Fiercest Spring Homebuying Season in a Decade

Spring has officially sprung, which means spring homebuying season 

is upon us. While it's not unexpected to see an uptick in mortgage applications and home sales, this year's spring homebuying season is predicted to be even more competitive than years past.

According to the National Association of REALTORS^®, total housing inventory rose 4.6% to 1.59 million existing homes available for sale in February, but that's still 8.1% lower than a year ago.

Combined with a decline in the construction of new homes, there's a lack of supply across the U.S., which pushes house prices up. 

And while mortgage rates are still historically low, they have been generally climbing since the start of the year.

What does this mean for homebuyers? It's more important than ever to be prepared. Here are three ways you can get a head start on the competition this spring homebuying season:

1. Understand Your Finances 
   One of the first steps in the homebuying process is fully understanding your finances. It's not as fun as shopping for homes, but it's important to help you determine how much you can afford.
2. Understand the Importance of Credit
   If you're thinking about buying a home, you need to be aware of your credit score – one of the most important factors when qualifying for a loan. Generally speaking, a higher score can mean a better chance of getting approved for a loan and securing a lower interest rate.
3. Get Pre–approved
   Pre–approval is an important and exciting time when you work with your lender to determine how much home you can afford. Getting a pre–approval letter allows you to house hunt with greater confidence, knowing how much the bank is willing to lend you. It also shows sellers that you're serious about buying. Be sure you're honest with yourself about how much you can comfortably afford v. how much you are pre–approved to borrow.

What Does it mean for Sellers, who's selling? ... Not only does the low housing inventory mean a bidding war for buyers, ... Typically home prices will rise as buyers are quick to make an offer to secure the property. Sometimes buyers will compete for a property, driving the price above expectations.

If you’re interested on a wealth of information to help you get started visit Precision Realty & Assoc. LLC or if you prefer a more personal touch, reach out to a us, CALL 801-809-9866 today. The decision to buy or sell is a personal one that depends on your financial situation, future plans and lifestyle.

Interest Rate vs. APR

If you're looking to buy a home or already own, you're probably familiar 

with the terms 'Interest Rate' and 'APR.' They're both used when referring to mortgage rates, but why are both quoted and what makes them different?

Knowing the difference is very important and could save you thousands of dollars on your mortgage.

• At the highest level:The interest rate is the cost of borrowing the principal loan amount.
• The APR — or Annual Percentage Rate — is a broader measure of borrowing and includes not only the interest rate but also any other costs to get a loan such as discount points, insurance and closing costs.

Quoting the APR became industry practice as part of the Truth in Lending Act, a federal law passed in 1968 to protect consumers by requiring the full disclosure of the terms and conditions of finance charges in credit transactions.

Given the same interest rate, higher APRs indicate more costs associated with obtaining a loan, including fees and points. Because of this, it's important to shop around and get APRs from several lenders, allowing you to compare all fees, apples–to–apples, and determine which lender is right for you.

If you're focused on getting the lowest monthly payment, the interest rate is likely the top priority for you. If your focus, however, is the total cost of the loan over time, the APR may be your most valuable tool.

While looking at interest rates and the APR are important, take some time to learn more about other important costs that factor in.

         

Spring Season Start on High Note

Contract Signings, Pending home sales reversed course in February, 

increasing in most areas of the country even as a shortage of homes for sale and higher home prices struck many markets, the National Association of REALTORS® reported Wednesday. 

NAR’s Pending Home Sales Index—a forward-looking indicator based on contract signings—increased 3.1 percent month over month in February to a reading of 107.5. Despite the uptick, the index remains 4.1 percent below a year ago. 

“Contract signings rebounded in most areas in February, but the gains were not targeted enough to keep up with last February’s level, which was the second highest over a decade (at 112.1),” says Lawrence Yun, NAR’s chief economist.

“The expanding economy and healthy job market are generating sizable homebuyer demand, but the minuscule number of listings on the market and its adverse effect on affordability are squeezing buyers and suppressing overall activity.” 

Yun says the top wild cards for the housing market in the coming months will be how both buyers and potential sellers adjust to the increase in mortgage rates and home prices.

Besides higher borrowing costs, home prices nationwide also are up 5.9 percent so far in 2018, according to NAR. Some homeowners who currently have a low mortgage rate may grow even more reluctant to sell out of fears of having to buy another home at higher borrowing costs and higher home prices. 

“Homeowners are already staying in their homes at an all-time high before selling,and any situation where they remain put even longer only exacerbates the nation’s inventory crunch,” Yun says. “Even if new-home construction starts pick up at a faster pace this year, as expected, existing sales will fail to break out if these record-low supply levels do not recover enough to meet demand.” 

