Halloween - A Brief History

 

Happy Halloween!

For fun, we thought we’d post some interesting facts about the history of Halloween.
Halloween has its origins in the Druidic festival of Samhain (pronounced sow-wen) which honored the end of the harvest, and the transition into the dormant, or dead, period until the rebirth in the Spring (Beltane). Samhain is old Irish for “summer’s end.” The Catholics used to have All Saints Day on May 13 and moved it to November 2nd to try to co-opt the holiday. November 1 was Hallow Mass. And October 31 became All Hallows Eve which got shortened to Halloween.

Why Masks

The Druids believed that the veil between this world and the one beyond was at it’s thinnest on Samhain, and to prevent spirits from following you home, you wore masks and costumes. This was also called “guising.”

Masks weren’t very popular for Halloween until the early 1920s. During World War II, Halloween was toned down due to sugar rationing and the somber mood of the citizens. In the 1950s, mask use took off partially because manufacturing ramped up, and partially because of the new suburban areas that encouraged neighborhoods. Current masks have become almost movie special effect quality.

Why Jack O’Lanterns

Originally, people carved faces in turnips. The myth was of a farmer named Jack who tricked the Devil. However, there are no good ways of tracing the stories. In the mid-17th century, Jack-o’-lantern was used as the term for a night watchman or someone with a lantern.

Why do we pass out candy

In the middle ages, people made soul cakes that were passed out to the poor who would go door to door. In exchange cake, the poor would promise them to pray for those stuck in Purgatory. It was believed that if God heard enough prayers for someone in Purgatory, they would be released into Heaven. This tradition was called Souling.

Trick or treating for candy became established in the 50’s. In the 90’s, it evolved into local parties or safe trick or treating such as in a mall.

What’s with the phrase “trick or treat?”

Kids would cause great mischief on Halloween, and some people would bribe them with sweets and treats to prevent them from causing mischief. Thus came the phrase “trick or treat?”

Exterior Renovations That Provide The Best Return On Investment

 

Decked-out kitchens and sparkly spa bathrooms may get our hearts pumping, but deciding to renovate is more often the product of a have-to than a want-to. Whether the renovation you’re considering is driven by a necessary repair or replacement, or the desire to upgrade an item prior to listing your home for sale, the goal is the same: to get the highest return on investment (ROI).

Knowing which items will bring in the best ROI can help you make sound decisions. And this year, the smartest projects are geared toward the exterior of the home. After all, if buyers are turned off by what they see when they drive up, they might not opt to see any more.

Here are the five exterior renovations that will give you the highest return, according to Remodeling magazine’s 2015 Cost vs. Value Report.

Garage door replacement

A beat-up garage door can make your whole house look bad and keep buyers from looking further. Spend $1,595—the national average cost of a garage door replacement—and you’ll get a return of $1,410, or 88.4 percent. Don’t have a garage? According to the report, you can add one for $52,382, which returns $33,938 or 64.8 percent.

Manufactured stone veneer

Adding character to homes can warm them up and make them more desirable, but few of these projects rank high when it comes to paying you back. As a newbie to the report, manufactured stone veneer was the exception, and it didn’t just show up—it made an impression. “It joined Cost vs. Value with a splash, ranking second among all projects with a cost-value return of 92.2%,” they said. “The only project that beat it was for a replacement steel entry door.”

Steel entry door replacement

Speaking of that steel entry door…it tops the Cost vs. Value report for the second year in a row and was even better than last year’s number with a “cost recouped of 101.8%,” they said. “The cost-value ratio expresses resale value as a percentage of construction cost. When cost and value are equal, the ratio is 100%; when cost is higher than value, the ratio is less than 100%; when value is higher than cost, the ratio exceeds 100%. That means the replacement steel entry door is the only project that, on a national basis, more than pays back its investment in the form of a better home resale price.”

Deck addition

More “outdoor living trend” than “curb appeal improvement,” a deck addition can be a smart choice for those looking to sell quickly and also for those who are looking to get some enjoyment out of their home now. Spending $10,048 can pay back $8,085 or 80.5 percent.

Vinyl siding replacement

A $12,013 investment in new siding might not sound exciting, but it may help get your home sold. Not many buyers are going to be excited about checking out your home if the siding is warped, cracked, or peeling. The good news is you’ll recoup 80.7 percent or $9,694, making this a good place to put your renovation dollars.

Written by Jaymi Naciri

Market Commentary for the Week of October 26th

 

This week brings us the release of seven economic reports and two Treasury auctions for the bond market to digest in addition to another FOMC meeting. We have data or other events that are expected to influence mortgage rates set every day, so we could see plenty of movement in rates this week. The data scheduled this week ranges from minor to extremely important, meaning some reports will have a much bigger impact on trading than others.

