Market Commentary for the Week of September 29th

This week brings us the release of five monthly economic reports that are likely to influence mortgage rates with two of them being extremely important to the financial and mortgage markets. Those upper tier releases can cause significant movement in mortgage rates if they show surprises. Accordingly, it appears we will have a couple of days with noticeable changes in rates this week.

The first report is August’s Personal Income and Outlays early Monday morning. It gives us an indication of consumer ability to spend and current spending habits. This is relevant to the markets because consumer spending makes up over two-thirds of the U.S. economy. Rising income generally indicates that consumers have more money to spend, making economic growth more of a possibility. That is negative news for mortgage rates because bonds tend to thrive in weaker economic conditions. It is expected to show an increase of 0.3% in income and a 0.4% increase in spending. If we see weaker than expected readings, the bond market should react positively, leading to lower rates Monday.

September’s Consumer Confidence Index (CCI) is next, late Tuesday morning. This Conference Board index will be posted at 10:00 AM ET and gives us a measurement of consumer willingness to spend. It is expected to show a slight decline in confidence from last month’s reading, indicating that consumers were a little less optimistic about their own financial situations than last month. This means they are less likely to make a large purchase in the near future. That is favorable news for the bond market and mortgage rates because consumer spending fuels economic growth. Analysts are calling for a reading of approximately 92.0, down from August’s 92.4 reading. The smaller the reading, the better the news for the bond market and mortgage rates.

Wednesday has two reports scheduled that we need to watch. The ADP Employment report for September is first, set for release before the markets open. It has the potential to cause movement in the markets if it shows much stronger or weaker numbers than expected. This report tracks changes in private-sector jobs of ADP’s clients that use them for payroll processing. While it does draw attention, it is my opinion that it is overrated and is not a true reflection of the broader employment picture. It also is not accurate in predicting results of the monthly government report that follows a couple days later. Still, because we have recently seen reaction to the report, we will be watching it. Analysts are expecting it to show that 202,000 new payrolls were added. The lower the number of jobs, the better the news it is for mortgage rates.

The Institute for Supply Management (ISM) will post their manufacturing index for September at 10:00 AM ET Wednesday. This index measures manufacturer sentiment and it can be heavily influential on the markets and mortgage rates. Analysts are expecting to see a decline from August’s 59.0 reading, meaning surveyed manufacturers felt business conditions were a little weaker in September than they were in August. This data is important not only because it measures manufacturer sentiment, but it is also very recent data. Some economic releases track data that are 30-60 days old. But the ISM index is only a few weeks old and usually the first report we see each month. If it reveals a reading below 58.5, meaning sentiment fell short of expectations, we should see the bond market move higher and mortgage rates fall Wednesday.

Thursday’s monthly economic data will come from the Commerce Department, who will post August’s Factory Orders data at 10:00 AM ET. This manufacturing sector report is similar to last week’s Durable Goods Orders release, but also includes orders for non-durable goods such as food and clothing. It can impact the bond market enough to change mortgage rates if it varies from forecasts by a wide margin. Analysts are forecasting a decline of 9.3% in new orders, meaning manufacturing activity slowed in August. This would be good news for the bond market and mortgage pricing. However, I believe we will need to see a much larger decline for this report to cause a noticeable improvement in rates, partly because the data is skewed from a large spike in airplane orders during July.

The biggest news of the week will come from the Labor Department, who will post September’s Employment report early Friday morning. This report will reveal the U.S. unemployment rate, number of new payrolls added or lost during the month and average hourly earnings. These are considered to be very important readings of the employment sector and can have a huge impact on the financial markets. The ideal scenario for the bond market is rising unemployment, falling payrolls and a drop in earnings.

If this report gives us weaker than expected readings, bond prices should move higher and we should see lower mortgage rates Friday. However, stronger than forecasted readings could cause a sizable spike in mortgage pricing and start another upward trend in rates. Analysts are expecting to see the unemployment rate remain at 6.1%, an increase of 210,000 new jobs from August’s level and a 0.2% increase in earnings.

Overall, I suspect we will see a fair amount of volatility in the markets and mortgage rates this week, but the busiest days will probably be the latter part of the week. Labeling Wednesday and Friday as the most important days is easy due to the significance of the economic reports scheduled those days. The calmest day for mortgage rates will likely be Thursday but major moves in the stock markets could lead to movement in rates any day. With such important data and a relatively full calendar, it would be prudent to maintain fairly constant contact with your mortgage professional this week if still floating an interest rate.

Glorious Victorian Homes

One architecture stands out in Northern California: The Victorian home. From the famous Pacific Heights neighborhood in San Francisco down to Pacific Grove near Monterey, Victorian style homes are a staple. And who could forget the most famous one of all: The Winchester Mystery House.

What Makes a Victorian Home

The architectural style was made famous during the reign of Queen Victoria (1837-1901). And when we say style, it’s really more of an interpretation. with influences from the Middle East and Asia. There is a great attention to adding in decorations like gingerbread along the sides and pretend ornate cobwebs in the corners. This could also be referred to as “gothic revival.”

In Scotland, the architect Alexander Thomson was a pioneer of the use of cast iron and steel for commercial buildings, blending classic conventionality with Egyptian and Asian themes to produce many beautiful structures.

Here in the US, we had a few different flavors of Victorian Architecture:

• Second Empire
• Stick-Eastlake
• Queen Anne
• Richardsonian Romanesque
• Shingle

Common Features of Victorian Homes

• Bay windows
• Pointed, projecting porches
• Slate roofs
• Sash windows
• Detached houses (as opposed to the row houses from the prior Regency architecture)
• Basement with a cellar

What Should I Know If I Own a Victorian Home

One thing to remember is that the construction varies tremendously depending upon when and where the home was built. Specifically look at the floor joists to see if they used framing material that was too small. If you want to do any remodeling, you will be required to bring this up to code first.

Secondly, have a good look at the foundation. If it’s degraded, then you may need to replace it, and that can get costly. If the builders put it on a brick foundation, you will definitely need to replace it because it won’t withstand earthquakes.

In California, Victorians were typically built from redwood which is resistent to termites, and is a very long lasting wood.

Internally, though, you should check for dry rot. When the houses were built, there was no plumbing and electricity like there is today, and the contractor who put them in may not have done the best job.

You may need to upgrade the insulation, as the homes can get pretty damp and chilly.

Check the fireplace to see if it’s still in good shape and if it still works.

And as with all homes, find out the last time time roof was repaired or replaced, and how much time you have left on it.

Do you own a Victorian home? What’s your favorite part of it?

Mortgage News Roundup - Creative Ways to Pay Your Mortgage

Happy Thursday. It’s fairly wet here this morning, and we hope you’re getting a good deluge of rain where you’re at. First, we want you to know that this Saturday the 27th is Free Museum Day. Visit the Smithsonian Magazine online to find participating museums including everything from children’s museums to grand estates.

Secondly. this Saturday is also National Public Lands day when more than 100 parks across the country will waive their entrance fees. So, maybe this is the weekend to hit Yosemite.

