Why of Rising Interest Rates and When Renting can trump Buying

Why Are Mortgage Interest Rates Increasing?

According to Freddie Mac’s latest Primary Mortgage Market Survey, the 30-year fixed rate mortgage interest rate jumped up to 3.94% last week. Interest rates had been hovering around 3.5% since June, and many are wondering why there has been such a significant increase so quickly.

Why did rates go up?

Whenever there is a presidential election, there is uncertainty in the markets as to who will win. One way that this is noticeable is through the actions of investors. As we get closer to the first Tuesday of November, many investors pull their funds from the more volatile and less predictive stock market and instead, choose to invest in Treasury Bonds.
When this happens, the interest rate on Treasury Bonds does not have to be as high to entice investors to buy them, so interest rates go down.  Once the elections are over and a President has been elected, investors return to the stock market and other investments, leaving the Treasury to raise rates to make bonds more attractive again.
Simply put, the better the economy, the higher interest rates will go. For a more detailed explanation of the many factors that contribute to whether interest rates go up or down, you can follow this link to Investopedia.

The Good News

Even though rates are closer to 4% than they have been in nearly 6 months, they are still slightly below where we started 2016, at 3.97%.
The great news is that even at 4%, rates are still significantly lower than they have been over the last 4 decades, as you can see in the chart below.

Any increase in interest rate will impact your monthly housing costs when you secure a mortgage to buy your home. A recent Wall Street Journal article points out that, “While still only roughly half the average over the past 45 years, according to Freddie Mac, the quick rise has lenders worried that home loans could become more expensive far sooner than anticipated.”
Tom Simons, a Senior Economist at Jefferies LLC, touched on another possible outcome for higher rates:

“First-time buyers look at the monthly total, at what they can afford, so if the mortgage is eaten up by a higher interest expense then there’s less left over for price, for the principal. Buyers will be shopping in a lower price bracket; thus demand could shift a bit.”

Bottom Line

Interest rates are impacted by many factors, and even though they have increased recently, rates would have to reach 9.1% for renting to be cheaper than buying. Rates haven’t been that high since January of 1995, according to Freddie Mac.

This is a good time to buy a home.  Want help connecting with an Accredited Buyer's Representative near you?  Give me a call (Lori Koschnick 920-901-4373).  It's a pleasure to help!  

Seller's Dilemma: OTM, FSBO or List Again?

 

When a ‘listing for sale agreement’ on a house is about to expire, home sellers must decide to either take their house off the market (OTM), For Sale by Owner (FSBO), list it again with the same agent, or list it again with a different agent.

Let’s assume you or someone you know is in this situation and take a closer look at each possibility:

 

Taking Your Home off the Market

In all probability, after putting your house on the market and seeing it not sell, you’re going to be upset. You may be thinking that no one in the marketplace thought the house was worthy of the sales price.

Because you are upset, you may start to rationalize that selling wasn’t that important after all and say,

“Well, we didn’t really want to sell the house anyway. This idea of making a move right now probably doesn’t make sense.”

Don’t rationalize your dreams away. Instead, consider the reasons you decided to sell in the first place. Ask your family this simple question:

“What made us originally put our home up for sale?”

If that reason made sense a few months ago when you originally listed the house, chances are it still makes sense now. Don’t give up on what your family hoped to accomplish or on goals your family hoped to attain.

Just because the house didn’t sell during the last listing contract doesn’t mean the house will never sell or that it shouldn’t be sold.

 

Re-Listing with your Existing Agent

For whatever reason, your house did not sell. Perhaps you now realize how difficult selling a house may be or that the listing price was too high, or perhaps you’re now acknowledging that you didn’t exactly listen to your agent’s advice.

If your listing agent's marketing and advice was exemplary, you may want to give your existing agent a second chance. That’s a perfectly okay thing to do.

However, if your agent didn’t perform to the standard they promised when they listed your home or you believe a different marketing style or additional services can lead to a sale, you may want to FSBO or try a different agent.

 

For Sale by Owner

You may now believe that listing your house with an agent is useless because your original agent didn’t accomplish the goal of selling the house. Trying to sell the house on your own this time may be alluring. You may think you will be in control and save on the commission.

