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| Provided to you Exclusively by Bruce Gordon |
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For the Month of February 2025 --- Vol. 19, Issue 2
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| In This Issue |
"The magic thing about home is that it feels good to leave, and it feels even better to come back." - Wendy Wunder What to Watch: If a 2.2% GDP is seen as sustainable without overheating the economy, it could result in a stable mortgage environment. Housing: Unlock the secrets to greener living. Discover how Energy Star and LEED certifications can boost your home's efficiency and property value. Home Improvement: Is your home hiding invisible air pollutants? You might be surprised. Learn how to create a cleaner, safer living environment today. Q&A: To build or to buy, that is the question. From budget to personalization, uncover what you need to know to choose between crafting a custom home or moving into a pre-existing one. Please feel free to forward this newsletter to friends, family or co-workers who may find it helpful. |
| What to Watch |
Mortgage market participants will be closely watching how the U.S. economy fares this year for some direction as to where home borrowing costs may reside. The best gauge for measuring economic growth is the Bureau of Economic Analysis (BEA) Gross Domestic Product (GDP). GDP measures the value of the final goods and services produced in the United States. The BEA tells us that changes in GDP are the most popular indicator of the nation's overall economic health. When the economy is doing well, businesses and consumers are more likely to borrow money to invest or spend. This rise in demand for loans can fuel higher interest rates, as lenders charge higher rates to meet that demand. A solid economy tends to have low unemployment, which could push up wages and, in turn, fuel inflation pressures. On the flip side, rates would fall in a weakening economy. A GDP rate of 2-3% annually is often considered typical or normal. This year, Fannie Mae expects the 2025 year-total GDP will be 2.2%, following a predicted final 2024 growth of 2.5% and a forecasted 2% in 2026. A 2.2% GDP is not particularly high, so if inflation remains under control and the Fed doesn't make major rate changes, the impact on mortgage rates may be marginal. If a 2.2% GDP is seen as sustainable without overheating the economy, it could result in a stable mortgage environment. Looking ahead, most pundits are looking for the 30-year fixed rate to average 6.5% this year given a GDP of 2.2%. Bottom line: If the economy can grow at a decent pace, that would equate to a solid labor market ... jobs buy homes. Source: Mortgage Market Guide |
| Housing News |
Green certifications, such as LEED and Energy Star, are shaping the way we design, build, and live in our homes. Whether you're buying a house or upgrading your current one, understanding these certifications can help you make eco-friendly decisions. In this article, we'll explore popular certifications such as LEED and Energy Star so you can be a savvy and sustainable consumer. What is Energy Star? Energy Star was developed by the U.S. Environmental Protection Agency to identify products and buildings that excel in energy efficiency. Energy Star-certified homes and appliances are also a great option if you're looking to reduce utility bills without sacrificing performance. Look for Energy Star ratings on everything from refrigerators to entire houses. What is LEED? LEED stands for Leadership in Energy and Environmental Design. It's an internationally recognized certification by the U.S. Green Building Council that focuses on a building's entire environmental footprint. LEED-certified buildings focus on efficient resource use by minimizing water, energy, and material waste. They also emphasize creating healthy spaces that promote better air quality and provide natural lighting. There are several levels of LEED certification, ranging from Certified to Platinum, each reflecting an increasing commitment to sustainability. If you're interested in future-proofing your home against rising energy costs, protecting the environment, and improving the resale value of your property, exploring green certifications is a smart idea. Energy Star and LEED complement each other well, giving you the option to apply for both and maximize your potential. Start by reviewing the criteria for each certification online, and consider how you can make small upgrades throughout your home by choosing appliances and building materials that reduce your environmental footprint. Sources: Gbrionline.org, Hklaw.com |
| Home Improvement |
Did you know that your indoor air can be two to five times more polluted than the air outside? Whether you're renovating or simply looking to make your home safer, here are some effective strategies to breathe easier indoors. Stop pollution at the source. Seal or replace materials that contain harmful substances such as asbestos. Use a vented range hood for gas stoves to reduce harmful emissions and opt for paints and cleaning products with low levels of volatile organic compounds to minimize chemical pollutants. Improve ventilation. Open windows and doors whenever weather permits for natural ventilation. You can also use exhaust fans in your kitchen and bathrooms to remove moisture and odors. Install energy-efficient heat recovery ventilators to bring in fresh air while maintaining temperature control during colder months. Remove harmful particles. Air purifiers can capture allergens, dust, and other particles. Choose a high-efficiency particulate air filter for maximum effectiveness. It's also important to maintain your HVAC system and replace the filters regularly. Prevent mold and dust mites. Keep your home's humidity below 50% to limit mold and dust mites. You can use dehumidifiers in damp climates or during humid seasons. Make sure to address leaks or standing water promptly to avoid moisture buildup. If you or someone you live with suffers from allergies, consider replacing your carpets with hard flooring to reduce allergens and make cleaning easy. You can also opt for certified Asthma & Allergy Friendly products, which includes bedding, vacuums, and cleaners. It's also a good idea to avoid heavily scented candles and cleaning products, as they can release irritants into the air. Your home should be a haven, not a source of hidden health hazards. By implementing these upgrades one at a time, you can create a safer living environment that supports your overall well-being. Sources: EPA.gov, AAFA.org |
| Q&A |
| What Are the Key Considerations When Deciding To Build a Custom Home Versus Buying an Existing One?
QUESTION: What should I consider when choosing between building a custom home and buying an existing one? ANSWER: Deciding whether to build a custom home or purchase an existing one can have a big impact on your timeline, budget, and vision. Here are some important factors to consider: Timeline and convenience: Buying an existing home is a great option if you're on a tight schedule, since this process is typically much faster than building a new home from the ground up. You can tour, negotiate, and close within approximately 30 to 45 days, which is perfect if you're relocating or trying to move before the school year starts. Building a custom home, on the other hand, can take anywhere from six to 18 months. Budget and costs: Existing homes are generally more affordable upfront, although renovations or updates may be needed, so always factor these into your budget. Conversely, custom homes often come with a higher price tag in the beginning, but you may be able to avoid renovation surprises later on. You can also incorporate energy-efficient systems into your custom build that can save you money in the long run. Personalization and features: Purchasing a prebuilt home that's move-in ready can reduce stress, but you might have to compromise on the layout, design, or energy efficiency of the property. If you have a very specific vision in mind, building a custom home can provide you with more control over the design, materials, and finishes, so you can craft a home that matches your lifestyle. Maintenance and environmental considerations: Older homes may have hidden issues such as outdated systems or materials that don't meet modern environmental standards. However, with a custom-built home, everything is brand new. This makes it easier to comply with updated energy and environmental codes, which can also simplify home maintenance. Whether you choose to purchase a custom-built or pre-existing home depends on your preferences and budget. Consider whether you prioritize speed and convenience or personalization and control. Then, tour several homes in your ideal area to get a feel for what you like and don't like from a design and functionality perspective. This can help you brainstorm ideas if you decide to build new and help you determine what styles of homes you want to continue to explore if you decide to purchase a property that's already on the market. Sources: Investopedia.com, Betterbuilders.com |
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