What's Ahead For Mortgage Rates This Week - March 17, 2014

Last week's economic reports provided rays of light as compared to the recent slump in positive economic news.

Unusually severe winter weather conditions affected housing-related indicators as home builders and home buyers stayed on the sidelines.

With spring on the horizon, last week's economic news showed welcome signs of growth.

Job Openings Up, New Jobless Claims Fall

Employment is a major factor in the decision to buy a home; would-be home buyers received a vote of confidence last week as January's job openings increased by one million to 40 million as compared to December's reading of 39 million job openings.

February's reading will likely reflect a lull in activity due to winter weather conditions in much of the U.S.

Weekly jobless claims fell from 324,000 to 315,000. The Bureau of Labor Statistics reported expectations of 330,000 new jobless claims, so the latest report was good news.

Weekly reports are more volatile than monthly statistics; analysts typically track employment trends by reviewing rolling averages of several weeks' new jobless claims data.

Mortgage Rates, Retail Sales Rise

Freddie Mac reported that average mortgage rates rose last week. The rate for a 30-year fixed rate mortgage rose by nine basis points to 4.37 percent. 15-year fixed rate mortgages had an average rate of 3.38 percent; this was an increase of six basis points

The average rate for a 5/1 adjustable rate mortgage was 3.09 percent, up from the previous week's reading of 3.03 percent.

Discount points dipped from 0.70 to 0.60 percent for a 30-year fixed rate mortgage, were unchanged for 15-year and 5/1 adjustable rate mortgages at 0.60 and 0.40 percent.

Retail sales increased for the first time in three months according to the Commerce Department.

February retail sales surpassed expectations of a 0.20 percent gain and came in at 0.30 percent. January figures were downwardly adjusted to -0.60 percent. Retail sales exclusive of automotive sales were also higher at 0.30 percent than expectations of 0.10 percent.

The University of Michigan Consumer Sentiment index for mark was slightly lower at 79.9 than expectations of 80.8.

This was the lowest reading in four months, and was attributed in part to higher gas prices and consumer concerns over developments in Ukraine.

What's Coming Up

This week's economic news includes several housing-related reports.

The NAHB Home Builder Index for March, Housing Starts and Building Permits for February, and Existing Home Sales are set for release.

On Wednesday, the Fed's FOMC statement will be released and Fed Chair Janet Yellen will give a press conference. The Fed is expected to continue its ongoing tapering of quantitative easing.

Leading economic indicators will be released along with the Weekly Jobless Claims report and Freddie Mac's Primary Mortgage Market Survey.

Make Your Home Green This St. Patrick's Day

You're ready to make some changes to your home, but you want to be smart with your money and see a positive return on your investment.

While most homeowners don't see that return until they sell their home, you can start seeing the benefits now through conserving energy by making your home green.

So in honor of the upcoming green holiday, stop searching for that pot of gold. Get inspired by St. Patrick's Day to go green to cut your energy costs with the environmentally friendly renovations below. You'll soon see the savings building up at the end of the rainbow.

Use Reclaimed Wood For Flooring

Instead of chopping down more green for your floors, reclaim wood that's already been cut. While prices vary depending on they type of wood and how it was transformed, you can get a unique look and conversational piece that no one else will have.

Just think, you could be standing on the Jackson's old barn or a dismantled ship.

Green Your Latrine

Install a low-flow toilet, which according to www.ConsumerReports.org could save you money. Older toilets use about 3.5 gallons per flush, while newer low-flow toilets can use less than 1.3 gallons.

If you don't want to dish out the dough for a new toilet, then add pebbles or a sealed water bottle into the back tank to displace water and reduce consumption.

Install A Programmable Thermostat

This is something you can easily do on your own. Purchase a programmable thermostat at any home improvement store for around $50, shut off power to the room you'll be replacing it in, unscrew your old one and connect the wires to the new one.

Finished! Now you won't have to worry about remembering to turn the air down at night and you'll save money monthly.

Replace Old Kitchen Appliances

If your refrigerator or dishwasher is more than 10 years old, then consider replacing them with newer energy efficient models. Look for appliances that have Energy Star labels, as these machines have passed strict energy requirements.

While this upgrade might cost you up front, you'll quickly be saving energy and leaving more green in your bank account. Don't get pinched this St. Patrick's Day! Instead of just wearing green, surround yourself in it by making environmentally friendly renovations.

By taking your home green, you'll reduce your energy usage and see savings in your monthly bills!

Kitchen Space Saving Designs To Maximize What You've Got

So you've found the perfect home, but there's just one problem: the kitchen isn't as big as you'd like it to be. At first glance, a smaller kitchen might seem like a deal-breaker, especially if you love to cook.

With a few space-saving design tricks, though, you'll have all the space you need and then some. It's all about making the most of what you've got. Here's how you can turn even the smallest kitchen into an efficient cooking and dining space.

Fill Up The Walls: There's Ample Storage All Around You

Walls are a surprisingly underused surface area in most kitchens. From spice racks to towel racks to magnetic knife boards, walls can offer a wealth of space options. Ditch the bowl fruit painting and throw up some hooks and shelves.

Not only will everything you need be within reach, you'll open up more space in your cabinets and on your counters. For the gadget obsessed, rack storage will give you the chance to show off your nifty kitchen gadgets.

Repurpose Your Corners with Shelving And Other Amenities

In a small kitchen, sufficient counter space can be hard to come by. While knife blocks and spices racks tend to encroach on what little space is available, not all space saving designs are about reclaiming lost space. Sometimes it's about repurposing forgotten spaces like corners.

Most homeowners dismiss the corners of their kitchens, thinking the space is too awkwardly shaped to be of any real use. Take advantage of corners by installing clever storage like a lazy Susan system for under the countertop, built-in shelving for above the counter, or for a really creative update, dedicate the corner to an invaluable feature like the kitchen sink.

Hang Your Pots and Pans

Pots are bulky and often difficult to store without taking up several cabinets. A circular pot rack mounted to the ceiling allows you to take advantage of the height of your kitchen in the open space right above your head. In fact, pot racks can be used to store all kinds of cookware and cooking utensils that are too cumbersome to store in drawers, like ladles and colanders.

Placing a rack in the empty space above an island or by the stove can provide excellent storage space and easy accessibility. Ceiling and wall-mounted pot racks often have hooks to hang your cookware from, so make sure you mount yours in a place that doesn't force visitors to navigate an aerial obstacle course just to make it to the sink.

Invest In A Rolling Tea Trolley

Kitchens with very limited counter space can gain an extra work area as well as storage space with a tea trolley. A mobile work surface means to you can roll it anywhere in your kitchen to do your dicing and slicing, and then store it away when you're done. Add multiple shelves to the trolley to create even more storage.

There's no need to be discouraged by a cozy kitchen. Not only can these space saving tricks help you gain extra space, they can also give you the chance to explore new ways to express your personal style.

For more advice on homeownership and making the most of your home's various features, or to find your next home, contact a real estate professional today!

Where To Find Inspiration For Your Home Decor

Are you working on decorating your home? Perhaps you want to spruce up your decor, but you aren't sure where to start. Where can you find inspiration for your home decor, besides the obvious home decor magazines and websites?

Here are some fun and creative ideas that will inspire you when designing your decor:

Luxury Hotels

The next time you go on a vacation, you can find decor inspiration at your hotel. Most hotel rooms in mid-range to luxury hotels have beautiful, comforting and understated designs, so take photos if you find something that you like.

Perhaps you can invest in plush throw pillows for your bed, a sleek bed table lamp or thick white towels for your bathroom to recreate the look of a luxury hotel.

Art Galleries

Take a walk around your local art gallery and see if you can find some inspiration there. Perhaps the harmonious colors of Impressionist paintings or the angular shapes of Cubism will inspire you to add visual interest to your decor.

You might not be able to afford an original Picasso or Monet, but you can always order prints of your favourite artists online and add art to your home on a budget.

The Beauty Of Nature

Another place to find beauty and inspiration is from Mother Nature herself. Take a walk outside in the country and take some photos of what you encounter.

Perhaps you will be inspired to paint your walls a shade of green just like the spring leaves, or create a centrepiece for your table made from pinecones.

Fashion Design

You can also find inspiration from the colors, textures and patterns that are popular in the world of fashion design. Look at magazines, fashion shows and advertisements to see what colors and styles are popular at the moment.