Creative Ways to Pay Your Mortgage

If you’ve been looking for ways to bring in more income to pay your mortgage, you may want to consider renting out a spare bedroom, or set up a room for travelers. You can list the room in sites like Airbnb, Home Away, VRBO or BedandBreakfast.com and let them do all the work of finding you guests.

Consult your attorney, insurance agent, and local zoning office if your rentals are more a full-time business than a hobby. Also, understand your obligations in being a host.

You could also rent out your garage to be office space. It may sound silly, but that’s how Google got started. And the owner of the home is now CEO of YouTube.

And if you live in a very urban area, you could rent out your garage space just for the garage space. People who drive in will feel it’s safer than a garage park, and will feel confident that they will always have a spot in the big city.

Finally, you could set up your home to provide solar or wind electricity. If you have acres of high, clear, windy land that’s near high-voltage transmission lines, you could earn hundreds of thousands from a wind-power company. Even if you’re not, today’s technology allows for small-scale projects that could power your house and perhaps help supply the neighborhood.

Do some research and figure out if this is a good way to go for you.

Best Way To Boost Your Home’s Value Overnight

Want to boost the value of your home up to 28 percent overnight? Beef up the landscaping in front of your house. Big-ticket landscaping items such as mature trees, well-formed shrubs and a green lawn can increase the value of your home up to 28% and decrease the time it sits on the housing market by 10-15%, says Florida landscape economist John Harris.

Want to find out how much? The National Tree Benefit Calculator on the Arbor Day Foundation site can give you a rough idea of how much your street-side trees can add to your property’s value.

Uptick in US Housing Confidence Driven by an Unlikely Generation

As the housing recovery continues, Americans are growing more confident in the housing market in general. And that confidence comes in part from a potentially surprising source: millennial renters, who to date have been perceived by many as largely uninterested in and/or unable to attain homeownership.

Millennial renters (aged 18-34) often have a lot of student debt and pay very high rents in many of the nation’s largest cities, which can make saving for a down payment difficult. In addition, the inventory of the least expensive, entry-level homes is also tight, according to Zillow’s August Real Estate Market Reports.

“It’s heartening to see younger renters express so much confidence in their ability to buy a home in coming years, because today’s renters by necessity are tomorrow’s buyers,” said Zillow Chief Economist Dr. Stan Humphries.

Have a great weekend!

Staging A Home

The best way to sell a home for maximum profit is to stage your home and give it that move in ready feel. When people walk in and feel like they are already living there, you know you’ve got a well staged home.

So what do professionals do when they stage?

If you can, get a professional on your team. They will have years of experience and a specialized knowledge of what sells best in the neighborhood.

If you can’t right away, then here’s suggestions for your first few homes.

For starters, plan out the primary rooms, and then find a reputable furniture rental place that will have good looking furniture that isn’t beat up.

The primary rooms that you will want to appear ‘lived in’ are the living room, dining room, master bedroom, and all bathrooms. These are the rooms that essentially sell homes and it is important to make them appear neat, orderly, and well cared for. If you have the funds for every room in the home then by all means do so. It is a huge selling point, particularly for those who are trying to sell homes quickly.

Look to create an atmosphere of warmth and comfort. Hang prints on the walls, or mirrors. Strategically place plants and pillows. You do not have to purchase all the items. You can use things from your own home in order to establish this atmosphere of homelike comfort (but nothing you wouldn’t want to lose). Also, check out thrift stores for homey looking knick knacks.

Another things that may help an empty home sell are scents. There is nothing quite like the smell of cookies in the oven or flowers in bloom to make a home feel ‘homey’. You can mimic the scents with well placed scented candles, potpourri warmers, dry potpourri, fresh-cut flowers, and electric room air fresheners. Make sure you don’t leave a lit candle when you go home.

Keep in mind, though, that there are few things that will turn off potential buyers more quickly than an overpowering fragrance however so keep this in mind when selecting the method of fragrance. Having some fragrance in the home also eliminates the problem of an empty house taking on the ‘empty house’ scent that so many do over time.

If you’ve been living in the home, move out all the clutter to a storage facility. Board your pet if you have one, and vacuum quite a lot. In fact, when you’re selling the home, vacuum twice a day to keep it super crisp and clean looking.

If you have kids, reduce the toys to a bare minimum that can be easily packed when they leave the home before potential buyers arrive. Clutter is death to professional stagers.

5 Dirt Cheap Home Staging Ideas

Bankrate published their top 5 dirt cheap home staging ideas that you can do.

1. Pack away your personal items. (you need to pack before you move anyway)
2. Ask a friend or relative to hang onto your items for free.
3. Paint the rooms neutral colors.
4. Scrub and deodorize.
5. Mow the lawn, make sure the sidewalk and driveway are free of clutter and debris, and ensure the house number is easily visible.

Choosing Hardwoods for Floors

The rich patina of wood floors adds beauty and elegance to any home.

Older homes were once routinely constructed with hardwood floors, but that practice was abandoned in the 1950s, when new technologies made wall-to-wall carpeting available. Builders were able to build more homes faster, for the post-war baby boom, and save money on labor.

But today, many homeowners prefer hardwoods to carpet. Hardwoods help give the impression that your home is well-built with quality materials. Hardwoods are easy to maintain and improve with wear, unlike carpet that eventually needs to be replaced.

Hardwoods add value to your home, says the National Wood Flooring Association (NWFA). In a recent survey of participating real estate agents, the trade association found that real estate agents said that a house with wood floors would sell faster than a carpeted house, by a margin of three to one. About 58 percent said a house with wood floors would bring a higher price.

If you have hardwoods under carpet, it’s easy and inexpensive to tear the carpet out and refinish your floors. Or, you can choose to install hardwoods if there’s only sub-floor underneath the carpet.

You have several options:

Solid hardwoods – Solid hardwoods are the most expensive option. They come in planks of various lengths and are typically 3/4′ thick. The floors are installed as raw wood and sanded down and stained on site. The advantage is that your floors can be refinished often over the years. Solid hardwoods are not recommended over concrete slab foundations. Disadvantages are that hardwoods cannot be washed with water, water leaks can cause them to bow, and direct sunlight can cause stained finishes to bleach.

Engineered hardwoods – Composed of layers or plies of wood that are glued together and finished with a laminate, engineered hardwoods are finished with a final layer of hardwood that is generally between ¼” and ½” thick. The advantage of engineered hardwoods is that they are suitable for any foundation. Drawbacks are that laminated floors usually cannot be refinished.

Engineered hardwoods come in a variety of styles, such as long-strip hardwoods in which the flooring can be installed several “planks” at a time. Parquet floors are also engineered with strips of hardwoods laid like tiles that form patterns such as herringbone. Floating floors are planks that fit together and can be glued or nailed down to the subfloor.

Stains and finishes

If your floor comes unfinished, you need to know what kind of wood it’s made of in order to select a stain, as different woods can make stain colors change tone. A good way to choose is to ask the installer for samples, or you can go to a local paint and home improvement store and view stain colors. Sherman Williams “Wood Classics” have color charts just like paint, so you can see how the stain you choose will appear on your wood floor.

