Last week’s economic news included readings on home builder confidence, housing starts and building permits issued. Weekly readings on mortgage rates and new jobless claims were also released; the week wrapped with the University of Michigan’s report on consumer sentiment.

Home Builder Confidence Dips, Remains in Positive Territory

According to the National Association of Home Builders, builder confidence dropped two points in January to 72, but high demand for homes continued to provide builders with positive outlooks on housing market conditions. While continued concerns over labor and lot shortages were cited, home builders surveyed for January’s Housing Market Index said that High demand for homes and recent tax legislation kept more builders confident than those who were not. Any reading over 50 indicates positive builder sentiment.

Housing Starts, Building Permits Fall in December

Housing starts fell 8.20 percent in December according to the Commerce Department. 1.192 million starts were forecast on a seasonally- adjusted annual basis; analysts expected a reading of 1.280 million starts based on November’s reading of 1.299 million starts. 1.302 million building permits were issued in December on a seasonally-adjusted annual basis. November’s reading was higher at 1.303 million building permits issued.

Mortgage Rates Rise, New Jobless Claims

Freddie Mac reported higher mortgage rates for the second week in a row. The average rate for a 30-year fixed rate mortgage rose five basis points to 4.04 percent; the average rate for a 15-year fixed rate mortgage rose five basis points to 3.49 percent and the average rate for a 5/1 adjustable rate mortgage was unchanged at 3.46 percent. Discount points averaged 0.60 percent for 30-year fixed rate mortgages and 0.50 percent for 15-year fixed rate mortgages. Discount points averaged 0.30 percent for 5/1 adjustable rate mortgages.

New jobless claims were lower with 220,000 new claims filed as compared to estimates of 250,000 new claims. 261,000 new claims were filed the prior week. Consumer sentiment was lower in January with an index reading of 94.40. Analysts expected the consumer sentiment index to reach 98.00, based on December’s reading of 95.90 percent, but uncertainty over tax benefits connected with recent legislation and rising interest rates contributed to the lowest consumer sentiment index reading since July.

Whats Ahead

This week’s scheduled economic reports include readings on new and existing home sales along with weekly readings on mortgage rates and first-time jobless claims.

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3 Ways That Buying a New Construction Home Beats Buying an Existing One, Every TimeAre you in the market for a new house? Whether you are a first-time home buyer or are upgrading to get more space, you will need to choose between buying an existing home or building a brand new one. As you might imagine, there are pros and cons to each kind of home. But if it is in your budget, you may want to lean towards a newer home over an older one. Let’s explore three reasons why new construction homes are better than existing homes.

Customize Every Aspect To Your Tastes

Ask anyone living in a custom-built home and they are likely to tell you that the ability to customize everything was a major deciding factor. When you build a brand-new home, your input isn’t limited to the floor plan or room layout. Your family can choose everything from the paint colors to the door hinges. Imagine having your pick of appliances, cabinets, flooring, and trim in every room – that’s what new construction is all about.

Modern, Efficient And Convenient

A brand-new home means a home that is energy-efficient and built for convenience. Your home can be designed with as much advanced technology as you have in mind. Seamless Wi-Fi and other wireless connectivity for all your devices. A cutting-edge video security system to keep your family safe. Efficient heating and cooling that offers superior indoor air quality. And, of course, lower energy costs and a smaller carbon footprint.

If you are a fan of technology and the conveniences it can provide, a new construction home is a perfect choice.

Many Years of Trouble-Free Living

Another benefit of living in a new home is that everything around you far less likely to fail over the next few years. Moving into an older home means worrying about the roof, the electrical wiring, the appliances and a whole host of other potential problems. In a new construction home, you will be surrounded by brand-new machinery that is built with the future in mind. Also, even if you do run into any issues with your home or appliances, it should all be under warranty.

If you’re ready to discuss financing options for a new construction home, contact us today. Our professional mortgage team is happy to help.

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Looking to Buy a Home in 2018 and Don’t Know Where to Start? Here’s a Few Tips

January 18, 2018

Are you a renter that has become tired of paying someone else’s mortgage and not building any equity? Or a homeowner who has a growing family and is in need of more space? Whatever the case, if you are in the market for a new home there is no time like the present. Let’s explore a few tips that will help you to prepare for the home buying experience.

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Renovating in 2018? Cash-out Mortgage Refinancing Might Be the Best Way to Fund It

January 17, 2018

If you are a homeowner thinking about a significant home renovation in 2018, you have probably already considered your budget. As with any large project, you need to have the ability to pay the expected costs plus have a little bit extra set aside, just in case.

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What’s Ahead For Mortgage Rates This Week – January 16, 2018

January 16, 2018

Consumer prices fell from November’s reading of 0.40 percent growth to o.10 percent growth in December, which matched expectations. The Core Consumer Price Index, which excludes volatile food and energy prices, dropped to 0.30 percent from November’s growth rate of 0.40 percent. Analysts expected a Core CPI reading of 0.20 percent for December.

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3 Great Reasons to Use an Experienced Mortgage Professional for Your Next Mortgage

January 12, 2018

Are you thinking about buying a new home in 2018? Whether you are a first-time home buyer or you’re downsizing now that the kids have moved out, you are likely considering whether or not you will need a mortgage. Even if you can afford to buy a home in cash, taking out a mortgage can help you maintain your liquidity for other spending purposes.

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Buying a New Home in a Hot Real Estate Market? Here Are 4 Tips You Will Need to Be Successful

January 11, 2018

Are you in the market for a new house? In a buyer’s market, finding and closing on a beautiful home can seem very easy. However, if you are shopping when the market is hot, you may end up fighting bidding wars and losing your dream home to a competing buyer. Let’s take a look at four tips that you will need to be successful when house hunting in a hot local real estate market.

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Going Solar: 3 Reasons Why Solar Panels Should Be Your 2018 Home Improvement Project

January 10, 2018

Have you been scratching your head, wondering what your next great home renovation project should be? If you are like most homeowners, you have many areas that could use a little attention. Let’s explore three reasons why installing solar panels should be high on your list of home improvement projects for 2018.

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3 Completely False Myths About Reverse Mortgages That Need to Be Debunked

January 9, 2018

Are you a senior or retired individual older than 62 who is looking to supplement their retirement income? If so, you may have heard about a unique financial product known as a reverse mortgage. In today’s blog post we will explore three myths about reverse mortgages and share why they need to be debunked. Let’s get started.

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What’s Ahead For Mortgage Rates This Week – January 8, 2018

January 8, 2018

Last week’s economic reports included readings on construction spending, minutes of the most recent meeting of the Fed’s Federal Open Market Committee. Labor reports including ADP, Non-Farm Payrolls, and national unemployment were released along with weekly readings on mortgage rates and new jobless claims.

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