Contract signings last month rose by the largest amounts in the Northeast, up 10.3 percent month over month, but still below 5.1 percent a year ago. Yun cautions that the Northeast region will likely see some volatility in contracts at least through March, due to multiple winter storms over the last few weeks that have likely stalled some contract signings there.

Are you ready Buy or Sell ? The decision to buy or sell is a personal one that depends on your financial situation, future plans and lifestyle. If you’re interested on a wealth of information to help you get started visit Precision Realty & Assoc. LL or if you prefer a more personal touch, reach out to a us, CALL 801-809-9866 today.


Source: National Association of REALTORS®

How Much Renting Is Costing

By the time millennials turn 30, they will have paid $92,600 in rent, 

according to a new study by RentCafe,  a nationwide listing service for rentals.

It’s more than previous generations paid when they were between the ages of 22 and 30. RentCafe researchers studied how much millennials, 

Generation X members, and baby boomers spent on rent during that eight-year time period of their life by using U.S. Census Bureau statistics dating back to 1974.

Given their overwhelming student loan debt, younger Millennials may carry on renting, simply because the prospect of buying is not yet attainable. On the other hand, older Millennials are starting to slowly shift towards home ownership. As they are finally catching up with the American Dream, this will surely drive demand for homes for sale.

Their lifestyle patterns so far show that Millennials need affordable homes with attractive amenities. As they’re starting to form families, they’ll soon be ready to put their hard-earned money into their own home.

Millennials have been hit the hardest by rising rents, and Generation Z—the generation following millennials—may have it worse, according to the analysis. Researchers estimate that by the time Generation Z reaches age 30, its members will have paid more than $102,000 in rent.

Millennials may earn more compared with previous generations (earning $206,600 in the eight-year period), but they’ve had to spend more on rent, the study found. Millennials spent 45 percent of their income on rent between the ages of 22 and 30—more than the 30 percent that most financial advisers recommend. The two previous generations were not able to keep their rental costs under 30 percent of their income either, but they did fare better than millennials: Baby boomers spent 36 percent of their income on rent between the ages of 22 and 30 and Generation X spent 41 percent. 

Are you ready Buy ? The decision to buy is a personal one that depends on your financial situation, future plans and lifestyle. If you’re interested on a wealth of information to help you get started visit Precision Realty & Assoc. LL or if you prefer a more personal touch, reach out to a us, CALL 801-809-9866 today.

Source:  RentCafe Blog (March 15, 2018)

What Is a Seller’s Market?

What is a seller’s market? Simply put, it's a market where there are more 

home buyers than sellers. Based on basic laws of supply and demand, this means sellers have the upper hand: They will likely sell their place quickly, perhaps for over asking price, with a minimum of fuss or push back from buyers.

Meanwhile, home buyers in seller's markets face a tough road: Due to increased competition, they'll have to act fast, bid high, and generally bend over backwards to woo sellers into accepting their offer over the many that may be at their disposal.
So here's what buyers need to know about seller's markets—and how to survive them.

What is a seller's market—and where are they?

Right now, the bulk of the U.S. housing market is a seller's market. Home prices are rising in the 20 largest U.S. cities, and inventory is tight, meaning that there just aren't enough homes to go around.

'Even though the number of homes being built has been growing over the past 10 years, it hasn’t kept pace with population growth.' Another difficulty in meeting this pent-up demand is that construction costs are continuing to skyrocket.

Where are the hottest seller's markets?

The main metric used when evaluating housing markets is home price appreciation. 'The greater imbalance of supply and demand, the faster you’ll see price appreciation.'
Here are the factors that often fuel seller's markets:

• Population growth. Generally, when theres an increase in the number of people moving to a town, demand for housing begins to exceed supply. 
• Job growth. An influx of new companies and jobs can in turn fuel population growth that turns areas into seller's markets. For example, wherever Amazon opens its new headquarters, youre going to see a huge influx of home buyers in that city,
• Housing starts. The term 'housing starts' refers to the number of new homes on which builders have started construction in any particular month. Because new construction directly affects supply, a decrease in housing starts can result in a sellers market.

Are you in a seller's market? How to tell

Home buyers and sellers can evaluate whether they're in a buyer's or seller's market by analyzing a few key variables:

• Average days on market (DOM). This measurement shows the median age of real estate listings in your area. If houses are selling in your neighborhood in less than 10 days, its a strong sellers market.
• Asking vs. final home price. In seller's markets, bidding wars can often erupt among buyers, which means sellers may enjoy a final sales price that's equal to their asking price, or more. So, if a home is listed at $450,000 and sells for $450,000, $460,000, or higher, that's a seller's market. In a strong seller's market, the final sales price is typically at least 10% higher than the asking price.
• Home prices over time. Rising home prices over time is a sure sign of a seller's market. 

