Homebuyers Weekly Mortgage Demand on the Rise

According to the Mortgage Bankers Association, the total mortgage application volume rose 4.1% the week of July 13th from the week before. Homebuyer demand is hotter than ever, especially with the record low mortgage rates.

“Mortgage applications increased last week despite mixed results from the various rates tracked in MBA’s survey,” said Joel Kan, an economist for the trade group. “The average 30-year fixed-rate

mortgage rose slightly to 3.20%, but some creditworthy borrowers are being offered rates even below 3%.”

There was a small increase to 3.20% in the average contract interest rate for a 30-year fixed-rate mortgage with a conforming loan balance of $510,400 or less. For loans with a 20% down payment points (including the origination fee) went up from 0.33 to 0.35. The average on the 30-year fixed mortgage was 88 basis points higher than it was at the end of June.

This small jump encouraged homebuyers to act which increased the refinance application volume up 5% for the week and 122% from the same week a year ago. According to the seasonally adjusted index data “the refinance share of mortgage activity increased to 64.8% of total applications from 64.2% the previous week.”

Mortgage applications to purchase a home rose 2% the week of July 13th and were reported at 19% higher than this time last year. That marked the ninth straight week of annual gains. According to Fannie Mae chief economist Doug Duncan, close to 60% of all outstanding loan balances have around a half-percentage point incentive to refinance.

Click Here For the Source of the Information.

This Year Homeowners Are Looking For Greener Areas

What most homebuyers today are looking for in a home will be completely different than what a homebuyer pre-pandemic sought in a new house.

“The pandemic has brought about a seismic shift in people’s perspective on housing,” said Jordan Ayan, an agent who leads the North Scottsdale Luxury Real Estate Team at the Lifestyle Collection, under Keller Williams Realty in Arizona. “They are thinking more about where they want to be and what kind of environment they want to be in.”

People want to live in a less congested area now. Many homeowners work from home more because

of the times so traffic is not a problem anymore. Homebuyers are looking for a more laid-back lifestyle, where they can both work and decompress.

Homebuyers will be looking for very efficient spaces such as tucked away home offices. Home offices have become very popular since the pandemic.
“The office was somewhat of a flex space, previously,” said Laura Powers of the Laura Powers Property Group, part of Compass in Houston. “Maybe it was also a guest bedroom or more of a library. Function has become much more critical.”

Homebuyers want a separate living space from their home office. When working from home, you need a quiet space with privacy. Ideally, the home office would have built-in shelving, space to move around, and good natural lighting.

Homes have become the live, work and play of 2020. Homeowners are taking formal living rooms and updating them to a comfortable place to relax. Many are “tech-free zones” where homeowners can get away from screen time.

Many Realtors have found that homebuyers are seeking larger garages, extended foyers and

mudrooms. They are also interested in LEED-certified homes that are environmentally friendly and built to the standards of the U.S. Green Building Council.

Outdoor covered areas such as patios, porches, decks, and outdoor kitchens are another must. Since the COVID-19 pandemic, everyone has been stuck at home. A nice area to enjoy the outdoors is a must during these times. In Florida, Realtors have reported that access to the water has become more popular along with docks, pools, expansive decks, covered patios, fire pits and outdoor kitchens.

In urban areas, homeowners use public parks and greenspace for their outdoor living, however, with the pandemic many of these spaces are restricted. Homebuyers are now seeking an outdoor space included in their urban home.

“Any other time, we would talk about parks and the neighborhood. But now, they might not even be able to use it,” said Patrick Ryan, owner and managing broker at Genuine Real Estate in Chicago. “So outdoor space at home has become huge.”

Homebuyers in the suburbs are seeking homes on a golf course with views of the greens and larger lots. Many even want extra acreage where they can have distance between their neighbors. Others have emphasized a guest house or in-law suite for multi-generational living.

“They want space. They don’t want to be cooped up,” Ryan said. “But they also want community and to be able to connect with their neighbors.”

Click Here For the Source of the Information.

A List of Reasons to Include Estate Shutters to Your Home Decor

When it comes to your home, you want to make it is your own space with timeless pieces. Estate shutters are a good investment because they fit every style of interior and most any room in your house.

“Classic, sophisticated, timeless, this window treatment is never a mistake. They can be modern,

contemporary, or traditional. They work everywhere,” said interior designer Karlie Adams, of Denver.

Here are six reasons why you should install estate shutters in your home.

