Yajnesh Rai

Another Reason for Tight Inventories | Realtor Magazine

Borrowers behind on their mortgage payments are twice as likely to list their properties for sale compared to borrowers who are current on their payments, according to new data from Black Knight Financial Services.

But with fewer people behind on their mortgage, inventories across the country are tightening. The non-current inventory of properties is down 500,000 from a year earlier (and down from 3 million in March 2012). As such, the number of non-current mortgaged properties listed for sale has dropped from 7.7 percent in 2012 to 3.4 percent today.

The decline in delinquent properties is one reason behind the overall decline in mortgaged properties for sale, Black Knight notes. However, the status of a mortgage payment is not the only reason for tight inventories of homes for sale.

“People with adjustable-rate mortgages are more likely to list their homes than those with fixed rates, which is hardly surprising given that buyers often choose ARMs when they plan to stay in their homes for less time,” says Ben Graboske, senior vice president of Black Knight Data & Analytics. “Interestingly, borrowers with low fixed interest rates – 4.25 percent or below – are less likely to put their homes on the market than those with higher rates. This is something to keep an eye on if and when interest rates begin to rise. Should the trend hold true, rising interest rates could put an even greater strain on an already tight housing inventory.”

San Jose housing prices: County’s median hits $1 million for first time – San Jose Mercury News

With high demand and a tight market, Bay Area housing prices continue to soar, setting record highs in April in Santa Clara and Alameda counties.

 

 

The median price of a single-family home in Santa Clara County hit seven figures for the first time last month: $1 million on the button. Prices grew even dizzier in San Mateo County, where the $1.2 million average matched the previous record, set in May 2015.

 

 

The East Bay also saw a run-up in prices, with the median Alameda County home reaching $750,000, up more than 10 percent from the previous month. Tugged upward by prices in Walnut Creek and other high-end areas, the median Contra Costa County price grew to $525,000, its steepest in seven years, according to new housing figures released Wednesday.

April 2016: Paul and Ruby Callary speak with their realtor Mark Wong before an open house at their home of 27 years in San Jose, Calif. (Karl Mondon/Bay Area News Group))

 

 

“We just don’t have a market under $700,000 in Walnut Creek,” said Alain Pinel agent Margaret Garber-Teeter. “And even at $700,000, you’re going to be in second-tier schools. So there’s still an affordability problem for young families, unless their parents help them, and a lot of young families get help.”

 

 

Overall, the Bay Area’s nine counties saw the median single-family home price rise to $725,000, just shy of the $738,500 peak of July 2007.

 

 

“It’s the same story: The housing supply isn’t keeping up with the demand,” said Andrew LePage, research analyst for real estate information service CoreLogic, which released the latest numbers. “Mortgage rates remain low. The region’s generating jobs. But you still have relatively low inventory, at least in the mid- and lower-priced markets, where most people are shopping.”

The numbers reflect a crisis that is squeezing low-income earners and the middle class. According to a recent poll by the Bay Area Council, more than a third of the population, fed up with housing costs and endless commutes, are considering moving away.

 

 

While regional prices rose last month, the volume of sales fell from a year earlier: by 9.5 percent in Santa Clara County, 18.3 percent in San Mateo County, 13.1 percent in Alameda County, 5.1 percent in Contra Costa County and 9.5 percent for the nine-county region. It was the second consecutive month of year-over-year declines for the Bay Area.

Recognizing that there aren’t enough houses to satisfy all the potential buyers, computer engineer Eugene Jong sensed a seller’s market and worked it to his advantage.

Two years ago, he and his wife, Linda, also an engineer, moved from their San Jose townhouse to a single-family home in Los Gatos.

He watched as San Jose prices kept rising. Then in April, he pulled the trigger, listing the 1,250-square-foot townhouse for $599,950: “The open house was a month ago. The first day, 100 people came. The second day, about 50 more came. I had some numbers in mind in terms of the selling price — what would be average and what would make me feel really happy. And it ended up that the price was way above the price where I felt really happy.”

The townhouse drew 15 offers over the asking price and sold in seven days for $665,000.

Alain Pinel agent Mark Wong, who negotiated the sale, said it was a matter of good timing: If Jong had delayed and listed his townhouse in May, his fortunes might now be up in the air — at least in part because the amount of inventory is “creeping up” and softening competition.