If you love the look of a certain item of clothing, think about how you can incorporate that color, texture or pattern into your decor.

If you have an open mind, you can find inspiration for your home decor all around you. These are just a few ideas to get you started, but of course there are many other sources of inspiration out there.

For more info and tips regarding your home, contact your trusted real estate profesional.

Furry Friend Blues, The Best Ways To Settle Your Pet Into Your New Home

Moving can be a stressful and exciting process, and when moving with pets, your furry friend most certainly feels the stress and excitement as well.

Pets don't always respond well to a new environment, so it's important to do whatever you can to ease your pet into your new house.

Settling yourself and your pet into your new home may take time, but you can make it a smoother process by doing some research and planning. Here's how you can create a stress-free transition for your beloved pooch or kitty.

Where To Put The Pet During The Move

During the actual move itself, it is best for your dog or cat if you can get them away from the action altogether. Ideally, it's best if a neighbor or family member that your pet is familiar with can take the pet for the day.

For long haul moves, some pet owners opt to take their dog or cat to a kennel for a few days to help them avoid the stress of the moving atmosphere.

A slow and steady packing of boxes will also indicate a change to your pet, and if done over a longer period of time, can help them prepare for the upcoming change of scenery.

The Interior Introduction: Getting Your Pet Settled

Before the actual move of all the boxes, it might be a good idea to take your pet's belongings to the new house first. Having some of their familiar items, such as toys, a kennel, and blankets, can help to ease the process of settling into the new home.

You may also want to dedicate a room or part of the house as your pet's sanctuary, where they can feel safe and secure while boxes and pieces of furniture are being moved into the new home. Ensure that you don't switch your pet's food too much around the time of the move, as this can exacerbate the effects of the change.

Some pet owners have found it effective to wait until the new house is unpacked and settled before introducing their pets to the home. This way, the pet can becoming acquainted with the new atmosphere without the chaos of movers, piled up boxes, and a stressed-out, scrambled owner! If using this method, you can keep your pet at the kennel of family member's house until you are settled in.

The Surroundings: Exploring The New Neighborhood

If you have a dog, it is just as important to get him acquainted with the new neighborhood as it is to get him acquainted with the home itself. This is something you can also do well before the move; when preparing for a move, drive your dog over to your new neighborhood and let him explore where his new home will be.

This way, when you arrive to introduce your dog to the home itself, he will already be familiar with the area, thereby reducing the stress of the new atmosphere in the house.

Moving is no easy feat, and it's even more complicated when pets are involved. By following some of these simple steps and planning ahead, you can achieve a move that involves much less stress.

Avoid the furry friend blues and introduce your pet to its new home in a gentle way. For more great moving tips, or to find the home that's right for you, contact a professional realtor today.

What's Ahead For Mortgage Rates This Week - March 10, 2014

Last week's economic news included construction spending and the CoreLogic Home Price Index for January.  Reports for February included ADP Employment, Non-Farm Payrolls and national unemployment data.

The Federal Reserve's Beige Book report and weekly reports on mortgage rates and new unemployment claims rounded out the week's economic news.

Highlights for last week include:

Consumer spending gained 0.40 percent for January. The expected reading was 0.20 percent and the reading for December was flat.

The Commerce Department reported that increased spending was less an indicator of consumer discretionary spending than an indicator of high utility costs caused by severe winter weather.

Construction spending ticked upward in January with gain of 0.10 percent as compared to expectations of -0.40 percent and the prior month's reading of 0.10 percent.

January's reading translates to a seasonally adjusted annual figure of $943.1 billion.  

Federal Reserve: Winter Weather Obscures Accurate Economic Outlook

According to the Fed's Beige Book report, much of the U.S. economy was impacted by severe winter weather. The report is based on anecdotal information provided by business contacts and industry leaders throughout the 12 regions of the U.S. Federal Reserve System.

Eight regions reported slow economic growth. Janet Yellen, chairwoman of the Fed, noted that winter weather was not expected to alter the Fed's plan to continue reducing its asset purchases under its quantitative easing program. She also said that it may be months before accurate economic readings can be obtained in the aftermath of winter weather conditions.

Freddie Mac's Primary Mortgage Market Survey brought good news on Thursday as mortgage rates fell across the board and discount points were also lower in most cases.

Average mortgage rates were down nine basis points for a 30-year fixed rate mortgage at 4.28 percent. The average rate for a 15-year fixed rate mortgage was 3.32 percent, a decrease of seven basis points.

The rate for a 5/1 adjustable rate mortgage was 3.03 percent, down by two basis points from the prior week. Discount points were unchanged for 30-year fixed rate mortgages at 0.70 percent, but dropped to 0.50 percent for 15-year fixed rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages.

Employment Sector: Surprise Results

The ADP payroll report showed a reading of 139,000 jobs added in February as compared to the prior month's 127,000 jobs. ADP tracks private sector jobs. The BLS released its Non-Farm Payrolls report for February, which also surpassed expectations.

175,000 jobs were added against expectations of 140,000 jobs added and January's reading of 129,000 jobs added. The national unemployment rate rose to 6.70 percent against an expected drop to 6.50 percent from January's reading of 6.60 percent. Once again, foul weather was seen as a major influence.

What's Ahead This Week

This week's economic news schedule is relatively light with no releases set for today.

Mortgage rates will be released by Freddie Mac on Thursday, along with weekly jobless claims. Retail sales and the University of Michigan consumer sentiment index round out next week's schedule. 

How To Add Color To Your Home Decor Without Going Overboard

There is a fine line between adding color to your home decor and using too much color, so that you feel like you are living inside a rainbow.

A little bit of color will add a lot of fun and interest to your home design, but too much color can be overwhelming. How can you achieve that perfect balance?

Here Are Some Tips To Keep In Mind For Using Color In Your Home In A Subtle And Balanced Way:

• Use Color Schemes

Before choosing the colors for your decor, do a little bit of research into color schemes and how they work, so you know how to combine colors harmoniously.

For example, you can choose a complementary color scheme with shades that are across each other on the color wheel – such as blue and orange or purple and yellow.

Or you could try an analogous color scheme, which is a scheme where the colors are next to each other on the colour wheel – such as blue, green and purple.

• Use The 60/30/10 Rule

This is a rule that interior decorators use in order to use colors in a balanced way. Use the dominant color on 60% of the room, so that it will create a unifying look.

Then, use the secondary color on 30% of the room in order to add visual interest. Lastly, use an accent color for 10% of the room to add that little extra.

For example, you might use the dominant color for the walls and carpet, the secondary color for the upholstery and the accent color for some pillows, a wall hanging or a throw rug.

• Try An Accent Wall

Perhaps you have found a gorgeous paint color, but it’s just a little too bright and overwhelming to use for all four walls of a room.

In this case, you can simply paint one wall with the color and the other walls with a neutral tone, so that you can enjoy the shade without it being overpowering.

You could also simply use the color in one aspect of the room, such as the baseboards or the door jams.

These are just a few of the ways that you can incorporate color into your home design, without it being overpowering. For more information, call your trusted real estate professional.

Winter Blues, 9 Easy Ways To Brighten Your Home And Your Spirit

These gray, dreary winter days can really sap your energy and dull your enjoyment of life. To survive the winter doldrums, brighten your home.

Use These Easy Tips:

1. Open your home's window treatments during the day to let the light brighten and warm your room. Close them again as soon as night falls to retain heat.
2. Brighten dark rooms with few windows by placing spotlights on the floor behind furniture.
3. Add a mirror. Wherever a mirror reflects light in a room, it visually doubles that light.  Place a mirror opposite a window to immediately brighten your space. No window?  Hang a large mirror above a console table and place a pair of lamps in front of the mirror.
4. Install higher watt bulbs in rooms that tend to be dark.
5. Eliminate dark corners by adding recessed lighting.
6. Use full spectrum lighting in areas where you read, knit or do other up-close work.
7. Lighten living areas with colorful throws and pillows.
8. Lift the winter blues by adding flowers and plants to your decor. Colorful indoor blooming plants include the African violet, Cyclamen, Orchid and desert cactus.  Use tropical flowers to transport yourself mentally to climates where the sun always shines.
9. Do A Little Winter Cleaning:
   1. Wash the inside of your windows. Fireplace and candle soot coats windows with a dingy film that blocks the sun.
   2. Polish your furniture. Shiny furniture reflects ambient light.
   3. Wash ceiling light fixtures in soapy water. Light is muted when filtered through dirty light fixtures.

