. Now it’s $4.2 trillion, and the Fed is the largest single investor in mortgage-backed securities in the world, holding $1.7 trillion in MBS.

“The Fed has said at some point after they increase short-term rates they are going to begin to allow that portfolio to shrink, and they may more actively sell some of those securities,” Fratantoni said. There is “a lot of uncertainty about how the Fed is going to allow their balance sheet to wind down and when or if they might sell some of those MBS. There is not at this point a lot of clarity about who’s going to step in and try to dampen some of that volatility. There’s no investor of comparable size waiting on the sidelines ready to jump in.”

Despite those concerns, Fratantoni is optimistic about next year’s real estate market.

“At some point, you could get to a level of rates, 6 to 6½ percent, that would really begin to crimp affordability and then that would be a real negative,” he said. “But at this point, it’s going to be just a very modest headwind. Most of the other fundamentals are suggesting a very strong housing market in the year ahead.”

Waters agrees. Although he demurred when asked what he thought the interest rate on a 30-year fixed-rate mortgage would be at the end of the year, he didn’t think it would be significantly higher.

“I tend to think from a 30-year fixed mortgage standpoint there’s not going to be an extraordinary change,” he said. “I don’t think they’ll go up or down more than a quarter percent, at least not initially. It’s not going to five [percent] and it’s not going to three [percent]. We’re going to stay in a tight band.”

Source:  https://www.washingtonpost.com/news/where-we-live/wp/2015/12/14/what-a-fed-rate-hike-could-mean-to-mortgage-borrowers/

 

December 14, 2015   No Comments

Where Are Mortgage Rates Headed? This Winter? Next Year?

Where Are Mortgage Rates Headed? This Winter? Next Year? | Keeping Current Matters

The interest rate you pay on your home mortgage has a direct impact on your monthly payment. The higher the rate the greater the payment will be. That is why it is important to look at where rates are headed when deciding to buy now or wait until next year.

Below is a chart created using Freddie Mac’s October 2015 U.S. Economic & Housing Marketing Outlook. As you can see interest rates are projected to increase steadily over the course of the next 12 months.

Mortgage Rate Projections | Keeping Current Matters

How Will This Impact Your Mortgage Payment?

Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly.

According to CoreLogic’s latest Home Price Index, national home prices have appreciated 6.4% from this time last year and are predicted to be 4.7% higher next year.

If both the predictions of home price and interest rate increases become reality, families would wind up paying considerably more for their next home.

Bottom Line

Even a small increase in interest rate can impact your family’s wealth. Meet with a local real estate professional to evaluate your ability to purchase your dream home.

Source:  http://www.keepingcurrentmatters.com/2015/11/09/where-are-mortgage-rates-headed-this-winter-next-year/

November 24, 2015   No Comments

Fed Minutes Lay Out Plans for Rate Hikes

18 Nov 2015

by Craig Torres

Federal Reserve policy makers inserted language into their October statement to stress that “it may well become appropriate” to raise the benchmark lending rate in December and largely agreed that the pace of increases would be gradual, minutes of the meeting showed.

“Members emphasized that this change was intended to convey the sense that, while no decision had been made, it may well become appropriate to initiate the normalization process at the next meeting,” said minutes of the FOMC’s Oct. 27-28 meeting, released Wednesday in Washington.

A majority of Fed officials have signaled they expect to raise interest rates this year for the first time since 2006. That message was underscored when policy makers inserted a reference to the “next meeting” on Dec. 15-16 in their October statement, in connection with their assessment on when to act.

A “couple” of voting policy makers had qualms that the wording change “could be misinterpreted as signaling too strongly the expectation” for December liftoff, according to the report.

Participants in the meeting “generally agreed,” the minutes said, “that it would probably be appropriate to remove policy accommodation gradually.”

“It was noted that the beginning of the normalization process relatively soon would make it more likely that the policy trajectory after liftoff could be shallow,” the minutes said.

Three Camps

The minutes broke policy makers into three camps, with some saying economic conditions necessary for tightening policy “had already been met,” while “most participants” estimated that their criteria “could well be met” in December.

“Some others, however, judged it unlikely that the information available by the December meeting would warrant” a rate increase, the minutes said.

U.S. economic data since the meeting have been encouraging. Employers added 271,000 people to payrolls in October, the biggest gain this year, and unemployment fell to 5 percent. Job openings in September climbed to the second highest on record, while the consumer price index, minus food and energy, rose 1.9 percent last month from a year earlier.

