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What’s Ahead For Mortgage Rates This Week – March 17th, 2014

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What's Ahead For Mortgage Rates This Week March 17 2014Last week’s economic reports provided rays of light as compared to the recent slump in positive economic news.

Unusually severe winter weather conditions affected housing-related indicators as home builders and home buyers stayed on the sidelines.

With spring on the horizon, last week’s economic news showed welcome signs of growth.

Job Openings Up, New Jobless Claims Fall

Employment is a major factor in the decision to buy a home; would-be home buyers received a vote of confidence last week as January’s job openings increased by one million to 40 million as compared to December’s reading of 39 million job openings.

February’s reading will likely reflect a lull in activity due to winter weather conditions in much of the U.S.

Weekly jobless claims fell from 324,000 to 315,000. The Bureau of Labor Statistics reported expectations of 330,000 new jobless claims, so the latest report was good news.

Weekly reports are more volatile than monthly statistics; analysts typically track employment trends by reviewing rolling averages of several weeks’ new jobless claims data.

Mortgage Rates, Retail Sales Rise

Freddie Mac reported that average mortgage rates rose last week. The rate for a 30-year fixed rate mortgage rose by nine basis points to 4.37 percent. 15-year fixed rate mortgages had an average rate of 3.38 percent; this was an increase of six basis points

The average rate for a 5/1 adjustable rate mortgage was 3.09 percent, up from the previous week’s reading of 3.03 percent.

Discount points dipped from 0.70 to 0.60 percent for a 30-year fixed rate mortgage, were unchanged for 15-year and 5/1 adjustable rate mortgages at 0.60 and 0.40 percent.

Retail sales increased for the first time in three months according to the Commerce Department.

February retail sales surpassed expectations of a 0.20 percent gain and came in at 0.30 percent. January figures were downwardly adjusted to -0.60 percent. Retail sales exclusive of automotive sales were also higher at 0.30 percent than expectations of 0.10 percent.

The University of Michigan Consumer Sentiment index for mark was slightly lower at 79.9 than expectations of 80.8.

This was the lowest reading in four months, and was attributed in part to higher gas prices and consumer concerns over developments in Ukraine.

What’s Coming Up

This week’s economic news includes several housing-related reports.

The NAHB Home Builder Index for March, Housing Starts and Building Permits for February, and Existing Home Sales are set for release.

On Wednesday, the Fed’s FOMC statement will be released and Fed Chair Janet Yellen will give a press conference. The Fed is expected to continue its ongoing tapering of quantitative easing.

Leading economic indicators will be released along with the Weekly Jobless Claims report and Freddie Mac’s Primary Mortgage Market Survey.

Make Your Home Green This St. Patrick’s Day

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Make Your Home Green This St. Patrick’s DayYou’re ready to make some changes to your home, but you want to be smart with your money and see a positive return on your investment.

While most homeowners don’t see that return until they sell their home, you can start seeing the benefits now through conserving energy by making your home green.

So in honor of the upcoming green holiday, stop searching for that pot of gold. Get inspired by St. Patrick’s Day to go green to cut your energy costs with the environmentally friendly renovations below. You’ll soon see the savings building up at the end of the rainbow.

  • Use Reclaimed Wood For Flooring

    • Instead of chopping down more green for your floors, reclaim wood that’s already been cut. While prices vary depending on they type of wood and how it was transformed, you can get a unique look and conversational piece that no one else will have.

    Just think, you could be standing on the Jackson’s old barn or a dismantled ship.

  • Green Your Latrine

    • Install a low-flow toilet, which according to www.ConsumerReports.org could save you money. Older toilets use about 3.5 gallons per flush, while newer low-flow toilets can use less than 1.3 gallons.

    If you don’t want to dish out the dough for a new toilet, then add pebbles or a sealed water bottle into the back tank to displace water and reduce consumption.

  • Install A Programmable Thermostat

    • This is something you can easily do on your own. Purchase a programmable thermostat at any home improvement store for around $50, shut off power to the room you’ll be replacing it in, unscrew your old one and connect the wires to the new one.

    Finished! Now you won’t have to worry about remembering to turn the air down at night and you’ll save money monthly.

  • Replace Old Kitchen Appliances

    • If your refrigerator or dishwasher is more than 10 years old, then consider replacing them with newer energy efficient models. Look for appliances that have Energy Star labels, as these machines have passed strict energy requirements.

    While this upgrade might cost you up front, you’ll quickly be saving energy and leaving more green in your bank account. Don’t get pinched this St. Patrick’s Day! Instead of just wearing green, surround yourself in it by making environmentally friendly renovations.

    By taking your home green, you’ll reduce your energy usage and see savings in your monthly bills!

    Legal Secrets For Homeowners

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    Legal Secrets For HomeownersBeing a homeowner is exciting. It can be financially rewarding, too. Unfortunately, it can also put you in a tough legal position.

    Between the complexities of owning a house, having to deal with lenders and the risk that comes from owning something valuable, keeping yourself legally protected is a good idea.

