February 16, 2018
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.
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.
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
Production Home Builders Let Buyers Have It Their Way
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.”
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”.