“The market is shifting right now,” Wong said. “The market is really mixed. Some people are getting multiple offers, some are getting no buyers. Just in one month, the market has changed a lot.”

High prices “are the new normal,” said Julie Ray, a Coldwell Banker agent in Redwood City, “and fabulous houses with curb appeal” still get grabbed up. But “buyers are getting more picky. The inventory has come up to a level where people say, ‘You know what? This one I’m not going to bid on, because it’s not what I want.’ ”

In Contra Costa County, Garber-Teeter agreed that May has brought “a leveling” to the market. In more affordable areas — she mentioned northern Concord, near Pittsburg — inventory has opened up to the point that “the market is softening, homes are sitting.”

Even in desirable Lafayette, Moraga, Orinda and Walnut Creek, she said, “We do have a little more inventory, but then you have to weed through that and find the few that are ready to go.”

Expecting stiff competition in April, Garber-Teeter helped clients Tom and Heather Young “get all their ducks in a row” in order to sell their Walnut Creek house and buy a new one in Orinda.

They had purchased the Walnut Creek home, a fixer-upper, for $475,000 in 2009, and spent $225,000 on improvements. Last month, they listed it at $985,000, held open houses on two consecutive weekends, then took offers on the Tuesday after: “We had multiple offers and a buyer that night,” said Tom Young, who runs an online advertising company and works at home.

The selling price: $1,070,000.

Last month, they also bought their new place in Orinda: four bedrooms, four baths and 3,700 square feet on a hillside with 100-year-old oak trees and “tons of wildlife.”

It listed at $1,350,000. Their bid — for $1,475,000 — was one of five. The seller went with a higher offer, but the deal fell out of escrow. The seller then approached a second buyer, who dropped out, leaving the Youngs as main contenders. They had lined up those ducks, showing liquid funds and pitching the seller with a persuasive letter and a photo of their 6-month-old baby.

Now in his new home, Tom Young called last month “the most stressful period of my life, not because anything terrible happened, but because there were an overwhelming number of scenarios to think through and my brain got pretty busy. Now I’m waking up in a brand new place.”

Why a Weaker Economy Shouldn’t Scare You | Realtor Magazine

A disappointing jobs report last week revealed that new jobs hit a five-year low in May. While that’s no reason for celebration, there is a silver-lining for the housing market.

It’s likely that the Federal Reserve will not raise interest rates later this month. In fact, the Fed may not raise rates for a while now, which could be a boon for home shoppers looking to lock in historically low mortgage rates.

“The real beneficiaries are people who are in the process of buying a home this spring or summer,” says Jonathan Smoke, realtor.com®’s chief economist. “They can buy more of a home with the same amount of payment, or they have an easier time qualifying” for a loan.

As of Friday, the 30-year fixed-rate mortgage averaged 3.7 percent, according to realtor.com® data. After the jobs report on Friday, lenders started coming in with much lower rates – in some cases, about an eighth of a point lower, says Matt Graham, CEO of MBS live.

Every percentage counts in mortgage rates. For example, just half a percentage point off the interest rate of a 30-year fixed-rate mortgage on a $200,000 home could equal a $56 per month savings, Graham says. Over 30 years – the lifetime of the loan – that savings could equate to thousands.

Don Frommeyer, CEO of the National Association of Mortgage Brokers, told realtor.com® that he doesn’t expect lower mortgage rates to translate into more loan applications, however. That said, more of those applications likely will be approved if mortgage rates continue to fall because interest rates influence how much borrowers have to pay each month to pay back their loans. The smaller the payments, the lower their debt-to-income ratios will be.

Selling Home With Kids | POPSUGAR Moms

Everyone knows that moving is about the most stressful thing you can do (as someone who lived in four cities and 10 apartments in my 20s, I can certainly confirm it). But add little kids to the mix, and the whole scenario goes from tough to downright terrible. About four months ago, my husband and I decided our family was ready for a new house. We weren’t looking to move far, just to the neighboring town a couple of miles away, where many of our friends live and where our daughter could start kindergarten in the Fall with her preschool pals. Even if we are so-so about our current location, we absolutely love our old house, and the search for new one that could beat it was rough. Seriously, why is it that house hunting always sounds fun in theory but totally sucks in reality? And why aren’t Chip and Joanna Gaines available to help us all?