The very first reason is obvious, it’s for the looks. Shutters are an element that can stand alone in almost any interior of a home. Shutters have a finished look on their own. Even the ancient Greeks used them in their homes back in 800 BC. Shutters have been around for an extremely long time because of their goods looks and sun-blocking ability.

Next, they are very versatile. They fit in all kinds of different style interiors and all different kinds of rooms. From informal to formal they work perfectly. The same shutter can work in a laundry room that is also in the formal dining room.

Another reason is control. Sometimes you want a dark room while other times you want an open and bright airy feel. Shutters can allow you to control privacy, light, and airflow which keep your home cool and save energy.

Color choice is another good reason. Shutters can come in a variety of colors and can also be stained. Most people choose white shutters because they reflect the sun and heat. In fact, over 90% of the shutters sold, said Nathan Swartz, who owns Shutter Professionals, in Orlando are white.

Longevity is a great reason to install shutters. “People like shutters because they never have to cover their windows again,” said Swartz. Curtains fade and also change in style with the design trends. Shutters also do not have mechanical parts that break or not cords that can be a risk to children or animals.

The last reason and most important reason is for resale value. Realtors will include shutters in their descriptions but will skip out on blinds and curtains. This is a great added bonus to a buyer. Shutters are rarely ever changed out like curtains or blinds.

Remember if you are planning to add these classic window treatments to your home, shop and compare prices and samples.

Click Here For the Source of the Information.

Third Week in a Row of Record Low Mortgage Rates

Freddie Mac reported the first week in July,  a 3.03% decline in the average rate on a 30-year fixed-rate mortgage. This was a dip from 3.07% the week prior and 3.13% just two weeks before.  In fact, the 30-year fixed-rate averaged around 3.75% this time last year. The 15-year fixed-rate mortgage

reported at 2.51% at the beginning of July, down from 2.56% the week ending June and 3.75% this time last year.

Since the inception of Freddie Mac’s reporting in 1971, the beginning of July 2020 ranked the lowest levels they have seen to date making this the third consecutive week of record lows. The Primary Mortgage Market Survey reported the U.S. Weekly averages as of July 16, 2020, were 2.98% for a 30-year fixed-rate mortgage, 2.48% for a 15-year fixed-rate mortgage and 3.06% for a 5/1-year ARM. Freddi Mac reports that “these low rates have been capitalized into asset prices in support of the financial markets.”

Lower rates are making homes for sale more affordable. Homebuyers are ready to buy as the shut-in orders are lifted. The National Association of Realtors released data showing a jump of 44.3 percent in May of pending home sales. In June home purchases rose 20.7% from the decrease from the pandemic. According to the NAR’s existing homes rose last month to a seasonally adjusted annual rate of 4.72 million.

“The summer is heating up as record-low mortgage rates continue to spur homebuyer demand,” said Sam Khater, Freddie Mac’s Chief Economist.

Click Here For the Source of the Information.

Techniques Used to Strengthen Homes During High Winds

Natural disasters are something everyone around the world fears. There are many construction techniques that have been tested and passed approval to improve the resistance of houses during high wind events such as less-severe (EFO-EF2) tornadoes and intense hurricanes.

Data has been collected two ways to see what products pass high wind conditions. The first way Insurance Institute for Business & Home Safety (IBHS) which tests different products under controlled wind tunnel conditions. The second way data is collected is by post-storm assessments taken on what works during these high wind conditions by both the Insurance Institute for Business & Home Safety and the Engineered Wood Association (APA).

products are reviewed is by the

The International Residential Code® (IRC®) created by the U.S. Department of Energy is the ” Code for residential buildings that creates minimum regulations for one- and two-family dwellings of three stories or less. It brings together all building, plumbing, mechanical, fuel gas, energy and electrical provisions for one- and two-family residences.” Homes that have been built to the IRC code have shown high performance during high-wind events but builders are now finding ways to build homes that are above the IRC® standards.

Focusing on other ways to strengthen the roof and enable a “continuous load path through the structure to the foundation” can help builders build homes that can withstand high-risk tornadoes and intense hurricanes. By doing this, homeowners would be able to stay in their homes after a high-wind event and home repair cost would be lowered.

One way they have found to strengthen the roof is by sealing it. If air is kept from being able to seep underneath the roof components the roof will stay intact and not tear off. During a study IBHS did on homes in Florida after Hurricane Michael, those with sealed roof decks held up better than those that were not sealed. Taping the roof deck seams, using tighter nail spacing to fasten roof decking to trusses and rafters, using ring shank nails A, upgrading the underlayment to 30lb felt, properly fastening drip edges and gutters to minimize the ability of the wind to get up underneath roof covering and using self-adhered or synthetic underlayment are construction techniques used to strengthen roofs when homes are under construction.