Keep in mind that unfinished floors must be sanded, stained and sealed on site, which is labor intensive, time consuming and messy as you wait for each layer to dry. Factory finished floors are usually warrantied, they can be installed immediately which saves time and labor, and only the glue to the subfloor has to dry.

Finishes are important to choose because they dictate how you will care for your floor. If your floor has a penetrating seal, you will have to wax it to keep it burnished. If the floor is sealed with a urethane, polyurethane or other polymer coat, it’s water resistant and easy to clean with a mop.

Types of wood

The most common woods for floors are species of oak, pine, walnut, pecan, birch, beech, ash, cherry, maple, cypress and Douglas fir.

Wood for floors can be exotic, and are prized for their unusual grains and colors. Exotic woods include mahogany, teak, and Brazilian cherry.

One of the most popular flooring options is actually a grass, not a wood. Bamboo is a quick-growing resource that is easily replenished, making it a good choice for green-building. Bamboo can be cut and finished like any hardwood, and is more durable in some cases.

To learn more about wood floors, visit Woodfloors.org.

Written by Blanche Evans

Market Commentary for the Week of September 22nd

This week brings us the release of five relevant economic reports for the bond market to digest in addition to two potentially influential Treasury auctions. Most of the reports are considered to be of moderate to fairly high importance to the markets, so they do have the potential to affect mortgage rates although I am expecting to see less volatility in the financial and mortgage markets than we saw last week.

The first report of the week is August’s Existing Home Sales from the National Association of Realtors late Monday morning. This report will give us an indication of housing sector strength by tracking home resales in the U.S. It is expected to show a small increase from July’s sales, indicating the housing sector improved slightly last month. However, this data probably will be neutral towards mortgage pricing unless its results vary greatly from forecasts.

August’s New Home Sales will be released late Wednesday morning. The Commerce Department is expected to say that sales of newly constructed homes rose last month, indicating strength in the new home portion of the housing sector also. This report will likely not have a noticeable impact on mortgage rates unless its readings differ greatly from forecasts. This is the week’s least important report in terms of potential impact on mortgage rates, partly because it covers only the small portion of all homes sales that Monday’s Existing Home Sales report does not.

The Treasury will sell 5-year Notes Wednesday and 7-year Notes Thursday. They will tell us if there is an appetite in the markets for medium-term securities. If investor demand in these sales is strong, particularly from international buyers, the broader bond market should move higher, pushing mortgage rates lower. But a lackluster interest from investors could lead to bond selling and higher mortgage pricing. The results of the sales will be announced at 1:00 PM ET each day, so any reaction to the results will come during afternoon trading Wednesday and Thursday.

Thursday’s only monthly data is August’s Durable Goods Orders, which is the week’s most important report. This report gives us an indication of manufacturing sector strength by tracking orders for big-ticket items at U.S. factories. Big-ticket products are items that are expected to last three or more years such as electronics and appliances. Analysts are expecting to see a large decline in new orders, indicating weakness in the manufacturing sector. A larger decline than the 16% that is being forecasted should help boost bond prices and cause mortgage rates to drop Thursday because signs of economic weakness make longer-term securities more appealing to investors. However, a much smaller decline or an increase in new orders would indicate a stronger than expected manufacturing sector that would likely help push mortgage rates higher. It is worth noting that this data is known to be quite volatile from month-to-month, so a slight or moderate variance may not affect mortgage pricing.

Friday morning has the final revision to the 2nd Quarter Gross Domestic Product (GDP). Since this data is aged now and the preliminary reading of the 3rd Quarter GDP will be released next month, I don’t see this revision having much of an impact on the financial markets or mortgage pricing. The GDP is important because it is the total sum of all goods and services produced within the U.S. and is considered the best measurement of economic activity. It is expected to show that the economy grew at an annual rate of 4.6%. This would be a stronger pace than the previous estimate of 4.2%, making the data negative for bonds and mortgage rates. The lower the number, the better the news it is for mortgage rates.

The second report of the day is the University of Michigan’s revised Index of Consumer Sentiment for September. The preliminary reading that was released earlier this month showed an 84.6 reading. Analysts are expecting to see a small upward revision, meaning consumer confidence was slightly stronger than previously thought. Waning confidence is good news for bonds because consumers that are concerned about their own financial and employment situations are less likely to make a large purchase in the near future, limiting economic growth. Therefore, a lower than expected reading would be favorable news for bonds and should help improve mortgage rates.

Overall, I don’t see an obvious choice for key day of the week but Thursday has the single most important data of the five. So, let’s label it as likely to be most active although Friday does have two reports scheduled also. The least important day looks to be Tuesday with nothing of relevance scheduled. I suspect we will see changes in mortgage rates multiple days this week, but in small increments rather than sizable moves.

Fall Cleaning Checklist

It’s that time of year again! The mornings are chilly, the air smells like fall, and the leaves are falling. And that means it’s time to do some fall maintenance on your home to prepare it for winter.

Some items are just a visual inspection, and it’s good to get into the habit of knowing your home’s quirks. Others are things you will have to set aside more time to do.

Inspections

First, inspect the base of your home and look for new or larger cracks in the foundation.

Check your gutters. Do they need to be cleaned out yet? Then check them every two or three weeks and keep them clean. Add extensions to downspouts so that water runs at least 3 to 4 feet away from the foundation,


Inspect your roof and chimney for loose shingles or tiles and cracks. Make sure your spark guard is on tight.

Check the gasket in your wood burning stove or fireplace if you use it regularly.

Test the railings on stairs and decks.

Cleaning

Clean your patio furniture before putting it away into storage.

Schedule someone to clean your chimney before you use it this season.

Check and clean your storm windows. If you live in a colder climate, you may want to install them now.

Clean out your dryer vents. Get a brush or vacuum attachment and get the ducts really cleaned out, or hire someone to come in and take care of it for you.

Clean your mower, and drain the fuel out before you put it into storage.

Clean your barbecue before putting it away into storage.

Maintenance

Replace any worn out or torn weatherstripping around the doors. Newer, energy-efficient windows generally don’t require added weatherstripping, but if your windows are older, weatherstripping can keep drafts at bay and energy costs down.

Get your caulk gun and go to town around your home looking for any gaps. Caulk can be a great addition to your weatherstripping. Caulk early in the fall as colder temperatures make caulking difficult. Spend your time researching to find the correct caulk for what you’re doing.

Replace the filter in your heater. And consider having someone come out and do a maintenance check and tune up to ensure the pilot light is on and burning correctly.

Quick Tips

If you use a wood burning stove, get your wood now so it’s ready when you need it.

If you have a sump pump, test it now with a pail of water.

If you live in an area where your pipes may freeze, get some plywood. Then when there’s a freeze warning, set the boards against the exterior basement vents on whichever side of your house bears the brunt of your prevailing weather patterns. Just remember to remove them when the weather warms up as those vents do need to exhaust air.

Also, if you’re in an area that gets very cold, turn off your exterior faucets and drain your sprinkler system so you don’t have any nasty surprises in the Spring.

Don’t prune your trees until late winter.

If you use ceiling fans, change the direction so the hot air near the ceiling gets pushed down to the floor.

