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| Provided to you Exclusively by Bruce Gordon |
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For the Month of March 2025 --- Vol. 19, Issue 5
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| In This Issue |
"A home is not just a place to live; it's a canvas for creating lifelong memories." - Unknown What to Watch: Despite uncertainty and high borrowing costs, steady economic fundamentals and easing inflation could help bring mortgage rates down, boosting affordability and supporting housing demand in the near future. Housing: What's your home really worth? Find out how the appraisal process works and how it can affect your down payment and financing options. Home improvement: These home security tips will help you choose the right system to stay connected, protected, and in control. Q&A: Thinking about buying a home at auction? Read about the pros and cons before you raise your paddle. Please feel free to forward this newsletter to friends, family or co-workers who may find it helpful. |
| What to Watch |
Mortgage rates, inflation, oil prices, and geopolitical tensions are among the many factors that U.S. capital markets, the Federal Reserve, investors, and consumers will be watching closely in the near future. Ongoing tensions in the Middle East are casting a cloud of uncertainty over the markets, keeping investors on edge. Rising oil prices, driven by the conflict, are adding to inflation concerns and complicating the outlook for both interest rates and mortgage rates. As a result, traders are closely monitoring developments that could escalate the situation further or disrupt global energy supplies, which would likely ripple through equities, bonds, mortgage-backed securities, and consumer borrowing costs. On a positive note, stable economic data and cautious Federal Reserve messaging are helping to keep market volatility in check for now. While higher oil prices tend to exert upward pressure on inflation, steady consumer spending and improving supply chains are helping to offset some of the impact. If inflation continues to moderate despite rising energy costs, it could give the Federal Reserve room to begin lowering rates later this year, which would be welcome news for borrowers and the housing market. One Fed member suggested that the central bank could lower rates at the July Federal Open Market Committee meeting. Home borrowing costs remain just below 7% for the most widely used mortgage rate, the 30-year fixed. Although rates have eased slightly from last year's peaks, they remain elevated compared to historical norms, continuing to challenge affordability for many buyers. Any signs of cooling inflation or a shift in Fed policy could help push rates lower in the coming months, offering some relief to the housing market. Bottom line: Despite uncertainty and high borrowing costs, steady economic fundamentals and easing inflation could help bring mortgage rates down, boosting affordability and supporting housing demand in the near future. Source: Mortgage Market Guide |
| Housing News |
Whether you're buying your first home or refinancing for a lower rate, lenders want to make sure your property is worth the money they're putting on the line. A real estate appraisal helps them confirm that the amount of your loan is reasonable based on the current market. It can also influence your interest rate and down payment. Here's what the process usually involves: You apply for a loan: After you request a loan to purchase or refinance a property, the lender will order an appraisal. A licensed appraiser visits the property: They may conduct an exterior-only review or complete a full interior inspection. The appraiser analyzes local market data: They will then compare your property to similar recently sold homes in the area. They evaluate condition and features: The appraiser factors in square footage, the number of rooms, updates, and overall quality. You receive a report: Your appraiser will provide you and your lender with the estimated value of the property, supporting data, and an explanation of the methodology they used. You can expect to receive a copy of this report at least three days before closing. If the appraised value comes in lower than you expected, it may impact how much equity you have. Of course, if you disagree with the appraisal, there are some steps you can take. Review the report thoroughly to look for factual errors, such as missing upgrades or inaccurate square footage. Then, gather evidence, such as photos and receipts for recent renovations. Present this information when requesting a reconsideration of value from your lender. While the appraiser's job is to stay neutral, you have every right to challenge the report if something doesn't look right. By acting quickly, you may be able to significantly improve your appraisal and secure a more favorable loan. Sources: Nar.realtor, FDIC.gov, Ronsellsthebeach.com, Nationwide.com |
| Home Improvement |
Thinking about upgrading your home's security? Today's smart systems are highly customizable and DIY-friendly, so you can protect what matters most without breaking the bank. Many options come with step-by-step instructions and mobile guidance, so you don't need to pay a technician to set up sensors or cameras. Look for systems that include: Smart integrations and remote control: Many systems pair easily with voice assistants such as Alexa or Google Home for hands-free control. Choose a brand with a mobile app to arm and disarm your security system from your phone and get real-time alerts. Video doorbells and security cameras: Want to keep tabs on suspicious or unexpected activity? Video doorbells and security cameras can do just that, as well as help you keep track of packages while you're away. Environmental sensors: Protect your home from more than just intruders by opting for a system with environmental sensors. These add-ons can detect smoke, carbon monoxide, water leaks, and freezing temperatures. Flexible monitoring options: For extra peace of mind, upgrade to a service that provides professional monitoring so someone is always ready to respond to an emergency. Before you install a new security system, make sure to check your city's laws and ordinances. Some municipalities may require you to acquire a permit for systems that automatically contact emergency services. Too many false alarms could lead to fines, so take the time to read reviews and do your research before deciding which brand you trust to protect your home. Sources: Nytimes.com, Staysafe.org |
| Q&A |
| What Are the Benefits and Drawbacks of Buying a Home at an Auction?
Question: Is buying a home at auction a smart move or a risky one? Answer: Property auctions can offer fast, exciting opportunities to snag a home at a discount, but they aren't without their trade-offs. Before you start raising that paddle or clicking the "bid" button, let's weigh the pros and cons. One of the biggest benefits is the potential to buy a property well below market value. Auctioned homes may be for sale due to a foreclosure, estate sale, or simply a motivated seller. In all of these circumstances, properties are often priced to move quickly. That also means closings happen lightning fast. Without all the back-and-forth negotiations of a traditional sale, you may be able to close within as little as 30 days. However, "as is" really does mean you're getting the property in its current state. You'll be responsible for any repairs, damages, or liens that come with it — and inspections aren't always allowed ahead of time. It's also worth pointing out that traditional financing doesn't always cover auction purchases, so you may need to come with a certified check or wire transfer ready to go. If you choose to bid on an auctioned property, make sure to research the title history and auction terms first. Pay close attention to any buyer's fees or premium charges, as these can add thousands to your purchase. To make sure you're getting a good deal, not just a money pit, work with a mortgage expert to explore your options so you can bid with confidence. Sources: Wigginsauctioneers.com, Homesellingexpert.co.uk |
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