Lighting can change how you (and potential buyers) feel about your home. It's one of the easiest and least expensive ways to quickly improve the ambiance of your home.

If you'd like to sell your home, I can help. Contact your real estate professional today.

Highest Year-Over-Year Increase In Home Prices Since 2005

Two major indicators of home price trends showed a slowing momentum for home prices in December. The S&P Case Shiller 10 and 20 city indices reported that of 20 cities tracked, home prices were lower in December than for November.

Case-Shiller’s seasonally adjusted month-to month reading showed that home prices rose by 0.8 percent as compared to 0.90 percent in November.

David Blitzer, chairman of the index committee at S&P Dow Jones Indices, said that “Gains are slowing from month-to-month and the strongest part of home price recovery may be over.” He also noted that seasonally adjusted data was showing a loss of momentum for home prices.

December home prices posted a year-over-year gain of 13.40 percent, down from November’s year-over-year reading of 13.70 percent. December’s reading reflected the highest year-over-year increase in home prices since 2005.

Analysts note that a slower pace of increasing home prices may allow more buyers to enter the market, and may also encourage more buyers to list their properties for sale.

This would increase inventories of available homes and relieve pent-up demand for homes. Although home price growth is cooling off, average home prices remain 20 percent below their pre-recession peak in 2006.

Home Prices Face Challenges In 2014

Another factor in slower growth of home prices is regional differences in the rate of economic recovery. Cities including Dallas, Texas and Denver, Colorado recently set records for escalating home prices.

Five states including Florida and Michigan accounted for almost half of foreclosures completed during 2013. Slow job growth and poor winter weather were also blamed for slower gains in home prices.

New mortgage rules and relatively strict mortgage lending standards may continue to dampen housing markets, but there is some good news as some lenders are easing credit standards.

 FHFA: Home Prices Higher For 10^th Consecutive Quarter

The Federal Housing Finance Administration reported similar trends in December home price data for properties either financed or owned by Fannie Mae or Freddie Mac. Home prices rose by a seasonally adjusted rate of 0.80 percent in December as compared to November’s reading.

Home prices were 7.70 percent higher for the fourth quarter of 2013 than for the same period in 2012. Adjusted for inflation, this reading indicates an approximate year-over-year increase of 7 percent.

FHFA reported higher readings for 38 states in its fourth quarter 2013 Home Price Index, as compared with 48 states in in the third quarter of 2013.  In order of home price appreciation, the top five states with highest growth in home prices were Nevada, California, Arizona, Oregon and Florida.

These calculations were seasonally adjusted and based on home purchases only.

The Unexpected In Buying Real Estate

When buying real estate, you may find some unexpected problems. Generally, these issues revolve around plumbing, wiring or sticking doors and windows. Although they aren't as expensive to fix as other issues, there's always a possibility that they indicate bigger problems. 

Sticking Doors/Windows

Spotting wear and tear on doors and windows is fairly easy. Check the hinges and locks.  Squeaking hinges or locks that stick indicate wear on seals and metal. 

Although sticking doors and windows aren't a big deal in and of themselves, these issues can be indications of moderate to severe foundation problems. If you find these issues in real estate, make your way to the basement and look for cracks or dips in the floors and walls. 

Pay attention to how the floors of the house feel when you walk. If you're at all uneasy, have an inspector look at the house before you buy.

Plumbing Problems

Sometimes, plumbing problems aren't so easy to find. Sellers have been known to use temporary fixes, which does a good job of hiding the issues. However, there are places to look that make the problems easier to find.

• Look up in the corners where the walls connect to the ceiling. Spackled ceilings make issues especially easy to spot, as they pick up water stains or crack and flake. 

• Another place to check is the bathroom, along the bottom of the wall. 

• Tile grout has a tendency to crack or flake, become discolored or loosen with continuous proximity to water. 

• Finally, check the closets. 

People who use temporary fixes will generally work hard to cover up the problems in lived-in rooms, while forgetting to fix walls and ceilings in closets.

Faulty Wiring

Spotting faulty or old wiring depends on the size of the issue and where it's located. For instance, a bad socket can be found by looking for darkened spots around the holes. However, it's impossible to look through the walls to find faulty or old wiring behind them. An electrician will be able to give you a better idea of the wiring in the real estate.

Remember, nothing takes the place of getting real estate you're thinking of buying inspected by a professional. 

Are you considering purchasing a new home? Let me help you get your dream home at the lowest price. Call your trusted real estate professional.

What's Ahead For Mortgage Rates This Week - March 3, 2014

Last week's economic news was mixed, with new home sales increasing and weekly jobless claims higher than expected.

Case-Shiller and FHFA home price reports reflected slower growth in home prices. Mortgage rates moved higher for the third consecutive week.

Weakness in the jobs sector and harsh winter weather were seen as factors contributing to economic events, but sales of new homes jumped unexpectedly to their highest since 2008.

Case-Shiller, FHFA Report Slower Growth for Home Prices

The Case-Shiller composite home price index for December reported that home prices declined by 0.10 percent in December, which was the second consecutive monthly decline.

On a seasonally adjusted basis, home prices rose 0.80 percent in December as compared to November's reading of 0.90 percent. Year-over-year, home prices grew at a rate of 13.40 percent, their fastest pace since 2005.

The momentum of year-over-year home prices declined in December as compared to November's year-over-year reading of 13.70 percent. 11 of 20 cities included in the Case-Shiller composite index declined.

Analysts said that low inventories of available homes, higher mortgage rates and severe winter weather contributed to slower growth in home prices.

FHFA's quarterly House Price Index for the fourth quarter of 2013 posted its tenth consecutive gain in quarterly home prices. Seasonally adjusted home prices rose by 0.80 percent from November to December 2013.

FHFA, which oversees Fannie Mae and Freddie Mac, reported that home prices increased by 7.70 percent from the fourth quarter of 2012 to the same period in 2013. Adjusted for inflation, the agency reported a year-over-year increase of 7.0 percent.

FHFA House Price Index data is based on sales information for homes with mortgages held or securitized by Fannie Mae and Freddie Mac.

Fixed Mortgage Rates, New and Pending Home Sales Rise

Freddie Mac reported that average rates for fixed-rate mortgages rose last week, with the rate for a 30-year fixed rate mortgage rising 4 basis points to 4.37 percent.

The rate for a 15-year mortgage also increased by 4 basis points to 3.39 percent. The average rate for a 5/1 adjustable rate mortgage fell by 3 basis points to 3.05 percent. Discount points were unchanged at 0.7 0 percent for fixed rate mortgages and 0.50 percent for a 5/1 adjustable rate mortgage.

Weekly jobless claims also rose to 348,000 against projections for 335,000 new jobless claims. The four-week average for new jobless claims remained steady at 338,250.

The Department of Labor noted that weekly readings are more volatile than the four -week average reading. Poor winter weather and a softer labor market were cited as possible causes for the jump in new claims.

New home sales provided unexpected good news; they jumped by 9.60 percent in January, to a seasonally-adjusted annual rate of 468,000 sales against expected sales of 405,000.

December's reading was upwardly revised from 414,000 to 427,000 new homes sold.

January's reading was the largest increase in new home sales since July 2008, and there may be more positive housing news ahead as builders said that some of the sales lost during winter months may be recouped during spring.

Pending home sales increased by 0.10 percent in January to an index reading of 95 as compared to December's reading of 94.9, which was the lowest reading since November 2011.

What's Coming Up

This week's scheduled economic news includes construction spending, the Federal Reserve's beige book report, weekly jobless claims, and Freddie Mac's report on mortgage rates.

On Friday, the Bureau of Labor Statistics releases its Non-Farm Payrolls and National Unemployment reports for February.

How To Make Your Home Look More Luxurious On A Budget

Have you been looking through home décor magazines and gazing with wonder at the gorgeous homes inside? Do you want to add a touch of elegance and luxury to your home, but you are on a tight budget?

No need to worry, there are many ways that you can make your home look like a million bucks, without actually having to spend a fortune.  