Eventually, after viewing dozens of duds and going under contract on our dream fixer-upper that we found out also came with 800 square feet of black mold (um, no thank you), we found one that checked off most of the must haves on our list and came with an huge, brand-new kitchen that had me at six burners and a hood. We were ready and excited to move on to the new house and say goodbye to our old one. Then we realized we had to sell our cherished first family home, and the panic set in. If anything is more stressful than finding a new house with two small children (ours are 2 and 5), it’s got to be trying to sell the old one, which your kids, if they’re anything like mine, seem to have been plotting to slowly destroy since birth.

Our house went on the market a few days ago and, fingers crossed, we’re hoping it sells (very) soon. Seriously, feel free to make us an offer. I’ve learned a lot in the process, so here are some tips to survive the awful process of getting your house ready for market without making your kids sleep in a tent out back and bathe with a hose, two things I totally considered, by the way.

1. Start decluttering early. The minute you decide you want to start looking for a new home should also be the minute you start getting your old one ready to sell. It took us three months to find a new house, so I had plenty of time to turn our pit of a basement into a cute playroom (which my kids refuse to use, of course), clean out every closet, and make about 17 trips to drop off carloads of stuff at Goodwill. Pick an area to declutter each week and make yourself do it.
2. Keep the kids, lose (some of) their stuff. Buyers understand that a house with kids is going to include toys, but no one wants to see kid clutter all over. If you have a dedicated playroom or basement, stash the toys there, not in a main-level family or living room, both of which should be kept kid-clutter-free. If your kid stuff has grown past the point of containment, consider renting a storage unit and moving everything there. Buyers without kids will be more likely to picture themselves living in your home if they’re not tripping over minitrampolines or giant dollhouses.
3. Hire help. We usually clean our house and maintain our yard by ourselves, but we hired a maid service to come in to do a deep clean and a yard service to do a Spring cleanup outside, and I’m so glad we did. Starting with everything looking great will hopefully help our house sell quickly, and it gave us a good baseline we can maintain with just a little work each day.
4. Close your kitchen as much as possible. Kitchens sell homes, so keeping yours looking spotless and clutter-free is super important. Unfortunately, your family will work against this by deciding they still need to eat. Selfish, sure, but you can counter their ever-present need for nourishment with one simple strategy: eat out as much as possible. This can be at a restaurant or, when weather permits, literally outside. Grill some hot dogs, have a picnic served on paper plates, and everyone’s happy.
5. Stay on top of cleanup. Last-minute showings can be a total pain, but you can make it easier on yourself by adding a few steps to your morning routine. Store leftover plastic bags upstairs to remove any trash every morning, line your main garbage cans with smaller plastic or paper bags to force yourself to take out the trash more often, and make sure to run your dishwasher every night.
6. Vacate the premises. Keeping a house where small kids live clean can feel like swimming upstream, so if possible, hit the road, at least for the first couple of weekends your house is listed. If you can park yourselves at grandma’s, leaving your clean and tidy house behind, everyone wins. If you have to stay home, tell yourself you have to be out of the house 15 minutes before any showing and that you can’t return until 15 minutes after it’s over. You want potential buyers to picture themselves living in your home and seeing you force a toddler into a car seat in the driveway or circle the block waiting to get back in for naptime doesn’t paint the picture of “welcome home.”

8 Mortgage Misunderstandings That Could Cost You — The Motley Fool

It’s an exciting time when you set out to buy a new home. Don’t assume you know all you need to know about mortgages, though; there are many mortgage misunderstandings that could cost you a lot.

Here are eight misunderstandings to help set you straight:

1. Ignoring your credit score. Your credit score has a major influence on the interest rate that lenders will offer you. If you don’t have a good one, consider spending some time beefing it up before starting to buy a home. You might increase your score by fixing errors in your credit record, by paying bills on time, and by reducing your overall debt load. To understand the kind of difference your credit score makes in the interest rates you’re offered, consider sample rates listed at MyFICO.com. When I checked it recently, it showed that if you were borrowing $200,000 via a 30-year fixed-rate mortgage, and you had a top FICO score in the 760 to 850 range, you might get an interest rate of 3.3%, with a monthly payment of $880, and total interest paid over the 30 years of $116,717. If your score was 630, though, your rate would be 4.9%, with a monthly payment of $1,064, and total interest of $183,174. That’s $184 more per month — $2,208 per year — and a whopping $66,457 more in interest.
2. Thinking it’s not worth shopping around for a mortgage. Don’t assume that you’ll be offered pretty much the same deal wherever you go. Different lenders use different calculations when they assess you and offer you interest rates. Go ahead and check with your own bank(s) first, as they may give you a bit of a discount on the interest rate because you’re a customer. But check with other banks, too — and with credit unions, which often sport lower interest rates. You might also consult a mortgage broker. They often offer a wide range of loans, and can be especially helpful if you have an underwhelming credit record. Visit Bankrate.com, too, where you can look up the best rates in your area and beyond. 
3. Getting a bigger mortgage than you can really afford. When you’re house hunting, it will be tempting to look a bit beyond your price range. Don’t buy a home that will be expensive enough to have you stretched thin financially. Some suggest spending no more than 25% to 30% of your gross monthly income on housing — including property taxes and insurance — but instead of relying on that broad guideline, take the time to figure out just what you can afford. Take into consideration your regular household expenses, such as food, utilities, transportation, insurance, travel, entertainment, auto maintenance, debt payments, contributions to savings accounts, and so on, and factor in other expenses, too, such as medical or automotive emergencies and the cost of prepping your old home for sale and setting up your new one. Buying less home than you can afford will give you a margin of safety, and help you be able to save.
4. Getting pre-qualified, not pre-approved. Once you know what loan you want and from which lender, don’t wait until you find the home of your dreams to start the paperwork. Get pre-approved for the loan before you go shopping. This has several advantages. First, through the process of working with a loan officer, you can determine just how much home you can afford to buy. Second, it will make you a more credible buyer, should you end up bidding against any other buyers for a home. Pre-approval means that the lender will have looked at your credit score, your employment, your financial health, and perhaps some tax returns — and found you creditworthy.
5. Getting the wrong kind of mortgage. Don’t assume that a standard 30-year fixed-rate mortgage will serve you best. It might, but consider alternatives, too. For example, you need to decide between a 15-year or 30-year loan (other time frames are also available), and between a fixed-rate mortgage or adjustable-rate mortgage (ARM). Longer terms will give you lower payments, but you’ll pay much more in interest over the life of the loan. If you’re not comfortable with a 15-year mortgage’s steeper payments, consider getting a 30-year loan that permits prepayments, and then aim to pay significantly more than you need to each month, in order to shorten the life of the loan. If you’re not planning to be in the home long, an ARM could serve you best in today’s low-interest-rate environment, as it can lock in low rates for a few years. If you think you’ll be in the home for decades, though, it can be better to lock in a low rate for the expected long life of the loan — especially because interest rates have started inching up.
6. Making a small down payment. Putting less than 20% down on a new home means you’ll have to take on an extra loan in the form of private mortgage insurance (PMI), which will increase your monthly payment. A low down payment might also result in a higher interest rate. It’s particularly bad if home values drop during your ownership period, leaving you with an “underwater” mortgage, when you owe more than the home is worth. That can make it hard to sell the home.
7. Paying off your mortgage early. It can be good to pay off your mortgage early, and not have a big loan on your shoulders — especially as you enter retirement. But paying off your mortgage early is not always the best thing to do. If you don’t have an emergency fund, for example, you’re better off establishing and funding one with that extra money. That money could also go into retirement accounts. You will also give up mortgage interest deductions by paying off the loan early. If you’re carrying any high-interest rate debt, such as credit card debt, paying that debt off early should be your priority.
8. Thinking it’s not worth refinancing. Finally, once you have a mortgage, don’t assume that it’s not worth refinancing. If the interest rate you might get on a new loan is about a percentage point lower than your current rate, it may well be worth refinancing. Crunch other numbers, though, and consider your big picture. If you don’t plan to stay in the home long, refinancing will make less sense.

Spend a little time learning more about mortgages, and you might be able to save hundreds, if not thousands, of dollars.

30-Year Mortgage Rates Push Upward | Realtor Magazine

Averages on fixed-rate mortgages rose this week, but remain near three-year lows, Freddie Mac reports in its weekly mortgage market survey.

