MORTGAGE NEWS ROUNDUP

 

Happy Thursday. I hope you have fun plans for the long weekend coming up. Are you planning one last barbecue? Some good hikes?

For today’s mortgage news roundup, we have both sides of flipping houses, a list of repairs every new homebuyer should make (and established ones should re-read to see what you’re missing), and an update on the government easing restrictions for down payments.

Repairs Every New Homebuyer Should Make

Just bought your home and not sure where to start? Here’s a list of maintenance and repairs you should do before move in and up to annually.

Move-In Week
Make it a point to turn on all of your major appliances and let them run for a complete cycle, especially if your home is newly built. Believe it or not, contractors and home inspectors don’t always test out these devices after installing them.

It’s important to find out if the appliance was properly installed. A leak left undetected can become a nightmare. You should also read your home warranty to understand your rights and responsibilities should anything go wrong.
Read the article for more suggestions at 45 days, and 6 months. They also have suggestions for annual maintenance and every other year that you should put on your calendar or tickler file.
As they say, don’t put off small repairs because when you do,they get big and far more expensive very quickly.

15 Cities Where House Flippers Are Making Tons of Money

Have you ever thought of being a home flipper? This article on Yahoo Finance lists the 15 best cities where people are making the most money flipping houses. Not surprisingly, the majority of places are in Florida.
You can read the full report on Realty Trac and see how California is doing specifically.

Buying a ‘flipped’ home? Be careful

On the flip side (sorry, couldn’t resist), there are a lot of flipped homes on the market. MarketWatch has an article on what a home buyer should be aware of before buying a home that was bought cheaply and fixed up.
Current flipping activity is at its highest since RealtyTrac began tracking it in 2007. How do you make sure you don’t buy a home that has been renovated cosmetically, with serious underlying issues beneath the fresh paint?

1. Find out who did the work
2. Hire a good home inspector
3. Look for structural problems
4. Ask for and verify the permits

Government relaxes mortgage down payment rules

CBS News is reporting that the Government is relaxing mortgage down payment rules.

The proposed new Qualified Residential Mortgage rule, released jointly by six government agencies, was cheered by both consumer advocates and mortgage industry members–who typically don’t see eye-to-eye on much–largely because it eliminates much stricter down payment rules that the previous version of QRM would have created.
The six agencies–the Federal Reserve Board, the FDIC, the Federal Housing Finance Agency, the Department of Housing and Urban Development, the Office of the Comptroller and Currency and the Securities and Exchange Commission–are taking comments on the proposed changes through the end of October.

Under the old rule, the requirement was going back to a 20% downpayment. The new rule will have the mortgage lender evaluate the applicant on an individual basis.

Many of those comments attacked the original QRM rules. The proposed changes, on the other hand, are causing nearly universal joy to ripple through housing and mortgage groups.
“This new proposal shows that regulators listened to the comments from the wide range of stakeholders involved,” said Chris Estes, president and CEO of the National Housing Conference, an affordable housing advocacy group. “Aligning the QRM rule with the QM rules will allow more American families to become homeowners and ensures that housing markets can remain strong in the future. This is especially important for communities that are still rebuilding from the foreclosure crisis.”

If you have questions about eligibility for a mortgage, talk to a professional loan officer. They diligently study the news and market and stay on top of the interest rate trends. They also are in touch with many lenders to find the best package for your situation.

Decorating In Small Spaces

 

Decorating In Small Spaces

Have you ever walked around IKEA and been completely amazed at how they get so much in such tiny living spaces?
In today’s post we’ll look at the basics of small living space design and provide tips that you can use in your home this weekend to make it feel like you have more space.
Remember living in a dorm or your first apartment? You didn’t own much so it wasn’t a problem to decorate with cinder blocks and wood planks or milk crates.

Key Principle One: Don’t Have More Stuff Than Space

Look into alternate storage spaces like attics or rafters in the garage for items that you want to keep but don’t need to have at hand. If your kids have a lot of toys out, consider boxing up about half, and then in a few months, bring those back out and box up what they were playing with. It will feel like a birthday all over again as the toys will seem new and exciting. Plus, you don’t have all the toys out there.
And if they’re done playing, pack it up and donate or give to friends.
Rip all of your old CD’s and then get rid of them.
Make sure that everything has it’s place and that it gets returned when done. It will seem difficult at first, but it gets easier when it becomes a habit.