Gather up a supply of emergency equipment like batteries and water.

Change the batteries in your smoke detectors.

Tips for Selling Your Home In The Fall

You need to sell your home, and here we’re into Autumn. Well, that’s totally fine! In today’s blog we’ll share tips for making it easier to sell your home this Fall.

First, ensure your home is kept warm and well lit. It will cost you a bit more with your gas and electric bill, but it will make the place seem more inviting and cozy and shorten the time to sell. Another trick for making the home seem warmer is by using a gas fireplace if you have one.

Now is the time to evaluate if you have any drafts or problems with your heating unit that need to be addressed since they will become very obvious when the house is on the market.

Open up the shades and the blinds to let the natural light in.

Make sure your house is well aired since you don’t want it to be stuffy. And add in a scent like vanilla, chocolate chip cookies, or apple pie. Another suggestion is to have slow cookers with apple cider around to get that fall flavor in the air.

Here’s five suggestions from Realtor.com has these for having your home put its best foot forward when it’s on the market in the Fall. Read the full article for all of their recommendations:

• Make sure your walkway is free of leaves and debris.
• If it is rainy, be sure you have a good doormat so all potential homebuyers can wipe their feet and not traipse mud and water through the house.
• Make sure gutters are free from debris and are draining properly.
• If you already have snow, be sure you clear the front walkway to the door. And if you have stairs leading to your front door, make sure they’re not icy.
• Hang a festive fall wreath on your door.

When hosting open houses, keep in mind that you will want to hold them earlier as it gets darker sooner. Also, you may want to hold them when there aren’t any major local sports events. People love their football, and some college towns especially don’t want to be disturbed during the grudge matches.

Provide photographs of your home in all four seasons in your marketing material. That will help people better visualize themselves living there.

You may need to be flexible in your close schedule as the buyer may want to be in the home before the holidays. Work with your Realtor to find out what your schedule is, and any tips for improving the chances of selling your home quickly for a great price in your neighborhood.

3 Things No One Ever Told You to Do As a Homeowner

Three Things No One Ever Told You to Do As a Homeowner

Whether you bought your house this year or twenty years ago, there are things no one ever told you about home ownership. And we’re here to tell you that you’re not alone.

Rats

Don’t cringe. Rats happen especially when there’s construction going on. If they had their colony ripped out for more housing, they’re going to look for a place where they can get shelter and food. We’ve written up about rats in the past. The thing to remember is that they have to chew on things to wear down their teeth because the teeth don’t stop growing.

You can see signs of rats if there’s chewing on your house, you hear them in the walls, you find droppings, they’ve gotten into cardboard boxes in your garage and torn everything to pieces, you see them, etc. Professional exterminators look for dirt smudges along studs in garages where the rats travel. The smudges is what’s left after their bodies rub against it.

The problem is that we get embarrassed at the thought that we have rodents. You should talk to your neighbors. Often, if you suddenly have a rat problem, your neighbor had one and started setting out traps, and cut down ivy where they lived. Then the rats move to your house. If you and your neighbors work together consistently removing the habitat and trapping the rats, everyone will benefit.

You can also contact Vector Control in your county. They can let you know if they’re seeing problems in your area as well as offer you free snap traps and information on how to protect your home.

In California, rats are not a sign of a dirty home. They are everywhere. And with persistence, you’ll get them to move on to somewhere else and leave your house alone.

Repainting

There are some of you that love repainting your interior rooms regularly. Others have never known that they should repaint. And the age old question is how often should you repaint the outside of the house.

You should walk around your home in the Spring and the Fall and look for cracks, chips and other signs that your home needs maintenance. If you’re seeing many chips in the paint, then you know it’s time to repaint. You will want to paint the trim every few years since it will wear faster than the house.

Also, look to see if the siding needs repair. You may only need to hire a carpenter to repair or replace one piece of siding. If your home has gone for a long while, and there’s a lot of buckling or rotted wood, you may want to find a company that specializes in general construction and restoration.

Some people pressure wash their house once a year to get the grime off and make the paint look fresh. Remember to be careful that you don’t strip the paint or damage the wood.

Maintaining Fences

When you have a fence put in, ensure that the wood posts were pressure treated. If you use pickets, they stay above ground and won’t need to be pressure treated.

Water-repellent preservatives and sealants are sold at home-improvement and hardware stores. Exterior stains, which usually also are sealants, are another option if homeowners want their fence to coordinate with the exterior of their homes. As a rule, when water no longer beads up on the wooden fence but soaks in, it is time to reseal. How long sealant will last will depend upon the weather, In a moist climate, resealing should be done about every 2 years. Staining will have some of the properties of a sealant, but you should always seal before staining.

If wood has been pressure-treated, a sealant isn’t necessary, as the wood already has been injected with preservatives.

Homeowners also should keep sprinklers from wetting the fence, which causes the wood to rot faster. And bushes and vines should be kept off the fence as their weight will pull the fence and potentially damage the posts. If you wait too long, the fence may fall over.

How to Protect Yourself During a Move

How To Protect Yourself During a Move

“I can’t wait to move!”

How often do you hear someone say that? What they mean is they can’t wait to be in their new place, all unpacked and organized and enjoying their new surroundings.

What they don’t mean is, “I can’t wait to spend a month packing up everything I own and hauling it into a truck we’re going to drive across country when I’ve never driven anything larger than a mid-sized sedan, only to have to haul it all out, and into that new house. The new house that has two flights of stairs and narrow hallways. Don’t get me started on unpacking boxes.”

And what they REALLY don’t mean is, “I can’t wait for the movers to break a bunch of my things and lose a bunch of stuff.” Pretty sure they also don’t mean, “I can’t wait for dishonest movers to delay my delivery and charge me quadruple my quote and then hold all my stuff hostage while I sit here helpless.”

Think that could never happen to you?

“Last year, Massachusetts officials sued one moving company and New Jersey officials sued two for providing low-ball estimates and then grossly inflating fees after loading the trucks,” said Consumer Reports. “One of the companies had threatened to auction the possessions of customers who didn’t pay.”

Added MarketWatch about the possibility of mover fraud: “Typically, a mover gives you an extremely low estimate over the phone or Internet without ever actually seeing what needs to be moved. You agree, they show up, load the truck with all your worldly possessions and then tell you it will actually cost a lot more. Then, they hold everything you own hostage on their truck until you cough up the extra cash.”

Yes, moving can be fraught with challenge and frustration and even heartache. So how do you protect yourself? Here are some tips for a safe and fraud-free move.

Do your research


Proper preparation can help you ward off many of the issues that can turn a move into a nightmare, and that’s starts with a healthy dose of research. You always want to ask for a referral rather than using an unknown. And not just anyone is qualified to give a referral, according to MSN.

“Ask your real-estate agent. The general consensus among moving professionals is that word of mouth is the best way to find a good mover,” they said. “Real-estate agents know the ins and outs of the housing industry and are the most reliable sources. Realtors want to make sure that your (moving) transaction is a good one.”