September’s New Home Sales starts the week at 10:00 AM ET Monday. This data covers the small percentage of home sales that last week’s Existing Home Sales report didn’t include. It is expected to show a slight decline in sales of newly constructed homes, but I don’t see this report having much of an impact on Monday’s mortgage rates. I believe the markets will be much more focused on events coming later in the week.

There are two reports scheduled for release Tuesday, starting with the Durable Goods Orders report for September at 8:30 AM ET. This report gives us a measurement of manufacturing sector strength by tracking orders at U.S. factories for big-ticket items, or products that are expected to last three or more years. Analysts are currently calling for a decline in new orders of approximately 1.3%. If we see a large increase in orders, mortgage rates will probably rise as bond prices fall. On the other hand, a significantly larger than expected decline should be good news for the bond market and mortgage rates, but this data can be quite volatile from month to month and is difficult to forecast. Therefore, a small variance from forecasts likely will have little effect on Tuesday’s bond trading or mortgage pricing.

October’s Consumer Confidence Index (CCI) will be released at 10:00 AM ET Tuesday. This Conference Board index gives us a measurement of consumer willingness to spend. It is expected to show a drop in confidence from last month’s 103.0 reading. That would mean that consumers did not feel as good about their own financial and employment situations as they did last month, indicating they are less likely to make large purchases in the near future. That would be good news for the bond market because consumer spending makes up over two-thirds of our economy. Current forecasts are showing a reading of 102.5. The lower the reading, the better the news it is for mortgage rates.

This week’s FOMC meeting is a two-day meeting that begins Tuesday and adjourns Wednesday afternoon. Some market participants feel this is when the Fed will make their first increase to key short-term interest rates since 2006. Since even the Fed has indicated they expect a rate hike before the end of the year, suspense is building that it will come this week. There is only one more meeting scheduled this year, so if it doesn’t come this week the odds rise sharply it will come at December’s meeting. It is my opinion that we will not see a move at this meeting. I think December is the earliest with a decent chance it will not come until early 2016. The meeting will adjourn at 2:00 PM ET Wednesday, so look for plenty of reaction and volatility to the post-meeting statement during mid-afternoon trading.

The preliminary reading of the 3rd Quarter Gross Domestic Product (GDP) will be released at 8:30 AM ET Thursday morning. The GDP is considered to be the benchmark measurement of economic growth because it is the total of all goods and services produced in the U.S. and therefore is likely to have a major impact on the financial markets and mortgage pricing. There are three versions of this report, each a month apart. Thursday’s release is the first and usually has the biggest influence on the markets. Current forecasts call for an increase of approximately 1.6% in the GDP, which would mean that the economy grew at a noticeably slower pace than the 2nd quarter’s 3.9% rate. If this report shows a much smaller increase, I am expecting to see the bond market rally and mortgage rates fall. However, a larger than expected rise could lead to a rally in stocks, bond selling and a sizable increase in mortgage pricing Thursday morning.

Friday has the remaining three reports scheduled that may affect mortgage rates. The 3rd Quarter Employment Cost Index (ECI) will be released at 8:30 AM ET. It is the least important of the day’s three reports. This data tracks employer costs for salaries and benefits, giving us an indication of wage inflation pressures. Rapidly rising costs raise wage inflation concerns and may hurt bond prices. It is expected to show an increase in costs of 0.5%. A smaller than expected increase would be good news for mortgage rates, but this is not one of the more important reports of the week. That means will take a large variance from forecasts for this report of have a noticeable influence on mortgage pricing.

September’s Personal Income and Outlays report will also be posted early Friday morning. This data gives us an indication of consumer ability to spend and current spending habits. It is important to the markets because consumer spending makes up such a large part of the U.S. economy. Rising income generally indicates that consumers have more money to spend, making economic growth more of a possibility. This is bad news for the bond market and mortgage rates because it raises inflation concerns, making long-term securities such as mortgage related bonds less attractive to investors. Analysts are expecting to see a 0.2% increase in income and a 0.2% rise in spending. Smaller than expected increases in both readings would be good news for the bond market and mortgage pricing.

The week’s last report comes just before 10:00 AM ET Friday when the University of Michigan updates their Index of Consumer Sentiment for this month. This report is moderately important because it helps us measure consumer confidence, which is believed to indicate consumers’ willingness to spend. Current forecasts show this index rising from its preliminary reading of 92.1 to 92.6. Good news for mortgage rates would be a sizable decline in the index.

This week also has Treasury auctions scheduled the first three days. The only two that have the potential to influence mortgage rates are Wednesday’s 5-year and Thursday’s 7-year Note sales. If those sales are met with a strong demand from investors, particularly Wednesday’s auction, bond prices may rise during afternoon trading. This could lead to improvements to mortgage rates shortly after the results of the sales are posted at 1:00 PM ET each day. But a lackluster investor interest may create selling in the broader bond market and lead to slight upward revisions to mortgage rates.