There are many ways wind can damage a home. As mentioned previously uplift pressure can take the roof off, shear loads can cause a house to lean, and lateral loads can make the home slide off the foundation. Wind load is defined as the load in pounds per square foot placed on a structure by the

wind. Builders are finding ways to allow a constant load path in the construction of homes. To prevent leaning wood structural panels or other structural sheathings (allowed by the IRC®) are used to brace walls, anchors are used against base shear and hold-downs are used against overturning. These types of construction techniques fight winds from tearing a home apart.

When building a home for a consumer, builders can take this information and inform them about these preventions. When living in a geographical area that is prone to these events, it is important for homeowners to be aware of the risk when not using these techniques or materials approved by the International Residential Code®.

Click Here For the Source of the Information.

Tips for Personalizing Your New Home in the First 30 Days

Purchasing a home is a huge event in a person’s lifetime. There are so many steps and hurdles to go

through and once the home buying process has ended, it is now time to focus on giving your home a personalized touch.

Your new home is a blank slate just waiting for you to design and create the perfect living space for your family. Here are some tips on how to get started during the first 30 days in your new home.

Take time to focus on your vision. Visualizing and planning your space is a very important step that you do not want to rush through. Do not rush to get everything set up in the space. Live in the space for a few days to plan the best path for each room. If kids are in the picture, give them the task of deciding on a theme for their new bedroom. Getting the whole family involved will make your new house feel like home for the whole family.

Use what you already have. This is a perfect budget-friendly way to personalize your new house. Find ways to use the furniture that you are bringing from your last home. Cherished memories are attached to many of our items. Using items that you already own makes your new house feel like a home.

Paint for today and tomorrow. Painting your entire home is a feat in itself. Once you have your vision, take smaller steps. Pick a few rooms to start with or accent walls and remember to paint for the future and not just today. Use a timeless color over a trendy color that will be out of style in a few years. Another quick and easy way to add your colorful mark on your new house is to paint the front door.

Choose decor that inspires. Choose decor with a meaning behind it. Something free can be just as priceless to you as something that is extremely expensive. Choose an item that says something to you and about you. Using objects that are important to you is a fantastic way to personalize your new home.

Buy some new basics. If you are moving into a larger space, you will need to purchase new furniture but this is not the only reason to purchase new items for your new space. Upgrading some of your old items will also add to your new vision for your home. This can be an expensive task so choose one or two items to splurge on within the first month.

Grow with the flow. As mentioned before, live in your home for a few days to get a feel of the space. In order for a new house to feel like a home, it needs to be lived in. Even though you have a vision for your space, that vision needs to be flexible. You will change and grow in your home.
Remember even though this seems like a huge undertaking, by taking small steps and following these tips, your new house will feel like a home in no time.

Click Here For the Source of the Information.

Home Purchases Are Still On the Rise

Even though we saw a slight decrease in April, home purchases are still going strong. The Mortgage Bankers Association’s (MBA) Weekly Application Survey shows that purchase activity rose 5.3% with an even higher year-over-year the week of May 29.

The ongoing economic and virus challenges didn’t stop housing demand which boasted a rise in home-buying activity compared to last year. A big part of the increase is the record low in mortgage rates. The Primary Mortgage Market Survey’s 30-year fixed-rate mortgage shows a decrease by 5 basis points which keeps the ongoing record low.

The survey shows that home purchase applications have been increasing for five consecutive weeks. In fact, the National Home Builders Association (NAHB) predicts that the housing industry will be a leading sector when it comes to the country’s economic recovery. Fannie Mae reports, “the refinance volume of applications is poised to reach a 17-year high as it forecasts mortgage rates to tumble further.”

The HMI, which indicates builders’ confidence, showed a sturdy gain in May. According to the current National Association of Home Builders/Wells Fargo Housing Market Index (HMI) when it comes to newly-built single-family homes builder confidence rose seven points to 37 last month. The HMI index also showed an increase in sales conditions to 42, a 46 for the component measuring sales expectations in the next six months and 21 for the measure charting traffic of prospective buyers.

Across the regions the HMI scores’ monthly average increased 7 points in the Midwest to 32, in the South, it rose eight points to 42 and in the West a 12 point increase to 44. The only region which saw a decrease was the Northeast which fell 2 points to 17.


Click Here For the Source of the Information.