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Worried About Mortgage Rates? Control the Controllables

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Chances are you’re hearing a lot about mortgage rates right now.

You may even see some headlines talking about last week’s Federal Reserve (the Fed) meeting and what it means for rates. But the Fed doesn’t determine mortgage rates, even if the headlines make it sound like they do.

The truth is, mortgage rates are impacted by a lot of factors: geo-political uncertainty, inflation and the economy, and more. And trying to pin down when all those factors will line up enough for rates to come down is tricky.

That’s why it’s generally not worth it to try to time the market. There’s too much at play that you can’t control. The best thing you can do is control the controllables.

And when it comes to rates, here’s what you can influence to make your moving plans a reality.

Your Credit Score

Credit scores can play a big role in your mortgage rate. As an article from CNET explains:

“You can’t control the economic factors influencing interest rates. But you can get the best rate for your situation, and improving your credit score is the right place to start. Lenders look at your credit score to decide whether to approve you for a loan and at what interest rate. A higher credit score can help you secure a lower interest rate, maybe even better than the average.”

That’s why it’s even more important to maintain a good credit score right now. With rates where they are, you want to do what you can to get the best rate possible. If you want to focus on improving your score, your trusted loan officer can give you expert advice to help.

Your Loan Type

There are many types of loans, each offering different terms for qualified buyers. The Consumer Financial Protection Bureau (CFPB) says:

“There are several broad categories of mortgage loans, such as conventional, FHA, USDA, and VA loans. Lenders decide which products to offer, and loan types have different eligibility requirements. Rates can be significantly different depending on what loan type you choose.”

When working with your team of real estate professionals, make sure you find out what’s available for your situation and which types of loans you may qualify for.

Your Loan Term

Another factor to consider is the term of your loan. Just like with loan types, you have options. Freddie Mac says:

“When choosing the right home loan for you, it’s important to consider the loan term, which is the length of time it will take you to repay your loan before you fully own your home. Your loan term will affect your interest rate, monthly payment, and the total amount of interest you will pay over the life of the loan.”

Depending on your situation, the length of your loan can also change your mortgage rate.

Bottom Line

Remember, you can’t control what happens in the broader economy. But you can control the controllables.

Let’s connect to go over the things you can do that’ll make a difference. By being strategic with these factors, you may be able to combat today’s higher rates and lock in the lowest one you can.

Read more at KeepingCurrentMatters.com

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Does Your Driveway Need a Boost? 4 Types of Outdoor Lighting to Add For Looks, Safety & Even Insurance Discounts

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When it comes to improving your home’s curb appeal, pretty landscaping, an attractive front door (and doormat!), or a fresh paint job on the exterior are great places to start. But have you considered lighting?

Driveway and front-of-house lighting can be transformative, illuminating dark pathways, driveways, and dormers to beautiful effect. It can even get you a discount on your insurance policies and increase your property value.

If your home at night is the black box on the block, here are four types of lighting to consider for a more welcoming (and safer!) outdoor atmosphere.

If you want to create a dreamy walking path: Add some path lights.

Path lights are exactly what they sound like: they illuminate walking paths! Not only is this an important safety feature to prevent you or someone else from falling or tripping over steps or potted plants, pathway lights can also offer lovely, atmospheric lumination. The most common type of path lights are individual, weather-proof lights that can be simply stuck into the ground, no hardwiring required. Place them along the walkway up to your front door, around the side of the house, or along your driveway. Many are also solar-powered, so they’re pretty and energy-efficient.

Buy them:

XMCosy+ Solar Pathway Lights, $60 for a set of four at Amazon

Hampton Bay Duncan Outdoor Solar Path Light, $18 for a four-pack at The Home Depot

Member’s Mark 4-Piece LED Solar Path Lights, $20 at Sam’s Club

If adding an extra layer of safety is what you’re after: Go with flood lights.

Perfect for placing over the garage (especially if your garage door faces a dark alleyway) or around your backyard, flood lights have a wide, bright coverage area and can be mounted on trees, poles, fences, or built structures. Often motion-activated, flood lights provide extra security by lighting up large areas quickly. They may not offer the prettiest light around, but their functionality makes them a valuable addition to any outdoor lighting plan. Not to mention, they may help you qualify for a protective device discount on your homeowners insurance (sometimes of up to 15%). Be sure to check with your agent for further details.