Earlier Wednesday, several Fed officials talked up recent data on the U.S. economy and said it reinforced the case for raising interest rates, though they stopped short of committing to liftoff at their next meeting.

“I’m comfortable with moving off zero soon, conditioned on no marked deterioration in economic conditions,” Atlanta Fed President Dennis Lockhart told a conference in New York.

‘Live Possibility’

Chair Janet Yellen told Congress on Nov. 4 that a December rate hike was a “live possibility,” and New York Fed President William C. Dudley said Wednesday that raising rates would be a sign of confidence in the economy.

Officials in October also dropped a reference in their statement to “recent global economic and financial developments” potentially constraining economic growth.

“Most participants saw the downside risks arising from economic and financial developments abroad as having diminished,” the minutes said.

Despite missing their target for 2 percent annual inflation for more than three years, Fed officials continued to anticipate prices would rise back to their goal “over the medium term,” the minutes said.

Fed officials received a staff briefing on the equilibrium real interest rate, or the policy rate that would keep the economy running at full employment with stable prices, according to the minutes.

Fed officials discussed the possibility that the short-run equilibrium rate “would likely remain below levels that were normal during previous business cycle expansions,” the minutes said.

(Bloomberg)

November 18, 2015   No Comments

Are Today’s Home Prices in a Bubble?

17 Nov 2015

 

by Jeanna Smialek

An ongoing rebound in U.S. home prices is different from the credit-fueled run up that fanned the financial crisis and tipped the nation into recession when the real estate bubble burst, economists at the Federal Reserve Bank of San Francisco find in new research.

The distinction matters: San Francisco Fed President John Williams has recently warned that it’s important to monitor for asset price bubbles, saying that preventing imbalances from building is one argument in favor of raising interest rates off near-zero, where they have been held for seven years. Williams said in October that he was “starting to see signs of imbalances emerge in the form of high asset prices, especially in real estate,” and that once such issues grow large, they are difficult to tackle.

Williams noted then that the market isn’t yet at a “tipping point,” and the researchers uphold that conclusion. They find that today’s market lacks many of the riskiest characteristics that were evident in the run up to the late-2000’s housing collapse.

“The increase in U.S. house prices since 2011 differs in significant ways from the mid-2000s housing boom,” economists Reuven Glick, Kevin Lansing and Daniel Molitor find, noting a “less-pronounced increase in housing valuation together with an outright decline in household leverage — a pattern that is not suggestive of a credit-fueled bubble.”

Since bottoming out, the median house price has recovered to just 8 percent below the prior peak, according to the paper.

This time, however, the ratio of home prices to rent stands at about 25 percent below its mid-2000s high, the researchers find. The number is analogous to the price-to-dividend ratio for stocks and provides insight into whether price matches up with the fundamental value of the underlying asset.

“As house prices have recovered since 2011, so too has rent growth, providing some fundamental justification for the upward price movement,” the researchers write. What’s more, the mortgage debt-to-income ratio, which reached an all-time high in 2007, has continued to decline.

“The red flags are not evident in the current housing recovery,” they write. Even though this cycle is different, they say that “given that housing booms and busts can have significant and long-lasting effects on employment and other parts of the economy, policy makers and regulators must remain vigilant to prevent a replay of the mid-2000s experience.”

(Bloomberg)

November 18, 2015   No Comments

Mortgage Rates Pushed Upward Following Strong Employment Data

November 12 at 10:29 AM

Mortgage rates continued to move higher in anticipation of a Federal Reserve rate hike next month, according to the latest data released Thursday by Freddie Mac.

Home loan rates began creeping up after the Federal Reserve signaled earlier this month that a December interest rate hike was a possibility. What the Fed does with interest rates doesn’t have a direct relationship to mortgage rates, since they are more closely tied to long-term U.S. Treasury yields. Bonds are more likely to move ahead of a Fed action than in response to it.

With the release of last week’s stronger-than-expected jobs report, the possibility that the Fed will raise rates became greater and home loan rates experienced an upturn.

The 30-year fixed-rate average jumped to 3.98 percent with an average 0.6 point, creeping ever closer to the 4 percent mark. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 3.87 percent a week ago and 4.01 percent a year ago. Since falling to a six-month low of 3.76 percent in late October, the 30-year fixed rate has gained 22 basis points in two weeks. (A basis point is 0.01 percentage point.)

