First Rate Financial Group, Author at Fred Gruber - First Rate Financial Group

24

Jul

Market Outlook

What’s Ahead For Mortgage Rates This Week – July 24th, 2023

What's Ahead For Mortgage Rates This Week - July 24 2023 Last week’s economic reports included readings on U.S. housing markets, housing starts, and building permits issued. Sales data for previously-owned homes were also released along with weekly readings on mortgage rates and jobless claims

Home Builder Confidence Ticks Up in July

The National Association of Home Builders reported a one-point gain in home builder confidence with an index reading of 56 for July. Analysts predicted a reading of 57 and June’s reading was 55. Readings over 50 indicate that most home builders are confident about current U.S. housing market conditions. Overall homebuilder confidence rose for the seventh consecutive month in July.

Component readings of the Home Builder Confidence Index were mixed as builder confidence in current housing market conditions rose by one point and builder confidence in housing market conditions over the next six months fell by two points. Buyer traffic in new home developments rose by three points. The lack of previously-owned homes for sale boosted buyer interest in new homes. Homebuilders surveyed indicated that they are not offering as many buyer incentives as they did during the pandemic.

While home builder confidence remained positive, issues including shortages of buildable lots and slim supplies of electrical transformer equipment presented potential obstacles to builders’ positive outlook. Mortgage rates near 7 percent also presented concerns for home builders, but most prospective buyers appear to have accepted higher rates. In related news, the Commerce Department reported 1.43 million housing starts in June as compared t the expected reading of 1.48 million starts and May’s reading of 1.56 million housing starts.

Fewer building permits were issued in June with 1.43 million permits issued as compared to expectations of 1.48 million permits issued and May’s reading of 1.50 million building permits issued.

Mortgage Rates and Jobless Claims Fall

Freddie Mac reported lower average mortgage rates last week. The average rate for 30-year fixed-rate mortgages fell by 18 basis points to 6.78 percent, The average rate for 15-year fixed-rate mortgages dropped by 24 basis points to 6.06 percent.

Jobless claims fell with 228,000 first-time claims filed as compared to the previous week’s reading of 237,000 initial jobless claims filed.

What’s Ahead

This week’s economic reporting includes readings on U.S. home prices, sales of new homes, and pending home sales. The Federal Reserve will publish its decision on raising its key interest rate range. Fed Chair Jerome Powell is expected to give a press conference after the interest rate announcement. Weekly reports on mortgage rates and jobless claims will also be published.

21

Jul

By First Rate Financial Group

Home Buyer Tips

What is a Home Warranty?

What is a Home Warranty A home warranty is a type of service contract that provides coverage for repairs or replacements of major systems and appliances in a home. It typically covers items such as heating and cooling systems, electrical systems, plumbing, water heaters, and kitchen appliances.

Home warranties are purchased by homeowners to protect against unexpected expenses for repairs or replacements that may occur due to normal wear and tear.

When a covered item breaks down, the homeowner can contact the home warranty company, which will send a qualified technician to diagnose and repair the issue. If the item cannot be repaired, the home warranty company will typically replace it with a similar model.

It is important to note that home warranties are not the same as homeowners’ insurance. Homeowners insurance covers damage to the structure of the home and personal belongings due to unexpected events such as fires, storms, or theft. Home warranties, on the other hand, cover the repair or replacement of items due to normal wear and tear.

What’s generally included in a home warranty?

The items that are typically included in a home warranty can vary depending on the specific plan and provider, but they generally cover major systems and appliances in a home that are subject to normal wear and tear. Some of the most common items included in a home warranty are:

Heating and Cooling Systems – This typically includes coverage for furnaces, heat pumps, air conditioning units, and ductwork.

Electrical Systems – Issues with your home’s electrical system can be expensive and dangerous. Having these covered makes sure that your home stays safe. This includes coverage for the main electrical panel and wiring throughout the home.

Plumbing Systems – Just like electrical repairs, plumbing issues often require a professional and can cause major problems if not fixed right away. Having these things covered by a home warranty will cut repair costs and includes coverage for the water heater, pipes, and drains.

Kitchen Appliances – This includes coverage for the refrigerator, oven, dishwasher, and built-in microwave.

Laundry Appliances – This includes coverage for the washer and dryer.

Garage Door Opener – This includes coverage for the garage door opener and related components.

It’s important to note that while these items are typically included, each home warranty plan is different, so it’s important to read the details of the plan to understand what is and is not covered. Additionally, there may be optional add-ons available for specific items or systems that are not covered under the basic plan.

20

Jul

By First Rate Financial Group

Mortgage Tips

Critical Tips To Consider When Hiring A Home Contractor

Hiring a home contractor can be a daunting task, as the success of your home renovation or construction project depends largely on the competence of the contractor you choose. Here are some critical tips to consider when hiring a home contractor:

Research: Do thorough research on potential contractors before hiring them. Check their credentials, licenses, certifications, and experience. Also, look for reviews and testimonials from past clients to get an idea of their work quality.

Get multiple quotes: Request quotes from multiple contractors and compare them. This will give you an idea of the average cost of the project and help you choose the contractor that offers the best value for your money.

Check for insurance: Ensure that the contractor has liability and worker’s compensation insurance. This will protect you from liability in case of accidents or injuries on the job site.

Define the scope of work: Clearly define the scope of work and project specifications in writing. This will help avoid misunderstandings or disagreements later on.

Set a timeline: Establish a realistic timeline for the project and make sure the contractor agrees to it. This will ensure that the project is completed on time and within budget.

Communication: Effective communication is crucial when working with a contractor. Make sure that the contractor is responsive and easy to communicate with, and that you are comfortable asking questions and expressing concerns.

Contract: Sign a contract that outlines all the terms and conditions of the project, including payment schedules, warranties, and dispute resolution procedures.

By following these critical tips, you can hire a reliable and competent home contractor who can deliver quality work on time and within budget. When contacting previous clients, be sure to ask specific questions about their experience, such as whether they completed the project on time, if they stayed within budget, and if they were responsive to any concerns or issues that arose during the project. This information can help you make an informed decision when choosing a contractor and give you peace of mind knowing that you have hired a competent and reliable professional.