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  Provided to you Exclusively by Rob McCarthy
Rob McCarthy
Rob McCarthy
Owner/Senior Mortgage Planner
101 Loan, LLC
Office: 408-377-4123
After Hours: 650-465-8957
Email: rob@101loan.com
Website: www.101loan.com
CA DRE #01165697 NMLS #121019
  101 Loan, LLC
For the Month of January 2022 --- Vol. 16, Issue 1
  In This Issue  

"Winter is the time for comfort, for good food and warmth, for the touch of a friendly hand and for a talk beside the fire: it is time for home." - Edith Sitwell

What to Watch: Are Higher Rates Ahead? - Are higher rates and borrowing costs ahead in the cards? If so, when can we expect to see those changes?

We May Not See a Ton of Foreclosures Soon - Find out how today's housing market aims to break the cycle of the last one when it comes to foreclosures.

4 Creative Ways to Hide Rooms in Your Home - Convert areas in your home into a tranquil space where you can unwind.

Q&A: What Types of DIY Projects Are Safe to Tackle? If you have the itch to do your own renovations but are unsure what ones are safe, find out which projects are easy to accomplish.

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

  What to Watch  

Are Higher Rates Ahead?

Are higher rates ahead in the cards for home loans and, when can potential home buyers or those looking to refinance current loans expect to see higher borrowing costs? Well, for the first question, the market has already seen an uptick in rates as the year ends from where they were last January.

The 30-year fixed-rate mortgage hit an all-time low of 2.65% back in January and has since increased to near the yearly high to 3.33%. Still, that number is historically low, considering rates were around 18% in the 1980s. The problem is that a lot of those now on the hunt for a mortgage or refinance only know these low rates.

Could they go higher?

"We expect rates to continue to increase into 2022, which may leave some potential homebuyers with less room in their budgets on the sideline." - Sam Khater, Freddie Mac's Chief Economist. The consensus is that given the uptick in inflation and the Fed's announcement that it will begin to purchase less or taper its current Mortgage-Backed and Treasury security programs along with decent economic growth, rates will most likely increase.

Freddie Mac is forecasting that the 30-year fixed-rate mortgage will average 3.5% in 2022 which would still peg it at the low end of the range historically.

Despite the inflation talk, the yield on the benchmark U.S. 10-year T Note yield remains relatively low due in part to the current Fed buying, which will end in March. Also, the fact that U.S. government yields are higher than most of the world and the safest place for investors to park their money is another reason our rates are low.

Bottom line: If you're considering a purchase or refinance, now is the time to secure a home loan before we return to pre-pandemic mortgage rates.

Source: Mortgage Market Guide

  Housing News  

We May Not See a Ton of Foreclosures Soon

Despite having a banner year of housing market activity, the real estate industry could be in for a dose of reality once 2022 rolls in. However, many industry insiders believe the housing market won't experience a wave of foreclosures similar to what happened when the housing bubble burst 15 years ago.

After the last housing crisis, more than 9.3 million people lost their homes due to short sales, foreclosure etc. Once those stay-at-home orders came down in early 2020, experts feared the pandemic would have a similar impact on the housing market.

Some even predicted that almost one-third of all homes would enter foreclosure, but in reality, that number reached 8.5% at its peak. As of November 2021, that number dropped to 2.2%.

Over the last two years, home prices have skyrocketed so those in forbearance likely have at least 10% equity in their home. This is important because it gives homeowners a chance to sell their homes and pay related expenses instead of having their credit suffer due to a foreclosure or short sale.

Also, when those foreclosures hit the market back in 2008, they hit an already saturated market. The market had a nine-month supply of listings. Today's market only has a three-month supply.

Today's market is following its own path and aims to steer clear of the housing crash of 2008. With forbearance set to expire soon, it might be a smart time to find a new home. If you're interested in getting into a new residence, reach out to a credible real estate professional.

Sources: Rismedia.com, Keepingcurrentmatters.com

  Home Improvement  

4 Creative Ways to Hide Rooms in Your Home

Sometimes there's nothing better than unwinding in your home. However, if you live with others, you might yearn for solitude or just a way to escape. What better way to get away from the sanctuary of your home than by creating a hidden room?

A hidden room can be anywhere in your home, regardless of its size. Consider incorporating one of these four ideas to create a tucked away room in your home:

A room behind a bookcase. At one time or another, you've likely watched a movie or television show that had a secret room hidden behind a bookshelf. Why not create one of these yourself? The bookcase can swing open to reveal a surprise space.

An under-stair hideaway. One area of the home that typically goes unused in a home is the space beneath stairwells. Some builders will leave this area exposed and open, while others close it off. Turn this space into a nook and the perfect secluded space.

Trapdoor to the basement. With the simple push of a button, a trapdoor can open to reveal a secret staircase leading you to space in the basement. It almost feels magical when the trapdoor system glides open to unveil this entryway.

Tucked-away loft. On the other end of the spectrum is a hidden loft that's only accessible via a retractable wooden ladder. Place a bed or comfortable chair as well as a lamp in the loft, and you have a tranquil mini getaway.

You don't need to physically leave your home to find a safe and quiet space to get away from the hustle and bustle of life. Reach out to a contractor to determine if any of these options are a possibility for your home, and get planning on what you will decorate your space with.

Sources: Hongkiat.com, Familyhandyman.com, DIYnetwork.com

  What Types of DIY Projects Are Safe to Tackle?

QUESTION: What Is Safe to DIY?

ANSWER: When it comes to being an active DIYer, you might have a common misconception that you can tackle just about any home repair and improvement. However, there's a thin line between being fearless and foolish.

Not to shatter all your hopes and dreams of making repairs on your own, but there are a few home repairs that are better left to the professionals. Instead of highlighting all those tasks that you should let the pros handle, focus on the ones you should be able to handle.

Replace a toilet. No matter if you're installing a better-flushing toilet or resetting the old one after a remodel, replacing a toilet is a perfect DIY project.

Patch drywall. Drywall is surprisingly easy to damage and is just as simple to repair. Cracks in the drywall are also easy to patch with the help of a fast-setting drywall compound.

Fix cracked grout. Cracked grout in a newly tiled floor can be disappointing, but it's a simple fix. Use caulk as flexible grout, and it should be as good as new.

These examples are just a small sampling of the easy DIY tasks you should be able to complete. All you need are a few tools and supplies from your local home improvement store, and you can get started on doing your own repairs.

Sources: Todayshomeowner.com, Familyhandyman.com


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