There are also websites dedicated to moving scams. “MovingScam.com maintains a ‘black list,'” they said, as well as a “message board filled with consumer experiences, bad and good.”

Verify licensing and look for complaints

MSN recommends people who are moving investigate the companies they are looking at using. Interstate movers must be licensed by the Federal Motor Carrier Safety Administration.

“Check with your area’s Better Business Bureau to see if any complaints have been filed and whether there are reliable,” they said.

ProtectYourMove.gov also provides info on whether a mover’s license is current “and if the company has ever had a federal complaint.”

Watch out for the lowball bid

“You get what you paid for” is often a dangerous reality when it comes to moving. To protect yourself against unethical movers, get several estimates and make sure to weed out any that seem too low. Yes, the desire to save money is strong. But an unusually low bid is often a red flag.

“When shopping for movers, it’s best to get at least three estimates, ” said MSN. “If you’ve got one that’s really, really low compared to the other two, you’re going to know something’s up.”

Have a contingency plan

No matter how well you prepare, the unexpected can still happen. What if the truck doesn’t show up on time? Are you prepared to live without your things for a few days, or longer? Make sure you pack a bag of essentials you can have with you while the rest of your stuff is stuck on the truck.

Protect yourself

The Better Business Bureau suggests paying a little extra for peace of mind.

“Consider accepting full value protection. It may cost a few dollars more up front, but it can eliminate headaches after your move,” they said. “Purchasing full (replacement) value protection from your mover means any lost or damaged articles will be repaired or replaced, or a cash settlement will be made to repair the item or to replace it at its current market value, regardless of age. The cost of full value protection must be included in the initial estimate you receive for an interstate move.”

For more information, visit: https://www.protectyourmove.gov

Written by Jaymi Naciri

Market Commentary for the Week of September 15th

This week brings us the release of five relevant economic reports that may influence mortgage rates in addition to an afternoon of FOMC events. A couple of items on this week’s calendar are considered to be highly important to the financial and mortgage markets, meaning there is a high probability of seeing significant changes to rates this week. This is especially true the middle days of the week.

August’s Industrial Production data will be posted at 9:15 AM ET Monday. This report gives us a measurement of manufacturing sector strength by tracking output at U.S. factories, mines and utilities. It is considered to be moderately important but could help change mortgage rates if there is a significant difference between forecasts and the actual reading. Analysts are expecting to see a 0.3% increase from July’s level of output. A sizable increase could lead to slightly higher mortgage rates, while a weaker than expected figure would indicate a softer than thought manufacturing sector and would be considered good news for bonds and mortgage rates.

The Labor Department will post August’s Producer Price Index (PPI) early Tuesday, an important measurement of inflationary pressures at the producer level of the economy. There are two readings that analysts follow in this release. They are the overall index and the core data reading. The core data is the more important of the two since it excludes more volatile food and energy prices. Analysts are predicting no change in the overall index and a rise of 0.1% in the core data. Stronger than expected readings could fuel inflation concerns in the bond market. That would be bad news for bonds and mortgage rates because inflation is the number one nemesis of the bond market as it erodes the value of a bond’s future fixed interest payments. As inflation becomes more of a concern in the markets, bonds become less appealing to investors, leading to falling prices, rising yields and higher mortgage rates.

The PPI will be followed by the Consumer Price Index (CPI) early Wednesday morning, which is one of the more important monthly reports for the bond market. It is considered to be a key indicator of inflation at the consumer level of the economy. As with the PPI, there are two readings in the report- the overall index and the core data reading. Current forecasts show no change in the overall reading and a 0.2% rise in the more important core reading. The weaker the readings, the better the news it is for bonds and mortgage rates.

Wednesday’s Fed events start with the 2:00 PM ET adjournment of the FOMC meeting that begins Tuesday. It is widely expected that Janet Yellen and company will not change key short-term interest rates at this meeting, but there is plenty of interest in the markets regarding when they will take the first step towards raising rates. Also worth noting is that this FOMC meeting is one that will be followed by updated economic predictions and a press conference with Fed Chair Yellen. Traders will be looking for any revisions to the Fed’s outlook on unemployment, GDP growth, inflation and their timetable for keeping key interest rates at current levels. The meeting will adjourn and the economic forecasts will be released at 2:00 PM ET while the press conference will start at 2:30 PM. All this will most likely lead to afternoon volatility in the markets and mortgage rates Wednesday.

Thursday’s only monthly data is August’s Housing Starts at 8:30 AM ET. This report will probably not have much of an impact on the bond market or mortgage rates. It gives us a measurement of housing sector strength and mortgage credit demand by tracking construction starts of new homes, but is usually considered to be of low importance to the financial and mortgage markets. It is expected to show a decline in new home starts between July and August. I believe we need to see a significant surprise in this data for it to have a noticeable impact on Thursday’s mortgage rates.

The final report of the week will come from the Conference Board who will post their Leading Economic Indicators (LEI) for August late Friday morning. The moderately important LEI index attempts to measure economic activity over the next three to six months. It is expected to show a 0.4% increase, meaning that it is predicting growth in economic activity over the next several months. A larger increase would be considered negative news for bonds and could lead to a minor increase in mortgage rates Friday.

Overall, there is little doubt that this is going to be an active week for the financial and mortgage markets. Wednesday is the key day due to the FOMC schedule. Monday isn’t too concerning, but Tuesday and Wednesday morning’s data is very important to bonds and Wednesday’s afternoon trading could carry into Thursday morning also. In other words, expect to see the most movement in mortgage pricing the middle days of the week. I would not be surprised to see a significant move in bond prices and mortgage rates this week, so it is strongly recommended to maintain contact with your mortgage professional if still floating an interest rate and closing any time in the near future.

Craftsman Style Homes

We’re going to start a series on different architectures. And we’re going to launch with the Craftsman style which is seen in many older neighborhoods, and was very common until the 1930s. The houses are known for their attention to Arts and Crafts details, found especially in small, economical bungalows. They draw their roots from the British Arts and Crafts movements. Craftsman came on the heels of Victorian architecture, and so it may look similar, but the Craftsman style was more of a rebellion against the excesses of Victorians (like the gingerbread in the eves). Also Craftsman would often include built-in shelving and seating. The roofs were lower pitched, and often would include a porch with an overhang and tapered square columns.

You can sum up Craftsman as Simple, Functional, and Natural. Craftsman homes would have unfinished space for an attic, and have lots of windows for natural lighting. Additionally, opening up the windows would invite breezes to cool the home down.

Famous Craftsman Homes

One of the most famous Craftsman Style architects was Frank Lloyd Wright an originator of the Prairie School style, which was a expansion of both the American Craftsman style aesthetics and its philosophy for quality middle-class home design. His most famous Craftsman home was the Robie House in a suburb of Chicago, IL.