Key Principle Two: Keep decorating Simple

Limit your palette to no more than four shades. Too many colors will make the room seem smaller because the color will be taking up all the space.
Choose one large piece like the bed or the couch to anchor the room. Then balance it with smaller items. Too many little items clutter up and make the room feel smaller.
Keep light fixtures simple so they don’t dominate the room.

Key Principle Three: Look For Multi-Taskers

There are ottomans that double as storage as well as seating.
If you have a closet you don’t use, convert it into a mini-office. You can put in a desk, a lamp, shelves and your computer. Then, when you have company, you can close up the closet doors. If you can’t close the doors, put up some sheers to close off that area and open up the room.

Resources

Better Homes & Gardens’ Guides to Small Space Decorating
HGTV Small Space Design Guides
House Beautiful Small Space Solutions
Which room will you tackle this weekend?

Tagged as: small space decorating

Thanksgiving Decorating Ideas

Decorating on a dime, or have a bit of budget to spend?  Today’s blog will inspire you to start decorating today for the big feast on Thursday.  Even if you’re not hosting, you can still enjoy the warm glow of seeing decorations in your home.  Additionally, some of these ideas could be a great host(ess) gift.

Things to Make Yourself

Transform a serving platter into a mini chalkboard using special paint you can find in most craft stores.  Write the menu, or cocktails, or even a warm greeting for your guests in colorful chalk.  You could transform a thrift store find into a great present for the less than $20 (the cost of the paint, a brush, a pack of chalk, and the platter).  For a video showing how to do this, click here.  (warning, there are ads before and after, and the video starts playing right away)
Take a basket, some leaves from outside, some fruit or some leftover pumpkins, and you’ve got a centerpiece.  Apples and grapefruit in an antique tin can be a country kitchen replacement for the cornucopia.   For 20 inspiring ideas, click here. (it’s a slideshow)
And for the individuals, here’s ideas for place cards and napkin rings.  It’s also a slideshow.

From Casual

Host a Casual Thanksgiving Brunch slideshow
Fun and silly ideas slideshow.  Our favorite was using plastic wishbones for a napkin ring so everyone can make a wish.

To Formal

Tips for setting a formal Thanksgiving table
Martha Stewart recommendations for Thanksgiving decorating.  And here’s how she recommends a variety of table settings.

And Don’t Forget The Kids

LilSugar shows how to make paper turkey place cards, and has additional recommendations to make the kids table fun.
About.com recommends adding in little favors such as stickers, stencils, coloring books and age appropriate jigsaw puzzles to keep the kids occupied.
Keep it fun for you so you enjoy your home.  Don’t get caught up in needing to be perfect so that it becomes stressful.
Do you have regular decorations you bring out each year?  Have you brought your Christmas decorations out too, or do you wait until after Thanksgiving?

Now Cheaper To Buy Than To Rent

It is now considerably cheaper to own a home than to rent that same home, something unheard of since 2008.

This and other promising information about the housing market was recently released by Harvard in their annual “State of the Nation’s Housing,” an in-depth study performed by The Joint Center for Housing Studies at Harvard University.

Because of historically low mortgage rates and low home prices post-recession, it is a perfect time to buy.
On the other hand, rent prices are soaring, especially in the Bay Area. According to Trulia, San Francisco and Oakland saw the biggest jumps in rent in the United States over the last year, with increases of 14.7 percent and 11.2 percent, respectively.

“With rents up, home prices sharply down, and mortgage interest rates at record lows, mortgage costs relative to monthly rents haven’t been this favorable since the early 1970s,” said Eric S. Belsky, managing director for the Joint Center for Housing Studies at Harvard.

The report also noted that today, mortgage payments for the median priced US home are roughly half of what they were in 1990. The study showed that mortgage payments are now 23% less than rent payments for the median priced home.

This means that it is a fantastic time to be a home buyer, and to get off of the fence if you’ve been waiting for the market to turn around.

Take a look at the entire Harvard study here:
http://www.jchs.harvard.edu/research/state_nations_housing.

If you are interested in seeing if you qualify to purchase a home, please don't hesitate to contact me!

