Archive for category: Recent News

Our preferred interior designers at Designer Furniture Gallery came up with this about tile and the many uses that it has. You may also use these tips when designing your new home to give it that feel that you want in your new home.

Decorating with tile gives you an almost unlimited range of patterns, colors and materials.
The most difficult task may be to decide what kind of beautiful tile best suits your lifestyle and decor.
Tile is one of the oldest and most traditional of building materials, but it can also look totally modern, depending on the type of tile you select, the surfaces you use it for, and the way it’s installed. You can even add Southwestern, Asian or African accents with a carefully selected tile.
Tile is so versatile it can be used on almost any surface, including:Walls, Floors, Countertops, Fireplaces, Table tops, Even ceilings!
And what a variety of tile materials is available, including mosaics, marble, porcelain, glass, natural stone, ceramic, slate and terra cotta. There’s even porcelain tile that looks like wood for better stain resistance and moisture proofing!
One of the challenges of selecting tile is that there are almost too many choices – and they’re all beautiful! That’s why it’s helpful to work with an expert to pick the most fitting tile for your application. For example, bathroom flooring and shower floors need to be slip resistant. And for your kitchen floor, counter top or backsplash, you’ll want to select tile that’s stain-resistant and easy-to-clean.
Compared to many other hard surfaces, most tile is reasonably priced, long-lasting, durable and easy to clean without periodic polishing or sealing. Tile is also flexible because it comes in so many shapes and sizes, from tiny one-inch squares to giant 12-inch by 24-inch rectangles.
Tile surfaces can add beauty, style and durability to your home. They are so versatile – and come in so many choices – that you can create almost any look and mood.

For the week of December 16th, 2013 – Vol. 11, Issue 50

>> Market Update

QUOTE OF THE WEEK… “It is always wise to look ahead, but difficult to look further than you can see.” —Winston Churchill

INFO THAT HITS US WHERE WE LIVE… Keeping Sir Winston’s words in mind, let’s consider some prognostications coming out now about the real estate market in 2014. A national online listing site sees housing becoming a little less affordable and repeat buyers emerging as the market’s dominant players. The site’s chief economist explained, “repeat buyers will be able to offset the higher price of the home they buy with the higher price from the home they sell.” This expert also sees mortgage rates creeping up, although he feels that should make the mortgage process easier, as lenders shift resources from refinancings to purchase loans.

Freddie Mac’s chief economist revealed that “single family mortgage debt outstanding increased for the first time since 2008.” He further explained: “This is a positive sign, as it reflects that the pick-up in new purchase-money originations has offset loan paydowns and led to a net increase in principal outstanding.” The Mortgage Bankers Association chimed in with a report that purchase loan applications were up a seasonally adjusted 1% for the week ending December 6, compared to a week earlier.

BUSINESS TIP OF THE WEEK… Despite the popularity of videos and social media, e-newsletters remain very useful marketing tools. Use your Facebook page and website to get sign-ups by offering freebies containing useful information.

>> Review of Last Week

FED FEARS STALL SANTA… Anyone hoping for an end-of-the-year Santa Claus rally to begin early had those hopes dashed last week, as Wall Street investors sent stock prices down, fearing the Fed will start tapering its bond buying program at this week’s FOMC meeting. The Dow and S&P 500 sailed south for the second week in a row, and this time they were joined by the tech-heavy Nasdaq. There wasn’t a lot of economic news, so traders were free to obsess over the coming Fed meeting. Now, a growing number of investors and economists think the central bank will announce the beginning of tapering on Wednesday.

In addition to sending stock prices up, the extra money the Fed has been pouring into the economy was intended to stimulate it. So tapering would be a sign our central bankers have become more confident about the recovery. Evidence to support that confidence came last week in the form of a Retail Sales Report that came in UP 0.7% for November and UP 4.7% over a year ago. This was joined by Wholesale Inventories and Business Inventories registering larger than expected build-ups. Even the monthly Federal Deficit came in lower than expected, while Core PPI wholesale prices remained within the Fed’s target.