From Wikipedia:

In Southern California the firm Greene and Greene are the most renowned practitioners of the original American Craftsman Style, and were based in Pasadena, California. Their projects for Ultimate bungalows include the Gamble House and Robert R. Blacker House in Pasadena, and the Thorsen House in Berkeley – with numerous others in California. Other examples in the Los Angeles region include the Lummis House and Journey House located in Pasadena California.
Merrill Hall at the Asilomar Conference Grounds, one of the buildings designed by Julia Morgan. Completed in 1928.
In Northern California the architects Bernard Maybeck, with the Swedenborgian Church; and Julia Morgan, with the Asilomar Conference Grounds and Mills College projects, are renowned for their well planned and detailed projects in the Craftsman style. Many other designers and projects represent the style in the region.
In San Diego, California the style was also popular. Architect David Owen Dryden designed and built many Craftsman California bungalows in the North Park district, now a proposed Dryden Historic District. The 1905 Marston House of George Marston in Balboa Park was designed by local architects Irving Gill and William Hebbard.

Caring For Your Craftsman Home

You will need to care for the hardwood floor by keeping it clean and free from dust which could scratch the surface. See more suggestions in our blog post on hardwood floors.

You will also want to regularly inspect the masonry around the natural stone or brick to ensure it hasn’t chipped.

Some additional ideas for fixing up your Craftsman Style Home:

1. Choose a color that highlights the architecture
2. Add in unique touches like brass handles or a natural bench on the front porch
3. Adding in stonework around the columns on the front porch can add in a pleasant and unique look

Do you have a Craftsman style home?

Mortgage News Roundup - The Most Expensive Mortgage Mistakes You Can Make

Welcome to another Thursday. Today we’re going to look at some updates to the way FICO scores are evaluated, and four of the most expensive mortgage mistakes you can make.

Credit Score Reforms Could Put Better Credit Cards in Your Wallet

Aug. 9 saw the unveiling of FICO Score 9, the latest version of the nation’s most widely used credit scoring system. These three key changes could boost the scores of large numbers of consumers:

1. If the only major black mark on your credit report is a result of medical debt, its impact should be reduced. FICO estimates that, on average, those in that position could see their score rise by 25 points on its 300-850 scale.
2. Debts that have been in collection and then fully paid should no longer count against consumers’ scores.
3. Those who have short or limited credit histories can expect “a more refined treatment,” in FICO’s words. This might see people in that position being approved for more credit at lower interest rates.

It’s not known exactly how or when these updates will be rolled out, so be patient, and keep paying your bills on time. If you can’t pay off your credit cards every month, then make sure you pay more then the minimum as that will make you appear more credit worthy.

The most expensive mortgage mistakes you can make

We all make financial missteps, whether it’s an impulse purchase in the checkout aisle or something less defensible, like an extended warranty or rental car insurance. But when it comes to a mortgage, your little mistakes get pretty big, like the one missed car payment.

So here’s some things that will cost you quite a bit if you’re trying to get a mortgage.

1. Not mastering your credit. Pay your bills on time, don’t take on more than you can afford, and protect your credit.
2. Not understanding your options. There are scores of state and local homebuying assistance programs out there. Buyers who don’t get a full picture of their mortgage options could be costing themselves a lot of money for a long time. Work with a professional loan officer to help you understand what’s best for your situation.
3. Skipping a home inspection.
4. Buying too much house. No one expects to lose a job, go through a divorce or face a medical problem, but it’s good to have a buffer.

Getting a mortgage may seem difficult at first. If you’ve got good partners with your loan officer and your real estate agent, and you’re prepared with documentation and a pre-qualified loan, you should get through fairly easily.

Buying and Selling a Home at the Same Time

Buying and selling a home is very stressful. Doing both at once can be utterly crazy. Sometimes, you don’t have a choice.

Real estate is a business based on supply and demand. If there are only a few houses for sale, buyers have to compete for those available homes, making it a sellers’ market. When hundreds of homes are on the market, house hunters find themselves in stronger bargaining positions relative to sellers, making it a buyers’ market.

Currently here, we are a seller’s market. There are a number of new home divisions being built, and that could change the balance soon.

Start Early

Get your finances in order by checking your credit report and score to ensure there are no surprises. Work with a professional loan officer to get prequalified. And find a reputable real estate agent with experience in sell/buy contingencies.

Also, most people want top dollar for the home they’re selling and the lowest price for the home that they’re buying. It may be worth your while to sell during the height of the real estate season and then buy a few months later.

If that’s not possible, then you will need to be more flexible on the pricing.

Get Packing

You may need to move very quickly once the right offer comes in, so start boxing up stuff you don’t need easy access to. Get rid of all the things you won’t need until you’ve moved into your new home. This will help make your home show better and starting the packing process now will make it that much easier to move later. Rent a storage space if you need to.

Do The Quick Fixes

Repaint the walls. Repair the fence. Plant some pretty flower bowls. Do whatever will put your current home’s best foot forward.



While many variables can come into play when you’re buying and selling property, assembling a top-notch team of advisers and doing your homework ahead of time can help ensure your real estate transactions go as smoothly as possible.

Tips To Help You Decide Whether To Remodel Or Sell

As home prices increase, homeowners have options. Some are quickly gaining back the equity they lost over the last several years. That creates opportunity to maybe refinance, remodel, or sell.

If you’re sitting on the fence trying to determine whether to list your home for sale or to remodel it, consider these important tips.

Tip 1: Do a “Love it or List it” Analysis.

On a sheet of paper write down the things you love about your home and the things that might cause you to decide to list your home for sale. Take your time doing this. Really give every aspect of your home consideration. Do you like the neighborhood? Is it where you want to stay for a long while or even retire? Is the area or your home lacking something? Could remodeling your home be the solution?

Once you do the “love it or list it” analysis, you’ll be able to identify which parts of your home are bothering your the most. With that information, you can now start to explore more options.

Tip 2: Do your research.

This applies to both options–remodeling or selling. Visit other neighborhoods that you might like to live in. Carefully explore the surrounding area, the homes, the types of people, the shops, businesses, and churches. Think about your commute. Would it be longer? Would it cost more in gas? Are there any gains to offset extra costs? Gathering these details will help you add more to your “love it or list it” analysis.

Also, invite some real estate agents to your home to get some expert advice on how much your home would sell for and how long it might take. When you get that information, it can help you determine if selling is best.

Next visit some remodeling companies. See their remodeling projects and invite their team to your house to offer their suggestions. Sometimes what a homeowner thinks is a difficult remodel is really quite simple. Of course, the opposite is true too. For instance, if a home doesn’t have the supporting structure it needs, a remodel could become very complex or, in some case, impossible, which might prompt an immediate desire to sell.

Tip 3: Have your financial records in order.

Whether you decide to remodel or sell, having your financial records easily accessible is vital. You’ll need these documents for both situations. Knowing what upgrades you’ve already done to the home will help when it comes time to sell. And, having your tax documents and other financial information on hand will help you if you decide to remodel using financing.

Tip 4: Evaluate the process.

Talk to expert listing agents and remodeling companies so that you can completely understand what to expect with both processes. If you’re listing your home, learn about the marketing process, holding open houses, showing your home, what large items might need to be removed, and the overall timing of how long you’ll need before you close escrow. For remodeling, get details about the length of the expected renovation. Will you be able to live in the home or will you have to find a place to stay? Will you use one firm to do both the design and build process? Often this is easier and can be less costly than using several contractors.

