What's Ahead For Mortgage Rates This Week - August 26, 2013

Last week brought mixed economic news, but Leading Indicators released Thursday suggest that the U.S. economy is growing at a moderate rate.

Mortgage rates for fixed rate loans were higher, but the average rate for a 5/1 adjustable rate mortgage was unchanged from the prior week. Weekly jobless claims were also higher.

The National Association of REALTORS released its Existing Home Sales report for July and reported existing home sales came in at 5.39 million on an annualized basis.

This reading surpassed expectations of 5.21 existing homes sold as well as June's reading of 5.06 million existing homes sold on an annualized basis.

FOMC Minutes Released, Mortgage Rates Rise

The minutes for the July 31 FOMC meeting were released, and emphasized the likely "tapering" of the Fed's quantitative easing program possibly as early as September, though no dates have been set. Many of the FOMC members support reducing the $85 billion in monthly securities purchases made by the Fed; fewer members supported tapering the asset purchases sooner than planned.

Previous announcements by the Fed regarding its plan to reduce QE have created erratic responses in financial markets, but the release of the meeting minutes seemed to cause a sharp rise in mortgage rates.

Freddie Mac reported that the average rate for a 30-year fixed rate mortgage moved from the prior week's average rate of 4.40 percent to 4.58 percent; average discount points moved up from 0.70 to 0.80 percent. Average rates for a 15 year fixed-rate mortgage also rose from 3.44 percent to 3.60 percent with average discount points moving from 0.60 to 0.70 percent.

Average rates for a 5/1 adjustable rate mortgage were unchanged from the previous week at 3.21 percent with average discount points paid at 0.50 percent.

FHFA reported that home prices for homes with mortgages owned by Fannie Mae and Freddie Mac rose by 7.70 percent year-over-year in June, home prices rose slightly from May's year-over-year- rate of 7.60 percent.

Leading Economic Indicators (LEI) for July rose by 0.60 to a reading of 96.0; this exceeded expectations for an increase of 0.50 percent. The LEI measures the health of the economy by measuring 10 top economic sectors; eight of 10 factors measured increased; these were led by the spread on interest rates, availability of credit, stock prices and permits issued for building new homes.

New home sales for July were lower than expected at 394,000; Wall Street expected new home sales to come in at 485,000 on a seasonally-adjusted annual basis against the revised number of 455,000 new home sales reported for June. 497,000 homes were initially reported sold in June. Hew home sales gained by 6.80 percent year-over-year in July.

What's Coming Up

Scheduled economic news for this week includes the Case-Shiller Home Price Index, and Consumer Confidence on Tuesday, Pending Home Sales will be out Wednesday. Thursday brings Weekly Jobless Claims, and Friday brings consumer spending and the University of Michigan's consumer sentiment report.

 

Tips For Helping Your Kids Adjust To A New School

August means it's time to get your children ready for school once more. Picking out backpacks, going clothes shopping and finding all the right school supplies can be hectic enough.

However, when you've moved and your children have to start all over in a new district, there's even more to worry about!

Summer fun can make the sunny months fly by. It's easy to forget that with the beginning of school comes excitement and anxiety for your little ones — especially if they're starting out somewhere new.

So help them get adjusted with the back-to-a-new-school strategies below.

Explain Why You'll Be Moving

Whether you're moving states or just school districts, it's best to give your children as much notice as possible and explain to them the reason for the change. They'll need time to get used to the idea and say goodbye to friends.

Be Positive

As the first day draws near, be positive about what they'll experience. School will be a place where they'll learn new things and make great friends.

Become Involved

Think about joining the PTA, so you can learn about what's happening in the school, meet teachers and be able to discuss policies and issues with your children.

Stick To A Routine

A new school is going to hold a lot of unknowns for your little ones. So it's best to keep a consistent routine at home. This will help children know what to expect and feel they at least have some control in their own space.

Tap Into Their Feelings

Your children might be excited or sad about the new change and they'll need someone to release all of this positive or negative energy upon. Just listen and be sure not to minimize their feelings. They'll need an understanding ear throughout this adjustment.

Encourage Participation

While it's always important for your children to focus on their schoolwork, they would also benefit by joining some sort of club, group or team. The sooner they make friends, the more settled they'll feel.

Moving to a new Atlanta school can be tough on your children, which in turn makes it tough on you.

If you can set aside the time to prepare for the first weeks, talk positively about their upcoming experiences and take the time to really listen to your children, then adjusting to the new environment can be a smooth transition for all.

For more helpful tips on adjusting to a new home and neighborhood, please feel free to contact your trusted mortgage professional today.

How To Choose The Right Neighborhood When Buying A Home

The old real estate cliche' about "location, location, location" is true, as the area of the city where your home is located will have an impact on its future value as well as your lifestyle.

So what factors should you consider when you are choosing which neighborhoods to house hunt within?

Proximity to Your Daily Needs

If you work downtown, living out in the suburbs means that you will be adding time for a commute onto your day.

While this might be worth the cheaper prices for properties out of the town center, it is something to consider when making your decision.

You will also need to consider whether the house is near shopping centers, schools, doctors, dentists and other services that you will need regularly.

Planned Developments

When you are choosing a neighborhood to buy in, do some research into what developments are planned in the future for that part of town.

For example, you might be able to get a cheap price on a home that is out of the way, but a new proposed highway leading straight into the town center that will be built in the next five years could increase property values considerably.