Buying a house in a seller's market

To compete against other buyers in a seller's market, you need to be prepared. First and foremost, you’ll need a mortgage pre-approval letter before you start shopping, so that a seller knows you can put your money where your mouth is.

You may also have to waive some contingencies to edge out other buyers—or widen your search to an up-and-coming neighborhood with less demand.
Other ways to make your offer more attractive include increasing the amount of earnest money that you'll put into the escrow deposit, adding an escalation clause, writing a personal letter to the seller and, of course, offering above list price. 

Here's more advice for home buyers on how to survive a seller's market.
“There’s no question that a majority of homeowners have amassed considerable equity gains since the downturn,”

Are you ready Buy or Sell? The decision to Sell or buy is a personal one that depends on your financial situation, future plans and lifestyle. If you’re interested on a wealth of information to help you get started visit Precision Realty & Assoc. LL or if you prefer a more personal touch, reach out to a us, CALL 801-809-9866 today.

Aren't Enough New-Home Sales

Leading Up to the Spring Buying Frenzy, As we enter the spring home

buying season, hordes of would-be homeowners are ready to go—but there weren't enough new-home sales in the beginning of the year to quell the already strong demand.

Only about 618,000 newly constructed homes were sold in February, according to a joint report by the U.S. Census Bureau and U.S. Department of Housing and Urban Development. That's down 0.6% from January, but up 0.5% from February 2017.

 'More new-home sales are needed to restore balance in the housing market. ... Today, one in every 10 homes sold is a new home, whereas in a normal market they account for one in every seven homes sold.'

Currently, there aren't enough homes to go around, particularly at more affordable prices. The median price of newly constructed homes notched up to $326,800. It's up nearly 0.6% from the previous month and almost 9.7% from the same month a year ago.

That's considerably more than existing homes, which cost a median $241,700 in February, according to a recent National Association of Realtors® report. 

Only about 13% of the newly constructed homes sold in February cost less than $199,999, according to the report. The bulk of them, about 58%, were between $200,000 and $399,999. An additional 12% cost between $400,000 and $499,999, while 17% were priced at $500,000 and up.

The most new homes were sold in the South, where buyers closed on about 338,000 new homes in February. That's a 9% jump from January and a 0.6% bump from February 2017.

The region was followed by the West, where about 164,000 new homes changed hands. This represented a 17.6% monthly , but a 3.1% annual increase.

Next up was the Midwest, with 79,000 sales, down 3.7% from January and 8.1% from the same month a year earlier. The Northeast had the fewest new-home sales, at just 37,000. But that was up 19.4% from the previous month and 8.8% from February 2017.

Home Buyers Are Raring to Go, Planning Strategies as Spring Market Heats Up. 

Driven by frustrated buyers who rolled over from last year and record-breaking lows in housing inventory, the 2018 spring buying season is expected to be one of the most competitive in years—but buyers are still optimistic about getting into their dream home, according to a survey conducted. “Holdover buyers hoping for greener pastures this spring are likely to find sparse options that require them to pay top dollar or make other concessions.”

Mortgage Rates Barely Budge This Week

After last week’s first rate of the year, mortgage rates showed little 

change this week—a welcome sign for the week’s kickoff to the spring home shopping season.

But home buyers and borrowers should expect several rate increases over the next few months, economists caution.

“The Federal Reserve raised interest rates [this week]—a much-anticipated move that comes as both U.S. and global economic fundamentals continue to strengthen,” says Len Kiefer, Freddie Mac’s deputy chief economist.

“The Fed’s decision to raise interest rates by a quarter of a percentage point puts the federal funds rate at its highest level since 2008.The decision, while widely expected, sent the yield on the 10-year Treasury soaring.” (Read: Fed Raises Rates: What This Means for Mortgages)

The 30-year fixed-rate mortgage rose 1 basis point this week and averaged 4.45 percent, according to Freddie Mac.

“So far, U.S. housing markets remain resilient in the face of higher mortgage rates,” Kiefer notes. The National Association of REALTORS® reported earlier this week that existing-home sales in February increased 3 percent month over month on a seasonally adjusted basis and are up 1.1 percent from a year ago.