“Since jumping 11 basis points on May 18th, the 10-year Treasury yield has leveled-off around 1.85 percent,” says Sean Becketti, Freddie Mac’s chief economist. “Mortgage rates continue to adjust to this new level with the 30-year fixed rate inching up another 2 basis points this week to 3.66 percent. Recent statements by the Fed appear to have persuaded the market that a rate hike may come sooner than later. However, the market is fickle, and Friday’s employment report has the potential to swing opinion 180 degrees in the other direction.”

Freddie Mac reports the following national averages with mortgage rates for the week ending June 2:

• 30-year fixed-rate mortgages: averaged 3.66 percent, with an average 0.5 point, rising from last week’s 3.64 percent average. A year ago, 30-year rates averaged 3.87 percent.
• 15-year fixed-rate mortgages: averaged 2.92 percent, with an average 0.5 point, increasing from last week’s 2.89 percent average. A year ago, 15-year rates averaged 3.08 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 2.88 percent, with an average 0.5 point, increasing from last week’s 2.87 percent average. A year ago, 5-year ARMs averaged 2.96 percent.

How Much House Can You Afford? Try This to Find Out | Total Mortgage Underwritings Blog

If you’re shopping around for your first home, congratulations! Few things in life are more exhilarating than strolling through houses and imagining yourself living in a new neighborhood as a bona fide homeowner.

To prepare for serious real estate hunting, though, you should be armed with a firm price range in mind. How much house can your really afford? Most experts recommend that your monthly mortgage payment not exceed 28 percent of your monthly pre-tax income.

For example, if you bring home $3,600 per month in wages, your mortgage payment should be no more than $1,008 per month. Any more than that, and you’re likely to have trouble making your payments at some point.

Can You Really Afford the Payment?

The 28 percent figure sounds great on paper, but will it work in your life? The best way to find out is by conducting a financial experiment while you shop for a house and get pre-approved for a loan. Follow these steps to see if you’re ready to take on a mortgage payment.

1. Choose a Fantasy House to Buy

No, you’re not (necessarily) going to buy this house, but go online to a real estate site like Zillow or Redfin and find one you like for a price you think you can afford. Make note of the total price as well as the yearly property taxes.

2. Research Mortgage and Insurance Rates

If you’ve already started the pre-approval process for a home loan, you may already have an idea of the interest rates available to you. If not, go online to find your local bank’s current mortgage rates. If you have good credit, use the rate you see advertised. If your credit is shaky, add a percentage point to the rate to be more realistic about the type of mortgage you’ll be able to get.

You also can go online for an insurance quote for your fantasy house. Just type in the address and answer the questions about the property based on the information you found on Zillow or Redfin. Most new home buyers pay for their insurance through their lender’s escrow accounts, so this is important in calculating an accurate monthly mortgage payment.

3. Use an Online Mortgage Calculator to Find Your Monthly Payment

Using your research about the home price, taxes, mortgage rates and insurance costs, type the values into an online mortgage calculator to find out your monthly payment. If the calculator doesn’t ask for insurance or taxes, you’ll need to add those values together yourself, divided by 12, and add that number to the monthly mortgage payment to be sure you’re covering everything.

4. Live With Your Fantasy Mortgage for at Least Three Months

Test out life with a mortgage by paying yourself each month. To do this, subtract your rent payment from the total of your fantasy mortgage payment. This amount is the money you’ll be transferring into a savings account each time you pay the rent.

After three months of living with your fantasy mortgage, assess how well you did. Were you able to make payments easily, or did you have to bail on the experiment? Did life go on as planned, or were you stuck with ramen noodles for dinner? If an emergency came up, could you handle it?

If you could live comfortably with your fantasy mortgage, you can afford the house you “bought” and should feel comfortable shopping for a real house in that price range. If not, you can try again with a lower mortgage amount. Either way, the beauty of this experiment is that you are able to build up an additional nest egg of savings by paying yourself, and that’s something that will only help you with your eventual down payment on your dream house.

5 Problems Uncovered in Home Inspections | Realtor Magazine

Even a house that seems perfect may not be so when it comes to a home inspection, which is meant to discover potential problems with the home’s systems, appliances, and structure.

“Depending on the age, location, and type of house, the potential for problems will vary,” according to an article by the Ferris Property Group. “It’s also important to note that all houses — even brand new ones — will have issues show up on the inspection. Certain issues may be a deal breaker, like a collapsing foundation, but many other issues can and should be repaired after negotiation with the seller.”

