by Amy Pawlukiewicz

original article: https://www.homelight.com/blog/buyer-what-to-do-after-buying-a-house/

So you’ve bought a house. Congratulations! You’re done, right?

Buyers — especially first-time buyers — can feel like they’ve just finished running a marathon after buying a house. But it’s not over yet! You still have to move in, customize the house to your needs, and make sure you’re prepared for the rigors of homeownership.

Here’s a complete list of what you need to do after buying your home.

Set up your new address everywhere

Now that you’re in your new digs, people need to be able to find you. Make sure to notify your friends and family. You want to get all your holiday cards, right?

Next is your employer — this one is important and frequently forgotten, so make sure you drop your HR department a line so they can update their records.

Don’t make the mistake of forgetting your creditors! The last thing you want is a ding to your credit score because a bill went to the wrong place.

Finally, the U.S. Post Office needs to know your new address. Set up mail forwarding from your old place to your new home to make sure you don’t miss any important correspondence.

Insurance

You probably set up homeowners’ insurance while you were processing your mortgage paperwork, which is great. But your address can affect your car insurance as well, so make sure to check in with your insurance company to confirm that your car insurance is sufficient.

Talk to your agent about how your big, new asset affects your other insurance products — many agencies offer a bundling discount, so don’t leave money on the table by not bundling all your insurance products.

Do you need flood insurance? Even if FEMA doesn’t require it, it might be a good idea to add it, since floods are the most common natural disaster in the U.S. and cause thousands of dollars in damage every year.

And what about earthquake insurance? If you’re on the West Coast, don’t make the mistake of thinking your homeowners’ policy will cover you in an earthquake — it won’t. The California Earthquake Authority has a premium calculator on their site, although you do have to purchase insurance through a participating insurance company.

Do you need to document your belongings for your new homeowners’ insurance policy? Homeowners’ policies contain a section about insuring the contents of your home, and it’s a good idea to create a home inventory so you know what level of insurance you need. If you’re unsure of where to start, ask your agent about the best way to do this — and make sure you store the documentation somewhere safe.

Home warranties

Are you going to buy a home warranty? Now is the time! Home warranties cover a whole host of things, from air conditioners to plumbing to simply rekeying your house.

Sometimes real estate agents will try to negotiate a home warranty to be paid by the seller for a year or so. “When I write up an offer, I’m always asking the seller to pay for a home warranty,” explains top-selling Charlotte real estate agent Greg Martin. But if that doesn’t happen, it’s a good idea to look into a home warranty yourself.

“If something happens and you call the warranty company, then they will send somebody out. I recommend it for everybody,” continues Martin.

Cleaning and painting

A lot of buyers aren’t organized enough to clean and paint before they move in, but it makes everything easier if you can swing it!

Try to get at least a thorough cleaning done before you move all your stuff in, and if you can, get all your painting done.  It’s much easier to paint an empty room than a room packed with furniture.

Your new home might not have any window treatments; if not, they should be at the top of your list of things to purchase (you don’t want to give your new neighbors a bad first impression, after all).

Check to see if the house has horizontal and vertical blinds, and make sure you like the style. If not, make a list of all the windows that need treatments and the measurements of those windows so you have it handy at the hardware store or when you’re ordering online.

Get to know your new home

In case of emergency, you definitely need to know where everything is in your new home!

First, the main water shut-off valve — sometimes this is in the garage. Sometimes it’s in the basement or crawl space. Make sure you know how to shut off your water in case a faucet breaks or a sink starts leaking.

Next, find the circuit box and make sure your fuses or switches are well-labeled. Nothing is more frustrating than blowing a fuse and having to check each one individually because nothing is labeled. And you might be surprised — sometimes fuses from different parts of the house are tied together on one switch, so do your homework early and don’t be left scratching your head during an outage.

Find the gas shut-off valve, if applicable. During a natural disaster, the first directive is often to shut off the gas, so it’s super important to know where the gas shutoff valve is. If at some point you smell gas in the house and need to shut it off, you don’t want to have to go searching for the valve while your house fills with gas.

If you have a sump pump, make sure to test it. Sump pumps are amazing if they’re used correctly, but if not, they can lead to thousands of dollars worth of damage. They are located in the basement or crawl space of a home, and they ensure that if there is standing water in your home, it is pumped out into your storm sewer or a containment pond.  The Roto Rooter website has some great step-by-step videos for checking your sump pump and maintaining it properly.

In the United States, more than 20% of homes rely on a septic system for treating wastewater. If you fall into this category, you’ll need to perform regular maintenance on your septic tank to make sure you don’t end up with a malfunction.

It’s a good idea to hire a professional to inspect your septic system, if you didn’t do so during closing of your loan. Septic tanks need to be pumped every three to five years, so make sure you have all the details on when maintenance was last performed on your system. There are different types of septic systems and several variables that can affect how they function, so hiring a professional in this case is probably your best bet.

Security

Make sure that before you move into your new home, you change all the locks, garage codes, and security codes. You don’t want the previous homeowners (or their friends) to have access to your house because you forgot this important step.

If you are putting this off, check for hidden spare keys on the property in places like the tops of door frames and under rocks on the porch. (But your best bet is to change the locks ASAP.)

