Whats Ahead For Mortgage Rates This Week Aug 11 2014

Last week’s housing related news was minimal, but a Federal Reserve survey of senior loan officers revealed that although credit standards for commercial and industrial loans as well as credit cards are easing, current mortgage credit standards are more stringent than in 2005. This could be a contributing factor to slowing housing market gains while other sectors of the economy are recovering at a faster pace.

Qualified Mortgage Rules Impact Non-Conforming Mortgages

The Senior Loan Officers survey also noted that qualified mortgage rules have slowed approval of prime jumbo mortgages and non-traditional home loans. This suggests that applicants falling outside of stringent qualified mortgage rules can expect challenges when buying or refinancing their homes.

In other housing news, Freddie Mac’s Primary Mortgage Market Survey reported that last week’s mortgage rates were mixed. Mortgage rates for a 30-year fixed rate mortgage averaged 4.14 percent with discount points of 0.70 percent against last week’s reading of 4.12 percent with discount points of 0.60 percent. 15-year mortgage rates averaged 3.27 percent with discount points of 0.60 percent. This was an increase of four basis points, although discount points fell from 0.70 percent to 0.60 percent. The average rate for a 5/1 adjustable rate mortgage was 2.98 percent, a drop of two basis points, with discount points unchanged at 0.50 percent.

Fewer Jobless Claims, Service-Related Business Growth Exceeds Expectations 

The weekly Jobless Claims report brought a lower than expected reading of 289,000 new claims as compared to predictions of 305,000 new jobless claims. In other economic news, the Institute for Service Management (ISM) reported that its non-manufacturing index rose from June’s reading of 56.00 percent to 58.70 percent in July. Analysts had forecasted July’s reading at 56.50 percent. July’s reading represented the highest growth rate for service-related businesses since 2005.

According to the Department of Commerce, June factory orders rose by 1.10 percent over May’s reading of -0.60 percent against an expected reading of 0.60 percent. As business expands and factory orders increase, it’s likely that jobs and hiring will also grow. Steady employment is a compelling factor for most home buyers and positive reports in labor and industrial sectors could boost housing markets as more buyers increase demand for homes.

What’s Ahead

Next week’s economic reports include retail sales, retail sales excluding automotive, industrial production and the weekly reports on mortgage rates and new jobless claims. While there isn’t much housing news expected next week, readings in other economic sectors can suggest potential trends in housing markets

3 Reasons Why Changing Your Kitchen And Dining Room Lighting Fixtures Can Increase Your Sale PriceIf you are considering selling your home, you may be wondering if there are things that you can do to increase your sale price. The truth is, you could spend thousands of dollars updating your home, but most homeowners will not want to put in such a large investment without knowing how much it will add to the selling price. Fortunately, there are more affordable things that can be done.

One affordable change to your home that can increase your sale price is to change your kitchen and dining room lighting fixtures. There are a number of reasons why this can work. Here are three of them:

Buyers are Looking for Entertainment Areas in New Homes

One reason that changing your kitchen and dining room lighting fixtures can increase your sale price is because buyers are looking for areas where they can entertain. Most people who are looking for a new home will be thinking about the things they can do with the home, and one of these things is entertaining their friends and family.

Buyers are willing to pay more on homes that have these nicely decorated areas, so updating your kitchen and dining room lighting can help to bring in a bit more money.

The Kitchen and Dining Room are the Center of Family Life

Another reason that people will pay more on a home with new lighting fixtures is because the kitchen and dining room are seen as the center of family life. In this scenario, buyers know that they will be spending a lot of time in these rooms and thus, want to be sure that these areas are nicely decorated.

New Kitchen and Dining Room Light Fixtures Will Brighten Up the Home

Finally, you will want to update the lighting fixtures in your kitchen and dining room because new fixtures can brighten up your home. You might have heard real estate agents talk about how important it is to have bright lights and open window shades during open houses since it can make your home look better. New, brighter lights can also help your rooms look bigger. Sometimes it will all come down to an optical illusion.

For more information on adding new lighting fixtures to your kitchen and dining room in order to increase sales, contact a local real estate professional. They will be able to give you some tips on these rooms and offer information on how you can spruce up the rest of your home before putting it on the market.

Lowballing 101: How to Avoid Insulting a Home Seller when Making a Low Offer for Their House or CondoBuying a home is a huge step for people who are ready to make an investment in their future. Getting a great deal on a home is just as important and knowing how much to offer could be confusing. It is important to make sure the home seller is not insulted by the lowball offer and is ready to negotiate to make sure everyone wins.

Make a List of Necessary Improvements

One of the best ways to validate a lowball offer on a home is to list improvements that need to be made to the property. If the home needs a new roof or a new heating and air conditioning system, these are reasons to offer less than the asking price. Sometimes a home may also need new flooring, paint, or matching appliances which all cost money. The buyer can make a lowball offer stating additional expenses of making sure the home is move in ready.

Explain Any Issues with the Location

Another option when considering a lowball offer is to point out problems with the location. If the home is on a busy street or close to a manufacturing district, the buyer has legitimate concerns. In the offer, list the potential problems of living too close to fast food restaurants, train tracks, or airports. A less desirable location could equal a great buy on a new home.

Provide Pricing for Comparable Homes in the Area

A knowledgeable real estate agent can help compare homes that have sold in the area. When you are writing up a lowball offer, look at the lower priced homes that have sold in the same neighborhood. A seller will quickly realize that if he wants to sell the home, he will need to accept a reasonable offer or risk letting his house sit on the market for weeks or months.

Consider the Seller’s Reasons for Selling

Finally, the seller’s situation can also be key in getting a good deal on a home. If the seller is desperate to sell because of a job relocation or if he has already bought a new home this can be the perfect reason to make a low offer and take the home off the seller’s hands. Without insulting the seller, the buyer can make an offer for less than the asking price and agree to a quick closing.

Buying a home can be stressful and getting a good deal on the property without insulting the seller can take some negotiating. Working with a knowledgeable real estate agent will make the experience more enjoyable. Call today to make your dreams come true.