Lower mortgage rates are proving to be a boon for home shoppers this summer. The 30-year fixed-rate loan has stayed near a 3.8% average for the third consecutive week, after consistent declines in late spring.
“While the continued drop in mortgage rates has paused, home buyer demand has not,” says Sam Khater, Freddie Mac’s chief economist. “This is evident in increased purchase activity and loan amounts, indicating that home buyers still have the willingness and capacity to purchase homes. Today’s low rates, strong job market, solid wage growth, and consumer confidence are typically important drivers of home sales.”
Freddie Mac reports the following national averages with mortgage rates for the week ending June 20:
30-year fixed-rate mortgages: averaged 3.84%, with an average 0.5 point, up from last week’s 3.82% average. Last year at this time, 30-year rates averaged 4.57%.
15-year fixed-rate mortgages: averaged 3.25%, with an average 0.4 point, falling from last week’s 3.26% average. A year ago, 15-year rates averaged 4.04%.
5-year hybrid adjustable-rate mortgages: averaged 3.48%, with an average 0.4 point, falling from last week’s 3.51% average. A year ago, 5-year ARMs averaged 3.83%.
A mortgage may be Americans’ biggest amount of debt, but they view it as the best type to have. Americans with mortgages have the highest level of life satisfaction than those with other forms of debt, such as medical, student loan, or credit card debt. The findings come from the Ascent team by The Motley Fool, who surveyed more than 1,000 Americans with debt to learn more about the psychological impact of debt.
Consumer debt has been on the rise for the past 17 quarters, and most Americans have some form of it. For example, more than half of those who went to college say they took on debt to complete their education, the study showed.
Debt can be stressful. Ninety-seven percent of those surveyed say they believe they would be happier if they did not have debt at all. For 71% of respondents, debt is on their mind more than they want it to be; 28% say they think of it every day. Credit card debt is the debt most associated with feelings of guilt. Still, one in three people with a mortgage blame themselves for their debt.
“Loans can hang over your head like a black cloud,” the study authors note.
Nevertheless, mortgage debt was the most satisfying type of debt for those surveyed. People with medical loans were the least satisfied.
The Ascent from Motley Fool
Americans are still working to get out of debt, even debt that could last 30 years such as mortgages. Seventy-eight percent of Americans say they pay the minimum on their mortgage, but 21% say they pay more than the minimum payment.
Credit card, medical, and other forms of debt can impact consumers’ ability to save money for their future, treat themselves occasionally, and live their desired lifestyle, consumers most frequently said. Thirty-four percent said their debt affected how much they could afford housing too.
Steve Chalk, who recently retired from his work at the department, told CNBC that a home energy assessment can help determine what the best savings projects are for a homeowner to take on.
Home energy audits cost about $400, but the price greatly depends on the type of residence and its location.
“You could easily have payback for that [assessment] in a couple of years,” Chalk says. “You’re not only saving money in the long term, but your house is more comfortable, and your air quality can be better.”
Some of the big items that are sending energy costs higher in many homes: proper insulation, incandescent lighting, or air conditioners that aren’t the correct size.
Chalk says one of the most common mistakes he sees is that many homeowners have an air conditioning system that is too large. Therefore, it does not run as long as smaller ones, Chalk says. “[That] might sound energy-efficient, but it’s not,” he says.
Sealing up air leaks in heating and air conditioning ducts or crawl spaces can also offer energy savings, Chalk says.
Even small changes can add up, too. For example, switching from incandescent lighting to LEDs can increase a home energy efficiency by about 85% alone, he says. Programmable thermostats and power strips can also help save on bills.
Ventilation Is the ‘New Frontier’ for ‘Healthy’ Homes | Realtor Magazine
Indoor air quality is one of the top five environmental risks to public health, researchers say. After all, most people spend 90% of their time indoors, whether in homes, office buildings, or other structures. Ventilation is the “new frontier for making houses healthy,” Carl Seville of SK Collaborative, a green building consulting and certification firm, told Forbes.com in a recent article.