Freddie Mac reports the following national averages with mortgage rates for the week ending March 22:

• 30-year fixed-rate mortgages: averaged 4.45 percent, with an average 0.5 point, rising from last week’s 4.44 percent average. Last year at this time, 30-year rates averaged 4.23 percent.
• 15-year fixed-rate mortgages: averaged 3.91 percent, with an average 0.5 point, rising from last week’s 3.90 percent average. A year ago, 15-year rates averaged 3.44 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 3.68 percent, with an average 0.4 point, rising from last week’s 3.67 percent average. A year ago, 5-year ARMs averaged 3.24 percent.

Source: Freddie Mac

Homebuyer Demand Skyrockets

Despite Inventory Lows, Spill-over buyers and record-breaking industry 

lows are creating one of the most competitive buying seasons in years, according to a survey released by Realtor.com. February 2018 indicated, inventory was moving 8 percent more quickly than in February 2017. The median age of properties listed through the was 83 days.

'We're only a few weeks into March and already seeing the market heat up,'  'Holdover buyers hoping for greener pastures this spring are likely to find sparse options that require them to pay top-dollar or make other concessions.'

Even as prices continue to climb—increasing by 10 percent year-over-year—and are predicted to reach new record highs this spring and summer, buyer demand is booming. A portion of this demand is originating from buyers who are considered holdovers from last summer and previous buying seasons. The survey shows that 40 percent of today’s buyers have been searching for more than seven months, 34 percent for four to six months, while only 26 percent of those surveyed have been searching for three months or less.

Some U.S. homeowners are getting started early. Really early. Americans taking the plunge. More than 99,000 members of Generation Z — those born in 1995 and after, who are now 23 or younger — have mortgages, according to the credit agency TransUnion TRU, -1.81% Their average mortgage balance: $140,000. 

“I’m a little surprised to see the numbers as large as they are,” said Rob Dietz, chief economist and senior vice president for economics and housing policy for the National Association of Home Builders. “The traditional life cycle is to rent, especially for younger consumers who might have student loans.”

Members of Generation Z seem to value home ownership, nevertheless. Some 62% of the older members of Generation Z say owning a home is a key component of the American Dream — about the same number as the members of older generations, according to a survey released last year.

Inventory is down 8.5 percent from a year ago, and 35 percent of respondents indicated they anticipate “a lot of competition,” while 36 percent expect only “some.” When asked about strategies heading into the spring buying season, 42 percent responded that they were checking listing sites every day, while 40 percent of buyers plan to put more than 20 percent cash down. Additionally, 33 percent are setting price alerts, 31 percent plan to put a larger earnest money deposit down, while 26 percent are willing to offer above asking price.

Despite the bleak outlook, 53 percent of buyers expect to close on their future homesin less than six months, while 18 percent expect the process to take four seven to nine months, 15 percent have estimated their buying process to take  ten to twelve months, and only 15 percent expect the process to exceed more than a year.

Are you ready to Sell? The decision to rent or buy is a personal one that depends on your financial situation, future plans and lifestyle. If you’re interested on a wealth of information to help you get started visit Precision Realty & Assoc. LL or if you prefer a more personal touch, reach out to a us, CALL 801-809-9866 today.

Spring Home Sales Kickoff

Low inventory levels and accelerating home prices couldn’t put a lid 

on existing-home sales in February. 

Following two consecutive months of declines, existing-home sales rebounded 3 percent in February month over month and reached a seasonally adjusted annual rate of 5.54 million, the National Association of REALTORS® reported Wednesday. 

Sales of existing homes, which include single-family homes, townhomes, condos, and co-ops, are now 1.1 percent higher than a year ago.

“A big jump in existing-home sales in the South and West last month helped the housing market recover from a two-month sales slump,” says Lawrence Yun, NAR’s chief economist.

“The very healthy U.S. economy and labor market are creating a sizable interest in buying a home in early 2018. However, even as seasonal inventory gains helped boost sales last month, home prices—especially in the West—shot up considerably. Affordability continues to be a pressing issue because new and existing housing supply is still severely subpar.”

5 Housing Indicators to Gauge the Market

Here’s a closer look at findings from NAR’s latest housing report.

• Home prices: The median existing-home price for all housing types was $241,700 in February, up 5.9 percentfrom a year ago.

• Inventories: The number of homes for sale at the end of February increased 4.6 percent to 1.59 million. That is still 8.1 percent lower than a year ago. Unsold inventory is at a 3.4-month supply at the current sales pace.

• All-cash sales: All-cash sales comprised 24 percent of transactions in February, the highest since last February (27 percent). Individual investors tend to account for the biggest bulk of all-cash sales. They purchased 15 percent of homes in February, unchanged from a year ago.