Take your time and pay close attention to all the details. Both selling and renovating a home are major decisions. Make sure you give the decision-making process ample time as well as compiling a considerable amount of research to make your final decision.

Written by Phoebe Chongchua

Market Commentary for the Week of September 8th

This week brings us the release of only two pieces of monthly economic data in addition to two Treasury auctions that have the potential to affect mortgage rates. Despite the low number of reports, we still will likely see a fair amount of movement in the markets and mortgage pricing. The economic data is set for late in the week and the Treasury auctions will take place mid-week.

There is nothing of relevance scheduled to be posted or announced Monday, Tuesday or Wednesday morning. In the absence of anything on the schedule, look for the stock markets to affect bond trading and mortgage pricing early this week. As long as no major news or events transpire, such as developments in Ukraine, stock strength will probably lead to bond weakness and higher mortgage rates. If the major stock indexes fall from current levels, bond prices should rise, pushing mortgage rates lower the first couple days.

There are two Treasury auctions this week that have the potential to influence mortgage rates. The first is Wednesday’s 10-year Treasury Note auction, which will be followed by a 30-year Bond auction Thursday. It is fairly common to see some weakness in bonds before these sales as investors prepare for them. If the sales are met with a decent demand from investors, indicating that interest in longer-term securities such as mortgage-related bonds is strengthening, the earlier losses are usually recovered after the results are announced. The results of each sale will be posted at 1:00 PM ET of auction day. If demand was strong, particularly from international investors, we should see mortgage rates improve during afternoon trading Wednesday and Thursday. However, weak levels of interest could lead to broader selling in the bond market that could push mortgage rates higher.

Friday morning has both pieces of economic data scheduled with one of them considered to be a major release. The highly important report is August’s Retail Sales at 8:30 AM Friday. This Commerce Department report will give us a very important measurement of consumer spending that is extremely relevant to the markets because it makes up over two-thirds of the U.S. economy. Current forecasts are calling for a 0.6% increase in sales. Analysts are also calling for a 0.3% rise in sales if more volatile auto transactions are excluded. Larger than expected increases would be considered bad news for bonds and likely lead to an increase in mortgage pricing since it would indicate economic growth.

The other relevant monthly release of the week will be posted by the University of Michigan late Friday morning. Their Index of Consumer Sentiment will give us an indication of consumer confidence, which projects consumer willingness to spend. If a consumer’s confidence in their own financial situation is rising, they are more apt to make large purchases in the near future. But, if they are growing more concerned about their job security or finances, they probably will delay making that sizable purchase. This influences future consumer spending data and therefore, impacts the financial markets. It is expected to show a reading of 83.5 that would mean confidence rose from August’s level of 82.5. That would be considered slightly negative news for bonds and mortgage rates. Good news for mortgage shoppers would be a sizable decline in the index.

Overall, Friday is the best candidate to be most important day with all of the week’s economic data scheduled, but we could see movement in rates multiple days. With nothing scheduled for release Monday or Tuesday, either could end up being the calmest day of the week. The Treasury auctions raise the possibility of afternoon volatility in the middle days. With the FOMC meeting, projections and press conference looming next week, any surprises this week could affect theories about what the Fed will say following that meeting. I am also concerned with the fact that last Friday’s favorable employment data wasn’t enough to keep the benchmark 10-year Treasury Note yield below 2.44%. Despite the morning rally, it closed at 2.46%. This is could signal another upward move in bond yields and mortgage rates is coming. Therefore, if still floating an interest rate and closing in the near future, I strongly recommend maintaining contact with your mortgage professional the entire week.

The Unique Eichler Home

Even though Eichler homes are considered modern architecture, there is something distinct about them. From their open floor plan to their atrium, Joseph Eichler designed the ubiquitous California tract home of the 1950’s and 1960’s. The majority of true Eichler homes are in the Bay Area of Northern California and Orange County in Southern California.

There were quite a few knock-off’s as well. Steve Jobs believed he had grown up in an Eichler home, but it was actually created by a different builder.

Eichler Homes exteriors featured

• flat and low-sloping A-Framed roofs
• vertical 2-inch pattern wood siding
• simple facades with clean geometric lines

Joseph Eichler wanted to “Bring the Outside In.” He designed the homes with skylights and floor-to-ceiling glass windows with glass transoms looking out on protected, private outdoor rooms, patios, atriums, gardens, and swimming pools.

One interesting design feature to note is that most Eichler homes feature few, if any, street-facing windows. The ones that do have either small ceiling level windows or small rectangular windows with frosted glass.

You can see some of the original brochures scanned in here.

Eichler homes also offered radient heating through hot water pipes underneath the concrete flooring. It’s important to note that if you own an Eichler or similarly built home, at some point you will have to repair or replace the pipes which will involve tearing up the floor. Eichler homes were built on slab foundations, not pier and post.

The walls do not go completely up to the ceiling, so noise does travel. This is not a home for whispering secrets in.

If you buy an Eichler or similar architecture, have the roof checked thoroughly for any dry rot, or if it needs to be replaced.

If the Eichler has not been recently remodeled, there is probably very little insulation in the walls and in the ceiling. And there is no drywall. If an Eichler catches on fire, it probably will burn very quickly, so you will want to look into how to fireproof the home.

Many of the issues would be common from any tract home you bought that was built in the 50’s and 60’s. With Eichler, you need to pay attention most to the roof and the radient heating. And treat yourself by having the windows professionally cleaned a few times a year.

Do you own an Eichler or similar home? What’s your favorite part about it?

How to Build Credit if You Have a Small Income

Building and maintaining a good credit score is one of the best moves you can make. Your credit score will determine the terms of loans as well as affect your job prospects. As we’ve mentioned, in prior blogs, when a company runs a background check during the hiring process, they include a credit check as they’ve found that good credit scores correlate to good workers.

You may have a small income right now, or feel like you don’t have a lot of money, but the habits you start today will have an effect within sixty to ninety days. And when it comes time to apply for a mortgage, you’ll be reaping the benefits from deciding to make a solid credit score a priority.

So where do you start?

First, know what creates a good score. The FICO scoring model takes a lot of variables into account to create your score. These include:

• Payment history
• Amounts owed
• Length of credit history
• Mix of credit accounts
• Recent credit inquiries

Income is not one of the factors.

Secondly, open and use credit wisely as soon as you can. the easiest ways to do this is with a credit card. If you’re not earning much money, you might be shying away from plastic to avoid the temptation to overspend. But this will only stall your efforts to build good credit.

If your earnings are limited, you may have some difficulties. According to the CARD Act of 2009, credit card issuers must verify a customer’s ability to pay before approving his or her application. So if you can’t get an unsecured card for a low limit, request a secured one.

A secured credit card has you put down a deposit for your limit. But when you use the card, you’re building up credit-worthiness. Just always remember to pay in full on time.

Then, look into additional loan types such as a loan to buy a sofa, or a car. Adding in additional loan types strengthens your credit score.

Then, use credit wisely and pay your bills on time.

So what if you need a little help?

There are a number of smart phone applications that can assist you.