Luxury Home Decor Ideas

Here are a few great ideas that don't have to cost a lot, they just require a little bit of planning and some elbow grease and they will take your home from ordinary to luxury.

• Mount your curtains at ceiling level rather than the top of the windows. This draws the eye upwards and gives the illusion of high ceilings.
• Paint your interior doors a sleek and shiny shade of black. This looks very modern and sophisticated and is much cheaper than buying expensive doors.
• If your home doesn't have crown moulding, paint a white band around the ceiling to fake the look.
• The little details can make a big difference when it comes to making a home look elegant and luxurious. Add in finishing touches such as a beautiful glass vase, a stack of coffee table books, fresh flowers or a piece of artwork.
• Remember, less is more and a cluttered house will not create the impression of luxury. Eliminate as much clutter as possible, making your home seem more spacious and sophisticated.
• Lighting can also have a big impact on how luxurious your home appears. Invest in a few beautiful and stylish lamps, or a chandelier, and you will transform the entire space.
• When choosing fabrics for accessories and upholstery, go for fabrics that have a luxurious texture such as velvet, satin or fur. They can be faux to make them cheaper, but they will still add to the luxurious look.
• You can take simple and cheap accessories such as a candle holder or a vase from the dollar store and then paint them with gold paint. They will have a luxurious look, for much less than the real thing!

These are just a few ideas that you can incorporate into your home décor of your home in order to make it look and feel more luxurious. For more helpful information, contact your trusted real estate professional.

Where To Squeeze A Home Office In Your Home

If you have started working from home, whether you are a freelancer or running a business, having a home office in your home is very important.

It is a place where you can separate your home life and work, so that you can get "in the zone" and concentrate on the important work tasks that you need to complete. But where should you place your home office?

If you have a spare bedroom in your home, the answer is easy - but what if you don't have this extra space? Is it possible to squeeze a home office into an already full home? Of course it is, you just have to think outside of the box. Here are some ideas:

Convert Your Attic

If you have an attic in your home, why not use that space for a quiet and private home office? It will be separate from your home and free from any distractions. If your attic is unfinished, converting it into living space can be a good investment that will improve the value of your home.

Work At Your Breakfast Nook

Perhaps your kitchen has a breakfast nook, but your family always ends up eating at the dining table and doesn't really use it much? If this is the case, you could create a small and compact office space where you can work - while being close to the coffee maker in the kitchen!

Find An Unused Corner

Perhaps there is a corner of your bedroom or living room that you aren't really using for much? Why not turn it into a home office? All you need is a small desk and a chair to create a workspace. If you want to separate it from the rest of the room, you can use stylish room dividers.

Go Underground

Have you ever thought of using your basement for your home office? There is probably a corner down there that you could use for office space. To combat the lack of natural light, you can use a SAD lamp that offers the same wavelengths as sunlight.

These are just a few ideas of where you could place your home office, even if all of the rooms in your home are in use. As long as you can find a quiet corner somewhere, you can create your ultimate working space.

For more tips and information, contact your trusted real estate professional today.

How To Maintain Your Gutters

An entire gutter system around the home might seem expensive to many homeowners.

However, not having one could mean water pooling around your home creating a moat and costing you thousands of dollars in damage to your foundation.

So it's a good idea to install gutters and take care of them.

Below are tips for gutter maintenance to help keep water away from your home.

Unclog The Gutters

Annual gutter maintenance includes cleaning them of debris, such as leaves, sticks or animal nests. Remove downspout cages and clean them.

Determine if they're still in good shape or need to be replaced.

If a downspout is clogged, try to use a plumbing snake to dislodge the debris. Then use a hose to force water down the spout and hopefully remove the rest of the clog.

Check The Pitch

Gutters should be set on an incline of 1/4 inch for every 10 feet. For example, if your gutter is 20 feet long, then it should have a drop of 1/2 inch. If your gutter doesn't have enough of an incline, then you might have water overflow because it can't drain quick enough.

Most gutters also come to a point in the middle so the water runs both ways to downspouts on each end. 

Seal Leaky Gutters

Right after a rainstorm, inspect your gutters for leaks. Look for water-saturated areas along your home underneath the gutter.

Constant leaks can cause water damage to vinyl, brick or stone siding. Use a sealant to repair small leaks or purchase a gutter maintenance patch kit for larger holes.

Replace Damaged Areas

If part of your gutter falls off or is damaged beyond repair, then you'll need to replace it. You'll need two ladders, a helper, new gutter cut to fit, joint connectors and sealant.

Remove old joint connectors and clean the area. Fit the new joint connectors with sealant and then install the new piece of gutter.

Install A New Downspout

You'll need roughly the same tools for replacing the gutter, except you'll also require downspout sections and self-tapping gutter screws.

Make sure the drop outlet at the end of the gutter fits securely into the downspout to prevent leaking.

Then fasten the joint with gutter screws and add sections as needed.

Finish with an elbowed section that extends five feet into the yard.

What To Consider When Buying A Fixer-Upper

In your imagination it seems like a great idea - you purchase an older run-down property and you have the chance to fix it up and turn it into the home of your dreams.

To Renovate, Or Not To Renovate

However, the renovation project that is simply a quick montage in your imagination will actually take several months or years and thousands of dollars in real life.

The concept of renovating a "fixer-upper" property is exciting, but the reality is a lot of work and investment. How can you make sure that you are making the right choice for you?

One of the main advantages of buying a fixer-upper property is that you will usually be able to get the property for a much cheaper price. But is it worth it for the amount of time and money you will need to invest in the property?

Here Are Some Questions You Should Be Asking Yourself When Making Your Decision:

• Do you (or your friends and family members) have the skills to be able to perform most of the renovations yourself? If you do the labour yourself, you will be able to save thousands of dollars that you would have spent hiring contractors, which will make the renovation a much more profitable project.
• Are you comfortable with the idea of living in a construction zone, perhaps for several months or more? There will be dust and noise everywhere and you might have to cope without a kitchen or a shower for a while.
• Make sure that you have a thorough inspection of the home performed so that you can see whether the home has a sturdy foundation, good wiring and plumbing, etc. If your inspection reveals any structural issues or water damage, you might be in for more than you bargained for. You need to start with a house that has "good bones".
• If the home has serious structural, plumbing or wiring problems you should stay away – these repairs are very expensive but "invisible", so you are unlikely to recoup your costs when you sell the home.
• Add up the estimated costs for renovating the property along with the cost of the home – does it still work out to be a better deal or would you be better off buying a new property.
• What is your strategy for financing the renovations? If your only option is putting it on the credit card, you might want to think twice because this is a very high interest option.

Buying a fixer-upper property can be a great investment and can give you the opportunity to transform a run-down old house into the property of your dreams. However, make sure you that you consider the choice carefully before making your decision.

For more information about about buying or selling a fixer-upper or any questions regarding real estate, contact your trusted real estate professional. 

What's Ahead For Mortgage Rates This Week - February 24, 2014

Last week's economic data supported recent reports indicating that housing markets are slowing, The National Association of Home builders/Wells Fargo Home Builders Index (HBI) dropped by 10 points to a reading of 46 for February.

Home builder confidence dropped to its lowest reading in nine months,  and fell below the benchmark of 50, which indicates that more builders are pessimistic about current market conditions than not.

Severe weather was blamed for the lower builder confidence reading, which fell below the expected reading of 56.

Regional readings of builder confidence were also lower:

• Northeast: Builder confidence fell from 41 to 33 points. This suggests that weather is a major concern as this area has experienced a series of nasty winter storms.

• South: The HBI reading fell from 50 in January to 46 in February and was the smallest decline among the four regions. Fewer index points lost in the South appears to support builder's concerns about bad weather in other regions.

• Midwest: Builder confidence dropped from 59 points to a reading of 50.

• West: Builder confidence fell by 14 points to February's reading of 57. Desirable areas in the West had been leading the nation in home price appreciation. February's reading may signal an easing of buyer enthusiasm as rapidly rising home prices have reduced affordable options for first-time and moderate income buyers.

Builders also cited concerns over labor and supplies as reasons for lower confidence readings.

Housing Starts Lower, Mortgage Rates Higher

On Wednesday, Housing Starts for January were released. Although analysts predicted a figure of 945,000 housing starts as compared to an upwardly adjusted 1.05 million housing starts in December, only 880,000 housing starts were reported for January.