• Distressed sales: Foreclosures and short sales made up 4 percent of sales in February, down from 7 percent a year ago. Broken out, 3 percent of February sales were foreclosures and 1 percent were short sales.

• Days on the market: Forty-six percent of homes sold last month were on the market for less than a month. Overall, properties stayed on the market for an average of 37 days in February, down from 45 days a year ago. “Homes for sale are going under contract a week faster than a year ago, which is quite remarkable given weakening affordability conditions and extremely tight supply,” says Yun. “To fully satisfy demand, most markets right now need a substantial increase in new listings.”

Is Millennials America’s largest generation?

Will Millennials Move Out? Get ready for a new king to be crowned. 

According to a new report from the Pew Research Center, it's expected that Millennials — those born between 1981 and 1996 — will overtake Baby Boomers as the largest generation, with 73 million people in 2019. What happens when a group that large decides to start buying homes.

“Adulting” is getting harder for younger generations, which is stymieing the housing market from reaching its full potential, according to Freddie Mac’s latest March Insight report. The report compares young adults to previous generations and the impact to household growth.  

“For today’s young adults, ‘adulting’ is hard because the economic environment has been tough in recent years; wage growth has been weak and housing costs have risen rapidly,” researchers note in the report. “On top of that, education and health care costs have skyrocketed.” Compared to 2000, the average annual expenditures of young adults in 2016 has jumped 36 percent. The average annual expenditures on health care and education have more than doubled, according to the report.

Housing costs and labor market outcomes are the two biggest factors behind the decline in household formation rates among young adults, according to the insight report. From 2000 to 2016, real median home prices rose by 29 percent. However, young adult per capita incomes increased by only 1 percent. Further, the labor force participation rate for young adults has seen a “substantial decline in recent years, particularly for men,” researchers note.

Millennials are the largest generation since the baby boomers. Nearly 45 million adults aged 25 to 34 lived in the United States as of 2016, according to U.S. Census data. That is 4 million more than those aged 35 to 44.
If millennials had formed households at the same rate as young adults in 2000, they would have formed 1.6 million additional households in 2016, according to Freddie’s research.

But millennials have been slower than previous generations to reach milestones such as buying a home, getting married, and having children.

Don’t count them out yet, researchers say. Millennials and the generation after them, Generation Z, are expected to add between 19 million and 21 million net new households by 2025.

The good news is that this sleeping giant of homeownership won't stay dormant for long. We expect that young adults will add around 20 million households to the U.S. economy, driving housing demand over the next decade. As always, house prices will be a factor. If housing costs continue to rise, we could see about 600,000 fewer households over the next decade. Alternatively, we could see housing costs stabilize and the labor market improve, driving young adults' household formations up 300,000 higher than our estimates.

As many young adults start looking to become homeowners, Freddie Mac will be there with mortgage products and resources that help potential borrowers achieve the dream of homeownership...and make 'adulting' a little less hard.

• Down Payment Assistance provides flexible sources of down payment funds within our Home Possible Mortgages^®; it also helps consumers and their lenders identify additional, eligible down payment programs.
• CreditSmart^® is a free, online curriculum that  teaches the steps to homeownership, from the importance of good credit to qualifying for a loan and selecting a lender.
• My Home by Freddie Mac^® is a consumer–focused website featuring tools, resources and information on renting, buying and owning a home.

Spring Has Sprung! Here Today, Gone Tomorrow

Homes for Sale: “As we head into spring and the traditional season when 

sales heat up, buyers will find that desirable homes won't be on the market for long,' said David Berson, SVP and Chief Economist at Nationwide. “Today, the average home is on the market almost half the length of time that it was six years ago.”

That news, of course, is a sweet elixir for would-be sellers. Just how sweet? In 2017, the typical home sat on the market—meaning from listing to inking a contract—for 67 days, HoHM data shows. 

If there’s a home on the market stuffed with to-die-for features, it’s probably not going to last long, according to the latest Nationwide Health of Housing Markets (HoHM) report. What’s precipitating the blink-and-you’ll-miss-it market? Heavy demand and a rock-bottom level of for-sale homes, the report says.

Despite the challenges confronting buyers, Berson’s outlook on the U.S. housing market remains rosy.

“Household formations have offset much of the negative price impacts,” he said. “The labor market is strong, and wages are increasing. Affordability remains a concern, especially for entry-level homebuyers in today's low-inventory conditions, but mostindicators point to healthy, sustainable local markets with only a few extreme exceptions.”

While the challenges related to the supply of homes will remain during the year, and the Fed is expected to raise rates again, the report forecasts 30-year mortgage rates ranging between 4.4 percent and 4.6 percent in 2018 and 2019 respectively. 