There’s reason for the added attention. Recent studies have shown indoor air is polluted with lead, dust mites, radon, pests, carbon monoxide, pet dander, mold, and secondhand smoke, according to the National Environmental Education Foundation. Ventilation in the form of bathroom fans and kitchen range hoods can help remove some of the bad air from homes. Older homes, however, may be prone to leaks of these pollutants.
Some homeowners are taking it to the extreme to purify their home’s air. For example, a new 9,500-square-foot home in San Francisco was built in 2018 by Troon Pacific and boasts hospital-grade air filtration via a Zehnder whole-house ventilation system. It changes all of the air in the home every two hours. Also, a whole-house vacuum system ensures all areas are allergen- and dust-free. The system costs around $10,000. Builders also are constructing newer homes more tightly than they did in the past. As such, newer homes may be more energy-efficient, but their tightness may be keeping fresh air out.
Some homeowners are turning to heat recovery ventilation and energy recovery ventilation systems. They both essentially pull out bad air and replace it with good air using different methods. HRV systems run between $600 to $1,100 for a mid-size system; similar-sized ERVs may cost $150 to $200 more, according to Forbes.com.
Real estate professionals know how to look at houses from a buyer’s perspective and can spot decor trends that are likely to turn their clients off. “I am selling space, and I need to be sure that the spaces are not distracting and that the buyer does not have to work too hard to take in the overall size, proportion, and scale of a room,” Robin Kencel of Compass told Apartment Therapy.
Some of today’s most popular design trends could prove to be less than ideal for your buyers. Real estate pros tell Apartment Therapy which interior design trends they believe won’t impress potential buyers—and may even make them want to pass on a home, including:
Colorful kitchens. The trend towardbold colors in the kitchen, rather than just white or neutral colors, is catching on. But real estate pros don’t believe that most buyers will warm up to this hot trend. Bright kitchen cabinets and appliances—in hues of reds, greens, or blues—can be polarizing, they say. “When that owner goes to sell his/her [home] years down the road, the next owner will likely reject that customization and will have to rip out and install a new kitchen, even if the cabinets and appliances are in great condition,” June Gottlieb, an agent with Warburg Realty, told Apartment Therapy. Gottlieb believes neutral appliances and cabinetry still are the true favorite of home buyers.
Taxidermy. The art of stuffing and mounting animals on the wall may offend some buyers. “While it might be natural for a decorator to include taxidermy into the room decor, I always recommend removing any once-living animals from a room before the house gets listed,” Kencel says. “I have seen buyers physically recoil and refuse to enter a room that has taxidermy in it.” The same thing applies to fur accessories and animal skin rugs; some buyers may be sensitive to their use as well.
Bold contrasts. The black-and-white trend in home decor is catching on, but real estate pros told Apartment Therapy they don’t believe it works when showing off a home for sale. “While some might like this bold look, it is really not for everyone,” says Kathryn Landow of Warburg Realty. Black-and-white marbled entries, accessories, and color blocking in cabinetry can prove to be a little much. Any use of the black-and-white trend is best kept to decorative accents, real estate pros say. Those are much cheaper to swap out than tile or marble flooring or kitchen cabinetry.
When it comes to first impressions, the little things make all the difference.
Planning to sell your house this year? Now’s the perfect time to prep it for listing!
Set aside a couple of weekends to do the work, and follow these three steps. Then, get ready to make a great impression on potential buyers and cinch the deal.
Step 1: Clean and declutter
It may sound obvious, but the importance of cleaning and decluttering cannot be overstated. Here are some ideas to make this process nearly painless.
Eliminate clutter before cleaning: This is the time to purge your house of unwanted and unnecessary items. In addition to donating items to charity, consider giving them away through Craigslist or neighborhood sharing groups. Recyclers are often willing to pick up and haul away large metal items for free.