The week ended with the Dow down 1.7%, to 15755; the S&P 500 down 1.6%, to 1775; and the Nasdaq down 1.5%, to 4001.

Greater concerns that the Fed could announce tapering as early as this week’s meeting sent bond prices skidding down. The FNMA 3.5% bond we watch ended the week down .80, to $99.24. This might have pushed mortgage rates up, but national average mortgage rates actually dipped slightly for the week ending December 12 in Freddie Mac’s Primary Mortgage Market Survey. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up to the minute information.

DID YOU KNOW?… Realtor.com reports that more than half of all page views of listings, nationwide, now occur through a mobile device, as opposed to a desktop computer. 

>> This Week’s Forecast 

MANUFACTURING AND HOUSING STARTS UP, INFLATION OK, BUT WILL THE FED START TO TAPER?… Manufacturing activity is forecast to continue expanding in December by both the New York Empire and Philadelphia Fed Indexes. We’ll finally have Housing Starts for September and October, as well as for November, with steady growth expected. The Consumer Price Index (CPI) is predicted to show inflation well within the Fed’s target range.

The big focus will be on the FOMC Meeting on Wednesday. With recent improvements in some economic data, the Fed could begin tapering its $85 billion dollar a month bond buying program.

>> The Week’s Economic Indicator Calendar

Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.

Economic Calendar for the Week of Dec 16 – Dec 20

>> Federal Reserve Watch    

Forecasting Federal Reserve policy changes in coming months… The debate has intensified over whether the Fed will begin tapering at this week’s meeting, but economists expect the Funds Rate to stay at its super low level well into next year. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.

Current Fed Funds Rate: 0%–0.25%

Probability of change from current policy:

For the week of November 25th, 2013 – Vol. 11, Issue 47

>> Market Update

QUOTE OF THE WEEK… “After all is said and done, more is said than done.” —Aesop, Greek story teller

INFO THAT HITS US WHERE WE LIVE… Plenty was being said last week about Existing Homes Sales, down 3.2% for October. The talk among some analysts was that the drop indicates a slowdown in the housing recovery. But October sales appear to have been somewhat affected by the government shutdown (remember that?), with closings delayed because the IRS couldn’t verify income. Even with that, October posted the fifth highest level for any month since late 2009, when the home buyer tax credit was about to go away. In fact, October sales came in at a 5.12 million annual rate, up 6% from a year ago.

The National Association of Realtors (NAR) feels a lack of inventory is holding down sales, However, the median existing home price is up 12.8% over a year ago, which should bring more sellers into the market. Rising prices also make buyers more willing to commit than when they feared values could keep dropping. Plus, the National Association of Home Builders confidence index held at 54 in November, near its highest levels in eight years, which should boost the new home supply. For the week ending November 15, mortgage applications for purchase loans jumped 6%.

BUSINESS TIP OF THE WEEK…”Touch it once” is a time-tested time management strategy. Act on an item the moment you touch it, instead of going back to it again and again before actually completing it.

>> Review of Last Week

SWEET 16… In spite of all the talk about stock market bubbles, the Dow Jones Industrial Average closed above 16,000 for the first time ever. This Sweet 16 party was joined by the S&P 500 celebrating its record close above 1800, as it nailed its seventh straight weekly gain. Many investors maintain these increases are not a price bubble. They point to real value tied to better than expected Q3 corporate earnings, improvements in the major economies of the U.S., China, and Europe, and the understanding that although the Fed may taper its bond buying, it won’t raise interest rates any time soon.

Wall Street’s optimistic view of our economic future was supported by Retail Sales, UP 0.4% in October, as the consumer clearly wasn’t spooked by the federal government’s partial shutdown. Business Inventories, UP at a faster-than-predicted 0.6% rate, showed companies seemed as confident as their customers. Yes, Existing Home Sales dipped in October and the Philly Fed showed manufacturing in that region grew less than forecast. But CPI inflation stayed under control and weekly Unemployment Claims saw their largest drop in nearly three months!