But, is that true? Will you be able to negotiate each of the elements that make up a real estate transaction? Are you capable of putting together a comprehensive marketing plan? Do people who FSBO actually ‘net’ more money? 

If you are thinking about FSBOing, take the time to learn about testing and inspection contingencies, what financing products are suitable for purchasing your home and what are not, the average timeline in your current marketplace from application to financial commitment, the difference between a standard appraisal and an appraisal for U.S.D.A, VA, FHA, or WHEDA financing, state mandated disclosures, municipal regulations, current market value, the minimum acceptable down payment for various financing products, compliance with Fair Housing Laws as reflected in both your marketing and with whom you agree to schedule showing appointments and negotiate a sale, and where to find credible contractors for speedy evaluations and cures (asbestos, electric, fireplace, foundation, HVAC, LBP abatement, mason, pest control, radon, roofer, septic, surveyor, water, well, etc).

 

List with a New Agent

After failing to sell your home, you may no longer trust your agent or what they say. However, don’t paint all real estate professionals with that same brush. Have you ever gotten a bad haircut before? Of course! Did you stop getting your hair cut or did you simply change hair stylists?

There is good and bad in every profession—good and bad hair stylists, agents, teachers, lawyers, doctors, police officers, etc. And just because there are good and bad in every line of work doesn’t mean you don’t call on others for the products and services you need. You still get your hair cut, see a doctor, talk to a lawyer, send your kids to school, etc.

 

Bottom Line

You initially believed that using an agent made sense. It probably still does. Let's get together and discuss the possibilities.  It's a pleasure to help!

Home Improvements that Help Sell: In The Kitchen

Top Kitchen Design Trends for 2016

Photo credit: William Lesch; designed by: Lori Carroll and Associates, Tucson, Ariz.

Transitional, traditional, and contemporary styles remain the most popular in kitchen design but two new kitchen styles are popping up: industrial and farmhouse, according to the 2016 Design Trends Survey from the National Kitchen & Bath Association.

Neutral colors remain the dominate color scheme, with whites/off-whites, grays and beiges/bones being the most popular by far. Sixty percent of survey respondents report utilizing two or more colors within a kitchen space, a trend that has been growing since 2015. The two-tone trend is also growing more popular within kitchen cabinetry. Forty-two percent of designers report using a mix of color cabinets in their recent remodels. Respondents also reported in mixing up the kitchen color palette by using a different countertop material for the island versus the perimeter of the counter space.

NKBA reports the following top 10 kitchen design trends for this year:

1  Transitional style, with contemporary emerging.

Photo by: Jeremy Swanson; Designed by: Anne Grice Interiors, Aspen, Colo.

2  Gray/white/off-white cabinets.

Photo credit: Craig Thompson; designed by: Kitchen & Bath Concepts of Pittsburgh, West View, Pa.

3  Pull-outs, tilt-outs and tilt-ins for storage.

Photo credit:  Craig Thompson; designed by: Kitchen & Bath Associates of Pittsburgh, West View, PA

4  Wood flooring.

5  Quartz and granite countertops.

Photo credit: Mike Kaskel; designed by: Kitchen Encounters, Annapolis, Md.

6  Outdoor kitchens (mostly in the southeastern part of the U.S.)

7  Built-in coffee stations and wet bars.

8  Pocket doors.

Photo credit: William Lesch; designed by: Lori Carroll & Associates, Tucson, Ariz.

9  Special pet spaces (e.g. designated feeding stations, under-counter crate areas and special pull-outs to store pet food and toys)

Photo credit: Craig Thompson; designed by: Kitchen & Bath Concepts of Pittsburgh, West View, Pa.

10  Docking and charging stations.


By Melissa Dittmann Tracey, REALTOR® Magazine

Buying a Home, Summer 2015

Buying a Home Summer 2015 by Lori Koschnick

Home Selling Process

Go Home . . . and Bring Home that Dog!

#HomeRocks.  Home Rocks with even more gusto when you adopt a pet and bring home a dog.  My dog is part of the family and my greatest fan -- his big face is in the window watching me pull away from the garage when I leave home and it's there again to cheer on my homecoming at the end of the day.

