14
Jan
By First Rate Financial Group
Mortgage

What Do You Need To Know About Buying And Selling A Home During The COVID-19 Pandemic?

What Do You Need To Know About Buying And Selling A Home During The COVID-19 Pandemic?For those who are thinking about buying or selling a home during the pandemic, they may feel like this is a difficult task. Even though it is true that this is going to be a challenge, people are able to increase their success rate by adapting to a new environment. When it comes to buying or selling a home during the pandemic, there are a few tips that everyone should keep in mind.

Many Showings Are Going To Be Virtual

Make sure that everyone is ready to provide a virtual tour or go on one themselves. Of course, everyone is currently living in an era of social distancing. Therefore, everyone has to make sure that they do not unnecessarily expose themselves to anyone. Virtual tours are a great way to adapt to this measure while still purchasing or selling a home. For those who are thinking about providing a virtual tour to someone else, make sure to take the time to explore all of the options available. Some software programs are going to be better than others.

Ensure There Is A Safe Way To Buy And Sell A Home

It is critical to think about other safety measures that people can take as well. Everyone has to make sure that they endear themselves to as many buyers as possible. In addition to providing virtual tours, it may also be helpful to provide hand sanitizer. Or, people need to make sure that they bring hand sanitizer. Of course, make sure to wear a mask at all times when someone is going to be within 6 feet of someone else. This is another important safety measure that everyone should take.

There Is Help Available During The Pandemic

Finally, it is also a great idea to note that there is financial help available. Lots of people have struggled during the pandemic. That is why there are financial resources available. Be sure to speak with a trained professional and figure out if there are ways to make the process of buying or selling a home just a little bit easier. This could end up saving someone a lot of time and money during the process.

21
Dec
By First Rate Financial Group
Financial Reports

What’s Ahead For Mortgage Rates This Week – December 21, 2020

What's Ahead For Mortgage Rates This Week - December 21, 2020Last week’s scheduled economic reporting included readings from the National Association of Home Builders and a statement from the Federal Reserve’s Federal Open Market Committee. Weekly readings on mortgage rates and jobless claims were also released.

NAHB: Builder Confidence Falls In December

Homebuilder confidence in market conditions for single-family dropped by four points in December to an index reading of 86.  December’s reading was the second-highest on record after November’s reading. Component readings of the Housing Market Index also dropped. Builder confidence in current market conditions fell to 92 as confidence in single-family home sales within the next six months fell to an index reading of 85. Homebuilder confidence in buyer traffic in new single-family developments dropped to 73; buyer traffic readings rarely exceeded 50 until recent months.

Regional Housing Market Index readings were also lower than in November. The Northeast, Midwest, and South reported readings three points lower than in November. The Western region’s reading dipped by two points month-over-month.

Fed Holds Key Rate Steady

The Federal Open Market Committee of the Federal Reserve announced no change to the current federal funds rate range of 0.00 to 0.25 percent. Citing severe economic challenges caused by the Covid-19 pandemic, the FOMC statement indicated that economic forecasts would be subject to the course of the virus and related impacts on public health, the economy, and labor markets.

The Committee stated its monetary policy would be flexible in response to the pandemic and the Federal Reserve’s dual mandate of achieving maximum employment and an inflation rate of two percent. The inflation rate has fallen short of the Fed’s objective of two percent; FOMC members amended the inflation rate goal to two percent or higher to compensate for the impact of repeated readings under the two percent mandate.

Mortgage Rates Hit Record Low; Jobless Claims Mixed

Freddie Mac reported new record lows for average mortgage rates last week. Rates for 30-year fixed-rate mortgages averaged four basis points lower at 2.67 percent. Rates for 15-year fixed-rate mortgages averaged 2.21 percent and were five basis points lower. The average rate for 5/1 adjustable rate mortgages was unchanged at 2.79 percent. Discount points averaged 0.70 percent for 30-year fixed-rate mortgages, 0.60 percent for 15-year fixed-rate mortgages, and 0.30 percent for 5/1 adjustable rate mortgages.

New jobless claims rose to 885,000 first-time claims filed as compared to 862,000 new claims filed the prior week. 5.51 million ongoing jobless claims were filed; last week’s reading was lower than the prior week’s reading of 5.78 ongoing jobless claims filed.

What’s Ahead

This week’s scheduled economic news includes readings on sales of new and previously-owned homes, inflation, and consumer sentiment. Weekly reports on mortgage rates and jobless claims will also be released.

14
Dec
By First Rate Financial Group
Financial Reports

What’s Ahead For Mortgage Rates This Week – December 14, 2020

What's Ahead For Mortgage Rates This Week - December 14, 2020Last week’s scheduled economic reporting included readings on inflation and consumer sentiment. Weekly readings on mortgage rates and jobless claims were also released.

Inflation Rate Rises in November

Inflation rose by 0.20 percent in November according to the federal government, but this reading fell short of the Federal Reserve’s goal of achieving 2.00 percent inflation annually. November’s year-over-year inflation rate was 1.20 percent. October’s inflation reading was flat and analysts expected inflation to grow by 0.10 percent in November.

Core inflation, which excludes volatile food and fuel sectors, showed readings identical to the Consumer Price Index reading. November’s Core Consumer Price Index was impacted by lower food and fuel costs.

Supreme Court Hears Arguments in Shareholder Suit over Fannie Mae and Freddie Mac

Fannie Mae and Freddie Mac were put under the oversight of the Federal Housing Finance Agency after the Great Recession and resulting mortgage crisis. The Supreme Court heard oral arguments regarding shareholder assertions that oversight of Fannie Mae and Freddie Mac is unconstitutional.

Mortgage Rates Mixed as Jobless Claims Rise

Freddie Mac reported no change in average fixed mortgage rates last week. Rates for 30-year fixed-rate mortgages averaged 2.71 percent; the average rate for 15-year fixed-rate mortgages was also unchanged at 2.26 percent.  Rates for 5/1 adjustable rate mortgages averaged 2.79 percent and were seven basis points lower than in the prior week. Discount points averaged 0.70 percent for 30-year fixed-rate mortgages, 0.60 percent for 15-year fixed-rate mortgages, and  0.30 percent for 5/1 adjustable rate mortgages.

First-time jobless claims were higher last week with 853,000 new claims filed as compared to 716,000 first-time claims filed the prior week. Analysts expected 720,000 first-time claims last week. Ongoing jobless claims also rose with 5.76 million claims filed as compared to the prior week’s reading of 5.53 million continuing claims filed. Increasing numbers of coronavirus cases caused higher than expected layoffs last week.

The University of Michigan’s Consumer Sentiment Index rose in December to an index reading of 81.4. Analysts expected December’s reading to decrease to 75.5 based on November’s index reading of 76.9. As winter progresses and Covid-19 cases continue to rise, consumer sentiment toward economic conditions will likely decline.

What’s Ahead

This week’s scheduled economic readings include reports from the National Association of Home Builders on housing market conditions; the Commerce Department will release reports on housing starts and building permits issued. The Federal Reserve will issue its Federal Open Market Committee Statement and Fed Chair Jerome Powell is slated to give a post-meeting press conference.