02
Apr
By First Rate Financial Group
Financial Crisis

Case-Shiller: January Home Price Growth Strong; Pandemic Impact Unknown

Case-Shiller: January Home Price Growth Strong; Pandemic Impact UnknownUnited States home prices increased by 3.90 percent year-over-year in January as compared to December’s growth rate of 3.70 percent according to Case-Shiller’s National Home Price Index. Home prices also rose in Case-Shiller’s 20-City Home Price Index.

20-City Home Price Index: Phoenix Arizona Leads in Home Price Growth

The Case-Shiller 20-City Home Price Index is followed closely by real estate pros and its trends are used to gauge home price growth within cities included in the index. Phoenix, Arizona led home price growth rates for the eighth consecutive month with a year-over-year growth rate of 6.90 percent.

Seattle, Washington followed with year-over-year home price growth of 5.10 percent; Tampa, Florida also reported home price growth of 5.10 percent.

Seattle replaced Las Vegas, Nevada in second place, which showed a comeback for coastal housing markets that lost ground in recent months.

Case-Shiller’s 10-City, 20-City, and National Home Price Indices all posted higher home price growth rates in January. 14 of 20 cities in the 20-City Home Price Index showed faster growth rates for home prices in January than in December. Home price growth was strongest in the South and West; home price growth was weaker in the Midwest and Northeast.

FHFA Reports 5.20 Percent Yearly Home Price Growth in January

The Federal Housing Finance Agency, which oversees mortgage giants Fannie Mae and Freddie Mac, reported 5.20 percent annual home price growth for homes owned or financed by Fannie Mae and Freddie Mac.

While home prices have been fueled by limited supplies of available homes, demand for homes will likely fall as the coronavirus spreads throughout the U.S.

Local and statewide requirements to limit nonessential activities caused businesses and schools to close and many workers were laid off.  Prospective homebuyers could be sidelined for months if not indefinitely.

Analysts had mixed opinions on how the coronavirus outbreak could impact home prices; if companies and jobs reopen after the virus has passed, housing markets are expected to recover. Because the ultimate length and impact of the pandemic remain unknown, it’s currently impossible to know how housing markets will be impacted.

 

 

01
Apr
By First Rate Financial Group
Mortgage

Building An Emergency Fund During An Emergency

Building An Emergency Fund During An EmergencyBy now, it should be apparent that this COVID-19 (Corona-virus) pandemic is going to be here for several months. It is already causing the market to plummet and is disrupting jobs all over the country. Many people who work as hourly employees (or are independent contractors) are starting to suffer. As people’s budgets start to feel the squeeze, this is exactly the time that people should be relying on an emergency fund; however, for those who don’t have one, it is time to start saving.

How To Create An Emergency Fund

Even though cash assistance from the government might be coming soon, this is not going to be enough to get people through the crisis. To start building an emergency fund, it is important to take a look at the regular income first. Try to figure out how many shifts are going to cut and estimate what money is left (unless you are a salaried employee).

After this, take a look at other possible sources of credit. Know the limits on the card and figure out to what extent these cards can be drawn out. If there is an income tax refund coming, plan for this; however, remember that the government might be behind.

Finally, try to cut spending where possible. Remember that vacations should be postponed, given travel restrictions. Most restaurants are going to close, so try to shop at the grocery store instead. Finally, consider asking the bank to put a stop on mortgage payments. These are all great ways to save immediate money.

Save What Is Left

Finally, after figuring out all of the expenses, subtract this from the expected monthly income over the next few months. Whatever is left should be socked away into an emergency fund. It is critical to have this fund put away in case a repair is needed on the house or if someone gets laid off. 

Other Ideas To Consider

Finally, while this is not advisable, people might be able to cut retirement contributions to help with the emergency fund. It is better to save for the future when possible, but this can help people save money in a pinch, if needed. Take these tips to heart over the next few months and build an emergency fund.

31
Mar
By First Rate Financial Group
Mortgage

How To Retain Your Sanity While Working From Home

How To Retain Your Sanity While Working From HomeThere are a lot of people who enjoy working from home; however, with the COVID-19 pandemic, many people who are not used to working from home are forced into this new arrangement. It can be hard for individuals o stay focused when they are stuck in the environment at home. Particularly if the kids are home from school, it is easy to get distracted. Fortunately, there are a few ways people can retain their sanity as they work from home.

Get Into A Routine

One of the first steps people need to follow is to find a routine. It can be tempting to sleep in every day, procrastinate while watching TV, and take long breaks for meals; however, it is critical to remember that there is still a job to do. Try to wake up at the same time every day. Start work at a consistent hour. Take a consistent break for lunch. Finding a routine will make working from home feel more like a job than a vacation.

Take Advantage Of Technology

Even though working from home can feel lonely, it doesn’t have to be this way. With technology, it is easy for people to stay in touch with their partners from work. Use technology to talk to people. Check up on others and see how they are doing. Ask for help when it is needed. Communicate with multiple people at a time. This is incredibly important for those who work in a team. At the same time, those who typically work alone should make sure this doesn’t become a distraction. Talking to others can be a great way to break up the monotony of the day.

Learn Something New Every Day

Finally, take the time to learn something new! Those who no longer have a morning or evening commute are going to wind up with some extra free time on their hands. Take this opportunity to learn something new. Even though some people might feel like they are being forced to work from home, turn this situation into a positive one. use the extra time wisely and find a way to expand those horizons ever so slightly. Learning new skills can pay big dividends down the road.