Buy them:

LEPOWER LED Motion Sensor Outdoor Flood Light, $40 at Amazon

MaxDetect 240-Degree Motion Activated Wired Outdoor Flood Light, $50 at The Home Depot

Enbrighten 180-Degree Hardwired LED Motion-Activated Flood Light, $90 at Lowe’s

If your driveway could use an upgrade: Try recessed paver lights.

Love the idea of lighting your driveway or deck but want a clean, streamlined look? Recessed lights like paver lights or paver dot lights offer subtle, elegant illumination. Not only will they improve the safety of your driveway by keeping it sufficiently lit at all times, but they emit a soft, sophisticated glow for immediately improved curb appeal—and possibly even increased property value. Redoing your driveway soon? Consider adding these during installation, but don’t worry if you aren’t. They can still be installed even with an existing driveway or path.

Buy them:

Paver Lights, from $40 at Lumengy

Recessed Paver Dot LED Lights, from $23 at Dekor

If you’re looking for a little drama: Install uplights.

Uplights are spotlights that direct light, well, up! Place them at the base of trees, underneath windows, or around the bottom of your house to spotlight interesting architecture or make your house look like it’s “glowing” from within.

Buy them:

Gardenreet Solid Brass Landscape Spotlight, $150 for a four-pack at Walmart

Argolis Architectural LED Low Voltage Directional Uplight, $159 at Alcon

VOLISUN Outdoor Uplights, $42 for a six-pack at Amazon

Read more at Realtor.com

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If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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5 Costly Kitchen Problems That First-Time Homebuyers Often Overlook

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Probably the most exciting part of home shopping is when you spot a house that makes you swoon.

And more often than not, it’s the gleaming, glorious kitchen that does people in.

Maybe it’s the French doors in the kitchen leading to the patio. Or the shiny backsplash that extends up to the skylit ceiling. Or that ample farmhouse sink that conjures fantasies of your living a Chip and Joanna Gaines–charmed life.

While it’s understandable, even exciting, to fall in love with a home, watch out: Love has a way of blinding buyers to some considerable problems.

To help you spot these kitchen flaws before they dupe you, too, we asked real estate agents and designers to point out these hidden issues that first-time homebuyers often miss. Here are some easy-to-overlook blind spots to check, lest you wind up with some major regrets and costly renovations once you’ve moved in.

1. Illogical layouts

Efficient workstations and smooth traffic flow are crucial in a kitchen, yet it might be hard for newbies to assess how well a layout will work for them.

Will that peninsula, for example, be a helpful food prep station—or a clutter magnet? A galley-style kitchen may look fantastic, but if you’re constantly bumping into others as you prep for dinner, it’ll get on your nerves, fast. Or if you need a ton of counter space, that tiny peninsula might not be enough for you and your kids.

How to avoid buyer’s regret: Focus on how much counter space you use in your current home or would like to use when making a meal. Bring your measuring tape when you tour homes. In particular, scope out the kitchen work triangle where you’ll be spending the bulk of your time.

Ideally, the sink, fridge, and stove should all be within the same general vicinity to keep you from running to and fro.

2. Entertainment space

Also, go beyond meal prep considerations and imagine how you’ll really use the space.

“A kitchen layout might be practical for everyday cooking but lack the entertaining aspect, like wine storage or a proper place to make drinks,” points out Allie Mann, senior designer with Case Architects & Remodelers, in Falls Church, VA.

How to avoid buyer’s regret: Evaluate the basic layout, keeping in mind your wish list. Check if that kitchen island has an overhang, which makes for more comfortable seating for guests. Or do you need to knock down a wall to make room? Just know that opening up a kitchen can be pricy or even impossible if the wall in question bears weight, so make sure to know what you can (and can’t) remove.

3. Insufficient storage

Open shelving in kitchens is all the rage today. But unless you’re an austere minimalist, all your dishes might not fit—or if they do, do you want them all on display for all to see?