The five-year ARMs are expected to see greater swings in the rates that are expected in the range of 3.8 percent in 2018 and 4.1 percent in 2019.

“On housing, home sales got off to a rough start in 2018, bottle-necked by the persistent challenges of the inventory shortage. Of course, there’s a flipside to the demand-supply imbalance, and strong home price appreciation continues to come as welcome news to existing homeowners,” Duncan said.

Are you ready to Sell? The decision to rent or buy is a personal one that depends on your financial situation, future plans and lifestyle. If you’re interested on a wealth of information to help you get started visit Precision Realty & Assoc. LL or if you prefer a more personal touch, reach out to a us, CALL 801-809-9866 today.

Equity Increase 12.2 Percent

Homeowners with mortgages have seen their equity increase 12.2 percent year over year, 

according to CoreLogic’s newly released Home Equity Report. Homeowners gained more than $15,000 in home equity between the fourth quarter of 2016 and the fourth quarter of 2017—the highest growth in home equity in four years, according to the report. Western states saw the largest increases.

• National share of homes with negative equity ended 2017 at 4.9 percent.
• 675,000 borrowers moved into positive equity in 2017.
• Nevada saw the largest improvement in the negative equity share over the past year, falling 5.5 percentage points.

“Home-price growth has been the primary driver of home-equity wealth creation,” says Frank Nothaft, chief economist for CoreLogic. “Because wealth gains spur additional consumer purchases, the rise in home-equity wealth during 2017 should add more than $50 billion to U.S. consumption spending over the next two to three years.”

Meanwhile, the number of borrowers who are in a negative equity territory is decreasing. The total number of mortgaged homes in negative equity—those who owe more on their mortgage than their home is currently worth—dropped to 2.5 million homes, or 4.9 percent of all mortgaged properties in the fourth quarter of 2017. 

“There are wide disparities in home-equity gains by geographic area, with higher-priced, capacity constrained markets along the East and West Coasts registering the largest increases,” says Frank Martell, president and CEO of CoreLogic.

“The average homeowner in California and Washington had a wealth gain of about $40,000, reflecting the high price of homes in California and the rapid appreciation in Washington. In contrast, the average owner in Louisiana had little change in their housing wealth during 2017, given much lower prices and modest price growth.”

Source: Homeowners Keep Getting Richer and Richer

First Decline of Mortgage Rates in 2018

Following nine consecutive weeks of increases, borrowers finally got some 

relief this week with mortgage rates. The 30-year fixed-rate mortgage posted its first week-over-week decrease of 2018. 
“Tuesday’s Consumer Price Index report indicated inflation may be cooling down; headline consumer price inflation was 2.2 percent year over year in February,” says Len Kiefer, Freddie Mac’s deputy chief economist. “Following this news, the 10-year Treasury fell slightly. Mortgage rates followed Treasurys and ended a nine-week surge. The U.S. weekly average 30-year fixed mortgage rate fell 2 basis points to 4.44 percent in this week’s survey, its first decline this year.”

Freddie Mac reported the following national averages with mortgage rates for the week ending March 15: 

• 30-year fixed-rate mortgages: averaged 4.44 percent, with an average 0.5 point, ping from last week’s 4.46 percent average. Last year at this time, 30-year rates averaged 4.30 percent. 
• 15-year fixed-rate mortgages: averaged 3.90 percent, with an average 0.5 point, ping from last week’s 3.94 percent average. A year ago, 15-year rates averaged 3.50 percent. 
• 5-year hybrid adjustable-rate mortgages: averaged 3.67 percent, with an average 0.4 point, increasing from last week’s 3.63 percent average. A year ago, 5-year ARMs averaged 3.28 percent. 

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we've made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders and taxpayers. 

Source: Freddie Mac

Reality Check on Your Home Before You Sell?

Here You Go, We get it—you spent years turning your house into a cozy home. And everything from that 

perfect shade of gingham blue you painted the cabinets to the quirky old chair rail you preserved makes your home priceless, at least to you.
Still, when it comes time to sell your house, you need to take off those rose-tinted glasses and regard your house as a buyer would. Without this shift of perspective, you run the risk of overpricing your home, or failing to make necessary renovations or repairs—all of which means your place could end up sitting on the market. For a long time.

Interview real estate agents

Sit down with a few real estate agents as you get ready to list your home. Not only will you get a sense for whom you want to work with, but you can also ask them for suggestions on how you should prep your home for sale. Should you repaint that purple office? Clear out the clutter in those hall closets? Remember, no one has better insight into what homes sell for and why than a real estate agent.