The Department of Commerce also cited extreme winter weather as a cause for the drop in housing starts, which reached their fastest pace since 2008 in November. There is some good news. Economists said that housing starts delayed during winter could begin during spring.

According to Freddie Mac's weekly survey, average mortgage rates rose across the board. The rate for a 30-year fixed rate loan rose by 5 basis points to 4.33 percent. The average rate for a 15-year fixed rate mortgage rose by two basis points to 3.35 percent.

The average rate for a 5/1 adjustable rate mortgage moved up by three basis points to an average rate of 3.08 percent. Discount points for all three products were unchanged with readings of 0.70 for 30-year and 15-year fixed rate mortgages and 0.50 percent discount points for 5/1 adjustable rate mortgages.

The Bureau of Labor Statistics reported that weekly jobless claims came in at 336,000 against expectations of 335,000 new jobless claims. The prior week's reading was for 339,000 new jobless claims. Analysts said that job growth may be slowing after last year's growth, but also noted that winter weather had slowed hiring in labor sectors such as construction and manufacturing.

Existing home sales fell by 5.10 percent in January according to the National Association of REALTORS®, which reported a seasonally-adjusted annual rate of home sales at 4.62 million sales against expectations of 4.65 million and December's reading of 4.87 million sales of pre-owned homes. The national average home price rose to $188,900, which was 10.70 percent higher year-over-year.

January's inventory of available existing homes was 1.9 million homes; this represented a 4.90 month supply of existing homes for sale. Real estate pros prefer to see at least a six month inventory of available homes for sale.

What's Ahead

Next week brings a series of economic reports and opportunities for good news. The Case Shiller Home Price Indices, FHFA Home Price Index will be released. Consumer Confidence and the University of Michigan's Consumer Sentiment report along with New and Pending Home Sales reports round out next week's scheduled news.

The Three R's Of Fixing Historic Homes For Sale

If you enjoy history and fixing things, then it may be hard to drive by historic homes for sale without feeling the urge to buy one and fix it up. 

Before you do, you need learn the three R's of fixing up historic homes and the differences between them.

The three R's of fixing up historic homes are restoration, renovation and repair.  Some of the differences are minor, but they can make all the difference in cost, time and problems.

Restoration

"Restoration" literally means returning something to its original state. 

Restoring historic homes for sale involve city and state programs. It's essential that you check to see if the home is listed on the National Register of Historic Places (NRHP) or if it's located in a historic district. 

If either of these is the case, there is a specific set of rules that you must follow while renovating. 

Cost: Restoration is not a cheap endeavor. For a home to keep its historic value, the materials used need to match the original materials, including furnishings. These can be very expensive due to their antique value.

Renovation

Renovating is less complicated than restoring, at least when talking about what you can and can't do. However, with a renovation, you're generally turning the home into a more modern living place, which lowers its historic value. Make sure it isn't listed in the NRHP or located in a historic district.

Cost: Depending on the amount of renovations, i.e., modernizing, gutting or remodeling, this can also be expensive. However, it's much easier to find deals on modern appliances than it is on antiques.

Repair

Repairs differ because they generally aren't as in depth as the others. For restoration repairs, it's important to use materials that fit the house, such as plaster walls and wooden floors. For renovation, original materials aren't as important. 

Cost: Again, the cost depends on the number of repairs, as well as, whether you're keeping the historic value. 

Whether restoring, renovating or repairing historic homes for sale, the key is cost. Don't get so caught up in the possible that you miss the probable. Thinking of buying or selling an historic home? I can help! Call your trusted real estate professional today.

How To Get The Full Asking Price When Selling Your Home

Selling your home is a complex process and there are a lot of factors that you will need to consider. Your goal will be to sell your home in a timely manner, while getting the highest price you can.

However, many properties sell at a discount because the buyer is able to negotiate a lower price on the property.

Although it is impossible to guarantee that you will receive your full asking price when you sell your home, there are things that you can do to increase the likelihood of this happening. You will need to have a strategy that attracts highly motivated buyers and improves competition.

Here Are Some Tips To Keep In Mind That Will Help You To Get The Full Asking Price When You Are Selling Your Home:

• First of all, make sure that you have a reasonable asking price to start with. Research your local real estate market and find out what other buyers paid for homes comparable to yours.

• Hire a home inspector to perform a full inspection of your home, so that you can fix any problems. If you can show the buyer the repair receipts and inspection report, you will be in a better position to ask for full price.

• First impressions are very important and can improve a buyer’s perception of your home’s value. Make sure that your property has plenty of curb appeal and feels welcoming.

• De-clutter and clean your home – this makes it appear more spacious and luxurious and will make a buyer willing to pay more.

• Ask your real estate agent to create a flyer that compares your home’s price to other similar listings in the area – showing that your home is a great deal. This will convince buyers that your asking price is already discounted.

• Schedule your property tours as close together as possible. This can mean that you get multiple offers at around the same time, which will encourage the buyer who is eager to seal the deal to pay full price.

• If you have any rooms with bright colours that might not appeal to the average buyer, give them a quick makeover with neutral tones. These are safe colours that will increase the odds that your home will sell.

• If you have the budget to renovate one of the rooms in your home, it should be the kitchen or the bathroom. Studies have shown that renovations and upgrades in those two rooms have the most impact on the potential selling price of the home.

With these tips, you should be more likely to achieve the full asking price when you are selling your home. For more tips, contact your trusted real estate professional.

Smart Ways To Create Equity Within Your Home

Home equity is the difference between what your home can sell for and what you owe on it. Generally, the longer you own your home, the more equity you build.

This is money you can use before you sell your home through a home equity loan. Just keep in mind that a home equity loan is secured with your home. If you can't make the payments, you can lose your home.

Use Your Home Equity In Smart Ways:

1. Remodel Your Home - If you've wanted to add on a family room or modernize your kitchen, consider using your home's equity to fund the project. Home improvements usually increase your home's marketability and value.
2. Make Needed Major Repairs - Your home's equity can be a funding source for major repairs like plumbing problems and re-roofs. Once again, this is an improvement for your home that will help keep its value up.
3. Buy Another Property - Real estate is still a safe investment. You can use your home equity to buy a second property when home values are down. When the market recovers, you can sell the investment property for a profit. This also works if you have to move out of town and are still trying to sell your home. If you can afford the payments, use your home's equity to purchase your new home until the current one sells.
4. Pay For Unexpected Medical Expenses Or Job Loss - You never know when a medical emergency or job loss will leave you in debt. A home equity loan can give you the money you need to get through this difficult time.

It's easy to build equity in your home when you find the right deal. Let me help you find your perfect home and negotiate a great price and terms for you. Contact your real estate professional today.

What's Ahead For Mortgage Rates This Week - February 18, 2014

Last week's economic news was dominated by the first address by the new Fed chairperson, Janet Yellen.

Tuesday's news included the Jobs Openings report for December 2013, which matched November's reading of 4.0 million jobs available.

This information was taken from a gauge of competition for available jobs; in December, competition for job openings fell to its lowest level in five years.

Fed Chair Janet Yellen's First Address to House

Janet Yellen addressed the House Financial Services Committee for the first time on Tuesday as Chair of the Federal Reserve.

Ms. Yellen indicated that she expected "a great deal of continuity" in terms of Federal Open Market Committee (FOMC) monetary policy direction, and noted that markets should expect the FOMC to continue its support of low interest rates.

Chairman Yellen emphasized that the FOMC's current tapering of its quantitative easing program was expected to continue, but is not on a pre-determined course.

If economic conditions change, the Fed's monetary policy would be adjusted according to such developments.

Mortgage Rates Mixed According To Freddie Mac

According to Freddie Mac's weekly Primary Mortgage Market Survey (PMMS), the average rate for a 30-year fixed rate mortgage rose to 4.28 percent from the prior week's 4.23 percent.

The average rate for 15-year fixed rate mortgage mortgages was unchanged at 3.33 percent. The average rate for a 5/1 adjustable rate mortgage dropped from 3.08 percent to 3.05 percent.

Discount points for each category were unchanged at 0.70 percent for fixed rate mortgages and 0.50 percent for 5/1 adjustable rate mortgages.