Overall, it appears Wednesday or Thursday could be the most active day for mortgage rates and Monday is the best candidate for lightest. The importance of Tuesday and Friday’s reports makes them likely to be active day also, although I suspect the most movement in rates will take place the middle days due to the FOMC meeting and GDP report. With data or other events relevant to mortgage rates scheduled all five days, it would be prudent to maintain contact with your mortgage professional if still floating an interest rate and closing in the near future.

Best Remodels For Your Money

 

You’ve decided it’s time to remodel something in the house. Maybe you got a tax refund or a great bonus, and want to invest it in your home. In the back of your mind, you’re probably thinking “What’s the best bang for my buck if I sell this house down the road?” And that’s a great question to ask.

But First…

While it’s good to think about the monetary return on investment, you should also spend some time thinking about the emotional one as well. If you spend most of the time in your kitchen area, perhaps that’s going to bring about the best return rather then remodeling bathrooms that look clean and function well.
Or perhaps you want a swimming pool.  Rarely does a pool pay off in resale value, but maybe it’s your dream to have pool parties, or spend the summer with an iced drink on a floatie.  Your enjoyment of the upgrade should be taken into account otherwise you might resent the remodeled room.

What Doesn’t Usually Pay Off

1. Swimming Pools, Spas, Lap Pools, Tennis courts – most buyers are not interested in taking on what will be an additional cost for maintenance.  Additionally, this is something that will increase insurance as it’s a liability (attractive nuisance)
2. Home Office – A limited number of buyers work out of their home, and won’t be as interested.  This Old House likened it to buying a convertible if you never put the top down.
3. Over-remodeling – When you put in warmed, Italian bathroom tiles, or the most expensive kitchen appliances, you are the only one who is going to appreciate it.
4. Family room
5. Window and Roofing
6. Custom additions (wine cellars, home theaters)

What Does Usually Pay Off

1. Bathrooms – a midrange bathroom remodel often gets the best return
2. Kitchens – again, midrange is going to pay off faster
3. High-end siding replacement
4. Add-Ons – If you have 1.5 bathrooms in a neighborhood that averages 2-3, adding in a bathroom will be a huge return on investment.  However, if you already have 4, and add a 5th, you won’t get a return.
5. Attics – if big enough, you can put a small office or bedroom up there
6. Basement

Things To Keep In Mind

Just because a project is expensive does not mean it will yield a bigger pay back.  Painting the entire house inside and out isn’t very costly, but can have a huge return because the place looks new.
If your remodel is adding on a room, keep it in the same architectural style as the rest of the house. The flow will feel consistent, and future buyers may not even know it was an add-on.

Consider your neighborhood.  If you spend $100,000 to upgrade to a gourmet kitchen with sub-zero refrigerators, and the average home in the neighborhood sells for less than $500,000, you are not going to get your money back.  You will have your happy factor from the years when you used it, but no one else will pay the extra for it.

You can do a partial upgrade instead of the whole enchilada.

Avoid the unusual unless you plan on staying in your home for the rest of your life.  Stick to neutral tones and porcelain tile floors, showers and backspashes for bathrooms and kitchens.

Don’t pull equity out of your home if you plan to sell in the next three years.

Resources

There are five types of remodel projects per About.com.  You can read about them in more depth here.

1. Home Maintenance and Repair Projects
2. Curb Appeal Projects
3. Neighborhood Norm Projects
4. Appraisal Booster Projects
5. Lifestyle Projects

Conclusion

So, to conclude, the longer you stay in your home, the more you will recoup your investment. Balance the project with what is going to bring you the greatest joy.  If you plan on staying in your house for a long time, you can invest more in areas that may not pay off as quickly as if you were planning on selling within two to three years.

Also, talk to a Realtor who specializes in your neighborhood what they have seen as the best investments for remodeling.

What do you want to remodel in your home?

How Do You Know How Much To Put Down On A Home?

 

You’d be a homeowner right now if it weren’t for one thing: the down payment. Right? Even for those who have decent credit and make good money, the down payment is often the great homeownership killer.

For many others, who do have enough money set aside to make a substantial down payment, the question is: how much? Conventional wisdom – not to mention most of the banks and a good portion of homebuying and financial experts – will tell you that 20 percent is the standard bearer when it comes to down payments. But is it really necessary to put 20 percent down?

The short answer is: no.

Now for the long answer.

“Raising a 20 percent down payment isn’t an easy thing to do. Fortunately, you don’t have to. “It’s a myth that all homebuyers must have a 20 percent down payment to buy a home,” says Nancy Herrera-Siples, a Riverside, Calif., branch manager at Primary Residential Mortgage on U.S. News. “So why do you constantly hear that you need to put 20 percent down? Because if you don’t, it usually means you’ll have to shell out money for either private mortgage insurance or government insurance, which is usually financed by the Federal Housing Administration (FHA).”

And there’s another rub for those who are already struggling to come up with the minimum down payment: that extra couple of hundred dollars per month feels like a penalty. It’s not, of course – “Mortgage insurance protects the lender in case you can’t make your payments and the house is foreclosed on,” said U.S. News – but that money can make a significant difference for those who are stretching to buy a home.

