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  Provided to you Exclusively by John Marbury
John Marbury
John Marbury
Vice President Mortgage Loan Origination
NMLS# 740833
National Bank of Commerce
Mobile: 205-266-5669
Email: jmarbury@nationalbankofcommerce.com
Website: www.johnmarbury.com
  National Bank of Commerce
For the Month of September 2021 --- Vol. 15, Issue 9
 
  In This Issue  
     
 

"A fallen leaf is nothing more than a summer's wave goodbye." - Unknown

  • Will the Fed Pull Back on Quantitative Easing? - The final quarter of 2021 is almost upon us in which its seen a rebound in economic growth compared to the declines seen for all of 2020 due to the pandemic induced shutdowns. The question now is, will the Fed pull back on its latest Quantitative Easing Program?
  • Does House Color Have an Impact on Price? You might be surprised to learn how color choices for the homes' exterior can affect the overall price.
  • Redefining Your Home's Era - It's easy to transform your home into one that has a more vintage appearance by changing a few interior aspects.
  • Q&A: Why Might a Home Sale Fail to Occur? What are some of the reasons why a home sale might not happen? Knowing some of these common deal breakers can help you work around these issues.

Please feel free to forward this newsletter to friends, family or co-workers who may find it helpful.

 
 
  What to Watch  
     
 

Will the Fed Pull Back on Quantitative Easing?

The final quarter of 2021 is almost upon us in which its seen a rebound in economic growth compared to the declines seen for all of 2020 due to the pandemic induced shutdowns. The question now is, will the Fed pull back on its latest Quantitative Easing Program? The Fed is currently purchasing both Treasury and Mortgage-Backed-Securities in the amount of $120 billion-plus per month to increase the money supply and promote lending and investment.

The Fed has a dual mandate of promoting maximum employment and maintaining price stability. On the employment side of the mandate, the labor market recovery is uneven. Yes, the headline unemployment number fell to 5.4% in the August Jobs Report, but the Labor Force Participation Rate (LFPR) remains at stubbornly low levels. An uneven labor market could keep the Fed on hold.

On the inflation side, it has moved considerably higher from last year's low levels, but recent readings have seen the monthly numbers decline. The Fed has been saying that high inflation will be transitory or short-lived, so seeing a retreat in prices would be another reason for the Fed not to taper just yet.

Home prices continue to rise annually in response to soaring lumber prices, commodity prices and scorching demand. This has caused housing affordability problems for many. One way many suggest cooling off the housing froth is for the Fed to taper their Mortgage-Backed-Security (MBS) purchases.

Bottom line: Whether or not the Fed begins to taper purchases, rates are just above historic lows and ripe for an application to either purchase or refinance.

Source: Mortgage Market Guide

 
 
  Housing News  
     
 

Does House Color Have an Impact on Price?

Did you know that colors can affect your emotions? Although you might not be aware of the impact, colors can drastically affect the appearance of just about anything, and homes are no exception.

As a prospective buyer, you may be aware that the color of a homes exterior could affect its price. Much of the return on investment from painting depends on the homes size, price range, and total cost of the project. Although painting the interior of the house has a higher return, the exterior's return is also significant.

Popular exterior colors such as those with a mix of gray and beige can bring in a higher return on investment however, it's also important to consider the homes architecture. For example, brick homes may need just the right touch of accent color to give it the perfect curb appeal. White is another common choice since it makes the exterior look more expansive and attracts more light.

Door color can also affect a homes rate of return. According to a recent paint analysis, homes with darker front doors such as blue or gray can attract a higher selling price.

A homes exterior color choice can ultimately help you determine if you want to avoid stepping inside or dive in and explore its' upside potential. Colors are an easy way to change curb appeal while also allowing you to create your own style. If you're ready to take the plunge and purchase a home, let a trusted real estate professional help you achieve that goal.

Sources: Certifiedrealty.com, Kristafracke.com, Realestateagent.com

 
 
  Home Improvement  
     
 

Redefining Your Home's Era

Once you purchase your dream home, you might find yourself wanting to redesign it to fit your desired era's aesthetic. Whether that means transforming your mid-century modern home into one that feels more vintage or embracing your house's Victorian style, there are plenty of tips available to make your vision a reality.

Paint the walls. Nothing quite dates a home like color does, so why not spruce up the inside with hues from your favorite era? Most paint companies offer collections to help you find that perfect color.

Mix up the furniture. To avoid your home looking like something you'd find in a contemporary magazine, avoid purchasing all your furniture at the same location in one day. Instead, gradually acquire pieces that might go well together but don't look like they're all from the same designer. Check out consignment shops and antique stores.

Change the ceiling. Tin ceilings rose in popularity in the late 1800s, but they're still in style today. Depending on the era you're trying to evoke, highlighting the ceiling can bring a historical charm.

Opt for natural materials. Although there's nothing technically wrong with vinyl or laminate surfaces, if you want your home to feel older and sturdier, consider adding natural materials. Choosing stone or wood countertops and hardwood floors can give your home a more antique appearance.

With old homes, it's all about focusing on the small details. Head to your closest home improvement store and pick up some items to help you transform your home into one that has a more vintage feel.

Sources: Washingtonian.com, Forbes.com, Bobvila.com

 
 
  Q&A  
     
  Why Might a Home Sale Fail to Occur?

QUESTION: What are the most common reasons a sale falls through?

ANSWER: Unfortunately, having a home sale fall through can happen. Of course, you don't want that to happen, but being aware of the common deal breakers can prepare you for the potential of this occurring and help you learn to work around the issues.

Low appraisals: If the appraisal comes back lower than the contract price, the deal could fall through. Your lender will only lend you money up to the property's value amount, so if the home appraisal is lower than the agreed amount, you cannot secure the full mortgage amount.

Title insurance surprises: Title insurance ensures that the home is the owners and can be sold. Lenders require title insurance to protect the home, so if the owner defaults on the loan, the faulty title will show that the home doesn't belong to the owner. To prevent any surprises, obtain your own title report.

Inspection issues: You have the potential to perform several types of inspections when you buy a home. It's important to note that every home will likely have some issue, but the primary reason for an inspection is to make sure the home doesn't have major deficiencies. Some red flags might include mold, roof leaks, foundation issues, and structural damage.

Keep in mind that when buying a home, there's a potential for the deal to fall through. While some of these issues are preventable, others are out of your control. Set realistic expectations so you can put yourself in a better situation if a deal falls through. If you have further questions about buying a home, reach out to a trusted real estate professional for more information.

Sources: Trulia.com, Zillow.com, Rochesterrealestateblog.com

 
 

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