Hire a home inspector

It also helps to hire a home inspector for a pre-inspection, Besides dispensing a metaphoric wake-up call, an inspector will usually find problems with your home that you didn't even know existed.

Plus, you'll have to go through the inspection process at some point of a sale, and being proactive could save you some dough.

'When home buyers discover through an inspector that a home needs a $5,000 repair, they will ask for $7,000 off the purchase price,' But if you got that issue repaired ahead of time—and without it being a rush—it'd cost more like $4,000, meaning your net will be higher at closing.'

Consult with a home stager

To get a fresh perspective, hire a home stager to provide professional feedback on how your home currently presents itself and what suggestions would make it more marketable.

Visit open houses in your area

'Sellers don't learn,' says Ian Slater, a licensed real estate salesperson with Compass, in New York City. 'They sit inside their homes with an idea of its value and don't understand what the buyer pool is actually seeing.'

Do a walk-through with someone in your target market

So instead of inviting your mom or your friends to do a walk-through, ask your friend's niece who just graduated from business school or the young family at your church if they'd be willing to give you an honest assessment.

'Besides, it's easier to absorb critical feedback from people you don't know as well, and you won't hold a grudge against your mother-in-law,' 

Take pictures and post them to social media

A seller needs to realize that only 10% of buyers can see beyond what is presented, And what's presented to buyers on a listing site such as realtor.com® is all about the visuals. So to see just how your home comes off, snap pictures of your various rooms. View your photos and honestly ask yourself if a buyer would find the rooms bright, attractive, and updated.

Then post those pictures on Facebook and Instagram to get multiple opinions from a large pool of friends. Your home's appeal may become evident in the amount of likes—or lack thereof—you get.

Are you ready to Sell? Precision Realty LLC will research sale prices on other Comparable Homes in your neighborhood to help you set your sale price.  It’s important to get the price right the first time.

Pros and Cons of a Homeowners Association

Every Buyer Should Consider, Home shoppers weigh a laundry list of 

factors before purchasing a single-family home or condo. Location, price, size, and style are all taken into consideration. 

But for some, a home in a community with a homeowners association, or HOA—a board of residents who help ensure that your community looks its best and functions smoothly—could either sweeten the pot or be a major deal breaker.

Pro: HOAs maintain the common areas

Your community's HOA will be responsible for handling all maintenance of common areas and repairs for the amenities outside of your home. It's perhaps the biggest perk of living in an HOA community.

Con: You have to pay recurring HOA fees

If you move into an area with an HOA, membership is mandatory and so are the monthly or annual fees. So, how much can homeowners expect to pay? It varies depending on your location and how expensive your house is.
The listing agent will be able to tell you exactly how much HOA payments will be.

Pro: HOAs help keep uniformity

Each HOA has its own declaration of covenants, conditions, and restrictions, or CC&Rs, which explain what homeowners can and cannot do—this includes streamlining the appearance of each property.

“Your neighbors can't paint their house bright purple or put an unsightly addition on the front of their house,” Golden says. The CC&Rs make sure 'the community retains the look and feel of the way it was built.”

Other common no-nos are parking vehicles on the lawn or keeping inoperable vehicles in the driveway.

“You won’t have to worry about that one neighbor that has decided to let his front yard grow into a wild jungle,” says Golden.

“Ultimately, the HOA helps the homes within the neighborhood retain their value,” Garrett says. 'When there are rules and guidelines governing how homeowners should keep their property's appearance, it helps keep the neighborhood looking desirable for the consumers perusing the neighborhood in search of a new home.”

Con: There's a lot of red tape

Building that new second-floor addition will be especially difficult in an HOA community. Why?

Any exterior modification—even a minor one like a play area for your kids—has to be approved by the HOA.

You must submit plans describing the height, colors, location, shape, and materials to the HOA board for approval. 'This can really slow down the process or limit the type of work you can do,” Scott says.

Pro: HOAs mediate problems on your behalf

An HOA can also reduce conflicts and unpleasant exchanges. If your neighbors haven’t cut their lawn in several weeks, or decide to turn their driveway into an auto repair shop, you don't have to confront them because the HOA will. When anyone is engaged in activity that violates the CC&Rs, the HOA sends a friendly notice and follows up with a stern warning.

Con: They can be overbearing

Remember those CC&Rs? While they come in handy for preventing rowdy college students from moving in, they also might be off-putting for homeowners who like their autonomy.

“Many folks believe that buying your own home should give you the freedom to make the changes you want to make and express your own individuality,” Golden explains. “They don't want decisions about their own home made by a committee.”

