A Look Into The Markets: January 2024
January 15, 2024

A Look Into The Markets: January 2024

"To be yourself in a world that is constantly trying to make you something else is the greatest accomplishment." - Ralph Waldo Emerson


If you're ready to purchase a new home this spring, you're not alone. In this issue, we'll discuss how to buy a home during the competitive spring season, along with the following topics:


What to watch - The rate of inflation has eased in 2023 from the 40-year highs witnessed in 2022. If inflation can continue to ease, it will be a positive for the housing market.


Tips for Spring Home Buying - Spring is usually one of the busiest times for home buying, so learn how to make your offer stand out in a crowded field.


Ways To Make Your Living Room Cozy - Make your living room a place where everyone wants to gather with these simple tips.


Q&A: What's the Right Mortgage for You? - Review the common types of mortgages to learn which one is right for you.

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

What to Watch


Lower Growth Could Spur Lower Rates


With the new year upon us, potential buyers will be on the lookout for, hopefully, a decline in prices and an uptick in the supply of homes for sale on the market. Also, on the radar will be how the U.S. economy fares, will the inflation rate continue to decline, and how the job market plays out.


A recent report out of Redfin says that home prices were up 0.6% from October, the smallest monthly increase since June, and were up 6.4% from a year earlier. Redfin also said that indicators have suggested a re-invigoration of buyer and seller participation in the housing market.


After bottoming out at a 2.6-month supply of homes on the market in February and March of this year, supply has increased to 3.5 months where normal levels are seen at six months. From a supply perspective, we don't want to see a huge drop in borrowing costs because that could trigger big demand for housing, further deteriorating supply.


The U.S. economy saw a frothy 5% increase in Gross Domestic Product in Q3 2023 with the St. Louis Fed's NowCast (GDP forecast) at 1.6% in Q4. The Congressional Budget Office (CBO) sees the U.S. to slow to 1.5% in 2024 while the Federal Reserve is forecasting 1.4% GDP growth next year. Lower growth could usher in lower rates.


The rate of inflation has eased in 2023 from the 40-year highs witnessed in 2022. If inflation can continue to ease, it will be a positive for the housing market. The last metric to watch is the job market. When consumers feel stable in their jobs and able to move to another position with somewhat ease, that is also a positive for housing.


All the above are key points when making the big decision to jump into the pool of the American Dream of home ownership. Once in, the water is fantastic given the positives of ... financial stability, financial strength, tax deductions, a permanent home, and a sense of belonging in your community.


Source: Mortgage Market Guide

Housing News


4 Tips for Spring Home Buying


Once the chill of winter thaws, people become more motivated to buy and sell homes. By following some of these tips, you can be ready to purchase your next home this spring.


Work with a real estate agent. The spring housing market can be competitive. Work with a real estate agent who can help you navigate the process. An agent can notify you when new homes go on the market. They will also work to get you the best deal on a home, even when you're competing with other buyers.


Get pre-qualified. A mortgage pre-qualification can make all the difference when you're making an offer in a tight housing market. Many sellers prefer to work with buyers who are already pre-qualified. As a bonus, a pre-qualification can help you set a budget and stick to your maximum threshold.


Be ready to make an offer. In the spring, new homes can hit the market and get offers in hours, not days. Don't hesitate to view a home immediately if it's in your desired neighborhood and within your budget. When you find a home you love, be prepared to make an offer quickly - or risk losing out to another bidder.


Schedule an inspection. If you do need to make an offer quickly, an inspection can give you peace of mind before finalizing the deal. A home inspection will tell you whether there are major problems with the home, such as foundation concerns or roof problems. In the spring, an inspector can also survey the outside of the home for potential water damage.


Spring can be a great time to buy a home, but you may need to act fast. Use these tips to find your dream home and make an offer quickly.


Sources: BHG.com, Retirebetternow.com

Home Improvement


Easy Ways To Make Your Living Room Cozy


The living room is a place where many families spend most of their time together, so why not make it as cozy as possible? Consider these easy ways to make your living room feel more inviting.


Incorporate dark colors. Some people may feel intimidated by darker colors, but when you incorporate them thoughtfully, they can add instant coziness. Choose shades in your preferred color palette, such as navy blue, dark maroon, or forest green. You can make a big impact by painting the walls a deep, rich color. For subtle touches, add some dark-hued throw pillows, blankets, or decor.


Add textures. Different textures can elevate a space and make it feel warmer. Lush textures, such as faux fur and velvet, can make you want to snuggle on the sofa for hours. Natural wood tones can also create a warm, rich space. Consider adding wood beams or a paneled accent wall to increase the coziness.


Use different lighting sources. Make sure you have different lighting sources in your living room. In addition to an overhead fixture, add a floor lamp or table lamp for layered lighting. Add a soft glow to the room with accent lighting, such as recessed lights, string lights, or even candles. Use warm lights to create a cozy effect.


Everyone will want to spend time in the living room when you make it warm and inviting. Follow these tips to make your living room feel extra cozy for you and your loved ones.


Sources: Homesandgardens.com, Inoleds.com, HGTV.com

Q&A    What's the Right Mortgage for You?


QUESTION: What type of mortgage is right for me?


ANSWER: When purchasing a home with a mortgage, you have various options for financing. The right mortgage for you will depend on a few factors, including your credit score, down payment, and budget.

If you have a good credit score, usually 620 or above, a conventional mortgage typically offers the lowest rates. In most cases, you'll also need a 3% down payment to qualify. If you put down less than 20%, be aware that you may need to pay private mortgage insurance, which can increase the total loan amount.


For those who may not qualify for a conventional loan, a Federal Housing Administration (FHA) loan can be a good option. The federal government insures FHA loans. Usually, you can secure an FHA loan with a credit score of 500 and a 10% down payment. You may qualify for a lower down payment if you have a credit score of 580 or above.


Other types of mortgage loans include:


VA loans backed by the U.S. Department of Veterans Affairs. You may qualify for this mortgage if you're an active-duty military member or veteran.


USDA loans offered by the U.S. Department of Agriculture. This type of loan is designed for low to middle-income buyers who purchase homes in rural areas.


Jumbo loans for buyers purchasing expensive homes. A jumbo loan allows you to borrow money above the conforming loan limits. You'll need good credit and a sizable down payment to secure this loan.


Mortgages vary widely, and the right mortgage depends on your budget and needs. Work with a lender who can guide you on the right type of mortgage for you.


Sources: Creditkarma.com, Credible.com, Investopedia.com

Registered Mortgage Broker - NYS Department of Financial Services - All mortgage loans arranged with third party providers. | Licensed by the NJ Department of Banking and Insurance | Licensed by the FL Department of Financial Services, Licensed by Connecticut Department of Banking | All Loans Arranged through third Party Providers | NMLS Consumer Access: http://www.nmlsconsumeraccess.org) NMLS 876527
© Tabrasa, LLC. All rights reserved.