Still, when your only option to buy is a low down payment, which can mean an FHA loan or one of the new low down payment loans from Freddie Mac and Fannie Mae – “At the end of 2014, the two government-backed companies announced plans to slash down payments from 5% to 3%,” said CNN – PMI might literally be a small price to pay. Especially if swelling rents are making homeownership look more and more promising. Remember that PMI does go away eventually when your loan balance is 80 percent or less of the home’s value. If you’re in an area where homes are rising in value, this could happen sooner than you think.

Still confused about the ins and outs of down payments? Here are a few reasons to go high…or low.

When to make a substantial down payment

• When you’re looking to keep your monthly payment as low as possible and have cash to spare
• When you just can’t fathom paying PMI
• When your goal is to buy a forever home and own it free and clear
• When you are approaching retirement age and can envision a reverse mortgage sometime down the line
• When you want to buy your house and pay it off as quickly as possible
• When the rate is lower with a higher down payment. “The more you put down, the better position you are in for negotiating a lower interest rate with your lender,” said Credit.com. Plus, a “low down payment might affect other loan features, such as…the points, which are upfront interest charges,” said Banking My Way.
• If you’re worried about being under water. If the market should drop in your area, you run the risk of owing more than your home is worth.

When to go low

• When you don’t have the funds for a higher down payment and can’t earn or borrow them quickly enough
• When the rate on your FHA or Fannie or Freddie loan is comparable to that you’d get with a higher down payment
• When you need to escape a high-rent situation and the monthly payment on a house is lower than what you’re currently paying, even with the PMI factored in
• When you’re confident your home will appreciate quickly, allowing you to refinance and get rid of PMI quickly
• When your investments can’t be touched without a penalty or are returning better than the interest rate you’ll get on your home
• If you have something better to do with the money. “If you bought a $400,000 home, 5% down would be $20,000, while 20% down would be $80,000 – a whopping difference. An immediate need such as a college tuition payment would make the smaller down payment more appealing,” said Banking My Way.
• When you feel more secure setting money aside for emergencies instead of tying it all up in your house.

Written by Jaymi Naciri

Home Maintenance and Repair: DIY vs The Professional

 

Welcome to the joy of owning your own home. Back when you were a renter, the landlord or management company took care of most everything that needed repairing or maintaining. Now you have the role. Some of you may feel pretty confident with tools and that’s a great first step. But, there’s even some jobs you should think twice about doing.

Home Projects You Should Leave to the Professionals

There are five major tasks you should probably leave to the professionals, unless you are the professional.

1. Tree removal. This could be an accident waiting to happen especially if the tree is close to your house. Or a powerline. Plus if you’re removing the stump, the roots could cause serious damage as they’re pulled up.
2. Electrical and plumbing work. People go to school and then work with other qualified professionals for years. It’s a highly skilled profession. Incorrectly done, it could cause a fire hazard or damaged walls due to leaks.
3. Pool repair and installation. Measurements must be precise, permits and inspections must be passed, and you must consider how the ground and concrete will settle and shift over time. The professional knows how to seal the cracks and has the compounds.
4. Removing a wall. If the wall is load-bearing or supports any part of the house, or if it holds electrical or plumbing, you could cause serious damage to the structure of your home.
5. Flooring. You might not know what’s underneath your carpet and if the subfloor is damaged or rotten, you could wind up spending thousands in extra costs just to repair it. Laying tile or hardwood properly is another highly skilled profession. They know how to ensure the floor is straight and true.

Start with Maintenance

If you’ve never done any home repair, then look into starting slowly. Some simple maintenance projects you can try yourself are:

• Replacing washers in dripping sinks
• Cleaning out your dryer ducts
• Power wash your walkways, driveways, decks and patios. You could also use it to wash the sides of your house while you’re at it.
• Replace weather stripping on your windows
• Replace your furnace filter. Preferably before you turn it on for the cold season.

Home Projects to Try Yourself

As you get comfortable, you can move slowly into more advanced improvements. The best way to learn depends upon your learning style. Some people prefer hands on instruction that you could get at a hardware store. Others prefer reading books with lots of photographs. And still others prefer watching videos. All three could help you fully understand the scope of the job.

You could replace a sink faucet to update the look. The next step is replacing the whole sink to update a bathroom. If you have an old style sink built into a cabinet but would rather have a pedestal sink, it’s straight forward to remove the old and slip in the new.

Another easier job then it sounds is to replace the wax seal underneath the toilet. Just make sure you have a partner to help you lift the toilet straight up and over so water doesn’t spill out of the tank.

To completely change the look of a room, buy some paint, tarps, tape and brushes and rollers. Just paint the walls and leave the ceiling a different color. Painting a ceiling is a bit more advanced. If you’re going to do the whole room, start with the walls until you’re comfortable with the application process. If it all seems daunting, just paint one wall a bold color. Accent walls are pretty popular these days.