"Belly-Boy" (short for Bellamie, which I'm told is French for "beautiful friend") is my buddy, gives great hugs, and is the cover-dog for this video pictured above .  The breed comes from the Pyrenees Mountain range along the border of France and Spain. Belly-Boy pops up again at the tail end of the 30 second video with my son.  The photos were taken just moments after we adopted this Great Pyrenees puppy. 

You'll see our first Great Pyrenees love, "Champ" (short for "Sir Woolly Britches" -- my husband refused to call out "Sir Woolly Britches!" in public) at the end too.  He keeps watch over the new pup with his boy, "Luke."

Finding and procuring a home of your own, just like finding the perfect pet, is a process that requires a bit of waiting.  Often it involves plans to fulfill dreams of bringing home a 4-legged furry pet.  When you find a house that's "home" for you and you get the keys in your hand . . . finally, you can bring home the dog or cat you've always wanted.  They're waiting to go home too! 

Aa a friend of Adopt-a-Pet and home buyers, I'd like to help you find a home to call your own and a forever home for a dog or cat waiting to be adopted.  Coldwell Banker Real Estate is on a mission to help find forever homes for 20,000 dogs! 

Direct questions to Realtor, Lori Koschnick, independent agent for Coldwell Banker The Real Estate Group Inc.  Coldwell Banker offices are independently owned and operated.

Infor@LoriKoschnick.REALTOR  or  Lori@HomewardBoundPro

Where are Mortgage Interest Rates Heading?

Where are interest rates heading?

    http://goo.gl/zVmMTP

Zero Net Energy Real Estate

Zero Net Energy: Homes consuming only as much energy as they produce by renewable means.

A Hardworking-House Term to Know

Zero Net Energy is a goal for builders; learn what ZNE means for you.

If you have not yet heard the term “zero net energy,” or ZNE, you will soon be hearing it everywhere. Most simply it means that a building consumes only as much energy as it can produce by renewable methods. Since buildings consume about 25 percent of our nation’s energy, the savings and implications of ZNE are enormous. For several years the U.S. Department of Energy has supported innovation in this area by sponsoring the Solar Decathlon. The biannual competition invites contestants to design and build a house that runs primarily on solar power and produces as much electricity as it consumes.

California building codes have already mandated implementation of ZNE by phasing in complete compliance by 2020 for all new homes, and remodels and additions that significantly upgrade a house, constructed in the state. Since California has at least 10 percent of the nation’s population and the ninth largest economy on the planet, its influence in this area is quickly scaling and spreading across North America. However, California codes prioritize renewable energy production last on the list of requirements that can assist with a home’s compliance. Energy consumption reductions and improved building design performance standards and technology are being phased in first.
 
Here are a few things that can be and already are being addressed by innovation to achieve this goal.

Caddis Architecture

Financing the investments. When ZNE applications show a return on investment in a relatively short amount of time, financial entities are keenly interested in supporting them. California has built incentives into its programs to promote them. Yet the savings on energy consumption alone has propelled lending institutions to support them, as they clearly see the payoff. The trend is spreading. The Colorado residence seen here, by Caddis Architecture, was designed to be ZNE. While its progressive and innovative design embraces a contemporary aesthetic in conjunction with achieving ZNE, vernacular home design, as illustrated in the Florida home below, can be adapted to meet this goal just as easily.

Energy Smart Home Plans

Crisp Architects

Reducing consumption. Probably the most obvious energy-saving consideration is doors and windows. In the past the glass-enclosed sunroom seen here, by Crisp Architects, would have been impractical during New York’s winter months. Dual- and triple-paned glass, along with other techniques and advances in window design, allows configurations to reduce energy use. In the Seattle house below, awnings with automated systems that sense rain and shading requirements provide a more passive solution to energy consumption at doors and windows.

Mohler + Ghillino Architects

Divine Design+Build

Regulating consumption. The incandescent bulb is gradually being phased out. First, compact fluorescent lamps took their place, which cut energy usage significantly. Lately, LEDs, or light-emitting diodes, have been cutting energy consumption even more. These compact and long-lasting fixtures not only greatly save energy, but they also allow innovative and dramatic lighting effects to be achieved.

The flush and elegant undercabinet fixtures seen here have been mounted snugly, keeping the crisp, clean lines in this modern kitchen. Dramatic lighting effects define the contemporary bath design below. In addition, LEDs can be designed to change color, adding another dimension.

