What’s Ahead For Mortgage Rates This Week – January 20, 2014Welcome news arrived last week as lower mortgage rates and a higher number of housing starts were reported. Other economic news was mixed:

The Federal Reserve released its Beige Book Report released last Tuesday indicated modest economic growth throughout the 12 Federal Reserve districts. Analysts predicted that this would cause the Fed to further reduce the volume of monthly asset purchases made under its quantitative easing program.

The Atlanta, Cleveland and Kansas City districts reported slower home sales, which supported recent expectations of slowing gains in home prices. 

Mortgage Rates Dip, Housing Starts Up

According to Freddie Mac, average mortgage rates fell last week. The rate for a 30-year fixed rate mortgage dropped from 4.51 to 4.41 percent with discount points unchanged at 0.70 percent. The rate for a 15-year fixed rate mortgage was 3.45 percent as compared to the prior week’s reading of 3.56 percent.

Discount points rose from 0.60 to 0.70 percent. The average rate for a 5/1 adjustable rate mortgage dropped from 3.15 to 3.10 percent; discount points rose from 0.40 to 0.50 percent.

The National Association of Home Builders/Wells Fargo Home Builders Confidence Index dropped slightly in January. Although expectations were for a reading of 59, January’s reading was 56 and lower than December’s revised reading of 57.

The NAHB Index has increased by 19 percent year-over-year and is expected to continue rising in 2014 due to relatively lower mortgage rates, and pent-up demand for homes.

Housing starts for December came in at 999,000 against expectations of 985,000 and November’s revised reading of 1.11 million. Cold weather and concerns over rising mortgage rates in 2014 were cited as causing fewer housing starts. As the Fed tapers its QE program, mortgage rates are expected to rise.

Consumer sentiment toward the economy was lower than expected according to the University of Michigan Consumer Sentiment Index for January. The confidence index was expected to rise to 84.0 based on December’s reading of 82.5, but only achieved a reading of 80.4.

Higher gasoline prices and a slower labor market likely contributed to wavering consumer sentiment; rising inflationary expectations were also considered a cause.

This Week

This week’s scheduled economic news includes an action-packed Thursday as today is Martin Luther King Jr. Holiday and no economic reports are scheduled for Tuesday, Wednesday or Friday.

Thursday’s reports include Weekly Jobless Claims, Freddie Mac’s PMMS, along with Existing Home Prices, FHFA Home Prices and Leading Economic Indicators.

The Simplest Ways To Lower Your Home Heating Bill This WinterWhen the holiday season starts and the winter chill comes around, the heating bill at your property will naturally increase as you keep yourself warm and cosy. However, if your home is not being heated efficiently, you are essentially letting your hard earned dollars escape into the air as wasted energy.

What are some simple and inexpensive ways that you can cut down your heating expenses this winter and save yourself some money?

Only Heat The Rooms You Are Using

If you work from home and are spending eight hours of the day sitting in your home office, there is no need to keep the rest of the house toasty warm. If you have heaters that you can turn on and off for each room, you can direct the heat to the room that you are using.

0If you have a spare bedroom, you don’t even have to heat it at all unless a guest is coming to stay over.

Change The Air Filter On Your Furnace

If the air filter on your furnace is getting old and clogged up, it will block the airflow from the furnace itself which is a huge waste of energy. This will mean that your furnace works less effectively and it will also reduce its lifespan. It will only cost you $20 to change the air filter, but this little fix will make a big difference in the long run.

Turn On Your Ceiling Fan

You might think that turning on your ceiling fans in order to save money on heating makes no sense, but hear me out on this one. When you turn on your fans in reverse, they will actually draw the warm air throughout the house – helping to circulate it and keep it warmer.

Dress Warm At Home

If you live in a cold climate and you can walk around in your house in a t-shirt and shorts comfortably, you’re wasting money! If you wear warm clothing indoors during the winter, you will be able to keep your thermostat several degrees cooler and you will save yourself a lot of money over the winter.

These are just a few simple ways that you can reduce the heating costs for your property this winter. For more helpful tips and advice, feel free to contact your trusted real estate professional.

Why January Is The Best Month For House HuntingHave you made it your New Year’s resolution to find that perfect home for you and your family? You might have thought that you needed to wait until spring to start house shopping, but the fact is that January is a great time to begin.

Put on your winter jacket and get out there while the leftovers from the New Year’s party are still in the fridge – you’ll have the upper hand.

House hunting in January offers a number of advantages that will work in your favor. Here are some of the main reasons:

Busy Social Calendars

First of all, most other people will be busy with parties, holidays and getting back to work after Christmas and they won’t want to venture out in the cold weather to go look at houses – so there will be less competition when bidding on homes.

This means that you can get in there and put in an offer that the seller can’t refuse.

Determined Seller

Also, if the home is on the market at this time of year, there is a chance that the home sale is somewhat urgent.

If they were not as determined, they might pull their home out of the market and wait until spring to try again. With a motivated seller you are more likely to get a better price.

A Dedicated Real Estate Agent

Your real estate agent will have more time on their hands at this time of the year, because they will be less busy. This means that they will be able to dedicate more attention to you and help you move through the closing and moving process faster.

Cheap Deals On Furniture

Also, during the month of January, retailers will sell off their excess inventory from over Christmas in order to make room for the new models. This means that when you move into your new home you will be able to furnish it at a great discount.

These are just a few of the reasons why you might want to consider getting out this January and searching for your new home. House hunting during this time of year can offer you a number of advantages and you could possibly find that dream home you have been looking for at a great price.

For more helpful tips, contact your trusted real estate professional.