Blog – Page 698 of 785 – First Rate Financial Group

08

Jun

Market Outlook

What’s Ahead For Mortgage Rates This Week – June 8, 2015

What's Ahead For Mortgage Rates This Week - June 8, 2015 Last week’s economic news included reports on construction spending, Freddie Mac’s mortgage rates survey and several employment related reports. The details:

Construction Spending Jumps

The Commerce Department reported that construction spending reached its fastest annual pace since November 2008. Most of the momentum was caused by construction of apartments, commercial projects and roads, and construction of single family homes. Builders spent 2.20 percent more in April than they did in March, which equated to an annual outlay of $1.01 trillion for all types of construction spending. Analysts said that increased spending in construction indicated that the housing sector could see improvement as construction provides more jobs.

Mortgage Rates Mixed

Freddie Mac’s weekly survey of mortgage rates reported that average mortgage rates were mixed last week. Average rates were reported as follows: 30-year fixed rates were unchanged at 3.87 percent with discount points also unchanged at 0.60 percent. The average rate for a 15-year fixed rate mortgage fell from 3.11 percent to 3.08 percent with discount points unchanged at an average of 0.50 percent. The average rate for a 5/1 adjustable rate mortgage rose by six basis points to 2.96 percent with discount points unchanged at 0.50 percent.

Employment Reports Suggest Stronger Labor Market

Several labor-related reports released last week suggest that job markets are gaining strength as they continue to improve. ADP, a private-sector payrolls company, reported 201,000 new jobs in May against April’s reading of 165,000 new jobs. The Labor Department released its Nonfarm Payrolls report for May and reported 280,000 new jobs against expectations of 210,000 new jobs and April’s reading of 221,000 new jobs.

Average hourly wages rose by 0.30 percent and surpassed expectations of a 0.20 percent increase and April’s reading of 0.10 percent. Although incremental, this suggests that labor markets are strengthening to a point where employers are comfortable with increasing wages.

Weekly Jobless claims were reported at 276,000 new claims filed as compared to expectations of 278,000 new claims and the prior week’s reading of 284,000 new jobless claims filed. The national unemployment rate for May ticked up to 5.50 percent from the prior month’s reading of 5.40 percent, but this reading remains below the Federal Reserve’s original benchmark of 6.50 percent for potentially raising the target federal funds rate. The Fed has not moved to change the rate, but analysts expect that this could occur by Fall if economic conditions hold steady.

What’s Ahead

Next week’s scheduled economic reports include job openings, retail sales, consumer sentiment along with the usual weekly reports on mortgage rates and weekly jobless claims.

05

Jun

By support

Around The Home

Four Handy Tips for Managing Your Lawn Now That the Spring Rains Have Arrived

Four Handy Tips for Managing Your Lawn After the Spring Rains Have Arrived In many areas, the spring months mean warmer temperatures, more sunshine and plenty of beneficial rainfall that your yard may thrive with. These are prime growing conditions for your lawn, but they can also make lawn maintenance a challenge. By following these helpful tips, you can take better care of your yard during this rainy spring season.

Re-Seed or Re-Sod Carefully

The spring months are one of the best times of the year to re-seed or re-sod your lawn. If you have bare spots in your yard, these spots can turn into giant mud puddles during a heavy rainstorm that can be a true eyesore. New grass seed and fresh sod both require ample water to grow, so you can take advantage of the rain to grow new grass in your bare areas.

Mow When Possible

The sunshine, warm temperatures and ample rain can all make your grass grow quickly, and it can also make your weeds grow even faster. Mowing your lawn frequently will help you to keep the weeds from spreading seeds throughout the yard and creating an even greater problem. It can be difficult to find a time when the grass is dry enough to mow at certain times, so you may need to make mowing a priority during dry spells. This will also help you to keep your yard looking neat and tidy during the peak growing season.

Fertilize As Needed

Fertilizing the yard can also be beneficial during the warm weather season. Fertilization now can give you lush, green grass for many months to come. It can also be beneficial for you by helping to get rid of weeds that may be cropping up. Fertilizer needs water, so fertilizing before a light rain storm is a smart idea.

Avoid Walking On It

Grass can easily become damaged when you walk across it after a rain storm. It can tear the blades from the roots and create a trampled upon look that is not desirable. You can minimize damage to your yard by not walking on it until the ground has dried out again.

Taking care of your lawn may be a top priority year-round, but your focus may be drawn to it after the chilly winter months transition into warmer, wetter spring months. By following these tips, you can take better care of your yard throughout the spring and beyond.

04

Jun

By support

Home Mortgage Tips

Which is Better: Bi-weekly or Monthly Mortgage Payments? Let’s Take a Look

Which is Better: Bi-weekly or Monthly Mortgage Payments? Let's Take a Look When you apply for a new mortgage, your lender may ask if you want to set up monthly payments or bi-weekly payments. At one time, monthly payments were common, but bi-weekly payments are increasing in popularity. This is because they break a large expense up into two smaller and seemingly more manageable payments. In addition, you can also make what equates to a full extra payment on the mortgage each year with a bi-weekly payment structure. Before you decide which is best for you, consider a few factors.

Your Personal Budget

Many people may believe that if they get paid every two weeks, a bi-weekly mortgage payment is a better option than a monthly mortgage payment. This is not always the case. You should consider other sources of income and how much your payment is in relation to your paychecks. In addition, consider which part of the month your other regular bills are due. This is critical to establishing the best payment plan for you.

Control Over the Payments

You can still enjoy the benefit of making an extra payment per year with a monthly mortgage payment schedule. For example, you would simply need to pay $100 per month more each payment to realize the same results. When you establish a bi-weekly payment plan, this extra payment is automatic. This may be ideal if you do not think you would stick with paying more per month on your own. However, if you want more control over your monthly payment amount and when you make the extra payment, it may be best to choose a monthly mortgage payment.

The Financial Obligation

A final factor to consider is the financial obligation. When you set up bi-weekly payments, your total amount paid per month will be higher. This means that your total financial obligation will be higher than if you had a monthly payment plan. This financial obligation may impact your ability to qualify for other loans or to achieve other goals.

If you want to pay your mortgage off early, you can choose to make an extra small payment with each monthly payment or set up a bi-weekly payment plan. While each will give you the same overall result over the course of the long term, one option may be preferred for your financial situation. Consider the pros and cons of each option carefully to make a better decision for your financial circumstances.