Have extra keys made so you can get in if you’re locked out! You don’t want to have to chance breaking one of your new screens or windows by crawling through when you’re stuck outside. You can get hide-a-key rocks and figurines online, so hide one in your yard or garden and ensure you’re never locked out.

Reset any security codes — garage, alarms, even locks sometimes have security codes, so make sure you change all of the codes before settling into your new digs.

Safety

Water in your new house running too hot or too cold? Check the heat on your water heater and reset it if you aren’t comfortable with the temperature setting.

Make sure your smoke and carbon monoxide detectors are working. Carbon monoxide is called “the quiet killer” for a reason — it is odorless, colorless, and leaks are soundless, so there is no way to know if it’s in your house unless you have a working carbon monoxide detector. Replace the batteries in all smoke and carbon monoxide detectors around your new home to make sure they’re in working order.

Place fire extinguishers in the house — there should be one in the kitchen and one on each floor of the house. And set up an emergency kit and place it somewhere you’ll remember, making sure to check it every six months for expired products. Emergency kits should include items like:

• A three day supply of non-perishable food (don’t forget pet food, too)
• One gallon of water per person per day, and more if you have pets
• A battery powered or hand-crank radio
• A first aid kit
• Flashlight
• Batteries
• A manual can opener
• Prescription and non-prescription medications
• Cash, preferably in small bills
• A change of clothing for each person
• Matches
• Fire extinguisher
• Feminine supplies

You can tailor your emergency kit, so sit down and make a list of those day-to-day items your family needs.

Living

Once you’re in your new home, set up your utilities, including gas, water, electric, Internet, and cable/television. Then, set up autopay everywhere you can to keep your credit pristine and avoid missing any utility payments. Check all the lights in your new house and replace any bulbs that are out.

Make a maintenance plan

Your new house requires maintenance not included in everyday cleaning and tidying up. These duties include:

• Dryer hose and vent: Your dryer can become a fire hazard if the vents and duct are not cleaned often enough. Make sure you check your dryer at least once a year to make sure everything is working properly — more often if there’s a problem.
• HVAC filters and maintenance: HVAC filters are fairly easy to change, once you know where they are, and should be swapped out every one to three months. Some air conditioning and furnace systems have a washable filter that you can take out and rinse off, so make sure you check to see what you have when you move into your new home.
• Refrigerator: Simple maintenance can significantly increase the life of your refrigerator. Empty your ice bins monthly. Every three months, clean the condenser coils and inspect the door gasket. Newer fridges have insulated coils, so cleaning won’t be necessary. Every six months, replace the water filter and clean the drain hole, if applicable.
• Water heater: Once a year, drain your water heater and rinse out any sediment that has collected in it. If you have a tankless water heater and live in an area with hard water, think about having a pro come out once a year and descale it.
• Gutters: Make sure to clean your gutters at least once a year — more frequently if you have trees on your property.  Not cleaning your gutters can lead to serious damage to your home, including mold and even ruining the foundation.

Introduce yourself to the neighbors

Go and say hello to your new neighbors! Neighbors can be an incredible resource for the goings-on in the neighborhood, and can also give recommendations for handymen, landscaping, and so on.

Does your neighborhood have a neighborhood watch? Are there neighborhood meetings you should be attending? Does the neighborhood have an annual block party or barbecue? NextDoor, a social network specifically for your neighborhood, is also a great way to stay informed about events, sharing safety tips, and even finding babysitters/house sitters.   If you’re unsure about how to introduce yourself, a small party can be a great icebreaker for meeting your neighbors as well.

Documents

First and foremost, if you don’t have a fireproof file box, get one to store your important documentation in. Make sure you have copies of your mortgage documents and insurance documents stashed somewhere safe (like in the fireproof box).

Do you have a will? If you don’t, you probably should now that you have a large asset. If you do have a will or any other inheritance documents, be sure to have your lawyer rewrite it to include your new home.

Homesteading

Homesteading, in basic terms, is a commitment to self-sufficiency, and it has become a popular trend in recent years. It can encompass growing your own food, raising animals, and producing your own energy, among other things.

If you’re interested in homesteading, be sure to see if there’s an opportunity in your county, and fill out any paperwork necessary to get you started.

Start saving for emergencies

Now that you’ve got your dream home, the last thing you want is to be hit with an emergency that you’re not financially prepared to cover. Try to put away at least 1% of your paycheck, more if you can, so you’re not in trouble if problems do pop up.

Whether you’re a first-time homebuyer or buying your second or third home, these are the steps you should take after buying a new home. If you’re looking for more guidance, check out HomeLight’s article on settling into your new home.

Header Image Source: (Nate Embry/ Death to the Stock Photo)

original article: https://www.henleystandard.co.uk/news/property/150523/estate-agents-top-tips-for-getting-your-home-ready-for-the-spring-market.html

SPRING is traditionally a popular time for buying and selling houses, and people looking to sell must present their homes in the best possible way.

Lauren Scott, the president of the National Association of Estate Agents, said: “With housing market activity on the rise during February and March, it’s important to take every step to make your property stand out above the competition.”

NAEA Propertymark has the following tips for sellers, to help ensure that buyers see their homes in the best light possible during viewings.

First impressions

If your front door is looking a little shabby, buy a new doorknob, a brass letterbox or a stainless-steel house number — these small touches can instantly make your home feel more welcoming.