If you’re handy with a sewing machine, you could make some new drapes or curtains to quickly change up a room. You could make matching throw pillows. With a glue gun and some fabric, you could reupholster chairs.

As you feel more comfortable, you could remove old cabinets and replace them with more modern ones. If that’s a leap, start with replacing the fixtures on the cabinets. It changes the look of the kitchen.

Outside, you could build some raised bed gardens. And you could convert your sprinkler system to drip line irrigation.

You could change out your front door and your doorbell.

And you could change out the type of light switch. If you don’t like the old fashioned style, you could modernize it or add in a dimmer option. Just remember to turn off the electricity first at the fuse box.

Start slowly and build up your skills and the tools in your toolbox and you’ll be an old hand at home repair in no time.

Don’t Fall For the Wrong Home

  When you go shopping for homes in the fall, you have some advantages. Buyer traffic has slowed with the start of schools. Sellers who’ve had their homes on the long hot summer market are weary of trying to sell their homes and more willing to drop prices. Your REALTOR® has more time for you, and is telling you about good deals in better neighborhoods.


But there’s a reason you might be vulnerable to choosing a home too quickly, even though market conditions are more in your favor. You want to get into your new home before the holiday season starts. You’re already under the nesting spell of grey skies, glorious turning leaves, and afternoon football games on TV. It’s Thanksgiving at your house this year, everybody!

But wait. The holidays aren’t a deadline. It’s far better to choose a home that meets your needs no matter what time of year it is.

1. Get preapproved. Your lender will give you a price limit that you can comfortably afford based on your income and debts. These are time-tested formulas that allow some wiggle room in your finances so you won’t be house-rich but cash-poor.

2. Shop for the right size, not the biggest. Buying the biggest home you can isn’t the best idea. Think about the operating costs of heating, cooling and maintaining all that space. This is money wasted that could be spent on other things you may need such as a new car or furniture.

3. Think about your activities. Think about how you actually use a home. A home with a huge impressive kitchen is a poor investment if you don’t cook much, except at Thanksgiving. Do you have the space you need for your home office or art studio? Are there enough bathrooms for the morning rush?

4. Consider the commute. Newer homes offer the most amenities, but they tend to be far from city centers. How long would you spend commuting to your job every day to live in a particular community? Those are hours spent in traffic that you could be spending with loved ones.

5. Look at the bones of the home. Appliances, wall colors, and flooring can easily be updated, but the basic floorplan has to flow well for the way you live. Look at the traffic flow. Is it easy to let the dog outside and clean muddy paws when he comes back in? Where do the kids put their backpacks when they come home from school?

6. Be willing to update. Many homes are affordable because they’re older and need work. Many times, cosmetic updates can turn a so-so home into a treasure. If you set aside your holiday deadline, you can start work on your new home while more contractors are available and possibly less expensive than in the busy summer months.

7. Be sure to get year-round amenities. Remember what you enjoy doing in the fall, winter, spring and summer. The home you want to buy now should make you happy for the fall, but what about warm weather? Will you be able to garden, swim, or entertain outdoors? The best time to buy a home with a pool is in the fall and winter.

When you’re comparing homes think about your wish list and which home comes closest to meeting your price, number of bedrooms, condition, space, features and the amenities of the neighborhood. Once you move in, you’ll know you fell for the right choice.

Written by Blanche Evans

Market Commentary for the Week of October 12th

 

This week brings us the release of six economic reports for the markets to digest over four trading days, most of which is considered important data. The bond market will be closed Monday in observance of the Columbus Day holiday as will most banks, so there will not be an update to this report Monday. The stock markets will be open for trading though. This means that the lenders that are open for business will likely not be issuing new rates Monday, opting to use Friday’s pricing or not accepting new rate locks. The bond market will reopen for regular trading Tuesday morning.

September’s Retail Sales report will start this week’s calendar early Wednesday morning. It measures consumer level sales and is very important to the markets because consumer spending makes up over two-thirds of the U.S. economy. If consumer level spending is strong, overall economic growth is likely to be stronger, making bonds less attractive to investors. If we see weaker than expected readings in this report, the bond market should respond favorably and mortgage rates should drop Wednesday. Current forecasts are calling for a 0.2% increase in sales. Good news for the bond market and mortgage pricing would be a decline.

Also set for release at 8:30 AM ET Wednesday is September’s Producer Price Index (PPI). This index measures inflationary pressures at the manufacturing level of the economy and is also considered to be highly important to the bond market. Analysts are expecting to see a decline of 0.3% in the overall index and an increase of 0.1% in the more important core data reading. A larger than expected increase in the core reading could raise inflation concerns, pushing bond prices lower and mortgage rates higher. Inflation is the number one nemesis of the bond market because it erodes the value of a bond’s future fixed interest payments. Unexpected growth in inflation also makes a Fed rate hike likely to be sooner than later. When inflation is a threat, even down the road, bonds sell for discounted prices that push their yields higher. And since mortgage rates tend to follow bond yields, this leads to higher rates for mortgage borrowers.