Brilliant SA

Paragon Kitchens

Managing consumption. If you think all of your home electronics and mobile devices that need electricity are contributing to a larger electric bill, you are correct. Utility companies estimate that about one-third of an average home’s juice is consumed by such equipment.

Most appliances and electronics with power cords plugged in draw some electricity even when their power button is off. One of California’s goals is to require switches on all electrical outlets so that electronics that normally stay plugged in can more easily and conveniently be switched off.

Even if you just can’t live without the soft yellow glow of the incandescent bulb in your favorite lamp, you can save energy by installing a dimmer switch on that light fixture or on a hardwired light switch that controls it. Dimmers can save half or more of the energy of a bulb’s full capacity.

Legrand, North America

Another California requirement is that lights in certain rooms, such as baths and garages, be connected to motion sensors. This helps, for example, to keep the kids in check when they go around the house turning on the light in each room they enter without turning if off when they leave. In addition, depending on the type of room, incandescent fixtures are not allowed to be installed. The state requires that any hardwired fixture be “high efficacy.” This can be types with compact fluorescent bulbs or LEDs.

Greenstar Technologies

Usually on the higher end, there are systems with control panels, like this one, or ones that can be coordinated with a smartphone application. The ability to manage systems throughout the home will allow consumers not only to monitor their own habits, but to coordinate with peak energy demands in their regions. Utility suppliers place a premium on consumption during the hottest days of the year, for example, when demand surges. Being able to use less air conditioning on those days and planning to spend time out of the house can be a strategic method to lower your bills and help the system meet demand where it is needed most.

Norocom Smart Home

In addition, lighting that can respond to daylight, building designs that allow in sufficient daylight to minimize or eliminate the need for artificial lighting, and windows and ventilation that can be automated to respond to desired interior conditions are other features that can help to reduce and manage energy consumption.

Nest

Employing technology. A good example of such technologies is the Nest thermostat, which works with smartphones to assist in the management of a home’s climate. A good example of how Nest can save you energy is to consider a time when you are out of town for business. Let’s say you are in Los Angeles for three days, and a heat wave has enveloped Dallas, where you live. You set the temperature in your house to 82 degrees Fahrenheit while you are away, which keeps your electricity consumption down. When you board the plane in L.A. to return to Dallas, you open the app and set the temperature in your house to 72 degrees. By the time you get home, the temperature in your house will be just right.

Nest

Daedalus Design Build

Daedalus Design Build

One of the best advantages of California’s implementation of energy codes is that the price of photovoltaic technology is falling dramatically. While California will always have abundant sunshine, it is likely that future household mechanical systems will use several technologies in unison to achieve a home’s energy demands and climate control. The urban Philadelphia residence seen here employs geothermal, solar electric and solar thermal systems to provide comfort. The Montana home below uses geothermal and solar systems for a large and sprawling design.

Teton Heritage Builders

Teton Heritage Builders

Solar panels double as shade devices and overhang protection for the doors of this Seattle house. Traditional architecture, as seen below, can include solar panels just as easily. Look for a future in which any house can be retrofitted with a myriad of technologies, as the solutions likely will be fluid and flexible.

Albertsson Hansen Architecture, Ltd

Energy storage. Probably the biggest challenge at this time is energy storage. It is currently difficult to achieve on an individual scale. Our public energy grids are still primarily dependent on power generated by fossil fuels, which can be readily adjusted based on demand. There are already problems with utilities wishing to maintain control of the energy grids and how they will handle the influx of individually generated supplies. Flexibility, on both the individual and public levels, will probably solve all of the challenges. Zero-net-energy homes may sound complex, but imagining zero dollars for electric bills, for at least a couple of months a year, seems simple enough.

Steven Randel, California licensed architect & contributing writer at HOUZZ

75 Dead (Occupation: Real Estate)

A Vacant house, a Stranger, an Urgent request to Meet there Immediately . . . Absurd? It happens all the time to Realtors. In the hyper-competitive real estate profession you know if you don't jump, the buyer will find another Realtor who will. You know this kind of call is unlikely to be fruitful . . . but the eternally hopeful optimistic adrenaline junkie inside you starts cheering from the back of your mind, "What if this is the exception? Go! Go help Buyer...Go get it sold..." As Realtors, closings feed our families.

