Blog — Page 798 of 833 — First Rate Financial Group

17

Oct

Market Outlook

NAHB Reports: Home Builder Confidence Drops in October

NAHB Reports Home Builder Confidence Drops in October The National Association of Home Builders (NAHB) reported that home builder sentiment lost its momentum in October and posted a seasonally adjusted reading of 54 in its Home Builder Market Index.

This reading was five points lower than expected and also five points lower than September’s reading. October’s reading was the first time in five months that builder confidence has fallen.

To put October’s reading in perspective, things aren’t all that bad. A reading over 50 indicates more builders are confident about housing market conditions than not. Also, October’s lower reading of 54 after the HMI reading reached a nine-year high in September.

Low Mortgage Rates, Pent-up Demand Expected to Drive Housing Markets

David Crowe, Chief Economist for NAHB said that low mortgage rates, improved labor markets and “significant” pent-up demand for homes all point to continued growth for housing markets.

NAHB reported that builders’ views on current market conditions dropped from September’s reading of 63 to 57 in October. The confidence rating for upcoming sales fell from 67 to 64. The gauge of home buyer traffic for new homes fell by six points to a reading of 41.

Analysts said that although stronger jobs markets can help would-be buyers get into the market, concerns over ultra-strict mortgage standards are dampening potential home sales.

Multi-family Housing Starts Outstrips Single Family Home Construction

Starts for all types of housing gained 8.60 percent in the first eight months of 2014, but single family housing construction accounted for only 3.10 percent of housing starts between January and August. September’s housing starts are set for release today (Friday).

New Jobless Claims Fall to Lowest Since 2005

In related news, the Labor Department reported that weekly jobless claims were lower than expected and also lower than for the prior week. The reading for new jobless claims was 264,000 new claims; this was 23,000 fewer new claims than the prior week’s reading of 287,000 new jobless claims filed. A reading of 289,000 new jobless claims had been expected. This was the lowest reading for new jobless claims since April 2005.

16

Oct

By support

Home Seller Tips

Three Reasons Why Setting Your Listing Price is the Most Important Aspect of the Home Sales Process

Three Reasons Why Setting Your Listing Price is the Most Important Aspect of the Home Sales Process Have you decided to sell your home, perhaps to make an upgrade to a newer, larger house? Whatever your reasons for selling, you’ll have a number of decisions to make as you craft your listing and begin receiving offers from buyers but few are as important as your initial selling price.

Let’s take a look at three reasons why setting your listing price is the most important factor in your home sale.

Reason #1: You Can Scare Off Potential Buyers With A High Price

You’ll receive the majority of your buyer interest in the first few days and weeks after you place your home up for sale, so it’s critical that your price isn’t set so high that it scares a number of buyers off.

While some sellers believe that it’s better to price high and let buyers submit lower offers, this can actually work against you. It’s better to have your home priced fairly from the beginning as you can always refuse offers that you deem are too low.

Reason #2: Your Price Directly Impacts How Long Your Sale Will Take

If you’re interested in seeing your home sell quickly it’s going to be in your best interest to have it priced competitively. Buyers will be shopping around for similar homes in your community and if there are other listings with lower prices on the market you may find it takes you a while to get your home sold.

Also, if you do find a buyer that is interested they’ll likely try to enter into price negotiations with you which can extend the length of the sale by a week or more as you go back and forth to reach an agreement.

Reason #3: A Low Price Means Leaving Money On The Table

While pricing too high can cause issues with your sale, pricing your home too low isn’t going to benefit you either. While you’ll likely find that you receive a high number of offers very quickly, you’ll end up leaving some of your home equity on the table – equity that you could easily have realized as buyers would have been willing to pay the difference.

15

Oct

By support

Home Mortgage Tips

Refinance Now or Wait? How to Determine the Best Time to Refinance Your Mortgage

Refinance Now or Wait? How to Determine the Best Time to Refinance Your Mortgage Refinancing your mortgage is a great way to reduce your monthly payments or take out some of the equity in your home to reinvest in renovations, upgrades or in other areas in your financial portfolio.

Let’s take a quick look at a few questions that you can ask yourself in order to determine whether you should refinance now or wait until sometime in the future.

Can You Lock In A Lower Interest Rate?

Depending on when you first purchased your home and took out your mortgage, you may find that by refinancing now you can lock in a lower interest rate.

Getting a lower rate can end up saving you thousands of dollars a year in interest, but you’ll need to weigh the closing costs of the refinancing against the savings you’ll obtain to ensure that refinancing is worthwhile.

How Much Do You Owe On The Home?

If you still owe a significant amount on your home you may find that it’s worth refinancing, especially if you’re confident that you won’t be selling the home any time soon. Conversely, if you’re very close to having your mortgage paid off you may find that refinancing has little benefit.

Do You Need To Tap Into Your Home Equity?

If you feel that now is the time to tap into the equity you’ve built up in your home over time in order to cover renovation or upgrade costs you may want to consider refinancing. This will allow you to take out a large chunk of cash without having to open a new loan or line of credit. If possible, try to secure a lower interest rate for added benefit.

Do You Plan On Moving?

If you’re planning on moving in the next couple of years then you may want to hold off on refinancing your mortgage. As mentioned above, there are closing costs attached with a refinancing deal and these must be factored in when assessing whether or not you stand to gain or lose.

If you’re staying in your home for the near future there’s a far better chance that the costs of a refinancing will be covered by the amount that you save.

Every financial situation is unique, and you may find that you have other questions about refinancing that aren’t listed above. Don’t hesitate to contact your mortgage professional as they’ve worked with all sorts of refinancing clients and can share helpful advice that is relevant to your situation.