Overall Atmosphere

Take a walk around the neighborhood where you are considering buying and get a sense of the overall atmosphere. Are there a lot of families living there? Are there green places to relax? Are people friendly and saying hello to you?

You want to live in a place where you feel welcome and comfortable.

Property Values

Different neighborhoods will have a range of house prices and you will want to look for something with the right balance of value.

Some areas of town will be very expensive but very nice; other areas will have cheap house prices but might not be as pleasant to live in. Take the time to find the neighborhood that is in the middle, where you will find the right house, and neighborhood, at a good price.

These are just a few of the factors to consider so that you can choose the right neighborhood to buy in.

For more information about buying a Marietta home, feel free to contact your trusted mortgage professional today. 

A Few Red Flags To Look For When Buying Real Estate

If you're looking to purchase real estate, keep in mind that the homes you are considering might be in need of repairs or improvements.

In a recent study done by a major home inspection company, at least 40 percent of previously owned homes on the market have at least one serious issue or defect.

When buying real estate, you should have a professional inspection performed on the property to look for any issues that might not be visible to the untrained eye.

It's better to identify this damage before you buy so that you are not stuck with budget-busting renovations.

Below are a few major red flags you should look for when buying a home.

Foundation Damage

Look at the slope of the yard. If the land slopes towards the house, this could be causing water to run down into the foundation, which will result in moisture damage. Take a look at the foundation for any bulges or cracks that could indicate serious issues.

Faulty Wiring

Your home inspector should be sure to check the electrical wiring — especially if it is an older house. If there are any flickering lights, circuits that don't work, or warm outlets, these are telltale signs of wiring issues that might be expensive to fix.

Ceiling Stains

This is usually a sign that something in the house is leaking. Ceiling stains are common underneath bathrooms when a toilet, shower or bathtub has a leak. A leaky roof could be an even more expensive repair.

When you are negotiating to buy a house and damage is discovered, you can either change your mind about the sale or renegotiate for a lower price that factors in the cost of repairs. Either way, it is always worth having the home professionally inspected to identify red flags and avoid any surprises.

Please call me, your trusted mortgage professional for more information about buying your next Marietta home.

Questions To Ask Your Home Inspector Before Buying Your Home

Imagine how frustrated you'd be to find out that the hot water heater wasn't working - in the middle of your very first shower in your new home!

This, among other very good reasons, is why you should have a home inspection before you buy your home.

When you buy a home, you need to know exactly what you're buying.

A home inspection is an important part of buying your home. Before you hire a home inspector, ask candidates a few questions to make sure you hire a trustworthy inspector.

What Does Your Inspection Cover?

Not all inspections are the same. Ask for copies of previous home inspections so you can see exactly what they will check inside the home.

If you are concerned about something specific, like a leaky faucet in the bathroom, mention that to the inspector so they can check it out.

Are You Licensed Or Certified?

If you live in a state that licenses home inspectors, ask to see their license. Most reputable home inspection professionals provide this information right at the start of your home inspection.

At the very least, choose a home inspector who belongs to American Society of Home Inspectors. This shows a level of professionalism and education that you can trust.

What Kind Of Report Will You Give Me?

You should expect a written report detailing what the inspector found. Most inspectors will give you a typed report within a week of the inspection.

Many even take digital color photos of any issues with the home in order to make their report as clear as possible. Make sure the inspector will be available to explain anything on the report that doesn't make sense to you.

Will I Be Able To Attend The Inspection?

If the inspector refuses to let you be present during the home inspection, find someone else. This is your chance to know exactly what you are buying and what potential repairs you or the seller will have to make.

Please feel free to contact your trusted mortgage professional today to answer this and any other question you have on the home buying process.

First Things First, What To Do Upon Moving Into Your New Home

If you have purchased a new home and are going to move in soon, what are the first few things that you will need to do upon moving into your new home?

Moving can be very stressful, but having a checklist can make your move effortless.

Here are 6 easy steps that can eliminate any frustration and help you feel safe and secure: 

Change Your Address

You will need to change your address for all magazine subscriptions, bills and other services. You can update your mailing address online or visit your local post office to find out what needs to be done.

Set Up The Utilities

When you move into a new home, you may get all of the contact information from the previous home owner or real estate agent for the utility companies. Be sure to change the services into your name before you move in, such as gas, cable, electricity, internet, telephone, sewer and water.

Change The Locks

You have no way of knowing who the old home owners gave a copy of the key to, so having the locks changed is something that you should do right away when you move into your new property.

Have The Carpets Cleaned

Get your life in the new house off to a fresh start by having the carpets steam cleaned before you move your furniture in. You could either rent a steam cleaner or pay a carpet cleaning service, but either way this will make the house feel really clean and new.

Figure Out Your Breaker Box

Another important first step to owning your new home is to figure out which breakers control each part of your home.

Knowing how the breaker box works will ensure that you can flip the right switch when you need to. You might need to ask someone to help you by standing in another part of the house and letting you know which lights come on or off when you flick the switches.

Check Your Smoke Alarms

The smoke alarms and CO monitors in your home might not have been checked recently, so make sure that they are functioning properly. Depending on how old they are, you might need to change the batteries. This is an important maintenance task for your own safety.

These are just a few of the important first steps that you should take when you first move into your brand new home.

For more information about buying a new home, feel free to contact your trusted mortgage professional today.