The 15-year fixed-rate average climbed to 3.2 percent with an average 0.6 point. It was 3.09 percent a week ago and 3.2 percent a year ago.

Hybrid adjustable rate mortgages also rose. The five-year ARM average grew to 3.03 percent with an average 0.4 point. It was 2.96 percent a week ago and 3.02 percent a year ago.

The one-year ARM average increased to 2.65 percent with an average 0.2 point. It was 2.62 percent a week ago.

“A surprisingly strong October jobs report showed 271,000 jobs added and wage growth of 0.4 percent from last month, exceeding many experts’ expectations,” Sean Becketti, Freddie Mac chief economist, said in a statement.

“The positive employment reports pushed Treasury yields to about 2.3 percent as investors responded by placing a higher likelihood on a December rate hike. Mortgage rates followed with the 30-year jumping 11 basis points to 3.98 percent, the highest since July. There is only one more employment report before the December FOMC meeting, which will have major implications on whether we see a rate hike in 2015.”

Meanwhile, mortgage applications were flat again this week, according to the latest data from the Mortgage Bankers Association.

The market composite index — a measure of total loan application volume – slipped 1.3 percent from the previous week. The refinance index dropped 2 percent, while the purchase index increased 0.1 percent.

The refinance share of mortgage activity accounted for 59.8 percent of all applications.

Source:  https://www.washingtonpost.com/news/where-we-live/wp/2015/11/12/mortgage-rates-pushed-upward-following-strong-employment-data/

November 12, 2015   No Comments

Waiting Until After the Holidays Isn’t a Smart Decision

Waiting until after the Holidays, Isn’t a Smart Decision | Keeping Current Matters

Every year at this time, many homeowners decide to wait until after the holidays to put their home on the market for the first time. Others who already have their home on the market decide to take it off the market until after the holidays. Here are six great reasons not to wait:

1. Relocation buyers are out there. Companies are not concerned with holiday time and if the buyers have kids, they want them to get into school after the holidays.

2. Purchasers that are looking for a home during the holidays are serious buyers and are ready to buy.

3. You can restrict the showings on your home to the times you want it shown. You will remain in control.

4. Homes show better when decorated for the holidays.

5. There is less competition for you as a seller right now. Let’s take a look at listing inventory as compared to the same time last year:

Supply of Homes | Keeping Current Matters

6. The supply of listings increases substantially after the holidays. Also, in many parts of the country, new construction will make a comeback in 2016. This will lessen the demand for your house.

Bottom Line

Waiting until after the holidays to sell your home probably doesn’t make sense.

Source:  http://www.keepingcurrentmatters.com/2015/11/05/waiting-until-after-the-holidays-isnt-a-smart-decision/

November 9, 2015   No Comments

Mortgage Rates Largely Unchanged as Fed Stands Pat

Mortgage rates were largely unmoved heading into this week’s Federal Reserve meeting, according to data released Thursday by Freddie Mac.

Because expectations were that the Fed would not bump up the federal funds rate at this time, nothing caused home loan rates to be pushed or pulled significantly in either direction.

The 30-year fixed-rate average slipped to 3.76 percent with an average 0.6 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 3.79 percent a week ago and 3.98 percent a year ago. The 30-year fixed rate has stayed below 4 percent for more than three months.

The 15-year fixed-rate average remained at 2.98 percent with an average 0.6 point, the same as it was a week ago. It was 3.13 percent a year ago. The 15-year fixed rate has hovered below 3 percent for three of the past four weeks.

Hybrid adjustable rate mortgages were mixed. The five-year ARM average was unchanged at 2.89 percent with an average 0.4 point. It was 2.94 percent a year ago.

The one-year ARM average dropped to 2.54 percent with an average 0.2 point. It was 2.43 percent a year ago.

“Treasury yields oscillated without a clear direction heading into the October FOMC meeting, as investors were confident there would be no rate increase,” Sean Becketti, Freddie Mac chief economist, said in a statement.

“While the FOMC left rates unchanged at this meeting, they kept a December rate hike as an option causing Treasuries to sell off in the latter part of the day, after our survey closed.”

Freddie Mac aggregates current rates weekly from 125 lenders from across the country to come up with a national average mortgage rate.

“Recent housing reports have done little to add or detract from the possibility of a December rate increase,” Becketti said. “Existing home sales were strong, contrasting with disappointing new home sales.”