In other news, Weekly Jobless Claims were higher last week at 339,000 against a forecast of 330,000 new jobless claims and the prior week's reading of 331,000 new jobless claims.

Analysts cited bad weather and the possibility of slower economic growth as factors, but said that it was too soon to tell if economic growth is slowing down.

The University of Michigan's Consumer Sentiment Index beat expectations with a reading of 81.2 against expectations for a reading of 80.0. February's reading was unchanged from January.

What's Coming Up

This week's economic news includes the NAHB Home Builder's Housing Market Index on Tuesday. Wednesday's events include Housing Starts and the minutes from January's FOMC meeting.

In addition to Freddie Mac's PMMS, Thursday's scheduled reports include Weekly Jobless Claims, the Consumer Price Index (CPI) and Core CPI. Leading Economic Indicators (LEI) for January will also be released.

The National Association of REALTORS® will release data for existing home sales in January on Friday.

 

How To Make Your Old Furniture Look Like New

Out with the old, in with the new. The beginning of 2014 can have you wanting to reinvent yourself — and your home. It's time to start fresh.

Paint the walls, change the curtains and get new furniture. It's important to have your home be a reflection of you; however, all that remodeling can get expensive.

Take a cue from Auld Lang Syne by buying a few new pieces, but keeping some of your older furniture.

If they have sturdy bones, then you can update their look by reupholstering them to fit your new home vibe. Below are DIY steps to help you modernize your furniture and save money in the process! 

Take Photographs

It's important to take photographs of your piece of furniture before and throughout the reupholstering process. You'll want a visual reference in case you have one too many pieces or can't seem to figure out what order the cushions were attached. 

Plus, you'll have a before and after picture as proof of your handiness and to inspire more DIY projects.

Disassemble The Upholstered Sections

Carefully take apart your piece of furniture. You only need to disassemble the upholstered sections, so don't strip down an entire dining chair when only the cushion needs to be redone. If there are a lot of pieces then you might want to do some labeling with Post-It notes or painters' tape.

Sew And Staple

Remove the old fabric and examine how it's put together. You might have to sew corner seams for cushions. You'll probably need to rent or borrow a sewing machine, if you don't have one.

Or, for many pieces, you'll just need a heavy-duty staple gun to pull the fabric tautly against the back frame and staple it in place. Try to recreate the way the initial fabric was secured.

Reassemble

Using your photographs and possibly your Post-It note organizational system, reassemble your pieces of furniture. In just a few hours, you can have updated radiant orchid chairs that match your bedspread or a sand-colored sofa for your beach-themed room.

Save your money to splurge on something you can't create! With a little time and ingenuity, you can make your old furniture feel fresh and new by reupholstering it in an updated fabric.

Sell A Home, While Managing Your Stress

When we are going through a difficult and stressful time, our bodies naturally react to the situation. This "fight or flight" reaction to stress makes us more alert and ready to avoid danger, so it is helpful in the moment.

However, if you are in a constant state of stress on an ongoing basis, this can be very damaging to your health and can increase the risk of diseases such as heart disease, depression and other problems.

Chronic stress can also result in insomnia, headaches, upset stomach, elevated blood pressure, chest pain and much more – as well as emotional issues such as panic attacks, anxiety and worry.

This is why learning to manage your stress is crucial to your health. Many people try to manage their stress by overindulging in unhealthy substances, such as tobacco, drugs and alcohol.

However, by managing stress in this way you are actually making the problem worse because you are contributing to the stress on your body.

So what are some of the healthy ways that you can manage stress?

Express Your Feelings

A lot of stress comes from being angry or upset about a situation, but keeping your thoughts and feelings inside. You can relieve that stress by sharing your feelings and expressing how you feel.

Take Time To Relax

No matter how busy and chaotic things might be, take time for yourself to recharge and relax. Even if it's only 20-30 minutes per day, having a bath, reading a book or going for a walk – it will really help to keep you calm.

Get Some Exercise

The act of exercising is a great stress reliever because it encourages your brain to produce feel-good chemicals such as endorphins. Also, your body will be better able to fight stress when it is in good shape.

Make Sure You Get Sleep

When there are a lot of demands on you, it can be tempting to want to skip sleep so that you can get more things done. However, when you are sleep deprived you will actually be much less effective and you won't be able to handle stressful situations as well. Make sure that you go to bed at a reasonable time and get the sleep you need.

Speak To A Friend

Having a close friend who you can discuss your issues with can be a huge help when you are feeling stressed. Even if they can't solve anything, it is simply helpful to have someone who listens, cares about how you are feeling and offers some encouraging words.

Managing your stress is crucial to your health, so make sure that you keep these tips in mind when things start to get overwhelming.

Ready To Buy Your First Home, Here Is Your Quick Checklist

Buying your first home is a major milestone in your life, similar to graduating high school or moving out of your parent's house.

When you buy a property, you are making a long-term investment decision in your future and potentially taking the first step toward your future financial security.

However, buying a house before you are ready can actually be a negative move that puts a cramp in your plans.

It is important to assess where you are in life, so that you know whether or not it's the right time to buy a house.

Some people buy their first home at 21, others at 30 and some might continue to rent for the rest of their lives – the decision depends on personal circumstances. But how can you determine for yourself whether you are ready?

You Have All Of  Your Finances In Order

Is your credit score looking healthy? Have you paid off your credit card debt, student loans or personal loans?

If not, it is important to clean up your finances and pay down your debts before you start looking for a home, or you will be adding a mortgage on top of the debt before you are able to handle everything.

You Have Enough Savings For A Down Payment

Just because you can buy a home for as little as 3.5% down payment, doesn't mean that you should. You will have your dream home, but your mortgage payments will be so high that you won't have any money left over for repairs or improvements.

Also, you will end up paying thousands of dollars more in interest over the length of the loan. The bigger down payment you can save, creating equity in your home, the better.

You Are Earning Enough To Comfortably Afford The Mortgage Payment

Financial experts recommend that you never take a monthly payment that is more than 25% percent of your take home pay – including taxes and insurance.

Stretching yourself thinner will leave you little room for error and if your income drops for any reason – you will quickly find yourself in hot water.

You Are Happy To Settle In One Place

Could you see yourself settling in this location for the long term, or are you still considering moving elsewhere in the country or living abroad?

Buying a home is a long-term investment, so if you think that you might possibly move somewhere else in the next five years, you might want to think twice about buying a home and rent instead.

These are just a few of the signs that you are ready to purchase your first property. For more information, contact your trusted real estate professional.

How To Emotionally Detach From Your Home When Selling

Let's face it, selling your home can be an emotionally difficult process – especially if you have lived there for a long time. When you make a house your home, it holds many of your memories and it becomes a part of your identity.

How can you sell the house in which your child took their first steps, where you held many dinner parties and where your family celebrated so many birthdays and holidays together?

You will go through a period of transition when moving house, which can be mentally and emotionally tiring.

It might be hard to sell your home, but time marches on and eventually it is time to move to a different location or simply downsize or up-size to suit your changing family situation.

The problem with being too emotionally attached to your home is that it makes it difficult to sell. When you have a sentimental attachment to your home you will estimate its value as higher than it really is and you will have trouble accepting counter offers.

Which could mean that your home is on the market for a long time when it could possibly have been sold for a reasonable price.

Here are some tips for emotionally detaching from your home so that it is easier to sell:

Remove Your Personal Items

Taking any of your personal items out of the house will make it a lot easier to sell, because the buyer will be able to imagine a blank slate filled with their items instead. Also, it will make the process easier on you if you can remove your family photos, keepsakes and personal items - because it will make the house feel less like yours.

Think About Your New Home

Whether or not you have already bought your next property, it's time to start thinking about it as your new home. It will take some time, but you can transfer that emotional connection to the new place where you will live.

Start to focus on all of the things that you are looking forward to about living in your new home.

Preserve A Record Of Your Old Home

Take photos and even make a video tour of your old home before you move - so that you can always remember where you used to live.

Get An Outside Opinion

Ask your real estate agent or a professional home stager to take a look at your home with unbiased eyes to let you know what you should change to help it sell faster.

They might tell you to eliminate the jungle wallpaper in your son's bedroom that you love - but they are probably correct in a way that you can't see because your emotions cloud your judgement.

With these tips, you should be able to emotionally detach from your old home, so that it is easier to sell. For more information contact your real estate professional.