1. If you’re disorganized, look into Google Wallet, a free app that virtually stores gift cards and loyalty programs you can redeem at checkout, both at brick-and-mortar stores and websites that accept contactless payments.
2. If you’re forgetful, the free app Check can help you know when funds are running low or the due date for a bill is approaching.
3. If you’re on a tight budget, Budgt, a $1.99 iPhone app, is designed to help you by calculating a new, personalized budget every day based on what you owe and what you’ve spent.
4. If you’re super busy but love the numbers, consider using Expensify, a free app that lets you scan receipts and keep them in one place, and then transfers the data to spreadsheets.
5. Finally if you don’t know where to start, look into the free LearnVest app, which lets you track all your financial accounts in one place, set up a budget, categorize your expenses—and get a complete snapshot of your whole money life.

By staying on top of your money and being smart with credit, you’ll have the best credit score in no time. And that will save you money.

Are You Really Ready to Buy a New Home?

You’ve done the math. With the down payment you’ve saved, you can safely buy a home for less money than you could ever have as a renter.

Yet, you seem unable to make a commitment. Are you sure you’re really ready to buy a home?

If you find yourself saying any of the following to family, friends, or your real estate agent, you’re not ready.

“I’ll know when I see the right place.”

“I want to see what I can find on my own.”

“I’ll only buy if I can get a fantastic deal.”

“I’m waiting for interest rates to go down.”

With houses for sale all over the place, you can easily find the right place, especially with your real estate agent screening houses for you. Prices are still lower than they were at the peak. Interest rates are still low. So what are you waiting for — prices to rise more than they already have, for interest rates to go up? You get the idea.

Owning a home is a big responsibility, and the market has been volatile for years. If you’re scared, that’s understandable. So, maybe you need to examine your tolerance for risk.

Like the stock market or any other money investment, there is no sure thing, but there is plenty of evidence that returns are built over time. You’ll eventually get your money back, or you might even make money on your home, if you:

1. Are realistic. A home should meet your needs for shelter and your family’s activities. Don’t expect your home to make you rich.

2. Buy within your means. It’s no fun dreading your monthly mortgage payment.

3. Occupy your home long enough. It takes approximately four years just to get your closing costs back in equity.

4.. Keep your home repaired and updated. If you have to sell quickly, you’ll get a better price if your home doesn’t need work.

Currently, market conditions are in your favor. High inventories in most areas, lower prices than others have paid in the past and low mortgage interest rates combine to lower your risk.

In addition, you have all kinds of incentives, like the ability to buy with a federally subsidized or guaranteed loan, as well as income tax and capital gains benefits. And there are unexpected dividends – homeowners are automatically assumed to be more responsible than renters, which is why you get a discount on auto insurance if you own a home.

If you’re really ready to buy a home, you take action to make a good deal happen. You get preapproved by a lender so you’re ready to make an offer on a home within your means. You give your wish list to your real estate agent, attend open houses, search on the Internet, and tell friends and family what kind of home you’re looking for. Everyone and everything is working in your favor to get you to your goal.

You find the home you want, and you put your money down and you close.

That’s ready.

Market Commentary for the Week of September 2nd

This week brings us the release of six pieces of economic data, with two of them considered to be highly important to the markets and mortgage rates. The financial and mortgage markets will be closed Monday in observance of the Labor Day holiday, meaning we will not see new mortgage rates until Tuesday morning.

The first release of the week will come from the Institute for Supply Management (ISM), who will posted their manufacturing index for August at 10:00 AM ET today. This index measures manufacturer sentiment and reported a reading of 57.9, which is higher than the expected reading of 56.9 and slightly higher than July’s reading of 57.1. A reading above 50 indicates manufacturing sector strength because it means that more surveyed manufacturers felt business improved during the month than those who felt it had worsened. A much larger decline in the index would likely cause selling in the stock markets and lead to an improvement in mortgage rates Tuesday as it would hint at manufacturing sector weakness.

Wednesday has three reports set for release that may influence rates. The first is the ADP Employment report before the markets open Wednesday morning, which has the potential to cause some movement in the markets if it shows much stronger or weaker numbers. This report tracks changes in private-sector jobs of the company’s clients that use them for payroll processing. While it does draw attention, it is my opinion that it is overrated and is not a true reflection of the broader employment picture. It also is not very accurate in predicting results of the monthly government report that follows a couple days later. Still, because we sometimes see a noticeable reaction to the report, it is on this week’s calendar.

The second report of the day Wednesday will come from the Commerce Department, who will post July’s Factory Orders data at 10:00 AM ET. This manufacturing sector report is similar to last week’s Durable Goods Orders release, but also includes orders for non-durable goods. It can impact the bond market enough to change mortgage rates if it varies from forecasts by a wide margin. Analysts are forecasting an increase of 11.0% in new orders, meaning manufacturing activity spiked in July do to the whopping increase in airplane orders that drove the Durable Goods report last week. A much smaller increase would be good news for the bond market and mortgage pricing, but I don’t believe we will see too much of a reaction in mortgage rates Wednesday.

And finally, the Federal Reserve will release its Beige Book report at 2:00 PM ET Wednesday. This report details current economic conditions in the U.S. by Federal Reserve regions. It is believed to be a key source of information when the Fed meets for their FOMC meetings and is usually released approximately two weeks prior to each meeting. If it reveals any significant surprises or changes from the previous release, we may see movement in the markets and mortgage pricing as analysts adjust their theories on the Fed’s next monetary policy move.

Thursday’s only relevant monthly or quarterly release is the revised 2nd Quarter Productivity numbers, which measures employee productivity in the workplace. Strong levels of productivity allow the economy to expand without inflation concerns. It is expected to show little change from the previous estimate of a 2.5% increase. Forecasts are currently calling for a 2.6% increase, meaning productivity was slightly better from April through June than previously thought. This would technically be good news for the bond market and mortgage rates, but this data is considered to be only moderately important to the markets. Therefore, it will take a sizable variance from forecasts for this report to affect mortgage rates. Favorable news would be a sizable upward revision in productivity.

The biggest news of the week and arguably the most important that we see monthly comes early Friday morning. The Labor Department will post the unemployment rate, number of new jobs added or lost and average hourly earnings for August at 8:30 AM ET Friday. The ideal scenario for the bond market and mortgage rates is rising unemployment, a drop in payrolls and earnings to fall slightly. Analysts are expecting to see that the unemployment rate slipped 0.1% to 6.1% and that 2200,000 new jobs were added during the month. Weaker than expected readings would signal softer employment sector growth than predicted and would be very good news for bonds and mortgage rates Friday. However, if we get noticeably stronger than expected numbers, mortgage rates and bond yields will probably spike higher Friday.

Overall, this is likely to be a highly active week for the financial markets and mortgage pricing. Friday is the key day with the Employment report but Tuesday could also be one of the more active days due to the ISM report that follows a three-day weekend. We also need to watch the Ukraine crisis as further escalation will likely cause ripples in the world markets and here. With so much important data scheduled and the potential for geopolitical influence, I strongly recommend maintaining contact with your mortgage professional if still floating an interest rate and closing in the near future.