Rising mortgage rates are the top concern for homebuyers

 In the current housing market, prices are high, the supply of homes is low and credit is tight. But the number one concern for potential homebuyers is rising mortgage rates, according to a recent online survey by real estate research firm Trulia.

More than 40 percent of people who planned to eventually buy a home said they were worried about rising rates, followed by rising home prices and low inventory. Among those homeowners who were planning to buy a home within the next year, inventory just edged out rising rates, the survey said.

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The 30-year fixed rate touched 4.5 percent last week, according to data from Freddie Mac, and there appears to be no turning back, economists say. If rates rise too fast, they have the potential to hurt the housing recovery by pricing homebuyers out of the market.

More than half of homebuyers also said that they would be discouraged from entering the market if rates reached 6 percent. Rates are still low by historical standards, but people have grown accustomed to them being below 4 percent, said Jed Kolko, chief economist at Trulia.

Mortgage rates have been under the spotlight lately following the Federal Reserve’s statements that it could wind down its stimulus program early if the economy keeps improving. The Fed’s bond-buying program has kept rates artificially low since the housing crash. As Fed Chairman Ben S. Bernanke testifies this week before Congress, his remarks will be carefully scrutinized to get a sense of the central bank’s policy direction for the rest of the year.

It’s logical for people to be worried about rising rates, Kolko said, but what they should really concentrate on is credit.

“Low mortgage rates don’t do much good if you can’t get a mortgage,” he said.
There are some signs that banks have started to loosen credit standards, Kolko said, but rising mortgage rates may actually help further loosen them. Mortgage credit availability increased in June compared with last year, according to data from the Mortgage Bankers Association.
“Some banks will look to do more home purchase lending as their refinancing business shrinks,” he said.

Homeowners who want to refinance their mortgages — to take advantage of low rates — are immediately affected by rising rates. The number of refinancing applications has fallen to its lowest level in two years over the past few weeks, according to data from the Mortgage Bankers Association.

In the near future, rising rates are more likely to push demand higher, Kolko and other economists say.

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Five questions to ask before hiring a real estate agent

Want to sell your property quickly? Looking for your dream house? Are you hoping to get the best deal possible during the complex process of buying or selling a home? With so much money – and often, emotion – at stake, going it alone is generally not the best way to reach your goals. The secret for getting exactly what you want: Work with a savvy real estate agent.

A qualified real estate agent will streamline the process, help you save money and serve as a liaison with your best interests in mind. But how do you find the right real estate agent? Hundreds or even thousands of real estate professionals may work in your area, but finding the best one for your unique situation doesn’t have to be time-consuming.

Remember, you’re hiring this individual for his or her expertise and services. Your agent will get a designated percentage of the sale of the house. Depending on negotiations, this cost may be covered by the seller, buyer or split by both. You want someone who will work hard for you, but also someone you are comfortable with because you may be spending a lot of time together.

To find the best real estate agent for you, ask these five critical questions:

1. How many buyers or sellers have you helped in the last year in the area?

An active agent is more likely to be up-to-date on the market, and local and state laws. Furthermore, active agents with experience in your neighborhood, or the neighborhood where you’d like to move, are better positioned to help you because they can provide unique insight that other less-knowledgeable agents cannot.

2. Do you have advanced training?

Any licensed real estate agent can help you buy or sell a home. But an agent who has advanced specialty training is better qualified to assist you. For example, an agent who is an Accredited Buyer’s Representative (ABR), has enhanced training focusing specifically on buyers. An agent who is a Certified Distressed Property Expert (CDPE) has special training to deal with short sales and foreclosures. RE/MAX agents on average have more certifications and extra training to better serve buyers and sellers.

3. What services do you offer?

While the majority of people shop for homes online first, having someone on your side through the search and sale process can save time and money. A buyer’s agent should help you schedule showings, assist with negotiating the price of the new home, guide you through the paperwork, be there at the closing table, and provide insight through any contingencies during the process.

For sellers, an agent should help set the price of the home, based on a competitive market analysis (CMA). Ask the agent how he or she will market your home (websites, videos, direct mail). Also inquire about assistance with staging and hosting open houses. Then, when the offers come in, the agent can help you with the decision on which one to accept.