Here are some of the most common problems inspectors say they uncover:

• Defective plumbing: Leaky faucets or problems with the efficiency of pipes can greatly affect the cost of a home’s utilities.
• Water damage: This can be caused by any number of issues, such as erosion of external grading material that has caused a slow leak into a basement. Water leaks also can lead to damage in a foundation or mold growth.
• Faulty roofing materials: Variable temperatures can cause cracks in some roofing materials, while other materials may be prone to rots or leaks.
• Cracked foundation: Foundation problems can surface from any number of issues, such as water damage, termites, rotting, or structural inadequacy.
• Over-worked electricity system: This also can represent a big safety issue. Inspectors say when they find an overcrowded wiring system it’s typically due to previous owners making adjustments to the electrical wiring.

Yellen: Rate Hike May Soon Be Appropriate – Market Update – ZING Blog by Quicken Loans | ZING Blog by Quicken Loans

Headline News

New Home Sales: New home sales projections were up 89,000 or 16.6%, to a seasonally adjusted annual rate of 619,000 in April. This is the highest new home sales projection since January 2008. There was also an upward revision of 39,000 for February and March. Prices of new homes were also up 7.8% for the month to $321,100. This is 9.7% on the year. The surge in sales did have a big effect on the number of homes available in the market as supply fell to 4.7 months from 5.5 months. Turning to regional data, there was a more than 50% increase in sales in the Northeast, which is the nation’s smallest housing region. There also are very few sales in the Midwest overall, but they’re down 4.8% for April. In contrast, sales were up 15.8% in the South and 23.6% in the West.

MBA Mortgage Applications: Purchase applications were up 5.0% and refinances were up 0.4% despite rates that were a little bit higher. The average rate for a 30-year-conforming mortgage was up three basis points to 3.85%.

International Trade in Goods: The trade deficit rose $1.9 billion in April to $57.5 billion when looking at goods. However, demand for goods across the globe was also up as exports rose 1.8%, not quite keeping pace with a 2.3% rise in imports. Exports of industrial supplies were up 5.1% due to higher prices for oil. Exports of cars and trucks were also up 4.5%. Exports of consumer goods were up 1% and foods were up 4.4%. Capital goods were a little weak, up only 0.3%. On the imports side, capital goods were up 4.3%. Industrial supplies jumped 4% due to higher gas prices. Imports of automobiles were up 1.9%, while consumer goods were up 0.9%.

FHFA House Price Index: Home prices were up 0.7% in March and they’re up 6.1% for the year. The Pacific and Mountain regions continue to lead the way in terms of year-on-year price appreciation, in the high single digits. Meanwhile, growth is much slower in New England and the Mid-Atlantic, which bring up the rear.

Durable Goods Orders: New orders were up 3.4% in the month of April. This is an outsized gain over consensus expectations. The big reason for this was a 2.9% gain in orders for vehicles. That’s where a little bit of the air comes out of this balloon. If you take out transportation, orders were only up 0.4% on the month and are down 1.4% for the year. Core capital goods orders were also down 0.8% in April and they’re down 5.0% for the year. This points to weakness in business investment. Still, overall orders are up 1.9% on the year, so we’ll see where this goes.

Jobless Claims: New claims are down 10,000 this week to 268,000. The four-week average rose, up 2,750 to 278,500. Continuing claims, on the other hand, were up 10,000, coming in at 2.163 million. The four-week average was up 8,000 at 2.151 million.

Pending Home Sales Index: Pending home sales were up 5.1% to 116.3 in April. This is a good sign that more homes are under contract. The West was up 11.4% on the strength of existing home sales. In the South, pending sales are up 5.1%.

GDP: In their second revision, GDP numbers for the first quarter came in at 0.8%. This is up 0.3% from the initial estimate, but still failed to meet consensus expectations. There were positive provisions for both residential investment and exports. In a negative, there was an upward revision to inventories. Non-residential investment is still showing only weak gains. Personal consumption was only up 1.9%. Final demand only came in 0.1% higher to 1.2%. Inflation metrics were down 0.1% to 0.6% quarter to quarter.

Consumer Sentiment: Consumer sentiment came in down 1.1 points to 94.7 in its final reading of May. This is still up five points over April and the best since last year. The expectations, however, are up 7.3 point from April, landing at 84.9. This is due to a strong jobs outlook. Current conditions rose 3.2 points from April to 109.9. One-year inflation expectations are down despite higher gas prices, falling 0.1% to 2.4%. Five-year expectations are also down 0.1% at 2.5%, unchanged from April.