New Outdoor Furniture Is Stylish, Comfortable

Outdoor living is moving beyond the concrete slab or generic deck. Many people are expanding their outdoor living spaces, says decorator Sally Falk Nancrede.
Whether they have added grill islands, pergolas or beam roofs, a whole industry is developing for the growth of outdoor living. People want comfy, plush, upholstered or slipcovered chairs that rock or recline, and they want easy-care sofas they can stretch out in.

Store furniture buyers say the products are a lot more consumer-friendly than in previous years. Cushions have drain-through features. Many tables are made with cast-aluminum frames and have composite stone or Corona tops that don’t break. They look nicer and are made heavier so they don’t blow over in the wind.
Easy-care Adirondack chairs made in the United States are colorful and formed from recycled plastic. They are durable, comfortable and are zero-maintenance. They never have to be painted or touched up.

In past decades, Adirondacks were brown and red brown. This year, some are taupe, gray, blue or green.
This is the year people are happy to improve their outdoor living features, and improving curb appeal can increase your home’s value.

Consumer Confidence Is Rising

Consumer confidence at the end of March reached the second-highest level in four years.

Lower interest rates on mortgages and credit cards were one reason for the more positive view. According to a USA Today analysis, American households paid an average of $8,731 for mortgage interest in 2007. For 2011, the average interest was $5,633.

Low interest rates mean more cash in your pocket.
Three-fourths of the interest savings were from falling interest rates, the rest were from debt reduction.
For the three-week period ending on March 25, The Bloomberg Consumer Comfort Index showed more than 30 percent of households said they had a favorable view of the buying climate. It was the longest stretch since early 2008.

The economic gain for borrowers is greater than other stimulus efforts or even high gas prices. A cut in the Social Security payroll tax, for example, saves households an average of about $70 a month.

Job and income growth are providing consumers with the means to withstand higher fuel costs and are the basis for sales of cars and other expensive items. Economists at the National Automobile Association say even if people aren’t paying attention to their falling interest rates, the money builds up in their checking accounts and especially benefits big-ticket items like cars.

The favorable reduction in household debt shows that many responsible Americans are using the extra cash to pay down credit card balances, which is always a wise move.

Consumer spending is a big factor in U.S. economic growth, so if you need a car or a fridge and can afford it, you’ll perk the economy if you go ahead and buy it.

Common First Time Homebuyer Mistakes

Many first-time homebuyers make simple and common mistakes that are easily avoidable.
They face multiple challenges anyway, such as finding the right home, the right agent, getting approved for a mortgage, and staying within their budget. By avoiding these common mistakes, the process of buying a home can be much less stressful.

1. Overlooking extra costs of homeownership
While some see themselves as ready for homeownership once they can afford a mortgage payment, it is important to remember the other fees that come along with owning a home. Property taxes, home owners association fees, maintenance, higher water and electrical bills, and property insurance are among the extra costs of owning a home, and should be calculated into your budget.

2. Not getting preapproved
It is very important to get preapproved for a loan before you go out searching for the perfect place. That way, you will be making financially sound decisions versus unrealistic emotional ones as to what you can afford.

3. Spending your entire savings on your down payment
This is one of the most common mistakes first time homebuyers make. Homebuyers who put 20 percent or more down don’t have to pay for mortgage insurance when getting a conventional mortgage, which often translates into substantial savings on the monthly payment. However, it is smarter to keep your rainy day savings intact instead.
photo credit: opensourceway

Financial Fitness

This article about being financially fit has great advice for small, inexpensive ways to save more money over time with your home.
Several tips that stand out are:

1. Be fire ready – Check that your fire extinguishers are functioning and easily available, and check your smoke detectors as well.

2. Prevent shocks – Outlets near water, such as in the bathroom or kitchen, should have a ground fault circuit to prevent shocks and electrocution. An inexpensive tool can alleviate this worry.
The major takeaway from this is that by making small investments in your home, you save yourself more in the long-run and protect the value of your property.

Full article here.

This Week’s Market Commentary

Happy New Year Everyone!
This week bring us the release of only three monthly reports that are relevant to the bond market and mortgage rates, but two of them are considered to be highly important.

In addition to those three reports, we also will get the minutes from the last FOMC meeting that may influence the markets and possibly mortgage rates. The financial markets are closed today due to the New Year’s Day holiday.