Spring cleaning

A spring clean is essential before a seasonal sale. Make sure any old winter grime is removed from the property, give old carpets a deep clean, and thoroughly clean all curtains, or upholstery that attracts extra dust.

It’s also a good idea to deep clean all carpets before putting your house on the market as well to ensure the whole house feels clean and fresh.

Kitchens and bathrooms

Kitchens and bathrooms can make or break a sale, so make sure yours look their best. Give tired-looking bathrooms a makeover by hiding any unappealing pipework and fixing up any worn tiling. Tidy away bathroom clutter such as toiletries and cleaning products. In the kitchen, replace any worn work surfaces and cabinet doors if possible.

Lighting

A dark room is not ideal — the easiest way to brighten a room is to maximise natural daylight as much as possible by opening curtains and blinds and cleaning the windows.

Minimal decoration

Potential buyers must be able to picture themselves living in the home they are viewing, so if you are redecorating before selling, it’s best to keep the decor simple and colours neutral.

Flowers

Keeping fresh flowers on display is a welcoming touch that will make your home appear well kept. Flowers can play a vital role in giving rooms a lift and create a clean fragrance to greet a buyer.

Remove pets

If you have pets, air out the property in advance of any viewings, light a freshly scented candle to mask any lingering smells and consider leaving your pet with a friend or family member for the duration of the viewing.

By Dan Nosowitz

original article: https://www.bhg.com/news/low-mortgage-rates/

Over the past month, mortgage rates in the United States have dropped to truly astounding numbers. According to some sources, 30-year fixed mortgages can now be found at less than 3%. In fact, MoneyWise, a digital personal finance publication, says that mortgage rates are at their lowest in nearly half a century. So what does it mean for potential home buyers?

FEVERPITCHED/GETTY IMAGES

Some economists have pegged the rapid spread of COVID-19 as a primary cause of low mortgage rates. Since the first case of coronavirus was reported in December 2019, mortgage rates have dropped precipitously. And huge stock market sales have prompted lenders to lower interest rates to try to rescue their monthly figures.

But that isn’t the full story. For one thing, this phenomenon isn’t exactly new, despite the impressive lows. “In general, since the [2008] financial crisis, we’ve been in a low-interest-rate environment,” says Melissa Stegman, a senior policy counsel at the Center for Responsible Lending, which focuses on mortgage issues. “It’s not like suddenly rates are low. They’ve been low.”

Mortgage rates in 2000 were at an annual average of more than 8%, according to Freddie Mac. Following the financial crisis in 2008, they swung lower; in 2012, rates were hardly higher than they are today. These mortgage rates are closely tied to movement in the bond markets; in brief, when the stock market falls, panicked investors pile into bonds, which are more secure. But bonds and mortgages compete for the same investors, which means that as bonds rise, mortgage rates fall.

But while that’s led us to today’s shockingly low mortgage rates, it doesn’t necessarily mean that more people will be able to buy homes. “Even if mortgage rates are low, from our perspective and the research that we’ve done, mortgage credit availability is very constrained,” says Stegman. Low inventory and strict rules have made it very difficult for those with less-than-perfect credit to get mortgages. Mortgage availability is up since the dog days after the 2008 crisis, but they’re still low comparatively.

Low inventory and strict rules have made it very difficult for those with less-than-perfect credit to get mortgages.

Stegman described many rejected mortgage-seekers as presenting an “acceptable” amount of risk. These are prospective homeowners who would have gotten mortgages, no problem, 20 years ago. Now? Not so much.

That means that the people who are really going to benefit from these new record-low mortgage rates aren’t those who are seeking to buy their first home: it’ll be homeowners looking to refinance. In fact, refinance situations are expected to double this year. The industry is even struggling to keep up with requests to refinance. At some banks, there are hours-long waits to even talk to a loan officer.

It’s really important for the borrower to make sure the lender has run the numbers on the different scenarios and make sure that refinancing is really a benefit to the homeowner.

– MELISSA STEGMAN

For current homeowners, now is a great time to investigate a refinanced mortgage, but that doesn’t mean that refinancing will work for everyone. “It’s really important for the borrower to make sure the lender has run the numbers on the different scenarios and make sure that refinancing is really a benefit to the homeowner,” says Stegman. Interest, for example, is front-loaded in a mortgage, meaning that if you refinance, you might end up paying off interest for a few years before you even hit the capital.

There are also lots of fees associated with refinancing, and with a new craze for refinancing, those fees could be rising. Before refinancing, consider how long it’ll take to pay off those fees, which can sometimes be thousands of dollars. “Just the fact that there’s a lower interest rate might not in and of itself make it worth it,” says Stegman. 

If you’re thinking about buying a new house (or refinancing an existing mortgage), compare choices and thoroughly vet the numbers.

Most importantly, and despite the long waits you might encounter, be sure to shop around. Different lenders will present you with different options, and some might be better than others. So if you’re thinking about buying a new house (or refinancing an existing mortgage), compare choices and thoroughly vet the numbers. It could save you money in the long run. FIND YOURDecorating StyleSTART NOW

By Jeff Andrews

original article: https://www.curbed.com/2020/3/6/21163523/coronavirus-economic-impact-housing-market

Few homes look their best in the dirty grays of late winter, which is, in part, why homebuying season coincides with the arrival of spring. This year, however, the crocuses that can make a house look that much nicer are showing up alongside the less reassuring news of a virus circling the globe.