Mortgage News

Mortgage rates saw hikes across the board last week.

Thirty-year fixed-rate mortgages (FRMs) averaged 3.64% with an average 0.5 point for the week ending May 26, 2016, up from last week when they averaged 3.58%. A year ago at this time, 30-year FRMs averaged 3.87%.

Fifteen-year FRMs this week averaged 2.89% with an average 0.5 point, up from last week when they averaged 2.81%. A year ago at this time, 15-year FRMs averaged 3.11%.

Five-year Treasury-indexed hybrid adjustable rate mortgage (ARMs) averaged 2.87% this week with an average 0.5 point, up from last week when they averaged 2.80%. A year ago, 5-year ARMs averaged 2.90%.

Stock Market

Markets really like certainty and a sense of direction. Therefore, when Federal Reserve chairwoman Janet Yellen speaks and says an interest rate hike might be appropriate in the coming months, they’re actually pretty happy. It gives them guidance as to what to expect. These were the market conditions heading into the long weekend. All the stock indexes showed major gains.

The Dow Jones Industrial Average was up 44.93 points on Friday and 2.13% for the week, reaching 17,873.22. Meanwhile, the S&P 500 rose 8.96 points to finish at 2,099.06. This was a 2.28% weekly gain. The NASDAQ was up exactly 25 points to 4,926, a 3.44% gain since last Friday.

The Week Ahead

Tuesday, May 31

Personal Income and Outlays (8:30 a.m. ET) – This measures all possible income sources as well as expenditures of the public.

S&P Case-Shiller HPI (9:00 a.m. ET) – The S&P Case-Shiller home pricing index tracks monthly changes in the value of residential real estate in 20 metropolitan regions across the U.S.

Consumer Confidence (10:00 a.m. ET) – The Conference Board compiles a survey of consumer attitudes on the economy. The headline Consumer Confidence Index is based on consumer perceptions of current business and employment conditions, as well as their expectations when considering business conditions, employment and income.

Wednesday, June 1

MBA Mortgage Applications (7:00 a.m. ET) – The mortgage applications index measures applications to mortgage lenders. This is a leading indicator for single-family home sales and housing construction.

ISM Manufacturing Index (10:00 a.m.) – This index measures the general direction of manufacturing within the U.S. The qualitative survey of purchasing managers looks at production, new orders, order backlogs, inventories and supplier deliveries, among other factors.

Thursday, June 2

Jobless Claims (8:30 a.m. ET) – New unemployment claims are compiled weekly to show the number of individuals who filed for unemployment insurance for the first time. An increasing trend suggests a deteriorating labor market. The four-week moving average of new claims smooths out weekly volatility.

Friday, June 3

Employment Situation (8:30 a.m. ET) – The employment situation report measures unemployment in the labor force as well as the sentiments of workers about the job market.

International Trade (8:30 a.m. ET) – International trade is composed of merchandise (tangible goods) and services. It’s available by export, import and trade balance for six principal end-use commodity categories and for more than 100 principal Standard International Trade Classification system commodity groupings.

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Home Remodeling | Improvements to Increase Home Value | HouseLogic

Dreaming of stainless this and marble that, with a dash of hip color? Sloooow down. See what your wallet has to say first. Some projects will protect your dollars more than others, especially if you’re planning to sell in a few years.

How do we know? Since 2002, a trade magazine for contractors and builders called “Remodeling” has been tracking common home improvement projects and how much of the cost of each project is recouped when the home sells.

We sifted through years of past results and aggregated the numbers to get an idea of what projects made the most of your dollars year after year. Then we overlayed that background with the data from the NATIONAL ASSOCIATION OF REALTORS®’ “2015 Remodeling Impact Report” to determine current project costs and the cost recovery percentage, and to get some other fun facts, such as how satisfied homeowners are with the projects when finished.

They also have a few things in common. The projects are:

• Low-maintenance

• Good — but not necessarily the highest — quality

• Energy-efficient

• Not too costly

These projects are the best long-term remodeling investments you can make:

1.  Replacing Your Front Door

Your faithful front door works tirelessly — day in and day out — to usher in you and your guests, and to seal your house up tight. But when Old Faithful gets tired and worn out, don’t hesitate to call in a replacement. Year in and year out, replacing your old front door with a new steel door is a project that kicks up curb appeal and yields the best payback.