    Here Are Some Risks And Some Ways To Handle Them

    1. HOAs. If you own a condo, townhome or other property in an association, the homeowner association is extremely powerful. Not paying their dues, violating their rules, or doing just about anything else to end up on the wrong side of them could leave you subject to fines or even foreclosure.
    2. Neighbors. Whether or not good fences make for good neighbors, bad neighbors make for legal problems. Before dealing with your neighbors, research your community’s laws to see what options you have to deal with their unlicensed backyard dog breeding facility, teenager that steals your oranges or their tree that keeps breaking your window. It’s good to know what your responsibilities are as a neighbor, as well.
    3. Legal Paperwork. Part of having a house is having paperwork. Keeping it in a safe place where you can get to it when you need it is always a good idea.
    4. Being A Landlord. If you’re thinking about moving out and turning your house into a rental, take the time to see if you can really do it. Your mortgage, your homeowner association bylaws and your community’s laws can all either prevent you from renting out your house or can impose conditions or extra costs.
    5. Financial Scams. When you own a house, you’re at risk of being the victim of mortgage scams. If you also have strong credit, you could also be a target for identity thieves that want to steal your good name to steal money.
    6. Insurance. Your insurance does more than pay if something happens to your property. It can also give you liability protection that pays off if you harm someone at or away from your home. Given that you could lose your house in a suit, this protection is particularly valuable.

    Being a homeowner requires more than just mowing the lawn and painting on occasion. You will also want to pay careful attention to your legal exposure and manage it.

    A little bit of care could save you a lot of money and trouble down the line.

    Legal Secrets For Homeowners

    by

    Legal Secrets For HomeownersBeing a homeowner is exciting. It can be financially rewarding, too. Unfortunately, it can also put you in a tough legal position.

    Between the complexities of owning a house, having to deal with lenders and the risk that comes from owning something valuable, keeping yourself legally protected is a good idea.

    Here Are Some Risks And Some Ways To Handle Them

    1. HOAs. If you own a condo, townhome or other property in an association, the homeowner association is extremely powerful. Not paying their dues, violating their rules, or doing just about anything else to end up on the wrong side of them could leave you subject to fines or even foreclosure.
    2. Neighbors. Whether or not good fences make for good neighbors, bad neighbors make for legal problems. Before dealing with your neighbors, research your community’s laws to see what options you have to deal with their unlicensed backyard dog breeding facility, teenager that steals your oranges or their tree that keeps breaking your window. It’s good to know what your responsibilities are as a neighbor, as well.
    3. Legal Paperwork. Part of having a house is having paperwork. Keeping it in a safe place where you can get to it when you need it is always a good idea.
    4. Being A Landlord. If you’re thinking about moving out and turning your house into a rental, take the time to see if you can really do it. Your mortgage, your homeowner association bylaws and your community’s laws can all either prevent you from renting out your house or can impose conditions or extra costs.
    5. Financial Scams. When you own a house, you’re at risk of being the victim of mortgage scams. If you also have strong credit, you could also be a target for identity thieves that want to steal your good name to steal money.
    6. Insurance. Your insurance does more than pay if something happens to your property. It can also give you liability protection that pays off if you harm someone at or away from your home. Given that you could lose your house in a suit, this protection is particularly valuable.

    Being a homeowner requires more than just mowing the lawn and painting on occasion. You will also want to pay careful attention to your legal exposure and manage it.

    A little bit of care could save you a lot of money and trouble down the line.

    What Financial Preparations Should I Make Before Applying For A Mortgage?

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    What Financial Preparations Should I Make Before Applying For A Mortgage?Getting a mortgage isn’t an easy thing to do. Before a lender will put down tens of hundreds of thousands of dollars, it wants to know that the borrower can handle the loan so that it will get paid back. to this end, there are three things that a potential homebuyer can do to prepare for the mortgage approval process.

    Managing Debts

    For many homebuyers, managing their credit score is the biggest challenge. Mortgage lenders like buyers with strong credit. While getting strong credit usually isn’t something that can be done overnight, paying bills on time, all of the time can help to build a positive profile.

    Using as little credit as possible is also helpful, since high utilization of existing credit lines can harm a borrower’s score. Having less debt can also reduce monthly payments, making it easier to qualify for a larger mortgage.

    Managing Income

    Lenders look for two things when it comes to a borrower’s income:

    • Stable incomes are preferred, so being able to prove the income with a W-2 form or other documentation is usually required. Self-employed people will typically need to prove their income with their tax returns, so taking high write-offs can make it harder to qualify.
    • A borrower’s income should be significantly higher than his total monthly debt payments. Lenders divide a borrower’s monthly payments including their proposed mortgage into the gross monthly income. If the payments exceed a set percentage, the lender will shrink the mortgage until it considers the payment affordable.

    Managing Paperwork

    To qualify for a mortgage, borrowers typically need to submit a comprehensive file of supporting documentation. This can include tax returns, pay stubs and bank and investment account statements.

    Since lenders frequently want some historical data, it can be a good idea for people considering applying for a mortgage to start collecting documentation months before they actually begin the mortgage application process. That way, they will have everything the lender wants and when the lender needs it.