The rapid spread of COVID-19—more commonly referred to as coronavirus or novel coronavirus—has claimed more than 3,000 lives. Conferences and sporting events are being canceled, Americans are stockpiling groceries in preparation for the worst, and the stock market has dropped almost 10 percent since February 24.

If you’re in the market for a house, all this uncertainty might have you worried about the housing market. Will it suffer a swoon similar to Wall Street? There are a few ways the virus could effect the housing market that you should be aware of—but before we get into the details, you can breath a sigh of relief, because a housing catastrophe on the scale of the 2008 financial crisis is almost certainly not going to happen.

There are over 300 cases currently confirmed in the United States. The countries where the virus has hit the hardest—namely China, where nearly 80,000 cases have been documented—are global manufacturing hubs that corporations use as suppliers. China’s economy has been brought to a standstill as a result of the virus, and if that continues it could lead to further economic fallout.

However, historically low inventory, a humming economy, and rock-bottom mortgage rates are setting the stage for a highly competitive homebuying season.

Coronavirus already pushing mortgage rates lower

The current dip in the stock market is being caused by the possibility that the new coronavirus will disrupt global supply lines, damage corporate earnings, and thus make companies less valuable. But it will take some time for all of that to shake out and to see what the actual effect of the outbreak is on business.

But what matters more for housing is bonds, the price of which affect mortgage rates. When investors start thinking the stock market is too risky—like right now—they sell their stocks and buy bonds. The increased demand pushes the price of bonds higher. The higher the price of bonds, the lower the interest payment—called the yield—is relative to the price. When bond yields are lower, mortgage rates are lower, too.

This is why mortgage rates have dropped as a result of coronavirus. Rates are down to around 3.5 percent, and the Federal Reserve announced earlier this week that it was cutting its target interest rate by a half percentage point, which typically would cause mortgage rates to fall even further.

However, mortgage rates are already at three-year lows, and it’s an open question how low mortgage lenders are willing to go, regardless of whether the Federal Reserve cuts its target rate.

Where the housing market currently stands

The housing market is, in a word, tight. Consider Seattle, where home prices have risen dramatically as it has become one of the country’s leading tech hubs. And while the nation as a whole is suffering from housing shortages, Seattle’s available homes for sale dropped a dramatic 27.6 percent year-over-year in January.

The housing market in other cities isn’t much better off: supply is at near record lows nationwide, and demand is near an all-time high. This combination means home prices are also near all-time highs in most cities as many potential buyers are bidding on a limited supply of homes for sale.

At the end of 2019, the number of houses for sale dropped even lower, particularly on the West Coast. Compared to a year ago, some cities saw double-digit percentage decreases in available homes for sale, although that is partly a function of there having been a supply spike in the second half of 2019, so the decrease looks more stark than it otherwise would.

But the supply spike was short lived. “It’s actually back down near record lows in terms of the level of inventory for many markets and the country as a whole,” says Jeff Tucker, an economist with Zillow.

On the demand side, key indicators suggest there will be a lot of buyers in the market. Low unemployment, solid wage growth, and low mortgage rates are all signals of high demand. Todd Teta of ATTOM Data Solutions, a real estate data provider, says they’ve seen unusually high web traffic to real estate portals like Zillow and Redfin.

“We look at the portals, and traffic was way up relative to seasonality than what you saw in January of 2019,” he says. “All those indicators are looking pretty strong.”

It’s hard to forget the recent history, but while the 2008 financial crisis saw both the housing and stock markets drop in tandem, this was an aberration in so many ways; the housing market crash was ultimately the cause of the stock market crash. Typically the housing market isn’t tied to swings in the stock market, because people don’t buy houses purely as an investment. Housing is a basic need, and the decision to buy one is usually prompted by entering a new stage of life.

A newly married couple is moving in together and is buying a house. A couple is having a kid and needs more space to accommodate the baby so they buy bigger house. Empty nesters have more house than they need after their kids go to college, so they downgrade to a smaller house.

A stock market correction doesn’t change these circumstances for people. Even in full-blown recessions, the housing market is incredibly durable. In some previous recessions home prices have actually gone up.

Are homebuilder supply lines being disrupted by coronavirus?

The short answer is yes. Nearly a third of home building material inputs come from China, according to the National Association of Home Builders, not to mention more finished products like bathtubs, sinks, appliances, and more.

This could delay home construction at a time when it has finally picked back up. Since the financial crisis, home building has struggled to keep pace with demand because of the cost of construction material construction cost material, lack of available land, and a construction labor shortage.

However, home builder confidence has skyrocketed in recent months, according to the NAHB. This signals that builders are more inclined to start construction on homes. To wit, new home sales—largely dependent on how many homes are built—have spiked dramatically in recent months, as have construction starts.

But if supply lines are disrupted, it could dampen the pace of home building and contribute to inventory shortages.

“Low interest rates help support demand, and consumer confidence readings in the coming months will be key, but the virus does heighten some of the longer-term challenges on the supply side in terms of housing supply,” says Robert Dietz, an economist with NAHB.

So how should I approach things heading into the spring homebuying season?

The conditions are set for the spring being an incredibly competitive housing market. Inventory is low, demand is high, and mortgage rates are low. If you already own a home, you might consider refinancing while rates are this low; other homeowners are already jumping at the chance.

