Make sure your plumbing pipes are protected. Pipes freeze under three common scenarios: quick temperature drops, poor insulation and thermostats that are set too low. (more…)
Merry Christmas from Santa’s house
Do watch this delightful short video from Zillow of Santa’s house
Source: Zillow
Merry Christmas to you all. Ho ho ho! (more…)
New Listings week of December 23
There are just three new listings this week and no Open Houses tomorrow (there is one on Monday at 3 Lightning Lane in Salem from 1:30 -3:00):
Source:andrewJoliver.com
Mortgage Rates continue to rise – is this the peak for now?
As expected, mortgage rates increased again this week, reaching 4.3%, a level not seen since….as recently as April, 2014. (more…)
Open Houses December 18
The snow has gone, so visit these Open Houses and pick a new home to put under the tree: (more…)
Mortgage rate outlook after Federal Reserve increases rates
For the second time since the introduction of the iPhone (the first was in December 2015) the Federal Reserve (Fed) increased interest rates this week. The increase, like last year’s, was 1/4%. What does this mean for mortgage rates? The key is to understand which rates are impacted by the Fed Funds rate and which are dependent upon interest rates set by the market.
Which rates are based upon the Fed Funds rate?
30 year fixed rate mortgages (FRN) are not based on the FF rate, but are most closely tied to the yield on 10 year US Treasuries(10T). More on that in a minute. (more…)
Will Marblehead reach 250 SFH sales in 2016?
My very first post on Oliver Reports in November 2012 referred to the expectation that sales of Single Family Homes (SFH) would exceed 200 that year for the first time since 2007. They did reaching 227. And this year, as of December 16, there have been 240 sales with a further 9 scheduled to occur before the end of the year, suggesting that sales in 2016 will fall just shy of 250, a good level but still below the 285 of 2004. There is no doubt that the shortage of houses for sale held back the number of sales in 2016.
2016 through December 16 Source: MLS, Oliver Reports
Small Business Optimism Soars after Election
Small business optimism remained flat leading up to Election Day and then rocketed higher as business owners expected much better conditions under new leadership in Washington, according to a special edition of the monthly NFIB Index of Small Business Optimism.
“The November index was basically unchanged from October’s reading up to the point of the election and then rose dramatically after the results of the election were known.”
The full November index, calculated as it is every month, improved 3.5 points to 98.4, which is just above the 42-year average and only the third time since 2007 that it has broken into above average territory.
New Listings week of December 16
No surprise – another quiet week for new listings: (more…)
One reason mortgage rates won’t go up this week
With the near certainty that the Federal Reserve (Fed) will vote to increase interest rates this week, many people assume that mortgage rates will automatically follow. Not so. At least not directly. The Federal Reserve’s decision on interest rates will have no direct impact on fixed rate mortgage rates.
The last time the Fed raised interest rates was just a year ago and at that time I wrote What the Fed’s rate increase means for mortgage rates.
I will update the report after the Fed’s decision on Wednesday. (more…)
Solar roof tiles 2.0 – a major improvement
Just over a year ago I published Solar panels – are they right for you?, with a not very positive comment based largely upon their appearance.
As with many products, however, dramatic improvements seem to have been made and a recent Bloomberg video
No one saw Tesla’s solar roof coming shows just how much. When Elon Musk of Tesla presented recently, the audience members were unaware that the homes showed had solar roofs. “The interesting thing is that the houses you see around you are all solar houses,” Musk said. “Did you notice?”
Open Houses Sunday December 11
A chilly start to the day but it will be sunny with no wind so get out and visit these Open Houses: (more…)
Why the Election drove Mortgage Rates up
30 year Fixed Rate Mortgage (FRN) rates are tied to the yield on the US Treasury 10 year note (10T). The spread – the difference between the two rates – has averaged 1.71% since the beginning of 2013, as shown in this chart (the sharp drop at the end reflects the first couple of days after the Election):
Source:US Treasury, Freddie Mac
Now let’s look at what has happened in the month since the Election – after the initial drop the spread has returned to its 4 year average: (more…)
New Listings week of December 9
It’s beginning to feel a lot like Christmas in the real estate market, as new listings drop with the temperature: (more…)
Open Houses December 4
It may be December, but it is a glorious day today, perfect for visiting these Open Houses: (more…)
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