Tag Archives: buying a home

Fed Renews Vow to Keep Interest Rates Low

From the Daily Real Estate News:

The Fed voted last week to continue its near-zero interest rate policy for the next quarter and likely much longer. The move will keep mortgage rates low in the coming months, if not years.

In recent weeks, mortgage rates have hovered around record lows, which has helped increase home buyer purchasing power as well as helped refinancers trim their monthly mortgage payments.

Last summer, the Fed made a rare move in vowing to keep the key rate near zero through late 2014. The move has been criticized by some who say it will cause inflation and awards spenders, not savers. Critics have pushed the Fed to reverse its policy.

However, the Fed says the subdued outlook for inflation has not warranted a change in its policies.

Federal Reserve Chairman Ben Bernanke, following the Fed’s policy-making committee meeting this week, affirmed the Fed’s intention to continue keeping short-term interest rates down until late 2014—and possibly even longer.

The Fed has kept short-term interest rates near zero since late 2008. The Fed has also acted to reduce long-term rates by purchasing Treasury securities and mortgage bonds.

The Fed’s policy-making committee also released its economic forecast, projecting moderate economic growth in the coming months before a steady pick up, as well as a gradual drop in unemployment. The committee also projects for inflation to remain under control, despite the recent rise in oil prices.

“If there’s a substantial change in the economic outlook in either direction, then there would be a change in the outlook,” Bernanke said. “But for now, I think the committee is comfortable.”

Top 10 Home Buying Mistakes – #2

Mistake #2:  Having a house under contract without contingencies

Having a back-out plan is a must for smart home buying.  Consider a home inspection that  uncovers a roof that needs to be replaced for $15,000, floor joists that are rotted under a house or mold inside the walls will probably cause you and your family major health issues.  If the defect is something the Seller refuses to pay for, will cost more than you ever dreamed or something that makes the house unlivable, unless you have contingencies written into your contract you could have problems getting your deposit returned without incurring large legal fees.

Working with a licensed real estate professional who can guide you through the transaction is your best insurance policy.  Your agent will not know these conditions exist but will protect you with a properly executed purchase and sale contract.

Cause For Optimism in the 2013 Housing Market

Top 10 Home Buying Mistakes – #5

Photo: HGTV's FrontDoor News

Mistake #5: Impulse Home Buying

Frequently first-time home buyers tell me “We’ll know the ‘house’ when we walk in” as we begin our house-hunting journey and, when we walk into the first one, they exclaim “This is the one!”.  While this may be the house they do decide to buy, I still encourage them to look at all the properties I selected based on the parameters they shared with me.

It just makes sense to look at several properties.  Many first-time home buyers may have one of the two just in love with the idea of owning a home with a loved one and the other partner gets swept up in that feeling of elation.  Looking at all the homes your real estate professional has selected solidifies your decision as truly the best house for your needs.  “Buyers remorse”, as the professionals call it, usually occurs when first-time home buyers don’t follow the advice of their real estate agent.  So, to find the best house for you and avoid that feeling of “what did we do?”,  follow your professional’s lead by looking at all the homes scheduled for your viewing so you can compare.