4. Who else will be working with me?

The person you hire should do most of the work, but you may work with a support team, too. Additional team members may include mortgage brokers, home inspectors or contractors. If you’d like more information about what it’s like to work with an agent, don’t be shy about asking for references. You’ll get real insight into what it’s like to work with that particular professional.

5. How often will I hear from you?

No matter if you’re selling or buying, ask how often you’ll hear from the agent and make sure that this aligns with your expectations. For buyers: Do you just want to hear when there’s a new home that may interest you? Do you want regular check-in calls too? For sellers: Do you want to hear from your agent only after a buyer has toured your home, or do you want to be kept in the loop on a weekly basis?

Buying or selling a home is a complex process most people do only a few times in their lives. Hiring the right real estate agent from a reputable company like RE/MAX can give you an edge so you get the best deal possible while meeting all your goals.

You can learn more about the home buying and selling process and find an experienced agent in your neighborhood by visiting www.homewardboundpro.com

CREDIT SUISSE: There's A Buyer Rush In The US Housing Market Unlike Anything We've Ever Seen

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Credit Suisse analysts conduct a monthly survey of real estate agents in 40 housing markets across the U.S. to get a ground-level view of the market around the country.

The results from their latest survey are out, and Credit Suisse analyst Daniel Oppenheim writes in a note to clients that "the breadth of strength in both pricing and traffic at the start of spring selling season" is "unprecedented in [the] survey's history (dating back to '05)."

Oppenheim says real estate agents are "widely citing increased buyer urgency due to the combination of persistent inventory shortages (driving prices higher) and signs of mortgage rates moving higher."

The data showed that prices rose in all 40 markets last month – the first time that's ever happened in the history of the survey. Credit Suisse's home price index, derived from the survey data, increased to 79.3 from 74.6 in January.

The strongest price increases were observed in California, Florida, Austin, Las Vegas, San Antonio, Seattle, Denver, and Phoenix, according to Oppenheim.

The buyer traffic index derived from survey data rose to 65.1 from 59.0. Oppenheim notes that "only Charleston, Orlando, and Tucson failed to meet agents' expectations, while notable improvement was seen in the formerly-lagging Chicago and New York markets along Texas markets (Austin, Dallas, and Houston each increased by at least 14 points)."

Meanwhile, housing supply continues to fall and the length of time it takes to sell a home fell to a new low. Oppenheim says both of these factors point to further price gains this spring.

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How are Current Mortgage Rates Determined?

Locking in low mortgage rates is more than the luck of the draw. There are many components that contribute to how mortgage lenders gauge the rate range they offer to borrowers.
Here are three major influencers of mortgage rates today.

#1. Supply and Demand

Like any business, the issue of supply and demand must be assessed in order to determine what to charge customers for a service. In the case of mortgages, the mortgage crisis of 2008 sent demand for mortgage loans plummeting as supply shot through the roof. The ample number of mortgage lending options in the market and a disinterest in home financing resulted in current mortgage rates dropping to historic lows.

#2. Fed’s Regulation D

The banking operates in a single, large loop when it comes to the way interest rates are determined. The Federal Reserve sets certain requirements for all financial institutions with regard to how much money they must have on deposit.

Banks who do not have enough funds to meet the Fed’s Regulation D requirement, can choose to borrow the cash from other financial institutions or the Federal Reserve itself. However, as with all loans, this borrowing comes at a cost. The borrowing institution must pay interest on the loan while still generating a profit, so consumer mortgage rates are increased as a result.

#3. Likelihood of Default

In addition to the aforementioned factors that drive mortgage rates today up or down, borrowers’ credit histories play a significant role in the rate range they can expect to receive upon submitting a mortgage application.

Even if current mortgage rates are at an all-time low, borrowers who have a less than stellar credit history, and especially those without a substantial amount of equity or down payment to allot to the loan, will likely qualify for higher mortgage rates.

When lenders review a borrower’s creditworthiness, they are essentially making a judgement call as to whether the applicant is a high-risk for default. Lending money to an individual with a track record for making late payments or who doesn’t have any credit history to speak of leaves mortgage lenders with an immense level of uncertainty as to whether they’ll even get their money back.
As a result, mortgage providers will often increase mortgage rates to expedite the return of their money, to reduce their chances of loss in the long-term.

