12
Aug
By First Rate Financial Group
Financial Reports

What’s Ahead For Mortgage Rates This Week – August 12th, 2019

What’s Ahead For Mortgage Rates This Week – August 12th, 2019Last week’s economic releases included readings on consumer credit, job openings and weekly reports on mortgage rates and first-time jobless claims.

Consumer Credit Use, Job Openings Slow in June

Consumer credit use slowed in June as credit card use lost ground. Non-revolving credit, which typically includes education and auto loans, grew at its slowest pace in three months. Mortgage loans are not included in the Federal Reserve’s report on consumer credit. Consumer credit use grew by $14.6 billion year-over-year in June as compared to May’s year-over-year reading of $16.0 billion.

Year-over-year credit use fell one percent in June to 4.30 as compared to May’s year-over-year reading of 5.30 percent. Credit card use fell by 0.10 percent in June, which suggested that consumers held off on large purchases. Fed Chair Jerome Powell said ,”households are in pretty good shape overall.” in reference to current economic conditions.

Job openings fell in June, but maintained a 15-month streak of seven million or more job openings. There were 7.35 million jobs open in June as compared to May’s reading of 7.38 million jobs open. Job openings rose in retail and real estate, but were lower in construction, leisure and hospitality categories.

Analysts said that shortages of skilled labor and fears over the effects of trade wars caused fewer hires. The trade war with China has not broken the longest period of economic growth in U.S. history, but escalation of trade disputes could further slow economic growth if trade wars aren’t resolved.

Mortgage Rates, Weekly Jobless Claims Fall

Mortgage rates dropped last week according to Freddie Mac. Rates for 30-year fixed rate mortgages averaged 3.60 percent and were 15 basis points lower. Rates for 15-year fixed rate mortgages averaged 3.05 percent and were 15 basis points lower.

The average rate for 5/1 adjustable rate mortgages dropped ten basis points to 3.36 percent. Discount points averaged 0.60 percent, 0.50 percent and 0.30 percent respectively.

Initial jobless claims fell last week to 209,000 new claims filed as compared to the prior week’s reading of 217,000  first-time claims filed. Analysts expected a reading of 215,000 new jobless claims filed for last week.

What‘s Ahead

This week’s scheduled economic news includes readings on housing market conditions, housing starts and building permits issued. Weekly readings on mortgage rates and initial jobless claims will also be released.

09
Aug
By First Rate Financial Group
Real Estate

4 Simple Tips To Make Sure Your Home Smells Inviting

4 Simple Tips To Make Sure Your Home Smells InvitingAs a diligent home seller, you’ve taken all your real estate agent’s advice about preparing your home for showings. You’ve de-cluttered, enhanced curb appeal and developed efficient strategies for leaving your home while viewings are taking place.

But have you given any thought to how your home smells to strangers?

Newcomers to your home will naturally be more sensitive to the smells of your house. Your nose is likely desensitized to your common household odors, but a prospective buyer may be put off by how it smells. Here are some ways to make sure your home smells inviting.

Don’t Burn Incense

If you enjoy burning incense, you might think this is a nice way to impart a lovely scent in your home. But don’t burn incense before showings. The visitors may be unfamiliar with common incense smells like patchouli, myrrh, jasmine and others. And if they can’t identify it, even a pleasant scent can be off putting. The best thing is to save your incense for when you’ve moved into your new home.

Move The Litter Box

If your cat uses a litter box, be sure to change or refresh it daily. This will help keep the scent from spreading throughout the home. Also, move the litter box to a less noticeable part of the home, such as the mudroom, garage or basement.

An odorous kitty litter box is more forgivable if it’s in an out of the way spot. And, as long as you let your cat know where it is, it will likely have no trouble adjusting.

Have Your Pets Professionally Groomed

Invest in professional pet grooming services to reduce the smell of dogs and/or cats in the home. Pet dander is not only an allergen; it imparts a musky scent that some homebuyers may not enjoy. A once a month grooming should be sufficient unless your pet is exposed to heavy rains or muddy conditions; in which case an extra grooming session is recommended.

Avoid Cooking Prior To Showings

Just like incense, if a homebuyer can’t recognize a scent, it can be off putting. Avoid cooking just before showings, if possible. Things like onions and garlic smell wonderful if you’re hungry, but not necessarily to a homebuyer. Of course, the scent of a fresh batch of chocolate chip cookies is always appreciated – let’s be honest!

Don’t forget to take your home’s smell into consideration when preparing it for showings. These tips will help ensure your home smells its very best.

If you are in the market for a new home or interested in refinancing your current property, be sure to contact your trusted home mortgage professional.

08
Aug
By First Rate Financial Group
Real Estate

How To Find Motivated Sellers In Your Real Estate Market

How To Find Motivated Sellers In Your Real Estate MarketBargains in real estate may come from identifying motivated sellers who are willing to let a property go for less than it is really worth. Real estate investors who acquire properties at a discount from current market value enhance their success by increasing their profit potential. Real estate agents who list properties owned by motivated sellers increase their chances to sell a property quickly and have happy sellers who might refer them in the future.

Here are some tips on how to find motivated sellers:

Distressed Discounts

A property that lists for a long time and then the listing shows a discount is a clear sign the owner is becoming motivated. However, just because a property shows a discount from the original listing price, it still may not be a bargain. It is important to learn if the present owner has an unreasonable expectation. Check the recent comparable sales (comps) and then offer no more than 25% less than the sales price of the lowest comp.

Track Foreclosures

For real estate investors with the liquidity to do all-cash deals, tracking foreclosure dates creates opportunities. Properties may be bought just before the final foreclosure date at a large discount because the owner knows that the house will soon be lost anyway.

Short Sales

Another all-cash deal is the short sale. In this type of sale, the lender is driving the deal. The lender is willing to accept a steeply-discounted price to avoid an expensive legal foreclosure process. These homes almost always sell for way below market price and the seller is highly motivated.

Divorce Proceedings

A couple going through a disputed divorce may be forced to sell a home in order to be able to divide the assets owned by them. These are highly motivated sellers who may simply want to get rid of the home fast as part of the process of being finished with the relationship.

Estates

Another reason why a home may need to sell is if the person who owned it died. An estate sale may be a good deal if the executor of the estate is motivated. This happens if there are multiple family members who are impatient and have claims to a portion of the assets as their inheritance.

Will Pay Cash For Houses

A simple sign or flier posted many places with “Will Pay Cash For Houses” and a telephone number on it actually may work in some areas to find motivated sellers.

Personal Networking

Ask everyone if they know of someone who needs to sell a home quickly.

Summary

Finding motivated sellers is a useful thing to do for investors looking for great deals and real estate agents wanting faster-selling properties to list. Ask a homeowner why they want to sell to learn their motivation. Property owners who experience troubles create opportunities for others who are ready to help them sell a property fast and when the need is urgent.

If you are in the market for a new home or interested in refinancing your current property, be sure to consult with your trusted home mortgage professional.