How to avoid buyer’s regret: If you’re swooning over a kitchen’s open shelves, just make sure there’s enough cabinet space elsewhere for your bigger or less attractive items such as pots and pans.

If you need to replace the cabinets or build a pantry, calculate the cost. To add a pantry, for instance, you might be looking at stealing 30 inches for a 2-foot-deep closet, as well as spending anywhere from $2,000 to $6,000, says Mann.

4. Missing appliances

Realtor.com quotes, “The couple just assumed that there’d be one, but this was an older house and the seller dined out a lot, so never bothered to put one in,” they say. “That’s why multiple visits [when possible] are important. Something you missed the first time may reveal itself the next time.”

How to avoid buyer’s regret: First-time homebuyers benefit from being methodical. Create a checklist of appliances/features and keep it on your phone as you tour, or download an app that helps you take notes.

Dishwasher, check? Washer/dryer in working order, check?

These details are all too easy to overlook as you walk through a house and soak in its vibe. Each could add at least hundreds, if not more, to your budget.

5. Appliances that are too small or too large

Shiny appliances are always exciting, but don’t forget to think about their size, too.

“People can be so enamored by the finishes of a kitchen that they don’t consider that perhaps the 30-inch stovetop is inadequate,” says Mann.

In the same vein, the fabulous fridge with a “Brady Bunch” capacity could be far more than what a singleton or young couple with no kids needs.

How to avoid buyer’s regret: Even if you are impressed by a kitchen and think it’s fabulous, stop, look, and size up those appliances.

Will you have room for three different pots boiling on the cooktop? Is the fridge and freezer as wide and deep as what you have now? Know this before you reach “accepted offer” status.

Read more at Realtor.com

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Selling Smart: Why a Real Estate Agent Makes All the Difference

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If you’re considering selling your house on your own as a “For Sale by Owner” (FSBO), you want to think about if it’s really worth the extra stress.

Going this route means shouldering a lot of responsibilities by yourself – and, if you’re not an expert, that opens the door for mistakes to happen and can quickly become overwhelming.

A report from the National Association of Realtors (NAR) shows two key areas where people who sold their own house struggled the most: pricing and paperwork.

Here are just a few of the ways an agent makes those tasks a whole lot easier.

Getting the Price Right

Setting the right price for your house is important. And, if you’re selling your house on your own, two common issues can happen. You might ask for too much money (overpricing). Or you might not ask for enough (underpricing). Either can make it hard to sell your house. According to NerdWallet:

“When selling a home, first impressions matter. Your house’s market debut is your first chance to attract a buyer and it’s important to get the pricing right. If your home is overpriced, you run the risk of buyers not seeing the listing.

 . . . But price your house too low and you could end up leaving some serious money on the table. A bargain-basement price could also turn some buyers away, as they may wonder if there are any underlying problems with the house.”

To avoid these problems, team up with a real estate agent. Agents know how to figure out the perfect price because they have a deep understanding of the local housing market. And they’ll use that expertise to set a price that matches what buyers are willing to pay, giving your house the best chance to impress from the start.

Understanding and Performing Paperwork

Selling a house involves a bunch of paperwork and legal documentation that has to be just right. There are a lot of rules and regulations to follow, and that makes it a bit tricky for homeowners to manage everything on their own. Without a pro by your side, you could end up facing liability risks and legal complications.

Real estate agents are experts in all the contracts and paperwork needed for selling a house. They know the rules and can guide you through it all, reducing the chance of mistakes that might lead to legal problems or delays. As an article from First American explains:

“To buy or sell a home you need to accurately complete a lot of forms, disclosures, and legal documents. A real estate agent ensures you cross every ‘t’ and dot every ‘i’ to help you avoid having a transaction fall through and/or prevent a costly mistake.”

So, instead of dealing with the growing pile of documents on your own, team up with an agent who can be your advisor, helping you avoid any legal bumps in the road.

Bottom Line

Selling a house on your own can cost you a lot of time and stress. Connect with a local real estate agent so you have help with all the finer details, including setting the right price, handling all the paperwork, and so much more. That way you can take that stress off of your plate.

