Archive for February, 2010
Are Mortgage Rates Going Up?
February 23rd, 2010 categories: Mortgages & Finance
Yes. At least that’s what a lot of experts are saying.
Get Ready for Higher Mortgage Rates- CNN
Marketwatch.com’s Steve Kerch predicted as much in October 2009, saying “Housing Could Take a Double Dip Down in 2010.”
According to David Lowman, CEO of Chase Home Lending, ” if the Federal Reserve ends its purchases of mortgage-backed securities…we’re going to come to a pretty hard stop. We’re likely to see a much smaller mortgage market after the second quarter and later in 2010.”
Which is exactly what the Fed plans to do beginning March 31.
However, the Fed announced these plans last year and rates still haven’t gone up. Why?
CNBC’s Steve Liesman explains:
Anecdotally, I’ve heard from lenders that a lot of buyers have been antsy to lock in their loans now. Like farm animals before a tornando, maybe they feel it coming.
| Discussion: 4 Comments »
The Simple Solution to All That Darn Kid Artwork - A Wall of Art
February 17th, 2010 categories: Decorating, Home Owners
If you have a kid in your house, chances are you have kid artwork. A lot of it.
Most likely you have it posted on the refrigerator, stacked in a pile or stuffed into a bin. Not an attractive or useful way to display your kid’s creativity - at least that’s how I was feeling after jamming my daughter’s drawings into a storage bin every week.
While at Ikea (where so many good ideas are born), I came across the RIBBA frames in white. I thought, “I have wall space. I have kid art. And I have a hammer.” Here’s the end result - my kid art wall.
I could have fit another row of frames but I plan to put a low dresser on that wall.
It’s not the most economical way of handling my daughter’s artwork ($14.99/frame) but it accomplished a few things for me:
- I decorated my daughter’s room with original works of art that are very personal.
- I am now able to throw out my less favorite (or odd-shaped) items without guilt.
- The wall can grow with my daughter - as she ages and draws new things, we can easily change out the artwork.
| Discussion: No Comments »
Snow!
February 11th, 2010 categories: Central Connecticut News & Information
A few photos from my yard in West Hartford this morning after yesterday’s snow storm.
| Discussion: 3 Comments »
January 2010 Hartford County CT Real Estate Market Report
February 9th, 2010 categories: Real Estate Listings, Real Estate Market
The beauty of today’s real estate market is in the eye of the beholder.
Buyers will like that prices have dropped. Inventory is up. Homes are taking longer to sell. Buyers have many more choices.
Sellers will not like that prices have dropped. Inventory is up. Homes are taking longer to sell. Buyers have many more choices.
The median sales price in January 2010 dropped from $219,750 in 2009 to $207,000. More homes are selling but they’re typically selling for less.
Going forward, there are nearly 3,000 homes actively on the market - and only 301 closed in January. There are almost 1,000 pending sales but a good percentage of those will not close. There is nine months of inventory on the market - a strong buyer’s market.
There’s always a backlog of homes on the market at this time of year so we will work through some of this inventory come Spring.
My overall feeling is that prices will continue to fall. Slowly but surely. I don’t know how much more but I don’t think we’ve reached the bottom.
Does that mean I would wait to buy? Not exactly. Prices are better than they’ve been in years and interest rates are low. If you’re living in Mom’s basement rent-free and putting away money every month for a down payment, then waiting may make sense for you.
But if you’re renting, have decent credit, can qualify for the tax credit, and can stay in your home for a few years, buying may actually be worth it - even if you home declines in value in the next year.
It also makes sense if you are handy. There are so many homes available now that need work - more than I’ve seen in the five years I’ve been in business. If you can make upgrades - like fixing up bathrooms, kitchens, and easily adding square footage (such as finishing off the attic in this cape below) - you will insulate yourself against price declines.
Details for this listing: 336 Oak Street, New Britain, CT - $129,999
| Discussion: 2 Comments »
Is It A Good Time to Refinance?
February 5th, 2010 categories: Mortgages & Finance
In an article on RISMedia.com yesterday called 5 Reasons Why Refinancing May Be a Good Option Now, Bills.com suggests homeowners strongly consider refinancing.
“Low rates and compelling opportunities to refinance into shorter term loans have arrived at the same time as large consumer demand…With some exceptions, a 1/2-point to a 1-point drop in rate will generally make refinancing worthwhile…”
Refinancing from a 30-year mortgage to a 15-year mortgage is a smart idea if you have plans on staying in your home longer and can afford a higher payment.
“The current difference between fixed 15-year and 30-year interest rates is significant, making refinancing into a shorter-term loan a compelling opportunity. This can save hundreds of thousands of dollars over the life of a loan and shorten the time to payoff with sometimes only a slight increase in monthly payment.”
The article also suggests refinancing into an FHA mortgage to pay for home efficiency projects - another good idea if you need to make some improvements but don’t have the cash. Generally, I don’t like the idea of refinancing your home to buy something else. But since these improvements are likely to add value to your home, it’s not the same as refinancing to buy a car or go on vacation - never a good idea.
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