The first report is the Institute for Supply Management’s (ISM) manufacturing index for December late tomorrow morning. This highly important index measures manufacturer sentiment. A reading above 50 means that more surveyed manufacturing executives felt that business improved during the month than those who felt it had worsened.

That indicates manufacturing sector strength rather than contraction. Analysts are currently expecting to see a 53.4 reading in this month’s release, meaning that sentiment strengthened from November’s 52.7. A smaller reading will be good news for the bond market and mortgage shoppers, while a higher than expected reading could lead to higher mortgage rates tomorrow morning as it would point towards economic strength.

Also tomorrow is the release of the minutes from the last FOMC meeting. This will give market participants insight to the Fed’s thinking and concerns regarding the economy, inflation and monetary policy. It is one of those pieces of information that may cause a great deal of volatility in the markets or be a non-factor, depending on what the minutes show. They will be released at 2:00 PM ET, so they won’t affect the markets or mortgage rates until afternoon hours.

The Commerce Department will post November’s Factory Orders data late Wednesday morning. This data gives us a fairly important measurement of manufacturing sector strength. It is similar to the Durable Goods Orders release that was posted late last week, except this report includes orders for both durable and non-durable goods. Durable goods are items that are expected to last three or more years such as electronics and autos. Examples of non-durable goods are food and clothing. Analysts are expecting to see an increase of 2.1% in new orders. This report generally does not have a huge impact on the bond market or mortgage rates, but it can influence bond trading enough to create a minor change in rates. The smaller the increase, the better the news for mortgage rates.

The final report of the week comes Friday morning when the Labor Department will post December’s employment figures. The Employment report is arguably the most important monthly release we see. It gives us the national unemployment rate, the number of jobs added or lost during the month and average hourly earnings, which is a key measure of wage inflation. Rising unemployment, a decline in payrolls and earnings would be ideal news for the bond market.

Current forecasts call for a 0.1% rise from November’s unemployment rate of 8.6%, 150,000 new jobs added to the economy and an increase in earnings of 0.2%. If we see weaker than expected results, mortgage rates should improve Friday. However, stronger than expected readings will likely raise optimism about the economy, pushing mortgage rates sharply higher.

Overall, the key data of the week will be Friday’s Employment report, but look for tomorrow and Wednesday to be active due to the economic data and FOMC minutes scheduled. If they give us favorable results, mortgage rates will likely move lower for the week. But if not, we can expect to see mortgage rates move higher on the week.

Higher Rates coming?

Check out this video blog from "Think Big Work Small" regarding HR 3630 that is expected to pass...
"Think Big Work Small"

Shadow Inventory Down By 16% From Last Year

The shadow inventory of distressed properties owned by lenders and not on the market decreased 16% from this time last year, according to a report released by CoreLogic today. The 1.6 million homes not on the market represent a five month supply.

A one month supply in a shadow inventory is more ideal for the housing market, but this is still an improvement over October 2010. This month last year there was a seven month supply.

California is among the six states that make up half of the current shadow inventory, along with Florida, Illinois, Texas, New Jersey and New York.

How to Hire A Contractor: Five Important Steps

Whether remodeling or making more simple home improvements, it is vital to find the right contractor. Times are tight, and horror stories about lingering projects abound. These five steps, outlined by the San Jose Mercury News, will help you hire the perfect contractor that you can trust to improve your home.

Step One: Get referrals
While there are many ways to find contractors, an easy way to start is simply asking friends and family--or your Mortgage Consultant about it. Put the question out to your contacts on Facebook, and a friend may refer you to a fantastic and trustworthy contractor.
Online sites such as Angie’s List, which requires a subscription fee, provide reviews of local contractors among other small businesses.

Step Two: Interview potential contractors
Prepare to ask the candidates questions about their professional background, recent experience with similar projects, their workers, professional associations, and obtain a list of references. Be sure to follow through and call all of the given references!

Step Three: Look for red flags
Contractors offering extremely low bids could be cutting corners with cheap labor and substandard materials. While times are difficult for many, the cheapest bid is not always the best.
Other red flags include asking for too much cash up front – more than a third – or demanding to be paid only in cash.

Step Four: Narrow it down
From those you have interviewed, narrow it down to three candidates and call all of their references. Ensure that those projects were completed on time and at the expected price. You can also check on your candidates with the Better Business Bureau for former complaints.
Meet with the three candidates face to face, and ask for a broken down price estimate that shows materials and labor expected.