However, it’s worth taking recent housing market history into consideration. Two years ago, similar conditions existed in the market and one realtor told Curbed that we were entering “the most competitive housing market in recorded history.”

That market didn’t materialize. Instead, home prices hit an affordability ceiling that kept many buyers out of the market. Eager sellers who listed their homes in hopes of taking advantage of the favorable conditions saw their homes linger on the market, leading to an inventory pile up not seen since the 2008 housing crash, particularly on the West Coast.

Home prices are still very high. If the same conditions existed and home prices were a little undervalued, it would likely create rapid home-price appreciation. But with prices already maxed out, it remains to be seen whether current market conditions cause prices to break even higher or hit a ceiling.

The wild card in the housing market is coronavirus. If its impact is prolonged and induces even a minor recession, it could put a damper on demand—which would actually be welcome for buyers in particularly competitive markets. Still, don’t expect home prices to drop. It would likely just slow down the pace at which they are rising.

by: Mark Greene

original article: https://www.forbes.com/sites/markgreene/2019/11/15/what-you-need-to-do-before-you-go-house-hunting/#4c747e2e3fda

House hunting online has become the new “Great American Pastime.” But before you go house hunting for real, it is strongly recommended that you get your mortgage “getting” house in order.

Mortgage financing is about 3 things; your credit history, the money you have set aside for the down payment and closing costs, and what you do to earn enough income to make the mortgage payments. Lenders will evaluate your credit, assets and income separately and in concert to determine your mortgage-ability, so before you apply for a mortgage, you need to make sure your financial universe is in proper working order.

The first thing you want to do is check your credit history/report/score and you can do that easily and free at AnnualCreditReport.com. This will allow you to access your credit report from all three of the major credit bureaus; Trans Union, Equifax and Experian. According to the American Bankers Association, less than half of all U.S. consumers know what their credit score is or have even seen their credit report. Your credit score is the primary determinant of your mortgage wherewithal and has everything to do with what kind of interest rate you end up with. Get your credit report early, print it out, take a highlighter to it and make sure whatever is on there is supposed to be on there. If you need help, get help, mortgage people will be happy to help you navigate your credit landscape.

Next thing you want to do is figure out how much money you have set aside, how much money you expect to accumulate or have access to, and how much you will need for a down payment and closing costs. This may seem like a simple exercise in addition, but maybe not. All that cash you have in the safe or under the proverbial mattress at home, that loan your friend promised you, the security deposit your landlord is holding and lots of other “assets” that are not traditional depository savings or investments, may not be eligible. As real as they are, you may not be able to include them as qualifying assets, at least as far as your lender is concerned!

There are all sorts of asset land mines that you need to be aware of, for instance; lenders will want to know the source of those large deposits made to your accounts and may even require pieces-of-paper proof of where they came from. Almost every dollar of your asset profile will need to be documented and updated to within an inch of your financial life, so you should make a detailed inventory of the amount and sources of all dollars you plan on using.

The almost last thing you need to do is to make sure your past and present employment history or whatever your source of income may be, meets mortgage-approval-underwriting-guidelines. Oh yeah, and you need to be able to prove that you have enough eligible income to cover the mortgage payments and any other debts that you pay every month. Lenders use ratios to compare your income to your outlay and you need to be within your means based on those measurements.

Employment and income sources, much like assets, can have lots of seemingly ok, perfectly legitimate circumstances that could be challenged by an underwriting guideline test. Length of time on a job or in an industry, being self-employed, tax return write-offs, hourly, salary, commissions, bonus, car allowance, you name it! Depending on your individual circumstances, it may or may not be eligible or documentable as a usable income source. The good news is that there are clear cut plug and play documentation and employment history guidelines that can help you determine the employment/income eligibility of your financial profile.

Once you have all of your credit, asset and income ducks in a row, then you can venture out into the real estate world and find an agent to help you buy a house. Here is the best part, the mortgage rep that helped you navigate your credit landscape, your asset profile and your employment/income history and eligibility, probably knows lots of great real estate agents who know all about neighborhoods and houses that you might like. Ask them for help with that too.

By JACOB PASSY

original article: https://www.marketwatch.com/story/mortgage-rates-fall-to-the-lowest-level-since-2016-could-this-be-the-last-affordable-spring-home-buying-season-2020-02-06

As spring rolls in, so may many Americans’ last chance to afford a home purchase for the foreseeable future.

Mortgage rates have dropped to the lowest levels since before the 2016 presidential election.

The 30-year fixed-rate mortgage averaged 3.45% during the week ending Feb. 6, a decrease of six basis points from the previous week, Freddie Mac FMCC, +0.00%   reported Thursday. This was the third consecutive week in which mortgage rates dropped.

The last time the 30-year fixed-rate mortgage was at or below this level was in October 2016, when it averaged 3.42%.

The 15-year fixed-rate mortgage also fell three basis points to 2.97%, according to Freddie Mac. This was the first time since 2016 the average rate for the 15-year fixed home loan fell below 3%. The 5/1 adjustable-rate mortgage, however, increased eight basis points to an average of 3.32%.

