MMG Monthly Edition - February 2023
February 15, 2023

In This Issue

"For me, my home is a peaceful place where I can rest, and it gives me back energy." - Fabiola Gianotti


What to Watch - The housing market could be making a rebound in 2023 as home borrowing costs have improved since the multi-decade highs seen last November.


Can You Sell Your House and Buy Another One at the Same Time? - Learn more about your financial options when buying and selling homes concurrently.


4 Top ROI Home Updates - Learn what projects give you the highest return on investment.


Q&A: What Questions Should You Ask Before Hiring a Home Improvement Contractor? Knowing the right questions to ask a contractor can save you money and frustration.

What To Watch


Housing Market Rebound?


Don't look now but after a downfall in 2022, the housing market could be making a rebound in 2023 as home borrowing costs have improved since the multi-decade highs seen last November.


The trough for housing in 2022 came in November and coincided with the 30-year fixed rate mortgage hitting 7.08% having doubled during the year. That quick and sudden jump in rates sent buyers into a retreat as costs soared. In December, sales of existing homes fell for 11 straight months but let's see what the new year brings as November and December are not historically big months for purchases given the holiday season.


Redfin reports that customers requesting first tours of houses have improved by 17 percentage points from the November low point, and the number of people starting the home-buying process has improved by 13 points. Compared with a year ago, home tours and requests for service are down 23% and 27% respectively, but that's an improvement from November when both were down 40%.


The drop in the 30-year fixed from the 7%+ level to near 6% has spurred some optimism among potential buyers. And with a possible soft landing being orchestrated by the Federal Reserve, a still strong labor market, and inflation cooling a bit … all of a sudden we could see a turn in the sector as we near the spring buying season.


This is from a Redfin agent in California, “Mortgage rates aren't stopping people as much as they were at the end of 2022 now that they're down from their peak and sellers are more willing to negotiate. Some buyers are having luck winning a home for under asking price, especially if it has been on the market for several weeks, but those days may be numbered.”


Bottom line: We here at the Mortgage Market Guide agree that mortgage rates don't impede or help people from purchasing homes. As we have always said, jobs buy homes.


Source: Mortgage Market Guide

Housing News


Can You Sell Your House and Buy Another One at the Same Time?


If you're in the market for a new home but already own one, you might feel completely overwhelmed. In an ideal situation, you won't have to carry two mortgages and can close on your old home and seamlessly move into your new residence without needing to find a temporary place to stay.


With the right planning, financing, and strategic negotiating, you can perfectly time the sale of your old home and the purchase of your new one. The best way to gear up for this task is to prepare to buy and sell as ahead of time as possible. The more you plan, the better prepared you'll be for any issues.


When selling your home, you will likely use the proceeds to pay off the old mortgage and apply the remainder to the new home. However, until that sale closes, you'll need to come up with money for the down payment and financing. Some options you can choose from include the following:


Knowing what to expect when buying and selling homes concurrently can help you be more financially prepared. For additional assistance, don't hesitate to reach out to a trusted mortgage professional.


Sources: Nerdwallet.com, Opendoor.com, Bankrate.com


Q&A


What Questions Should You Ask Before Hiring a Home Improvement Contractor?


QUESTION: What questions do I need to ask a home improvement contractor before hiring?


ANSWER: Renovating your home can have a huge financial impact, so it's essential to vet anyone who's working on your home. Knowing the right questions to ask a potential home improvement contractor can make a significant impact on your project. A few important questions to ask include the following:


Does the contractor have a license and insurance? This question is perhaps the most important ask because if the contractor lacks the proper license and insurance, you're putting yourself at a huge financial risk. You're also liable for accidents that occur on your site, so the contractor should at least have worker's compensation insurance to protect you.


Does the contractor have a list of referrals? Sometimes the best way to determine if a contractor works for your needs and budget is to see some of his or her work. You can also dig around on social media to see what customers or previous employers say.


Is the project's bid an estimate or a fixed price? Certain contractors use the bid as an estimate, which means that the project's overall cost could be higher in the end. If the contractor cannot offer a fixed price due to unknowns regarding the project, try to eliminate the uncertainty. Also, if additional work is necessary, ask for a change order.


To make sure you're getting the best work from a contractor, you need to ask some important questions. Finding the best fit can reduce the amount of emotional and financial stress you'll have to deal with during the renovation process.


Sources: Goasher.com, Pods.com, Houselogic.com

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