63 Dead in 2013:  38 Accidental . . . 25 Homicides.  The Bureau of Labor and Statistics reports an occupational average since 2003 of 75 fatalities per year industry-wide (real estate for sale, rent, lease).

As an industry, perhaps it's time Realtors re-educate the the buying public on the home buying process and implement professional courtesy standards requiring buyers to meet Realtors at their real estate offices for a Buyer Consultation prior to showing appointments and obtain from buyers a written pre-qualification/pre-approval for financing or proof of available funds for purchase prior to scheduling property showings. Perhaps the National Association of REALTORS® can amend the Realtor Code of Ethics to include a professional courtesy Article like this to promote Realtor safety, professionalism and productivity, buyer education and preparedness, and increased seller satisfaction by limiting showings to only buyers who have provided Realtor with a written verification of their ability to buy.  

Is expecting buyers to verify their ability to purchase what a seller has prepared for them, Realtor has researched and will devote their workday to showing them . . . too inconvenient for real estate buyers . . . or too radical to implement?  Or would serious buyers, sellers, local real estate boards/associations, state organizations like the Wisconsin REALTORS Association and Realtors across America benefit if such an Article is added to the National Association of Realtors' Code of Ethics? 

Until we take a stand together as Realtors and make such a pledge to each other, there will always sellers preparing their properties for "buyers" who cannot buy and Realtors who will feel the need to sacrifice professionalism, jumping to the urgent call and placing their personal safety at risk so they don't lose the potential sale to another Realtor.  

Certainly there are occupations far more dangerous than "Realtor."  Aside from cases where clumsiness and slippery walkways are involved, we shouldn't see any fatalities in this industry.  Homicides resulting from stranger-danger in our workplace can be avoided. 

This is an industry of professionals dedicated to helping people find and acquire "Home" -- a place of safety and security, where treasured memories are made, dreams come true and love abounds.  Can't we keep fear of occupational fatalities out of real estate by implementing a simple safety rule into the Realtor Code of Ethics?  

Maybe if the job description demanded we climb columns and peek in windows to avoid soiling sellers' carpets and save fuel by leaving the car at the office and hopping rooftop to rooftop to rooftop to show properties . . . then it might be difficult to avoid occupational fatalities.  Opening a door . . .  Homicide?

Let's stand beside each other and our seller-clients and take an oath to protect our professionalism, our safety, and our selling clients from the horrors and heart-ache that we create when bringing buyer prospects with unknown purchasing capabilities, unknown motives, and unknown histories into neighborhood properties.

http://www.bls.gov/news.release/cfoi.t02.htm

to Dream Fearlessly . . . The American Dream Lives

To dream fearlessly . . . to pursue our dreams with determination and courage . . . to believe we will successfully transform our dreams into our reality . . . to pick ourselves up when we fall, continuing the pursuit of our dreams . . . to overcome obstacles with creativity, sweat, faith . . . and persevere until we are living the dream (which inspires us to new dreams/goals) . . . is the heartbeat of America.


Home - Family - Career - Health - Joy - Love - Friendship - Education . . . The American Dream lives.  Pursuing my dreams while helping others pursue and achieve their dreams is my career as an independent real estate agent for Coldwell Banker The Real Estate Group Inc., an affiliate of Coldwell Banker Real Estate LLC.  More than profession, being a Realtor is an amazing experience.

To those who have given me the honor of helping them pursue their dreams during these seven years, Thank You!  You who are ready to pursue your dream of home -- be it the dream of your first home or vacation home or larger home or smaller home; be it a dream of extravagant luxury, the extravagance of "downsizing" and simplicity, and anywhere in between -- you can call on me to be your advocate and help you achieve your dream.

American Family Insurance, like Coldwell Banker, inspires us to Dream Fearlessly.   Enjoy the music video.  Be inspired.  Dream.


                          

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.

No Time to Mourn - I love Real Estate & Mondays. What's Your Experience Been?

#1, Must Follow, Rule to Sell Your Home

SELLING in a Buyer's Market: Don't Panic; Prepare!

Buyer's Rep: on the road to closing.

WiRealEstateNow: SELLER I