Financial Friday

February 16, 2018

Mortgage Rates React To The Market

Mortgage rates have been quite volatile in recent weeks especially given the wide swings in the stock market and the yield of the 10-year Treasury, which moved higher again Monday. The Labor Dept announced Wednesday that the Consumer Price Index rose 0.5% last month against projections of a 0.3% increase. The markets reacted by pricing in the likelihood that the Fed will raise interest rates at least three times this year, with March, June and December predicted to be the likely months.

How Buyers Would React To A 5% Mortgage Rate

Mortgage rates have not been at 5% since 2011, but buyers have gotten used to rates in the 3-5% range. According to a Redfin survey, a 5% rate would cause more than a quarter of today’s homebuyers to slow their plans, while 6% said they would drop their plans to buy altogether. About one-fifth of consumers said 5% rates would cause them to move with more urgency to purchase a home, fearing rates would rise even further. Another fifth said they would consider more affordable areas or just buy a smaller home.

NAR Wins Pro-Real Estate Provisions in Budget Deal

The federal budget deal signed by the President last Friday contains a number of wins for homeowners and builders including a temporary extension of federal flood insurance and extension of NAR-backed tax provisions that include relief from debt forgiveness, the deductibility of mortgage insurance premiums, and several energy-efficiency related provisions for new construction and improvements on taxpayer’s principal residence.

Prepping for the Future of Real Estate

News stories and opinion columnists frequently cite statistics and report on start-ups poised to shake up the real estate industry or some new technology that will soon make virtually every job obsolete. However, any firm that maintains a “business as usual” mindset, in any industry, is vulnerable to new competition. Here are a few ways to keep up with changing consumer preferences while adapting to serve an evolving market:

  • Embrace technology to market properties (virtual staging or tours) and manage transactions (DocuSign, zipLogix, etc.).
  • Deliver superior customer service is the best way to grow your business because appreciative customers will always recommend top-notch, experienced agents.
  • Foster relationships. Real estate may be about properties, but it’s ultimately an industry that centers on people. Technology can support those relationships, but it will never replace them.
  • Never stop learning to expand your knowledge and skills. Select your CE classes to learn something new to improve your business or offer clients a new service, not just to receive credit. Let me know if you would like a lunch ‘n’ learn or a CE class presented to your agents. We have presentations on a wide variety of topics.

Production Home Builders Let Buyers Have It Their Way

Production builders that offer homes in the higher price ranges tend to either upgrade the home to the fullest, leaving only minimal selections for the buyer to make, or offer more of a semi-custom experience, where buyers can feel as if they’re designing their home from the ground up. 

Here’s how other builders offer customization options and set boundaries to prevent them from becoming a logistical nightmare >

Pantone Unveils Autumn and Winter 2018 Palette

Pantone has announced 10 fresh “seasonal” hues and five “classic” colors the institute predicts will shape fashion, home décor, and interior design palettes for the fall/winter 2018 season.

The 10 new seasonal shades (from left to right, clockwise) include: Red Pear, a “deliciously deep red”; Valiant Poppy, “an outgoing red”; Nebulas Blue, a “thoughtful, starry-eyed blue”; Ceylon Yellow, a “savory, spicy yellow that adds an exotic touch”; Martini Olive, a “smooth, sophisticated and urbane green”; Russet Orange, a “warm and earthy forest floor orange”; Ultra Violet, the company’s Color of the Year; Crocus Petal, a “light, airy and refined hue”; Limelight, a “pungent yellow-green” that’s “animated and effervescent”; and Quetzal Green, a “deep elegant blue-green hue suggestive of rich plumage.”

fall and winter 2018 bold seasonal shades

The bold seasonal shades are complemented by five new classics that set the structure and foundation of the year’s palettes. The classic colors are (from left to right): Sargasso Sea, which is described as a “boundless blue”; Tofu, which is billed as a creamy white staple; Almond Buff, a natural hue with understated appeal; a soft Quiet Gray; and Meerket, a toasty, burnished brown which was created to be “highly adaptable”.

fall and winter 2018 classic shades



Information Courtesy of Jason Browning – Certainty Home loans 

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