What's Ahead For Mortgage Rates This Week - February 10, 2014

Residential Construction Spending Up

Last week's mortgage and housing-related reports began with Construction Spending for December, with a reading of 0.10 percent or a seasonally adjusted $930.5 billion. December's reading fell short of an expected increase of 0.40 percent.

Spending for private sector projects rose by 1.00 percent; of this amount, residential construction spending increased by 2.60 percent and private sector spending for non-residential construction fell by -0.70 percent.

Although construction spending posted a fractional gain, the good news is that construction spending is currently dominated by residential construction and that due to inclement winter weather, any gain in construction spending during December could be considered positive.

Jobs and Unemployment Data Mixed

Employment related reports dominated the week's economic reports. The ADP employment report for January indicated that only 175,000 new private sector jobs were added for the lowest reading in five months.

December saw 227,000 new jobs. Severe weather conditions were the cause of lower than expected jobs growth. Month-to-month job reports can be unpredictable, but quarterly results provided positive information as the three month period ended in January 2014 saw average monthly job growth of 230,000 jobs as compared to an average reading of 220,000 jobs added during the same period a year ago.

New Jobless Claims came in at 331,000, significantly less than the prior week's reading of 351,000 new jobless claims, and also lower than the forecasted reading of 337,000 new jobless claims. Analysts said that these readings supported gradual improvement in the economy.

The Bureau of Labor Statistics (BLS) released its Non-Farm Payrolls report for January, which indicated that 113,000 new jobs were added during the first month of 2014.

This reading was better than December's reported 75,000 jobs added, and suggested to economists that bad weather was not the underlying cause of the dip in jobs growth. Healthcare and government sectors cut jobs in January.

With lower job growth, a higher unemployment rate would seem likely, but the national unemployment rate dropped to 6.60 percent from last week's reading of 6.70 percent.

The Federal Reserve's FOMC Committee has established a benchmark reading of 6.50 percent as one of the economic indicators it uses in decisions concerning federal stimulus programs.

Readings for labor and unemployment are important for the overall economy and housing markets; consumers worried about jobs that they might lose or jobs they cannot find likely won't be buying homes in the near term.

Mortgage Rates Drop

According to last week's Freddie Mac's Primary Mortgage Market Survey, average mortgage rates dropped across the board. The reported rate for a 30-year fixed rate mortgage was 3.23 percent, down from the prior week's 3.32 percent. Discount points were unchanged at 0.70 percent.

The rate for a 15-year fixed rate mortgage fell by seven basis points to 3.33 percent. Discount points ticked upward from 0.60 to 0.70 percent. The rate for a 5/1 adjustable rate mortgage fell by four basis points to 3.08 percent with discount points unchanged.

What's Coming Up This Week

This week's scheduled economic news includes Weekly Jobless claims, Freddie Mac's report on average mortgage rates, along with retail sales and retail sales except automotive sales.

The University of Michigan Consumer Sentiment report will be released Friday.

Conducting Your Own Home Energy Audit

If your monthly energy bill has started to make you cringe, then it might be time to conduct an energy audit on your home. Hiring a professional can cost you a pretty penny. So save the dough and examine your home yourself.

With a few tools and the tips below, you can identify problem areas that could be costing you every month.

 Energy Bills

Analyze last year’s energy bills. Each statement should itemize the energy you use each month in kilowatts. Note any spikes that could indicate problems with one of your appliances or the structure of your home.

Call your energy provider and ask what the average cost is for a home of your size in your area. Then determine how extensively you need to conduct your energy audit.

 Air Leakage

Warm or cool air escaping from your home can cost you more money and overstress your appliances. To search for cracks that air might be seeping through, light an incense stick and walk into each room of your home on a windy day. The smoke from the incense stick will highlight problem areas and you can mark them with painters’ tape.

Heating And Cooling System

Thoroughly inspect your heating and cooling equipment. Most homeowners neglect to follow appliance manufacturers’ recommendations of doing this once a year. Make sure your system is working properly.

Change filters and examine ductwork. If your appliances are older than 15 years, consider replacing it with a newer, more energy-efficient model.

 Insulation

Go up into your attic and check for insulation. If the insulation covers the joists, then there is probably enough to protect your home. Remove light sockets and use a flashlight to see if your walls have been insulated.

If not, you might want to have insulation blown in. Look for any stained or damaged insulation. This could be a sign of exterior leaks that need to be fixed.

 Lighting

According to Energy.gov, lighting accounts for around 10% of energy usage. As part of your energy audit, reduce your use by replacing inefficient bulbs with incandescent or light-emitting diode (LED) bulbs.

Consider using lower-wattage bulbs in rooms that get a lot of sunlight and only turning on table lamps instead of overhead lighting at night.

 

What Is DOM And How It Affects Your Home For Sale

Oh, the dreaded/happy DOM question: "How long has this house been up for sale?" If it's your home for sale we're talking about, you're probably wondering about the split "dreaded/happy" bit. For that matter, whether you're a buyer or a seller, you're probably asking, "what the heck is 'DOM'?"

Days On Market

"DOM" is the shortened industry term for Days On Market, used by the multiple listing services. It's exactly what it sounds like: the number of days your home for sale has been on the market. This metric covers the time it actually goes on sale to the time the deal is closed.

Why Is DOM Important?

Remember the "dreaded/happy" part at the beginning of this article? As a buyer's agent, I might gleefully answer, "Fifty days." I say "gleefully," because a house that has sat on the market for a long time is a good thing for my client.

The seller is probably more eager to sell than a month before, and is most likely willing to work a deal. An eager seller makes a happy buyer in most cases.

On the other hand, as a seller's agent, I might not be so happy about it, and for the same reason. My seller is now an eager seller. I want to get the best deal for my client, but I know the buyer has the upper hand. It is then up to me to help my client get the home sold without giving away the barn, the pool, the tool shed and the tools.

Already, you may be beginning to understand how the DOM metric can affect the sale of your home.

The problem with the DOM metric is that it causes buyers and agents to build false assumptions. If a home has been on the market for an above-average length of time, we start to wonder, "what's the matter with that listing?" Even though I know there are other reasons for a home to go static and not sell, many people automatically think there's something wrong.

Reasons For An Extended DOM Metric:

• The Home May Be Overpriced – Nothing is wrong with the property itself; it's just priced too high.

• Testing The Market – Although it's a big mistake and agents will tell you so, some sellers test the market by throwing a high price on a home they don't care if they sell – just to see if somebody is foolish enough to take it.

• Sticking To Your Guns – Often, sellers get fixed on a price and won't budge, come hell or high water. They figure they can wait around until the market can meet their price, not the other way around.

• Renovations – Sometimes, a home will go on the market in the middle of renovations. The sellers aren't ready to let the home be seen, so it just sits there.

• Availability – A growing problem is the lack of access to a home for sale. Sadly, agents and FSBOs alike seem to be unavailable when a buyer wants to view the home. Obviously, no viewing means no sale.

Don't let your DOM get high because of simple mistakes. If you're serious about selling your home, remember the five reasons above and make sure you aren't doing them.

If you're ready to sell your home with a professional who understands how to keep the DOM to a minimum, contact your real estate professional today.

Buying A Home That's Not For Sale

You’re ready to purchase a home, but you’ve looked at everything on the market and can’t find the perfect place. You’ve researched the school districts, neighborhoods and nearby amenities, and you know exactly in which area you want to live.

However, anything that comes on the market in that part of town gets snapped up immediately.

It’s time to get creative when it comes to buying a home. Start looking at places that are not currently for sale. You might have driven past your dream home, but you never thought of going the unconventional buying route.

Well, take a look at the tips below to see how you can close on a home without any other buyers knowing.

Look At Previously Listed Homes

Search homes that were on the market, but the owners took them off. Many homeowners let their listing expire and are waiting until the market improves. This is fortunate for you, because you know they are already interested in selling.

Research Online County Records

If you see your perfect home, but you don’t want to just walk up to the door and demand they sell their house, you can find their contact information online. Property records include the owners’ name, address, and, sometimes, their contact information. This will allow you to go through the proper channels of proposing an offer.

Consider A Real Estate Agent

A seller is more likely to take you seriously if a real estate agent brings the offer to them. Agents deal with sellers all the time and will be able to gage if the homeowners are interested.