Despite these factors, borrowers who have diligently worked toward maintain a strong credit history can still accomplish their dream of owning a home by taking advantage of mortgage rates today, while they’re still incredibly affordable.


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6 Ways to Sell Your Home This Fall

BOSTON (TheStreet) -- Fall is second only to spring as the busiest time of the year for home sales -- and Idaho Realtor Gail Hartnett sees this autumn as an especially good time to have your property on the market.

"Inventory is low, so if you have your house on the market and is priced well, it's going to sell," says Hartnett, a National Association of Realtors regional vice president and an agent with Keller Williams Realty Boise.

Home sales in Idaho and many other U.S. locales are rebounding this fall as low prices, improved consumer confidence and rock-bottom mortgage rates bring buyers out. At the same time, many would-be sellers are either too discouraged to put homes on the market or are waiting for prices to rise, creating a shortage of available homes in much of the country.

Add in the fact that many people travel to their hometowns for Thanksgiving, football games and the like and Hartnett believes it's a bad idea to keep your property off of the market this fall.
"People who've been thinking of moving back home will look at some houses when they come for a visit, and finding the perfect place will push them into action," she says. "But if your place isn't on the market, they won't see it."

Houses that boast green grass and lush gardens in the spring, though, look a lot less inviting during the fall.

Here are six things Hartnett recommends all would-be sellers do this autumn to adjust for that and get a home moving:

Give your home a cozy smell
Fall brings back childhood memories of hayrides and Thanksgiving dinners for many, and Hartnett recommends maximizing your place's "homey" feeling this time of year.
The Realtor always has spiced cider, fresh-baked cookies or other warm and friendly fare cooking up in during showings and open houses at properties she's listing.

"We take some big old pots and dump cider in them, then warm it up and the whole house smells good," Hartnett says. "It's just a warm, homey smell that makes people feel good when they enter."
She places cider and cookies ready for serving in a strategically out-of-the-way place visitors reach only after touring the house. That way Hartnett has a chance to "pitch" the house to buyers while they snack.

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How To Spot A Home That Might Sell Below Its Real Estate Value

Want to increase your chances of buying a home below current real estate value? Just look for a seller who didn’t listen to his agent.

The best real estate agents encourage their sellers to do whatever it takes to get the home in its absolute best condition before going to market. The better the home shows, the more likely the seller will get top dollar.

Sometimes, this could be as simple as removing personal items or decluttering. Other times, an agent will suggest bigger fixes, such as painting, replacing carpet or upgrading countertops or cabinets. Savvy sellers listen to their agents, make the changes suggested and go to market in top form. That’s not always how it plays out, however.

For any number of reasons, many sellers protest suggested fixes. Either they don’t want to be inconvenienced, don’t believe the fixes will matter or don’t have the financial resources to make it happen. Inevitably, this means the buyer will get a discount on that property.

How to spot a home that might sell below its value
Is there a home for sale in a good neighborhood and in the desired school district that seems to be well-priced but for some reason isn’t selling? This is the home you want to investigate, because chances are the seller didn’t listen to his agent. Specifically, here are some tell-tale signs to look for.

Big furniture or a lot of furniture
Most people don’t buy furniture to use when staging their home. Often a seller may have a lot of furniture in one room, which makes the room look small to potential buyers. Real estate agents and professional home stagers know this all too well. For example, stagers always suggest a small loveseat over a full-blown couch or sectional sofa. Also, in the bedrooms, king beds often take up too much space. So a stager will often push the seller to swap it out for a queen or full-sized bed.
When you enter a house that seems crowded with furniture, imagine the rooms with fewer or smaller pieces. Be aware that plenty of potential buyers won’t get past the sense that the rooms are too small, and they’re likely to move on to a home that feels bigger. In turn, this could give you room to negotiate a good deal with the seller.