Deep clean your house: This step will probably involve the biggest time investment. Get the whole family involved if you can! Think of this as a pumped-up spring cleaning. Pay special attention to kitchens and bathrooms, and clean the inside and outside of your windows — this makes a striking improvement in the overall appearance of your house.
Organize closets, cabinets and drawers: In this case, out of sight is not out of mind. Many potential buyers will open cabinets and closets, because they are thinking about storage space. Clean and organized storage areas signal to buyers that you take care of the house.
Step 2: Make small repairs
Take care of these problems before you show the house for the first time. These are all fixes that you can do yourself.
Fix any leaking faucets and running toilets.
Replace caulking around tubs, showers and sinks.
Freshen up or repair grout as needed.
Repair walls and repaint them in a neutral, generally pleasing color that complements your home.
Fix cracked or broken windows.
Replace or repair damaged window screens.
Replace burned-out lightbulbs.
Step 3: Go for curb appeal
You want potential buyers to be charmed by the outside of your house so they look forward to coming inside. Extend your pumped-up spring cleaning to the outside of your house too.
Trim bushes, shrubs and trees. Make sure vegetation isn’t touching your roof or siding.
Repair broken downspouts and gutters.
If it’s appropriate for your yard, apply new mulch, river rock and/or pea gravel. This can do wonders for your landscaping and provide immediate curb appeal.
Clean and repair concrete areas, such as driveways and walkways. Eliminate any oil or grease stains, and clean out any weeds coming up through the cracks.
If it’s seasonally appropriate, put out some pots of annuals, which will maintain their color for the season. Freshen up your doorstep with a new welcome mat and make sure the house numbers are easy to see.
With just a moderate amount of effort, you can make your house beautiful and welcoming, both inside and out.
Home buyers are reaping some of the lowest borrowing costs in years this buying season. The 30-year fixed-rate mortgage remained unchanged from last week at 3.82%, which matched last week for the lowest average since September 2017.
“Mortgage rates were mostly unchanged from last week due to easing of trade tensions with Mexico, which helped stabilize markets,” says Sam Khater, Freddie Mac’s chief economist. “These historically low rates should provide continued opportunities for current homeowners to refinance their mortgages—which combined with new home buyer activity—will help sustain the momentum in the housing market in 2019.”
Freddie Mac reports the following national averages with mortgage rates for the week ending June 13:
30-year fixed-rate mortgages: averaged 3.82%, with an average 0.6 point, unchanged from last week. Last year at this time, 30-year rates averaged 4.62%.
15-year fixed-rate mortgages: averaged 3.26%, with an average 0.5 point, dropping from last week’s 3.28% average. A year ago, 15-year rates averaged 4.07%.
5-year hybrid adjustable-rate mortgages: averaged 3.51%, with an average 0.4 point, falling from last week’s 3.52% average. A year ago, 5-year ARMs averaged 3.83%.
A termite infestation can be costly, and sadly, many homeowners don’t discover there’s a problem until these wood-eating pests have already caused a great deal of damage to a home or an inspection uncovers it during a home sale.
“Termites are referred to as the hidden enemy,” says Mike Duncan, an associate certified entomologist and eastern region trainer for Truly Nolen, a pest control company. The damage can reach $7,900 or more before they’re found, Duncan told realtor.com®.
Some homeowners may be unknowingly attracting termites to their homes. An article at realtor.com® recently flagged some ways owners may be creating a termite spot, beyond just rotting wood.
For example, even the tiniest bit of moisture, such as from poor drainage, leaks, or poor ventilation, along with wood can be a big draw for termites. “Because they consume the cellulose in wood for nutrition, they require high moisture so that they don’t dry out,” Natasha Wright, a board-certified entomologist and technical director for Braman Termite & Pest Elimination in southern New England, told realtor.com®. Soggy soil near your foundation can also be a big draw to termites.
Don’t assume stucco houses are safe either. Termites are drawn to the protection from foam board insulation and exterior wall solutions, like Dryvit, a synthetic version of cement siding, Wright says. “They will chew through and travel in these sheltered areas until they stumble upon wood,” Wright says.