Wednesday’s final relevant report is the Federal Reserve’s Beige Book, which is named simply after the color of its cover. This report details economic conditions throughout the U.S. by Federal Reserve region. It is relied upon heavily by the Fed to determine monetary policy during their FOMC meetings. If it shows surprisingly softer economic activity since the last report, the bond market may thrive and mortgage rates could drop shortly after the 2:00 PM ET release. If it reveals signs of inflation growing or rapidly expanding economic activity in many regions, we could see mortgage rates revise higher Wednesday afternoon.

Thursday’s only monthly data is September’s Consumer Price Index (CPI) at 8:30 AM ET. It is the sister report to the PPI, measuring inflationary pressures at the very important consumer level of the economy. Analysts are expecting to see a drop of 0.2% in the overall index and an increase of 0.1% in the core data. A larger than expected increase in the core reading could raise inflation concerns, pushing bond prices lower and mortgage rates higher Thursday morning.

Friday has the two remaining reports, starting with September’s Industrial Production data at 9:15 AM ET. It will give us an indication of manufacturing strength by tracking output at U.S. factories, mines and utilities. Analysts are expecting it to show a 0.2% decline in output from August’s level, meaning that manufacturing activity softened last month. A large increase in production would be negative for bonds and mortgage rates as it would indicate economic strength. A larger decline in output would be favorable for mortgage shoppers.

The last release of the week will be posted by the University of Michigan late Friday morning. Their Index of Consumer Sentiment for October will give us an indication of consumer confidence, which helps us measure consumers’ willingness to spend. If consumer confidence in their own financial situations is rising, they are more apt to make large purchases. But, if they are growing more concerned about their job security or finances, they probably will delay making that large purchase. This influences future consumer spending data and can impact the financial markets. It is expected to show a reading of 88.5, which would mean confidence rose from September’s level of 87.2. A decline would be considered favorable news for bonds and mortgage rates because waning consumer spending usually translates into slower economic growth.

Overall, it appears Wednesday is an easy label for the most important day of the week with two highly important reports in the morning and the Beige Book during afternoon trading. Tuesday could be the calmest but following a three day weekend in bonds we still may see some movement in rates. In addition to the economic data, there are many companies posting earning reports during the week, including some big names. If the corporate earnings releases are generally weaker than forecasts, stocks may suffer, making bonds more appealing to investors. The end result would likely be an improvement in rates. The flip side though is stronger than expected earnings that drive stocks higher, pushing bond prices lower and mortgage rates upward. Accordingly, please maintain contact with your mortgage professional if still floating an interest rate because this will probably be a pretty active week for the financial and mortgage markets.

Creating an External Home Maintenance Calendar - Part 2

 

Last week we talked about how to set up a home maintenance calendar. You chose whether to use an electronic calendar system or a paper system. We detailed out some internal home maintenance tasks, and hopefully you wrote down external ones as they occurred to you too. Then you put the internal tasks in the calendar and did the most important thing – set reminders to review it regularly.

This week, we’re going to brainstorm the external home maintenance tasks and get them scheduled in calendar as well. Remember, this isn’t an exhaustive list. Talk to your neighbors and find out what they do as well.

Once a Year

Early Spring: Aerate your lawn
Early Spring: Book an AC inspection
Summer: Book a chimney sweep
Fall: Draining or winterizing outdoor water faucets/hoses if you live in a place where they could freeze
Late Winter: Check and repair your window screens before beautiful spring temperatures
Early Winter: Trim trees
Fall: If you use propane, make sure your tank is full.
Spring – Clean and inspect outdoor furniture so that it can hold up to a season of entertaining. Check canopies, awnings, and umbrellas for weak seams, dangling threads – repair small tears if you can. You have to do this early enough so that you can find replacements in stores if you need them, so I suggest that it should be done by late April. Check plastic chairs for cracks. Get rid of cracked ones.
Fall – Purge anything that won’t be repairable; don’t let it take up precious storage space. Inspect furniture and fabric for insect eggs and cases, scrape them off before storage. If you have any gardening tools, clean them before storage. Dump flowerpots and inspect for insect eggs before storage.

Every 6 Months

Wash windows
Clean out your gutters
Clean garage and basement of dust, dirt, leaves, spiders, cobwebs, etc.
If you have a basement, check for any moist areas.
Check outside steps & railings, fences, gates & sidewalks for rot/repair.
Check the outside of your windows for any sign of leaking or damage.
Carefully inspect your foundation for cracks.
Inspect your home for any holes, water damage, paint chipping, etc.
Remove dead plants
Inspect your roof for damage or leaks

Rare tasks

If you have a septic tank, you will want to want to schedule getting it emptied every 5-10 years. You will also have additional maintenance tasks.