 Step Five: Finalize the deal
Once you have chosen your contractor, get the agreement down in writing! This is crucial if any problems should arise later on. The Mercury recommends including the “beginning date, a completion date, and how payments will be made. It’s typical to pay a third up front, a third when the project is half done and the final third once the job is done and meets your expectations.”
Also ensure that the contractor has a certificate of insurance showing liability and workman’s compensation insurance in case of an accident.

This Week’s Market Commentary

There are six pieces of economic news that may affect mortgage rates this week.

Some of the data is considered highly important to the financial and mortgage markets, so it will likely be an active week for mortgage rates. As the week progresses, the data gets more important.

Unlike most Mondays, there is data being posted this morning with the release of October’s New Home Sales report. It will give us an indication of housing sector strength, but is the week’s least important release. Analysts are expecting to see little change between September’s and October’s sales of newly constructed homes. It will take a large change in sales for this data to influence mortgage rates.

November’s Consumer Confidence Index (CCI) will be released late Tuesday morning by the Conference Board. It gives us a measurement of consumer willingness to spend. If consumer confidence is rising, analysts believe that consumers are more apt to make larger purchases, essentially fueling economic growth. This makes long-term securities such as mortgage-related bonds less attractive to investors and usually leads to higher mortgage rates. Analysts are expecting to see a sizable increase in confidence from last month’s level, meaning consumers were more optimistic about their own financial situations this month than they were last month. A weaker reading than the 44.0 that is expected would be good news for mortgage rates, while a stronger reading could push mortgage rates higher Tuesday.

The next piece of data that we need to be concerned with comes early Wednesday morning when revised 3rd Quarter Productivity numbers are posted. This index is expected to show an upward revision from the preliminary reading of worker productivity. Higher levels of productivity are thought to allow the economy to expand without inflationary pressures rising. This is good news for the bond market because economic growth itself isn’t necessarily bad for the bond market. It’s the conditions around an expanding economy, such as inflation, that hurt bond prices and mortgage rates. Current forecasts are calling for an annual rate of 2.6%, down from the previous estimate of 3.1%.

Also Wednesday, the Federal Reserve will release their Beige Book at 2:00 PM ET. This report, which is named simply after the color of its cover, details economic conditions by region. That information is relied on heavily during the FOMC meetings when determining monetary policy, so its results can influence bond trading and mortgage rates if it shows any significant surprises. More times than not, this report will not influence the markets enough to cause intra-day changes to mortgage rates, but the potential to do so does exist.

November’s manufacturing index from the Institute for Supply Management (ISM) will be posted at 10:00 AM ET Thursday. This index measures manufacturer sentiment and can have a considerable impact on the financial markets and mortgage rates. Current forecasts call for a small decline in sentiment from October to November. October’s reading was previously announced as 50.8. A weaker reading than the expected 51.0 would be good news for the bond market and mortgage rates. A reading above 50 means that more surveyed trade executives felt business improved during the month than those who felt it had worsened. The lower the reading the better the news for bonds because waning sentiment indicates a slowing manufacturing sector and makes a broader economic recovery less likely.

The biggest news of the week comes Friday morning when the Labor Department posts November’s Employment figures. This is arguably the most important monthly report we see. It is comprised of many statistics and readings, but the most watched ones are the unemployment rate, the number of news jobs added or lost during the month and average hourly earnings. Current forecasts call for no change in the unemployment rate of 9.0% while 117,000 new jobs were added to the economy. The income reading is forecasted to show an increase of 0.2%. An ideal scenario for mortgage shoppers would be a higher unemployment rate than 9.0%, a smaller increase in payrolls and no change in the earnings reading. If we are fortunate enough to hit the trifecta with all three, we should see the stock markets fall, bond prices rise and mortgage rates move lower Friday. However, stronger than expected readings would likely fuel a stock rally and bond sell-off that would lead to higher mortgage rates.

Overall, the most important day of the week is Friday with the employment figures being released, but we may also see sizable movement in rates Thursday. Friday’s employment data could cause a significant change in rates, but Thursday’s ISM index is also one of the more important reports we see each month. If Friday’s data reveals stronger than expected results we may see rates spike higher after its release, possibly erasing any gains from the week. It will probably be the key to rates moving lower or higher for the week. I suspect it will be a fairly active week for the markets and mortgage pricing, especially the latter part, so it would be prudent to maintain contact with your mortgage professional if still floating an interest rate.