Read more at KeepingCurrentMatters.com

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What to expect from the housing market in the second half of 2024, according to real estate experts

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Experts are torn about where exactly the housing market is headed in the latter half of the year.

“Mostly, we think the housing market is going to improve over the next half of the year,” Glenn Kelman, chief executive of Redfin, a real estate brokerage site, said on a May 22 appearance on CNBC’s “Money Movers.”

“We’ve hit rock bottom in the first quarter of 2024 and I would expect the housing market to do a little bit better,” Kelman said.

Other experts are less sure about the market’s prospects for improvement.

“It’s a very strange market, and it’s kind of hard to predict,” said Jeff Ostrowski, a housing analyst at Bankrate.com.

Here are some of what Ostrowski, Kelman and other real estate experts say could shape the real estate market in the second half of 2024:

More homes are coming on the market

The mortgage rate lock-in effect seems to be wearing off, said Orphe Divounguy, senior economist at Zillow.

The mortgage rate lock-in effect, or the golden handcuff effect, kept any homeowners with extremely low mortgage rates from listing their homes last year as they didn’t want to finance a new home at a much higher interest rate. 

During the week ended June 1, newly listed homes grew 2.1% from a year ago, according to a weekly housing trends report by Realtor.com. In the same period, available inventory of homes for sale grew 35.5% compared with last year, Realtor.com found.

In his CNBC appearance, Kelman also pointed out that demand for homeownership remains high, especially among buyers who have been putting off the home purchase for a long time.

While the market is seeing more listings, the boost in supply is not enough to attract buyers, according to Doug Duncan, senior vice president and chief economist at Fannie Mae.

“Listings have trended generally upward of late, suggesting to us that a rising number of current homeowners can no longer put off moving,” said Duncan in a release earlier this month. “However, we believe the ongoing affordability challenges are likely to weigh on how quickly these new listings convert to actual sales.”

‘Some movement’ on interest rates

The 30-year fixed-rate mortgage slid to 6.99% on June 6 after climbing to 7.22% on May 20, according to Freddie Mac data via the Federal Reserve.

“Mortgage rates are down a bit from May highs, but that hasn’t spurred a surge of competition among buyers in the housing market,” Divounguy said.

Affordability remains a top priority for buyers and rates stayed above 7% for long.

 
 

Many experts believe the Federal Reserve will likely hold interest rates in the upcoming board meeting on June 12. However, the National Association of Realtors forecast a potential interest rate cut by the fall of this year, according to Jessica Lautz, the NAR’s deputy chief economist.

By late September, “perhaps we will start seeing movement on the Fed funds rate,” she said. “That’s at least what our hope is.”

While mortgage rates are forecasted to come down to 6.5% in the fourth quarter, homebuyers may not see much relief given rising home prices amid limited housing inventory, noted Lautz.

“It’s very possible that they’re ending up paying the same mortgage payment because they’re purchasing a home that while has a lower interest rate, has a higher price point,” she said.

‘It’s hard to foresee prices really cooling’

While the housing market has slowed in terms of the number of transactions, prices haven’t soften despite broader expectations, Ostrowski explained.

The median home sale price across the U.S. increased to $392,200, a 4.4% jump from a year earlier, according to Redfin.

“It’s hard to foresee prices really cooling or declining nationally,” said Ostrowski. “It seems likely we’re going to see another record high for home prices this summer.”

Some metropolitan areas in the U.S. have seen prices soften. Home-sale prices declined 2.9% in Austin and 1.2% in San Antonio and Fort Worth, Texas, according to Redfin data. Home prices cooled 0.9% in Portland, Oregon, the firm noted.

However, many of these areas saw major price growth during the Covid-19 pandemic, with prices jumping as much as 45%, said Lautz. Buyers might not see much relief in affordability despite recent price declines given those pandemic-era runups.

About 90% of metro markets posted home price gains in 2024, according to NAR data. While price points may be softening in some local markets, the “vast majority of markets are seeing home price growth,” said Lautz.

Correction: The 30-year fixed-rate mortgage slid to 6.99% on June 6 after climbing to 7.22% on May 20, according to Freddie Mac data via the Federal Reserve. An earlier version misstated the moves.

Read more at CNBC.com

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