“It gives you the best bang for your buck in terms of transforming the look and feel of your home,” says Brandon Erdmann, president of the remodeling firm HomeSealed Exteriors in Milwaukee. “Plus, old exterior doors can be a huge source of energy loss. So you’re improving the look of your house, improving energy efficiency, and you’re able to do it without breaking the bank.”

It’s also a relatively low-cost project. According to the “2015 Remodeling Impact Report,” a new steel front entry door has a national median cost of $2,000 installed, and can recover 75% of that cost at resale.

2.  New Siding

Old, worn siding, along with generally sad curb appeal, can contribute to a loss of up to 10% of your home’s value, according to some appraisers. New siding, on the other hand, practically screams “my owner takes care of me.” 

What to choose? Both vinyl and fiber-cement siding are good replacement options.

Vinyl siding is low-cost, durable, and easy to install, and it hits all the right notes when it comes to getting a return on your home improvement dollars. Best of all: It’s a low-maintenance feature that frees up your time.

Today’s vinyl siding includes fade-resistant finishes and transferrable lifetime warranties that are much better than the 10-year guarantees of just two decades ago. There’s good payback, too. According to the “2015 Remodeling Impact Report,” the $12,000 national median cost of a vinyl siding replacement job returns a solid 83% if you should decide to sell your home.

Fiber-cement siding also shows a strong payback of 79% in the “2015 Remodeling Impact Report.” Although its national median cost of $19,100 makes it the pricier option, it has one thing vinyl still lacks — the perception of quality.

And quality matters. In a survey from the National Association of Home Builders (NAHB), “quality” was the one of the most important traits that home buyers focused on when shopping for a house. A final word: 100% of homeowners responding to the “Report” said they were happy or satisfied with the result of their fiber-cement siding replacement project.

3.  Kitchen Upgrade

We’re not talking about the dream kitchen remodels that are plastered on Pinterest and Houzz. But a minor kitchen remodel — one that keeps a lid on costs by refacing instead of replacing cabinets, and includes new flooring, countertops, and modestly priced appliances — is an ever-popular project. 

“People are always willing to update their kitchens,” says Dale Contant, 2016 president of the National Association of the Remodeling Industry (NARI) and owner of Atlanta Build and Design. “It’s the hub of the home.”

Although the ROI on a kitchen update is relatively modest — the “2015 Remodeling Impact Report” says you can expect a return of 67% on the $30,000 national median cost of a kitchen upgrade — you’ll get lasting satisfaction. Eighty-two percent of homeowners said their updated kitchen gave them a greater desire to be at home, and 95% were happy or satisfied with the result.

4.  Deck and Patio Additions

Like alfresco living? You’re in good company. According to a 2014 Home Trends Survey from the American Institute of Architects, our love of outdoor living spaces — especially decks and patios — is on the rise.

One big reason is that decks and patios are a sweet way to expand living space at a low cost of $8 to $35 per square foot — a bargain compared to the $150-and-up per-square-foot cost of a new addition.

5.  Turning an Attic into a Bedroom

When it comes to romantic rooms, a bedroom retreat is hard to beat. But a treetop boudoir is much more than a daydream — it’s a good investment. You’ll gain living space without having to add on to your home’s footprint — the walls, floor, and ceiling already exist. That helps keep remodeling costs under control.

There are code restrictions you’ll have to navigate when converting an attic to a bedroom, but if your house qualifies and you can cover the cost (about $65,000 says the “2015 Remodeling Impact Report”), chances are you won’t regret your decision. Some 94% of homeowners responding to the “Report” said they were happy or satisfied with their new attic space.

6.  New Garage Door

No surprise that a garage door replacement project made it onto our list of all-time winners — a new garage door provides a big boost for your home’s curb appeal at a relatively modest cost. That’s especially good news if you’re thinking about selling your house.

A project that replaces an older, two-car, embossed steel door has a current cost of about $2,300, according to the “2015 Remodeling Impact Report.” If you sell, you can expect a healthy ROI of 87% on your investment.

There are options galore, too. A host of factory-finish colors, wood-look embossed steel, and glass window insets are just some of the possibilities that’ll give your doors bankable personality.