Four Fireplace Safety Tips for the Winter

November 10, 2011

With fireplaces and chimneys involved in 42% of home-heating fires, it is important to maintain your fireplace and use it properly during the cold winter months.
Follow these four tips to make sure your fireplace is safe and won’t turn into a fire-starter:

1. Get your chimney professionally cleaned
Hire a chimney sweep to clean out the soot and debris in your chimney. The National Fire Protection Association recommends you do this once a year.

2. Burn the right kind of wood
Burn seasoned hardwoods that are dense, such as oak, that have been split and stored in a dry, high-up place. According to an MSN article, “green wood and resinous softwoods such as pine produce more creosote, a flammable byproduct of combustion that can build up in the chimney.”

3. Don’t overdo it with too many logs
A fire that is too big or too hot can cause a chimney to crack. Small fires create less smoke, and less creosote buildup as a result.

4. Use a spark-guard
Set up a spark guard to prevent embers and sparks from igniting something outside the fireplace. This is especially important when the room the fireplace is in is unoccupied. Glass fireplace doors or a mesh metal screen will do the trick.

More Adult Children Moving Back Home

The number of young adults who move back in with their parents, often after college, has risen dramatically over the past few years. This is in part due to the current economy as well as high unemployment rates for young people. The trend of moving back in with ones parents, however, is having an effect on the housing market.

According to a recent CNN Money article, 19% of males age 25 to 34 live with their parents today, a 5 percentage point increase from 2005. 10% of women in that age group live at home, up from 8% six years ago.

The numbers are much higher for 18- to 24-year-olds, with 59% of males and 50% of females living with their parents, up from 53% and 46%.

This has caused a decrease in the number of new households being formed, and a decrease in demand, which in turn lowers home prices. If these young adults were renting, rents would rise, leading to more people deciding to buy.

On the other hand, by living back home, young adults are saving thousands of dollars in a tough economy. This savings could be put towards a home purchase later on.

What are your thoughts on this “boomerang generation” and its effect on the market?

This Week’s Market Commentary

This week brings us the release of only two relevant monthly economic reports but neither of them is considered to be highly important. There are two important Treasury auctions this week that may influence mortgage rates more than the minor economic data that is scheduled.

It is also a holiday-shortened week with the bond market closed Friday in observance of the Veterans Day holiday. The stock markets will be open Friday, but bonds will not be traded meaning that many lenders will be closed.

Neither of this week’s monthly economic reports is expected to lead to noticeable changes in mortgage rates. This means that the stock markets will likely be a significant influence on bond trading and mortgage rates in addition to the two particular Treasury auctions. If the stock markets rally, we could see funds shift from bonds into stocks that potentially offer better returns, leading to higher mortgage rates. If stocks fall from current levels early in the week, bonds and mortgage shoppers should benefit.

The two important Treasury auctions come Wednesday and Thursday when 10-year Notes and 30-year Bonds are sold. The 10-year sale is the more important of the two as it will give us a better indication of demand for mortgage-related securities. If the sales are met with a strong demand from investors, we should see the bond market move higher during afternoon trading the days of the auctions. But a lackluster interest from buyers, particularly international investors, would indicate a waning appetite for longer-term U.S. securities and lead to broader bond selling. The selling in bonds would probably result in upward revisions to mortgage rates.

The first monthly data of the week is September’s Goods and Services Trade Balance report early Thursday morning. It helps us measure the size of the U.S. trade deficit, but usually is not a major influence on bond trading or mortgage pricing. It does affect the value of the U.S. dollar, which makes U.S. securities more attractive to international investors when the dollar is strong. This is because the securities’ proceeds are worth more when sold and converted to the investor’s domestic currency. However, its results will not likely directly lead to changes in mortgage rates. Analysts are expecting to see a $45.8 billion trade deficit.

November’s preliminary reading of the University of Michigan’s Index of Consumer Sentiment will be released late Friday morning. This index measures consumer confidence, which gives us an indication of consumer willingness to spend. It is expected to show a reading of 61.5, up from October’s final reading of 60.9. That would be considered negative news for bonds because rising sentiment means consumers are more optimistic about their own financial situations and are more likely to make large purchases in the near future. Since consumer spending makes up two-thirds of the U.S. economy, any related data is watched closely.