They’ll also be able to tell you the right price to offer and how you should go about it. You’ll also have piece of mind that all the paperwork that comes with buying a home is completed correctly.

Write A Personal Letter

While all the guidelines say to keep personal feelings out of the home selling process, it’s practically impossible. A home is the place where you raise your children and make memories.

So write the homeowners a heartfelt letter about how you’d like to build a life in their current house. If they think you’ll care for their place as much as they do, they might entertain an offer.

Offer A Fair Price

Many homeowners are ready to upgrade, but hate the idea of getting their current residence ready to sell. They’d have to clean, clear clutter, stage and keep everything looking spotless until they close the deal — which can be quite a hassle.

So, make it convenient. Offer a price that won’t offend and will have them thinking how this could be a stress-free transition.

FOMC Statement Shows Tapering Of Quantitative Easing Purchases

According to a statement provided by the Federal Open Market Committee of the Federal Reserve, the committee has approved another reduction of the Fed's monthly asset purchases.

The adjustment will be made in February and cuts monthly purchases of mortgage backed securities from $35 billion to $30 billion and monthly purchases of Treasury securities from $40 billion to $35 billion.

FOMC began reducing its asset purchase under its quantitative easing program in January, when the monthly purchases of mortgage-backed securities and Treasury securities was reduced from $85 billion per month to $75 billion.

Citing its goals of maximum employment and price stability, the FOMC said that it has seen consistent improvement in the economy and specifically mentioned a lower, but still elevated unemployment rate. The statement also indicated that the FOMC expected labor markets to improve. 

FOMC Asset Purchases: How They Impact Mortgage Rates

The Fed initiated the QE program in an effort to control rising long-term interest rates, which include mortgage rates. Yesterday, the FOMC statement said that Fed expects its purchases of longer-term assets will continue to control long-term interest rates and mortgage rates while supporting mortgage markets.

FOMC's statement reported that it sees the risks to its economic outlook and the labor market as having become nearly balanced. The FOMC is still looking for inflation to reach its 2.00 percent goal.

Fed Monetary Policy To Remain "Highly Accommodative"

The Fed intends to maintain a highly accommodative stance on monetary policy after the QE asset purchases end and the economy is significantly stronger. The current Federal Funds Rate of between 0.00 and 0.250 percent will be maintained at least until the national unemployment rate drops below 6.50 percent.

FOMC members reaffirmed their commitment to monitoring economic indicators as part of any decision to alter current QE measures or the Federal Funds Rate. 

Indicators Mentioned In The FOMC Statement Include:

• Additional indicators of labor market conditions
• Inflationary pressures and expectations
• Readings on financial developments

FOMC statements have consistently included the committee's assertion that no arbitrary benchmark alone will be sufficient for the committee to change either QE asset purchases or the Federal Funds Rate.

FOMC stated that it will seek a "balanced approach consistent with its longer-run goals of maximum employment and inflation at two percent."

Although fears of tapering the Fed's monthly asset purchases may persist, it appears that each FOMC decision to reduce asset purchases under the QE program indicates economic growth.

What's Ahead For Mortgage Rates This Week - February 03, 2014

Last week brought mixed news; while the Department of Commerce reported a dip in new home sales, mortgage rates also fell. The Federal Reserve's FOMC statement revealed that quantitative easing would be further reduced by an additional $10 billion monthly.

New Home Sales: Y-O-Y Reading Best Since 2008

December's reading of 414,000 for new home sales fell short of November's revised reading of 445,000 new homes sold as well as expected sales of $455,000. The consensus figure was based on November's original sales reading of 464,000 new homes sold.

The inventory of new homes available rose from last month's level of 4.70 month supply to a 5 month supply in December. Cold weather was cited as a cause of lower new home sales.

New home sales increased by 4.50 percent year-over-year; this was the highest reading since 2008. The median price of a new home rose by 0.60 percent in December to $270,299. 

The national median home price was $265,800 in 2013, an annual growth rate of 8.40 percent and the highest annual growth rate for median home prices since 2005.

Economists cited rising mortgage rates, new mortgage rules and a lagging labor market as signs that slower home sales could be expected in 2014.

Pending home sales echoed the slowing trend in home sales; the index reading fell by -8.70 percent to a reading of 92.4 in December.

All Four Regions Reported A Drop In Pending Sales As Compared To November:

Northeast              -10.30 percent

West                    -9.80 percent

South                   -8.80 percent

Midwest                -6.80 percent

This was the lowest reading for pending home sales since October 2011.

Case-Shiller: Home Prices Up 13.7%

The Case-Shiller 10 and 20 city home price indices for November reported a 13.70 percent gain in home prices year-over-year. This was the fastest annual growth rate in home prices since 2006. Further evidence of slower growth in home prices was evident as nine of 20 cities tracked reported lower home prices.

Fed Continues Stimulus Reduction

Wednesday's FOMC statement confirmed expectations that the Fed would continue tapering its monthly asset purchases made under its quantitative easing program.

Monthly purchases of mortgage-backed securities and Treasury securities will be reduced from January's level of $75 billion to $65 billion in February. Economists expected this reduction to occur.

Freddie Mac's Primary Market Survey reported lower average mortgage rates. The rate for a 30-year fixed rate mortgage fell by 7 basis points to 4.32 percent with discount points unchanged at 0.7 percent.

15-year mortgage rates also fell to 3.40 percent with discount points lower at 0.60 percent. The average rate for a 5/1 adjustable rate mortgage fell by 3 basis points to 3.12 percent with discount points unchanged at 0.50 percent.

This was welcome news as homebuyers and mortgage lenders have felt the effects of higher home prices and new mortgage rules that became effective January 10.

New Jobless Claims Higher

Weekly jobless claims jumped to 348,000 from the prior week's 339,000 new jobless claims. This was the highest level of new jobless claims in six weeks. Reasons for increased claims were unclear, but were possibly caused by lingering influences of the holiday season or a sinking labor market.

Consumer confidence rose in January to a reading of 80.7 as compared to December's reading of 77.5 as compared to January 2012's reading of 58.4.

This Week

This week's scheduled economic and housing news includes construction spending, non-farm payrolls and the national unemployment rate. Freddie Mac's PMMS report and weekly jobless claims will be released as usual on Thursday.

3 Tips To Get The Most Out Of Your Plumbing

Everyone wants their pipes to last as long as possible, but there are a couple of simple problems that might be sucking the life out of your plumbing. Long-term stress is the enemy when it comes to your water system.

The three most common enemies are high water pressure, mineral-laden hard water, and grease. Avoid these three mistakes, and your water system will last years longer.

Take The Pressure Off Your Pipes

You might enjoy high water pressure when you're taking a shower, but your pipes aren't enjoying it at all. Over time, this high pressure stresses your plumbing system and can lead to leaks.

Is your high-pressure shower worth an expensive plumbing leak? To test your water pressure, you'll have to hire a professional. Proper pressure should be somewhere between forty and eighty pounds per square inch.

To have a plumber reduce your water pressure should cost no more than about three or four hundred dollars. That sounds expensive, but it's a lot cheaper than a leak.

Soft Water Is Good Water

If your water has a lot of minerals dissolved it, then it's known as hard water. If you don't already have a water softener you should consider it, because over time, those minerals will build up in your plumbing.

Eventually this will lead to a leak, so nip the problem in the bud, and look into getting a water softener. A good water softener should cost around five hundred dollars.

Hard water also makes soaps and detergents less effective. Soft water will get your clothes, your dishes, and even your hair cleaner.

Cease The Grease

Don't ever pour cooking grease down the drain. It might be liquid when you pour it, but after a while, it will cool and solidify in your pipes. This won't break the plumbing and cause a leak, but it will clog it all up.

The water that goes down afterward won't do anything to wash away the sticky grease. You don't want your pipes backing up, trust me. That is one messy problem.

Instead pour your grease into containers and throw it away in the garbage. Even better, go ahead and save it in the pantry and cook with it later.

Indoor plumbing is one of the most convenient technologies we have. So don't take it for granted. Take care of your plumbing, and get the most out of it.

Avoid excessive water pressure, get a water softener, and don't pour any grease down the drain. A little care now will go a long way. No one wants to deal with a plumbing leak. They're expensive and a huge hassle.