Cracks in a foundation can be another way termites can enter. “Should they find cracks or gaps, termites may investigate and enter,” says Mike Deutsch, an urban entomologist for Arrow Exterminating Co. in New York. “They may eventually intercept wooden members of the structure and begin to feed, causing damage.”
Be on the lookout for mud tubes, soft or hollow-sounding wood, and visible piles of wings, experts say. “These are signs that you have a termite problem,” says Erin Richardson, president of All-American Pest Control in Nashville, Tenn.
Call in a professional to investigate further and to remedy the situation if you suspect termite problems.
Renters are unlocking savings on their federal taxes, and a real estate watchdog believes that will translate into greater home sales. The Tax Cuts and Jobs Act may well fuel an increase in entry-level home buying in most areas of the country, according to a newly released report from John Burns Real Estate Consulting.
Renters paid $2,716 less in taxes on their 2018 federal tax bill across some of the top housing markets (ranging from $1,918 less in places like Miami to $5,214 less in San Jose, Calif.). Renters do not have deductible mortgage interest or property taxes that could help qualify them for itemizing, the study notes. This increased standard deduction and lower taxes helped create additional income for renters. As such, they may be able to save up to branch out sooner into homeownership, the authors note.
Further, “entry-level homes will continue to outperform,” the report reads. “Low unemployment, sound economic and demographic fundamentals, and stretched affordability support strong entry-level housing demand.”
The report also is bullish on greater migration heading to the South, with more residents leaving higher-taxed coastal areas in favor of more affordable areas. Low-tax states should continue to see immigration from other states and strong housing demand, while emigration is accelerating in California, New York, New Jersey, and Illinois. “The [Tax Cuts and Jobs Act] did not create these trends but has amplified them,” the report notes.
The Tax Cut and Jobs Act overhauled the U.S. tax code in 2017 and placed caps on certain deductions for homeowners. The tax law placed a $10,000 cap on deductions of state and local taxes, increased the standard deduction, and placed a $750,000 limit on the amount of mortgage debt that qualifies for interest write-offs.
However, homeowners across the country still found some savings on their 2018 federal tax bill, too. Homeowners saved an average of $1,508 on their tax bill, the study notes. The increased standard deduction of $24,000 exceeded the total state and local tax deduction and mortgage interest deduction in many households. “Most homeowners don’t benefit from itemizing currently; however, this has been the case for the last decade,” John Burns Real Estate Consulting notes.
PPG, a paint firm and color forecaster, released its early picks of inspiring hues for 2020. If the predictions are right, you’ll be seeing much more blue in home decor next year. PPG announced on Monday that Chinese porcelain is its 2020 color of the year.
The shade is a blend of cobalt mixed with some muted navy tones intended to instill calmness and restful sleep, the paint firm says. Blues have been steadily gaining popularity overall in residential and hospitality design.
“Consumers are tiring of stark grays and are looking to infuse colors that delight the senses,” says Dee Schlotter, senior color manager at PPG. “Blue is the easiest possible entry point from the world of neutrals to the world of color.”
Blue can be used as a color pop but can also serve as a neutral shade. It can be used as a feature color in a bedroom when set against crisp white bedding and crown molding for a sharp contrast. In the living room, for a modern look, blue can be layered with tufted and velvet furniture or paired with metallic finishes, the paint firm suggests.
Schlotter also recommends the pairing of the Chinese porcelain hue with decor such as lush drapes or velvet pillows in warm saffron and turmeric tones. The blue color also can be paired with leather accents and dusty sand tones for an attention-getting look, she notes.
Spaces are getting more colorful and that trend will likely continue in 2020, color forecasters say. PPG suggests several trending color combos, such as its brilliant blue, Turner’s yellow, and bleeding heart for a bolder look. Also, it notes color combos that reflect earthiness featuring raw, natural hues mixed in with bolder tones, such as its cinnamon spice and brown clay combined with organic, oxidized blue-greens like celestial blue and summer breeze.