HOA-mandated restrictions can be set on swimming pools (e.g., in-ground swimming pools can be built in the back of the house, but above-ground pools are prohibited), pets (e.g., they're are allowed, but they can’t be bred or kept for commercial reasons; livestock or poultry are not allowed without permission), and rentals (e.g., you might be prohibited from renting out rooms or the entire home). 

In extreme situations, some HOAs can evict the tenant and hold the homeowner responsible for any eviction costs or any damage caused by the tenant

How Big a Home Do You Truly Need?

Ask these 5 Questions to help you Figure That Out.

When it comes to homes, the popular credo is that bigger is better. More square feet = a larger slice of the American dream, right?

Not necessarily. For one, bigger homes obviously cost more, and oversized McMansions can be harder to sell. As such, you'll want a home that's neither too big nor too small. But how do you strike that balance?

1. Is this my ‘forever’ home, or is ‘right now’ good enough?

While you can’t predict the future (darn those unreliable crystal balls), it is possible to evaluate the likelihood you might be moving in coming years. If so, then maybe you don't need to buy that perfect 'forever home' where you'll grow old; maybe a 'right now' home is good enough.

“There's a common perception that you should be searching for your ‘forever home,’ and that pressure to find a place that has all the space you might ever need often leads buyers to purchase a home that might be too big.”  'It's OK to know that you'll only live in a home for the next five or six years, and to buy a home that will serve your needs during that period. You can always re-evaluate and upgrade to a bigger space later.”

2. What will my income look like later?

If you’re early in your career, odds are decent that your income will increase over the years. Or, if you’re reaching the end of your career, you may be looking at flattened or declining income. In either case, it's never a good idea to get a mortgage at the max of what you can afford; it's better to go small and have some wiggle room.

“Nothing causes more stress than financial strain,”  “A mortgage on a home that is a size too large is most likely to be your biggest burden, and a hard one to overcome. Happiness is often one size smaller than your dream home. That way, you can enjoy your home without dreading your monthly mortgage payment.”

Also, remember more space means more time and money spent on upkeep and maintenance, more rooms to fill with furniture, and higher utility bills to heat and cool the home.

'Any future improvement projects, like installing new floors or replacing windows, will cost more when the space is bigger,' says Hinton. 

3. What are my priorities?

Another question to consider is what you'll use all that space for—and be honest: While you might dream of hosting epic dinner parties in that big formal dining room, will you really? Can you say with certainty that your in-laws will descend on you during the holidays and need a guest bedroom to crash in, or might they be just as comfortable in a nearby Airbnb?

Aside from justifying what you'll use each space for, ask yourself what you're giving up. If you dream of having a secret 'travel fund' so you can see the world, that may be possible only with a smaller mortgage (and house). Or, perhaps you value things other than space, like school district or a walkable location. So make sure to factor in those variables, too—and make sure you aren't sacrificing them for space you don't need.

This is why Kathy Fettke decided to buy a smaller home so she could live in her 'dream location' near the beach. 'Being open to a smaller home allowed us to be in a higher-priced market we wouldn't have been easily able to afford otherwise,' she says. And best of all, her home doesn't feel cramped—particularly since she can pop out and stroll along the ocean anytime.

4. How much space do I want from my own family members?

If you absolutely must have privacy—to, say, get work done in a home office or chill out in your man cave—then that extra square footage may be well worth the money. But if you're more the type who loves having their family members nearby, a large home gives people plenty of alone time ... sometimes too much.

Fettke, for one, is glad her home is small because it keeps her in close contact with her kids. 'I've found that my daughter’s friends who live in large homes rarely even run into their parents,' she says. But since her own home is smaller, her kids are constantly underfoot—just the way she likes it.

'Plus it seems that most of our daughter's friends hang out at our place, even though it's tiny,' she says. Sure, the beach nearby may be one draw, but so may be the cozy, close-knit family environment a smaller home forces you to have. 'Maybe they like the homey environment and being able to smell the cookies being baked around the corner,' she says.

5. Does this home feel spacious even if it doesn't have much space?

Keep in mind that even small homes can feel spacious purely based on an open floor plan and lots of light. Meanwhile, large homes can still feel cramped if they're dark or poorly laid out. So, when shopping real estate listings, know that the little number next to square footage may not tell the whole story.

'The total square footage of a house can be deceiving.'  'Features like a long hallway may increase the total, but they are spaces you pass through, not a true destination within the home.”

So instead of homing in on total square footage, “buyers should focus on the size of individual rooms where they see themselves spending the majority of their time,' says Ryan. In other words: Who cares if your bedroom isn't massive, since all you plan to do there is ?