Overall, it is difficult to predict just how active this week will be for mortgage rates. As expected, last week brought us quite a bit of volatility in rates. This week could be very calm or could be just as active as last week was. I don’t believe the economic data on tap will be a catalyst. I think the key will be the stock markets and Wednesday’s Treasury auction. If they give us favorable results, mortgage rates will likely close the week lower than today’s opening levels.

Home Improvement Projects that Pay Off

In a competitive market for sellers, many are turning to home improvement projects. However, some projects are far more likely to increase your home’s value, and can also make your home sell faster.

According to Trulia, five projects are nearly guaranteed to pay off in the long run:

1. Painting – A fresh coat of white paint or a neutral color helps lighten the rooms.

2. Landscaping – Curb appeal always matters. A yard that is clean, charming, and inviting helps.

3. De-cluttering and cleaning – A deep clean and getting rid of knick-knacks makes homes more appealing to prospective buyers.

4. Plumbing repairs – Ensure that all plumbing is in great shape, and take care of any water stains or water damage.

5. Staging – Hiring a professional to stage your home can up the value, or you can do it yourself. It can make a dramatic difference in the price your home sells for. According to Trulia, good staging is both “removing your personal belongings and replacing it with more artwork, decor and cleaner-looking furniture,” as well as “tweaking the home’s paint, wall coverings and even landscaping to show the place in its very best light. “

Foreclosures Slow Down in Bay Area

Bay Area foreclosures slowed in September, down 7% from August and 10% from this time last year, according to an article in the Contra Costa Times. A report released Thursday by RealtyTrac revealed these numbers, though how long the decline will last is uncertain.
2,594 homeowners in the Bay Area were given a notice of default in September, the first step in the foreclosure process.

RealtyTrac does not include Santa Clara County in its definition of the Bay Area, however, and there was a slight increase in foreclosures in that county, as well as in San Mateo County, though that is included in the Bay Area defined by the company.

RealtyTrac CEO Daren Blomquist said that “in the next six months, it’s likely that default notices will be on a consistent upward rise in the Bay Area, once banks catch up with their backlog of current foreclosures and more people fall behind on their mortgages.”

Biggest First-Time Homebuyer Mistakes to Avoid

Looking for your first home can be an exciting experience, but it can easily get overwhelming. There are some mistakes that are pretty easy to make if you aren’t familiar with real estate.

Looking Without Knowing Your Price Range
This is a waste of time for you and your real estate agent. It can give you the wrong idea of a realistic fit for your financial situation. The first thing you should do is sit down and figure out what you can afford. Once you’ve done that, your Realtor can show you houses that fit your price range.

Discounting a Great Home Because of Decor
Just because you can’t afford to replace the hideous wallpaper right now doesn’t mean you won’t be able to soon. Getting too picky over small details that can be changed could keep you from ending up in your dream home. Use your imagination and visualize what the house could be like after you’ve put your touch on it.

Shopping Without A Mortgage Pre-Approval
What you have determined you can afford and what banks are willing to lend might not be the same thing. If you go into contract on a home and can’t get the loan you need, you will have wasted a lot of people’s time and gotten your hopes up. Contact a mortgage professional in order to get qualified for a loan before you do any serious house-hunting.

Moving With Young Children

Moving is a highly stressful and chaotic period for any body. For children in their preschool-age years, however, moving can be quite confusing. There are steps you can take before, during, and after the move to help young kids make the transition.

Before the move
Parenting Magazine suggests in its July 2011 issue that chatting regularly about the move with your kids before it happens helps them get used to the idea. Psychologist and author of Moving With Children Tom Olkowski suggests showing the children photos of the new house, neighborhood, school, and yard ahead of time.

During the move
In this phase of the moving process, many kids are terrified of losing beloved items such as teddy bears or blankets. To help them feel more comfortable, give them a backpack for moving day filled with their favorite possessions and a snack or two.

After the move
While it is tempting to get caught up in the hustle and bustle of unpacking and decorating, it is important to remember and keep up with regular family routines. This will help your children during the transition.
“Preschoolers adjust fairly quickly with support from parents, meeting new playmates, getting settled in a new preschool, and learning their way around a new house,” said Dr. Olkowski.