The decline in fixed mortgage rates reflected the movement in the 10-year Treasury yield TMUBMUSD10Y, +0.00%  — mortgage rates roughly track the direction of long-term bond yields. While equities markets rebounded this week as fears regarding the spread of the coronavirus abated, the 10-year Treasury was more resistant to upward movement. Toward the latter half of the week, the 10-year yield improved following the release of positive economic data.

“As rates fell for the third consecutive week, markets staged a rebound with increases in manufacturing and service sector activity,” Sam Khater, Freddie Mac chief economist, said in the report. “The combination of very low mortgage rates, a strong economy and more positive financial market sentiment all point to home purchase demand continuing to rise over the next few months.”

Could this be the last affordable spring home-buying market?

That rising demand is expected to speed the start of the spring home-buying season, which is generally the most popular time of year to purchase a home for most of the country.

But a new report based on research from Realtor.com and the National Association of Realtors indicates that buyers who manage to score a deal this year will be lucky, as experts predict that affordability will only worsen in the years to come.

“The number of metros across the country seeing improvements to home affordability continues to increase,” Sabrina Speianu, senior economist research analyst at Realtor.com and the report’s author, wrote. “However, this spring homebuying season may be the last to see gains to affordability in quite a while.”

In the fourth quarter of 2019, housing affordability improved across all income levels nationwide, though the biggest gains in affordability were experienced among those in high income brackets. Out of the 100 largest metropolitan areas nationwide, 87 saw affordability improvements in the fourth quarter.

The rise in affordability was driven largely by low mortgage rates, but other factors also played a role, including growing household incomes, decelerating or falling home listing prices and inventory increases in some markets. Des Moines, Iowa saw the largest improvement in affordability nationwide, while Tulsa, Okla., experienced the biggest downturn.

Barring future global economic events or changes in Federal Reserve policy, interest rates are expected to stabilize in 2020, the report said. “With stabilizing interest rates, only income growth or increased construction of affordable homes can provide continued increases to home affordability,” Speianu wrote. “However, income growth has historically failed to keep up with home price growth and home builders have yet to reach normal levels of building activity despite recent optimism.”

Hosted by Frances Anderton

original article: https://www.kcrw.com/culture/shows/design-and-architecture/frieze-and-the-art-fair-effect-lita-albuquerque-at-desert-x-al-ula/frieze-la-heats-up-la-art-scene

Frieze LA is back for a second outing, bringing a bonanza of art fairs. But not all artists are excited about it. Aaron Axelrod says Frieze contributes to rising housing costs and is making the LA art scene “a little more snooty and less fun.” Art critic Jonathan Griffin says the entire art community benefits from the blue chip fair.

From the moment Frieze first opened its doors in London in 2003, with a layout designed by David Adjaye, the art fair had “a certain star appeal.” That’s according to Jonathan Griffin, independent art critic and contributing editor to Frieze magazine, who worked for the fair in those early days.

Now Frieze brings all its firepower to Los Angeles for a second year, this time with an installation by LA-based architect Kulapat Yantrasast, and around 70 leading galleries from across the city and the world. 

Griffin says that even for those not in the market to buy art, the fair is “a fun day out” because of the curated installations and activities happening outside the tent, including pop-up shops selling books, bowls, flowers, cacti; pop-up restaurants; films and talk programs.

Several art fairs have moved their dates to coincide with Frieze, meaning there’s an art fair for every budget. 

They include Felix, ALAC, stARTup and Spring/Break. Griffin says, “Every other side benefits from the presence of the others. And although there is an element of competition, of course, I think that no one fair can cover all the galleries in the world.” 

Felix, for example, is held at the Roosevelt Hotel in Hollywood this year, where the art is displayed in hotel rooms rather than typical bright white booths.  

That all sounds like it should please the art community, but not everyone feels happy.

Aaron Axelrod is an LA-raised, CalArts-educated, self-described “shaman bunny” who combines painting, performance and lots of chutzpah in art happenings around town. He believes that Frieze represents a dulling down of the spirit of Los Angeles, helping transform it from a place that was “free and experimental” to one where people seek “the gold.” 

In addition, he argues that global powerhouses like Frieze and the blue chip galleries that have set up shop here are contributing to gentrification, which is causing artists to lose access to affordable housing.

For Griffin, a rising tide lifts all boats. He says, “Everyone benefits from a healthier, more robust art market, even when the blue chip galleries are selling work that are unaffordable to 99.9% of the city’s population. … The entire city’s ecosystem becomes richer as a consequence.”

by: Javier Vivas

original article: https://www.realtor.com/research/buyers-bright-outlook-2020-home-purchase-sentiment-nears-survey-high/

Home buyers’ prospects on housing were off to a great start in 2020, according to the latest Fannie Mae Home Purchase Sentiment Index® (HPSI) for January.  The index which measures housing attitudes, intentions, and perceptions, using six questions from the National Housing Survey® (NHS), is a good yet lagged indicator of  eventual buyer and seller behavior during peak home buying seasons. The January HPSI increased 1.3 points over November and 8.3 points over last January to 93.0, approaching the survey high set just months ago. However, the factors driving the good feelings about housing continue to shift. While four of the six measures in the index increased on a yearly basis, job security and income growth continue to be areas where consumers feel less rosy about compared to this time last year.