Meanwhile, mortgage applications slipped this week, according to the latest data from the Mortgage Bankers Association.

The market composite index — a measure of total loan application volume – fell 3.5 percent from the previous week. The refinance index dropped 4 percent, while the purchase index decreased 3 percent.

The refinance share of mortgage activity accounted for 59.5 percent of all applications.

Source:  https://www.washingtonpost.com/news/where-we-live/wp/2015/10/29/mortgage-rates-largely-unchanged-as-fed-stands-pat/

November 3, 2015   No Comments

Another Reason to Buy a Home: Ridiculous Rents!

Written by Jaymi Naciri on Wednesday, 14 October 2015 12:04 pm

If the fact that mortgage rates are still insanely low – dropping again last week – and new loans can make down payments as low as three percent for first-time homebuyers still aren’t enough to get you into the real estate market, here’s perhaps the most compelling reason of all to buy a house: rents are ridiculous and only getting more so everyday.

A recent article from Yahoo shows that “American renters spend an average of about 30% of their monthly incomes on rent… but throughout the country, many people spend much more than that. That’s a decent indication of a rent affordability problem in the U.S., given that housing experts consider consumers to be ‘rent-burdened’ if they pay more than 30% of their income for housing.”

This comes on the heels of other reports that show that, “On average, it’s 35% cheaper to buy than to rent, up from 33% last year. In some areas, particularly in the south, it’s over 50% cheaper to buy.”

But back to that sobering Yahoo stuff. “Housing researchers project that renters will grow at a faster rate than homeowners throughout the next decade, so even if wages and rent prices grow at the same pace, millions more Americans will be rent-burdened by 2025,” they said. “In a new report, Urban Institute researchers estimate there will be 6.5 million new renters by 2025. If rent and incomes each grew 2% annually over this time period (as the Harvard research assumes), Urban Institute estimates there will be 2.2 million more rent-burdened consumers.”

Their data “estimates 31% of renters will be severely rent-burdened by 2025, up from 28% in 2015 – that’s an additional 4 million people putting more than 30% of their incomes toward rent. Many personal finance experts recommend you spend no more than 25% of your income on rent, but if demand continues to rise faster than wages, that will be increasingly difficult.”


Forbes
If you’re currently renting, and especially if you’ve been doing so for a long time, and super especially if you really, really want to stop renting and buy something, you can probably already rattle off a few dozen reasons why it stinks to rent. But in case you need a refresher, or just want to add more fodder to your list, we’ve got a few reasons of our own:

Every time your rent rises, it impacts your ability to save, pushing homeownership further and further away.

Pride of ownership – it’s a real thing.

Who writes checks anymore, anyway?

Your rent is making someone else rich. Bloomberg reports that you can profit by hundreds of dollars per month by renting your home depending on where it’s located. That’s great if you’re the owner. Not so much if you’re the one padding the owner’s bank account.

You have to live with finishes that don’t meet your expectations.


Black Daisies
You’re not building any equity by paying rent. If the rental rises in value, you won’t be the one to benefit. And, in fact, you’ll probably end up paying more for the privilege of living there.

Your house payment can’t go up like your rent can.

You’re at the mercy of your landlord, who can (and will!) decide when you should pay more.

You need permission to change the paint colors.

You can’t make changes to a crappy floorplan.

No place to put stuff. If you’re in an apartment, the storage situation is probably bleak.


Commercial Laundries
But not as bleak as having to share laundry facilities with your neighbors

Mail that never seems to end up in your slot

You have to live with the galloping dog above you.

Or the galloping kids beside you.

Or the thump-thump-thump of the rap music aficionado downstairs.

No tax write-off and nothing to show for your money.

Parking Is Horrible. If your options don’t include reserved parking and spots on the street are limited, you know just how bad it can be. But did you know that parking actually makes apartments more expensive? Buzzfeed tells us why.


Buffalo News
Having to wait – and wait and wait – for repairs to be done.

No pets! If you find a rental that allows your dog, you can count on paying a substantial deposit. And certain kinds of dogs may not be allowed regardless of how much you’re willing to pay.

Still stuck renting for the time being? Apartment Therapy broke down their least favorite things about renting and offered a few ways to deal with them.

Source:  http://realtytimes.com/consumeradvice/buyersadvice1/item/39215-20151015-another-reasons-to-buy-a-home-ridiculous-rents

October 16, 2015   No Comments