Now, go figure out what tasks you need for your home and add them to your calendar.

Job well done! Go pour a glass of lemonade and enjoy the fall colors for a spell.

Six Toasty Fall Homeselling Tips

 

You may think that autumn isn’t the best time to showcase your home, but you’d be wrong. Yes, fall days are shorter, with fewer hours of daylight for buyers to see your home. There may be many days of grey skies, rain, or early snowfall.

 

But autumn has a unique appeal that’s all its own. You can look forward to gathering with friends and loved ones by a crackling fire, play winter sports in the backyard, or walk on the beach without all the tourists. Most important, homebuyers are motivated; they want to move in before winter. Here are six tips to selling your home during the changing season.

 

Say welcome with fall decorations

 

One nice thing about fall décor is that you can put out pumpkins, gourds, scarecrows, and mums now, and they will last through Thanksgiving. Put a nice new welcome mat out for buyers and their agents to wipe their feet, and if it’s been raining or snowing, provide booties that can be slipped on over shoes so mud or road salt aren’t brought into your home. It’s worth paying the neighborhood kids to keep your driveway and sidewalks clear of snow and slush.

 

Air out your home

 

As the weather cools, you may tend to shut windows and doors, but closed homes tend to hold odors, so make sure you open the windows for an occasional airing. Run the fans after cooking meals. Moisture also holds odor, so use the exhaust fans in the bathrooms after every bath and shower. While buyers are inside, keep temperatures moderate and even — not too warm or cool.

 

Let the light in

 

We already know there’s less sunlight in the fall and winter, so leave lights on for showings. It won’t hurt to pump up the wattage in areas you really want buyers to see details, such as kitchens and baths. Open the drapes and keep windows as clean as possible for showings.

 

Cut out clutter

 

When your household spends more time indoors, it’s natural for clutter to accumulate, but too much can have a smothering effect on buyers. Take special care to put coats and all-weather boots away.

 

Keep a basket in every room so that if you get a sudden showing, you and the rest of the family can do a five-minute cleanup before leaving the premises so your buyer can have some privacy. Store the baskets under the bed or some other place out of sight.

 

Stage Your Home for the Season

 

If you’re selling a home in a ski resort, it’s easy to play up the fun of cold weather. Otherwise, you may need a little imagination to stage your home. Ask your real estate professional for ideas, but consider these few to make your home cozy, toasty and inviting.

 

If you have a fireplace, turn it on, but low. Stage the seating with a comfy Fair Isle throw. If you can find one with snowflakes and reindeer, that’s even better. Put some big fluffy pillows on the floor. Boil some apple cider with cinnamon, and let the delicious aroma waft through the house. Make a beautiful wreath for the front door out of the gorgeous gold and red leaves that have fallen in your neighborhood.

 

Family photos are supposed to be a no-no with one exception — when they show the home to advantage. Make a quick-flip buyer’s album that includes your beautiful garden in the spring, the backyard pool in the summer, and the gorgeous fall colors of your trees.

 

Tout the neighborhood

 

Whereever your home is, it’s part of a community. Show it off! If your neighborhood offers a bike path, playground or community center, list them for the buyer in a feature sheet, and include pictures for your buyer’s album.

 

Create a map to add to your feature sheet that shows how quickly the buyer can get to various amenities like the nearest grocery store, train stop, and other services. Be sure to point out places unique to your area like the corner book shop or dog groomer.

 

You can bring out the cozy best in your home by showing buyers that this is a great place to make pleasant memories.

Written by Blanche Evans

Market Commentary for the Week of October 5th

 

This week has little in terms of scheduled economic reports that are likely to affect mortgage rates. There are no monthly or quarterly reports set for release that are worth watching. We do have a couple of events that certainly can cause mortgage rates to move, but none of them are considered highly important or expected to be a market mover. There is nothing scheduled for Monday or Tuesday, so the week should start off quietly as long as stocks do.

Wednesday has the first event with number one of this week’s two important Treasury auctions. The sale of 10-year Notes will be held Wednesday while 30-year Bonds will be sold Thursday. We often see some weakness in bonds ahead of the sales as the firms participating prepare for them. However, as long as the auctions are met with decent demand from investors, the firms usually buy them back. This tends to help recover any presale losses. But, if the sales are met with a lackluster interest from investors- particularly international buyers, the bond market may move lower after the results are posted and mortgage rates may move higher. Those results will be announced at 1:00 PM each sale day, so any reaction will come during early afternoon trading.

The last FOMC meeting minutes will be posted at 2:00 PM ET Thursday afternoon. These may move the markets or could be a non-factor, depending on what they say. With little else being posted this week they will likely be a little more influential than usual. The key points traders are looking for are concerns over our and the global economies, inflation and the Fed’s next monetary policy move. If Fed members were concerned about the economy continuing to grow, we may see the bond market move higher and mortgage rates lower Thursday afternoon. It will be interesting to see how much debate and disagreement amongst members took place during the meeting, particularly about when they will start raising key short-term interest rates. It is worth noting though that the last FOMC meeting was followed by revised economic predications and a press conference with Fed Chair Yellen. Therefore, the likelihood of seeing a significant surprise in the minutes is relatively low.