Interestingly, the net share of respondents who say it’s a good time to buy remained visibly higher than last year (29 vs 15%). The same was true for net share of respondents who think it’s a good time to sell (45 vs 35%). The net improvement on selling captures the difference between the share of those who think it’s a bad time to sell relative to those who think it’s a good time to sell. This month, both of those measures diverged. Effectively, this suggests sellers believe to be gaining leverage given the unrelenting demand from buyers.

The continued optimism from home buyers in the January Fannie Mae National Housing Survey came as a result of favorable mortgage rates in what could be the most affordable spring home buying season in a while. However, the hints of deceleration in underlying attitudes toward personal finances are a solid clue that the second half of 2020 could bring new obstacles for buyers. Crucially, the impact of these measures of sentiment to effective home sales is heavily conditioned by the availability of inventory. The number of homes for sale has reached a historic low and continues to shrink. Historically, the trajectory of inventory levels takes 6-12 months to change direction, posing a challenge for buyers as the spring home buying season evolves.  The supply of homes will remain a slow moving pendulum in the coming months as sellers react to buyers sensitivities and buyers react to shifts in inventory and their own finances.

Maybe

By Jenna Chandler and Alissa Walker

original article: https://la.curbed.com/2018/5/18/17354276/move-to-los-angeles-advice-guide

ThinkingThinking about moving to Los Angeles? The first thing you should know: LA is massive. This fact informs nearly all of the advice that follows.

The city of Los Angeles is about half the size of Rhode Island, and it’s home to more than 4 million people. That’s just the city of LA.

There are87 other citiesin Los Angeles County. Many of them, including Beverly Hills, West Hollywood, and Santa Monica, are part of what we colloquially call “LA.” (This cool map shows how many states, i.e., most of them, have fewer residents than Los Angeles County.)

If you’re coming from a smaller place, Los Angeles will feel exciting, and probably overwhelming. On the other hand, with all that space—the county is4,751 square miles—you’ll have to room to breathe. LA might even feel languid if you’re coming from New York.

Los Angeles is filled with contradictions and extremes: the 10,000-foot (sometimes-snowcapped) mountains and the 100-degree heat of the Valley; the mansions and the tents; the sunshine and the floods. They make it almost unknowable. It’s easy to understand why Los Angeles is mischaracterized and misunderstood.

The best way to try to get to know it is to live here. Before making up your mind about whether to give it a go, below are 15 things to know about living in LA.

Los Angeles is eclectic.

The city of Los Angeles is made up of hundreds of neighborhoods. The boundaries of these neighborhoods are often disputed (although many have tried to draw them), and walking just a few blocks will often reveal a community that looks and feels distinctly different.

Leimert Park is a tight community, where you’ll come home to “find a bag of lemons from your neighbor’s tree on the doorstep.” South Park, in Downtown Los Angeles, is “very contemporary and modern,” with its glassy new high-rises and pretty rooftop bars. North Hollywood, in the San Fernando Valley, is “a little bit calmer… The pace is a little bit slower.” Small-town San Pedro is reminiscent of the Midwest, but on the coast—“it’s the last affordable beach town.” There’s a place for everyone.

Picking a neighborhood you like is supremely important.

Before signing a lease—and definitely before buying a house—crash with a generous friend for a few weeks. Give yourself time to adjust and get to know the different neighborhoods. There will be days when leaving your ’hood and wrestling with the concept of getting from one part of the city to another is too daunting.

Staying in your zone, and being able to walk to fulfill most of your daily needs, can be a survival mechanism. So choose where you live carefully—but also keep in mind that you might be priced out of your dream neighborhood.

It is possible to live in LA without a car.

Much of the city was built for cars—single-family homes with driveways and garages, strip malls, and too many parking garages—butit’s getting easier all the time to avoid being behind the wheel. In addition to having the U.S.’s third-largest public transit system, the city is focusing on making streets more walkable and is slowly but surely adding safer bike infrastructure.

There are also several solid bike-share systems serving many neighborhoods (and dockless bikes and scooters as well), and of course, plenty of ride-hailing and car rental options. If you rarely, if ever, use your car, you’ll end up enjoying LA even more.

Commuting will be a challenge.

LA’s major job centers—and it has multiple job centers, not a single central business district—are also some of the most expensive places in the region. LA’s traffic is no joke, and the sheer distance you might have to travel might make taking transit to work unpleasant, if not downright impossible. This is part of the research you’ll need to do when you decide where to live.

Can you take a train or ride a dedicated bus lane to avoid congestion? Do you have a bike route that feels safe to ride? Does work top off your TAP card for riding transit? How much will gas cost? Is parking free? Will your employer let you work from home one day per week?

The weather really is wonderful.

It’s not sunny 365 days per year, but pretty close. Last year, there were just 44 cloudy days in Downtown LA, where daytime temperatures, according to the National Weather Service, have averaged a perfect 75 degrees for 30 years.

It was the cloud-free skies (and the magical light) that drew movie studios here. Boosters once promoted “Southern California’s ‘Mediterranean’ climate to East Coast and Midwestern residents sick of brutal winters and sweltering summers” and convinced them that “sunshine and temperate climate would cure them of their ills.”

The median rent for a one-bedroom is $1,369.

The costs of renting and buying in LA are through the roof compared to most places in the country. As of November, the median home price for Los Angeles County is $650,000, and that’s a price that only 25 percent of the county’s population can afford. Meanwhile, the median rent for a one-bedroom is $1,369, according to Apartment List. These astronomical prices are caused, in part, by a housing shortage that has created stiff competition. The good news is that both the house-buying and rental markets and are finally starting to plateau.