Dark rooms
There was a home in West Hartford, CT on a great block, but the interior was dark. Three large French doors in the living room led to a deck, but the doors were stained black, and the carpet was brown. On top of that, the window coverings were big, heavy and overtook the room.
The house sat on the market for months, even though the price wasn’t far off the real estate market value. Here’s why: Every buyer walked in and out because the house was so dark. After the home had been on the market for three months, a smart buyer made an offer $40,000 below asking and ended up getting it.
Before the buyer moved in, he removed the window coverings, stripped the stain on the doors and painted them white, pulled up the old carpet and had the floors stained to a lighter oak. Right away, the dark room became light, bright and welcoming. The buyer’s total cost: $9,000, which instantly added $31,000 to his equity.

Grandma or Bambi staring down from the walls
Buyers are looking to see themselves — and not the current owners — in a home. Too often, however, the seller hasn’t “depersonalized” his home enough, or at all. Even though the listing agent may have told the seller to clear the house of his possessions, the seller may be proud of his accomplishments and resist.
And so potential buyers are treated to walls decorated with diplomas, family photos, awards and trophies. Moose and deer heads hanging on walls are surefire deal killers, especially when the hunting rifle used to kill Bambi is proudly displayed, too. At best, buyers tend to see such highly personal stuff as clutter that takes the focus away from the home. They’re turned off by it all, and they walk away.
They might also be walking away from a great deal. Are the bones of the home good? Does it have the floor plan you like? Are the kitchens and baths in acceptable condition? Is it in the area where you want to live? If you say “yes” to all of these, hang around a little longer. Imagine the home without the seller’s junk. Picture yourself living there, without Bambi.

A good home that doesn’t show well = a great opportunity
Ultimately, sellers who don’t listen to their agents or stagers inadvertently give savvy buyers a discount. For you to see that potential, try to understand as much as you can about why the seller is selling. Look for sellers who have ignored their agent’s advice. While conventional wisdom says that a buyer would be turned off by a home that shows poorly, go against this. Imagine the potential. And then, once the home is yours, make those small changes the seller should have made. Right away, you’ll have a little bit (maybe even a lot) of equity, thanks to the seller.


Read more: http://www.zillow.com/blog/2012-10-22/how-to-buy-a-home-below-current-real-estate-value/#ixzz2ADulUmkK

WI Lake Homes -- Think Beyond Summer

RECHARGE, RELAX, REFRESH: attend RETREAT for Couples who Care for Others in Their Home

Home truly is “where the heart is.”  Caring for someone you love whose battling memory loss, stroke, cancer, or any serious condition requires love, strength, and Grace.  It can be a difficult time and a beautiful one as well. 

Whether caring for a spouse, a child, a parent or grandparent, it’s easy to become overwhelmed, over-stressed, and wonder if the only relief is jumping overboard. 

“SPIRITUAL RENEWAL for the CARE PARTNER JOURNEY” is a 1-day retreat offering care partners a chance to recharge, relax, and return HOME refreshed and ready to continue the loving journey.  It’s happening this Friday in SHEBOYGAN FALLS.   

Pre-registration is required so I encourage you to read the retreat details from today’s Sheboygan Press below and call Kathleen Manny right away so you can attend this spiritual day of renewal.

Lori Koschnick

www.HomewardBoundPro.com
“Life is a voyage that’s homeward bound.” HM

Family Caregivers Coalition offering retreat for care partners

11:00 PM, Jun. 21, 2011 | SHEBOYGAN PRESS

The Family Caregivers Coalition in Sheboygan County is offering "Spiritual Renewal for the Care Partner Journey," a retreat for care partners on Friday June 24, from 8:30 a.m. to 3:30 p.m. at Sharon S. Richardson Community Hospice, W2850 State Road 28, Sheboygan Falls.

The interactive retreat is ideal for individuals who wish to strengthen their relationship and discover resources and gain skills to face the challenges of cancer, Parkinson's, multiple sclerosis, low vision, mild memory loss, stroke, COPD or other life changing conditions.

The cost is $10 per person, with lunch included.

Participants will learn and practice simple journaling techniques for stress relief and simple and therapeutic massage touches to aid in blood circulation and passive muscle movement. They will experience the soothing quality of harp music, and discover their inner strength to face challenges in their journey as a caregiver or care recipient.

Preregistration is required. Call Kathleen Manny at 920-467-4100 to register.

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