Thursday also has last week’s unemployment figures at 8:30 AM. This report usually doesn’t cause much movement in the markets or mortgage rates unless it shows a significant jump or drop in initial claims for benefits. But since this week has so little to drive trading, it could draw more attention than it usually does.

Overall, I see Thursday as the key day of the week, although the most movement in the bond market and mortgage pricing will probably take place during afternoon hours. We still may see some movement in rates from day to day but unless something unexpected happens in the geopolitical arena or stock movement, any move will likely be minor. I never recommend cutting contact off with your mortgage professional if still floating an interest rate. However, this is probably going to be a fairly calm week for mortgage rates, at least compared to recent weeks.

Creating a Home Maintenance Calendar Part 1

Maintenance of the Inside of Your Home

In this two part series, we’re going to look at what you need to do to take good care of your biggest financial investment. This week, we’ll look at tasks to maintain the inside of your house and next week, we’ll review what the outside needs.

How to Get Started

First, decide how you’re going to record this. Do you want to use an online calendar like Google Calendar and share it with the other household members? That way you can schedule and assign tasks. A second way is to buy a blank calendar and write down tasks and other notes. Then, next year, you can review what you did and create a second calendar. With the online calendar, you can repeat the task once a year.

Next make a list of everything you think needs to be done. Those who live in homeowner associations might also find task ideas by looking at that information. You can search online for annual home maintenance list suggestions. And you can use our suggestions below as a starting point. You know your house and what it needs. If you live in a desert, you may not need to clean out your gutters as often as someone who lives next to a lot of trees that shed their leaves every year.
Then, jot down how often each tasks should be done and try to organize it into frequency and season. Finally, schedule it on the calendar.

The Most Important Thing

So you have this beautiful calendar of scheduled events. How are you going to remember to look at it or do it? Set yourself reminders. For those with paper calendars, make it a habit to review it once a week when you’re doing your regular weekly planning. For those with the electronic calendar, make sure each tasks has a pop up reminder and an email reminder.

Internal Maintenance Task Suggestions

Once a year

Anytime: Flush hot water heater
Anytime: Review insurance and photograph any new items before it’s time to renew your policy
Anytime: Build or refill your disaster preparedness kit
Anytime: Tighten any handles, knobs, racks, etc. Go through the house and inspect anything that could have a loose screw.
Anytime: Remove showerheads and clean sediment with a good soak in vinegar water. This prolongs its life and helps with water pressure as well.
Early Fall: Book a heat inspection
Early Fall: If you have a sump pump, test it.
January: Organize all your paperwork for taxes (Ok, not home maintenance, but it is a great task to schedule)

Every six months

Late Spring and Late Fall: Reverse ceiling fan direction
Check/change batteries in smoke and co2 detectors
Clean exterior dryer vent
Vacuum fridge coils
Do a home safety check where you test smoke detector batteries, check all locks, and look for things like loose knobs, shelves, tripping hazards and more.
Check your attic for leaks or critters (squirrels, mice, bees . . . ).
Take one Saturday every six months with your whole family, and give the whole house a proper deep clean. Appliances, windows, dusting every nook and cranny (including the basement), etc. Keeping things clean and not letting dirt/grime/dust build up over years and years will help keep your home in tip-top shape.
Clean out the tracks of your window. Vacuum and run a cotton swab to remove all the grime and dust.

Every 3 months

Wipe down inside of fridge and replace baking soda in fridge
Flip your mattress and vacuum your mattress and/or box spring
Clean baseboards and trim
Inspect and reseal grout/caulk as needed in tiled areas
Wash range hood ventilation filters. If you cook with grease frequently, you may want to do this monthly. You can use a degreaser and let it sit in it for awhile, or you could run it through the dishwasher. Check your Owner’s Manual.
Wash curtains
Check your fire extinguishers
Run water and flush toilets in unused spaces. This mostly applies to guest bathrooms, or any other sinks/water sources you don’t use on a regular basis.
Check your water softener if you have it, and add salt if needed. You shouldn’t need to add salt every month, but better to check anyway, as it only takes about 5 seconds.

Every 1 – 2 months

Change air filters (Pro-tip: Buy a year’s supply of filters to store at once.)
Clean and freshen your garbage disposal. the handiest and best all-around solution seems to be vinegar ice cubes. Put some vinegar in an ice tray and let it freeze, then run the ice cubes through the disposal. It freshens it, but as a bonus, ice sharpens the blades.
If you have a front loading washing machine, you may need to drain water. Check your owner’s manual.
Run an empty load in your dishwasher with something like TSP to clean up hard water deposits.