But you’ll get more home for your buck.

The way LA is laid out, with almost half the city zoned for low-rise development, you’ll have a little more space than New York and San Francisco. So you’ll get more square footage, but also outdoor amenities like gardens, balconies, and pools. It’s not hard to find entire single-family homes to rent, with a yard and a garage. (Yes, it’s a great place to have pets.)

You’ll experience exhilarating highs and defeating lows.

You’ll spend 45 minutes traveling 5 miles. You’ll catch a pink-and-gold sunset over the Santa Monica Bay. You’ll walk by homeless encampments on your way to work. You’ll spend $5 on a cup of coffee. And $15 on a cocktail. You’ll swelter on a 110-degree day in October. You’ll spend a Saturday picking up trash strewn all over your street.

You’ll ride your bike past a colonnade of palm trees. You’ll rack up $2,043 in parking tickets in Santa Monica. You’ll wake up to the sounds of birds chirping outside your window. You’ll drink horchata from Guisados while strolling through the Spring Arcade. You’ll drive home at golden hour, and the Hollywood Hills will be bathed in the light. You’ll fall in and out of love with LA in the same day.

You’ll ride your bike past a colonnade of palm trees. You’ll rack up $2,043 in parking tickets in Santa Monica. You’ll wake up to the sounds of birds chirping outside your window. You’ll drink horchata from Guisados while strolling through the Spring Arcade. You’ll drive home at golden hour, and the Hollywood Hills will be bathed in the light. You’ll fall in and out of love with LA in the same day.

Not all of LA looks like the opening credits from Baywatch.

If you’re picturing a lush beachfront paradise, you’ll find that in some neighborhoods—Venice, Santa Monica, the South Bay. But Los Angeles isn’t all coastline and palm trees. Pockets of the city are gritty. They teem with concrete and tall buildings. The streets come alive with exotic trees, neon, and people, but, without regular rainfall, they can be dirty and smelly.That gray dust that coats your patio furniture for much of the summer? You can thank our freeways.

Living here is expensive—but not New York or SF expensive.

Depending where you’re relocating from, you might find the cost of housing, gas, groceries, and going out exorbitantly expensive. Compared to most places in the U.S., it is. In 2017, a survey of urban living expenses figured out that the income an individual needs to live comfortably in Los Angeles is $76,047. The survey factors in discretionary spending and savings. You can certainly get by on less—and many Angelenos do. The median household income here is $64,251.

The traffic really is a monster.

It’s probably even worse than you’re expecting. You will encounter traffic at unexpected times for inexplicable reasons. You’ll always have to check travel times before you leave; Google Maps will be your best friend. Waze can help find less congested routes (and introduce you to new neighborhoods), and tapping a ride-hailing service means you don’t have to be the one attempting to merge onto a crowded freeway.

Public transit doesn’t serve LA equally.

The biggest problem with LA’s public transit is that it’s still not quite ubiquitous or frequent enough to convince most locals to replace a car trip with a Metro ride. The region is making the largest public transportation expansion in the U.S., but it will be at least a decade before many of these new rail lines will open.

As the area’s rail network grows, especially with the addition of the Regional Connector, which will make switching to different lines much easier, there will be more growing pains. If you can’t afford to live close to work or work from home a few days a week, your car-free commute will likely mean relying heavily on the city’s buses—which, with the exception of a few dedicated routes, still get stuck in traffic.

It’s a great place to raise kids.

People will try to tell you that LA’s fine while you’re single but impossible once you want to have children. While certain aspects of LA life might become more of a challenge—and more expensive—with little ones, LA really is a wonderful place for families.

The region is home to some of the country’s best museums, zoos, aquariums, beaches, parks, and some exceptionally kid-friendly malls, plus there’s nearly everything—from skiing to sailing to apple-picking to wildflower–hiking—within a few hours’ drive. Get involved at your local school, sign up for a kids’ membership at LACMA (you’ll get to go with them for free), and find the nearest splash pad.

LA’s economy is strong, but not for everyone.

The unemployment rate is 4.2 percent, personal income is rising, and the region’s GDP is forecasted to continue eclipsing that of the rest of the country. But Los Angeles ranks seventh in income inequality out of the largest 150 metro regions, and that inequality is driven, in part, by a widening gap in wages and housing costs. The report published by USC in 2017 also found that people of color are far more likely to be in poverty or working poor than white residents.

The disparity is obvious. Mansions the size of hotels are cropping up in the hills of Bel Air with open houses that feature runway models, Champagne, and “artisan sushi.” Meanwhile, the homelessness crisis escalates. The number of people living on the streets and shelters in the city of Los Angeles swelled 12 percent from 2018 to 2019.

Truly appreciating this city can take time—even years

If you don’t fall in love right away, be patient. Eventually, you’ll uncover all of the advantages of living here: the ability to spend a morning in the mountains and an evening at a beach bonfire, the taquerias and the fruit vendors, the garden apartments. Hopefully, you’ll start volunteering to help, in some small way, to make the city better. You’ll start to appreciate the quirks that might have once seemed foreign: the strip malls, the Googie cafes, the Santa Ana winds. And, if you don’t, there’s always Texas.