The week ended with the Dow up 0.6%, to 16065; the S&P 500 up 0.4%, to 1805; and the Nasdaq up 0.1%, to 3992.

Bonds were pressured after minutes from the October 30 meeting hinted the Fed could begin tapering its bond buying soon. The FNMA 3.5% bond we watch ended the week down .10, to $101.06. National average fixed mortgage rates fell in Freddie Mac’s Primary Mortgage Market Survey for the week ending November 21. This was attributed to low overall inflation rates and weaker manufacturing growth. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up to the minute information.

DID YOU KNOW?… The NAR reported the median time on market for all homes sold in October was 54 days — and 36% were on the market less than a month! The median time for all homes sold in October 2012 was 71 days. 

>> This Week’s Forecast 

HOME BUILDING AND PENDING SALES UP, CONSUMERS KEEP SMILING… There’s a lot to learn in just three days. We get a two-month view of home building, as October’s Housing Starts and Building Permits come in with September’s, unreported during the government shutdown. Economists expect gains for these, as well as for October Pending Home Sales. Consumer Confidence and Michigan Consumer Sentiment are forecast up in November.

The stock and bond markets are closed on Thanksgiving and close early on Black Friday. Happy Thanksgiving to you and yours!

>> The Week’s Economic Indicator Calendar

Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.

Economic Calendar for the Week of Nov 25 – Nov 29

>> Federal Reserve Watch    

Forecasting Federal Reserve policy changes in coming months… The debate continues about when the Fed will start to taper its bond buying program, but economists agree that the Funds Rate will stay down where it is well into next year. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.

Current Fed Funds Rate: 0%–0.25%

Probability of change from current policy:

2 types of energy tax credits to take by year end – PLUS 6 things to cover in your Fall cleanup 

In February, the federal tax credit was reinstated for energy efficient home improvements made in 2012 and 2013. A tax credit is a direct reduction of taxes due. It can be better than a tax deduction that only reduces taxable income.

The energy tax credit now has a $500 lifetime cap for qualified energy efficient upgrades to your existing principal residence, but the deadline is December 31. New homes and rentals do not qualify. You’ll find all the details on: http://www.energystar.gov/taxcredits. The highlights:

1. Tax credits for 10% of the cost. You may claim a tax credit of 10% of the cost of certain energy-saving upgrades. These include qualified insulation, windows, roofs, and doors, with a $200 limit for all doors.

2. Tax credits for the full cost. You can claim tax credits for the full cost of specified types of “qualified residential property,” but only up to certain caps. For example:

• advanced main air circulating fan – $50
• natural gas, propane, or oil furnace or hot water boiler with annual fuel utilization rate of 95 or greater – $150
•  electric heat pump water heater with minimum 2.0 energy factor – $300
•  electric heat pump or central air conditioner that achieves the highest efficiency tier of the Consortium for Energy Efficiency – $300 each
• natural gas, propane, or oil water heater that has either a minimum energy factor of 0.82 or a minimum thermal efficiency of 90% – $300
• biomass stove that uses “plant-derived fuel available on a renewable or recurring basis” (see site for details) – $300

You’ll need to file IRS Form 5695 with your tax return and have the Manufacturer’s Certification Statement that the item meets the efficiency requirements on the energystar.gov website. That site also lists a few alternative energy items (such as solar panels) that qualify for tax credits after December 31.

Please consult a tax professional before making any purchases you think will qualify for a tax credit. 

6 KEY FALL CLEANUP AREAS  

1. Lawn. Mow until the first frost, keeping the length above 2.5″. Rake leaves that smother and kill grass. Rake up excess grass clippings using an iron rake or thatch rake. Check with a garden pro whether to aerate and fertilize.

2. Garden. Ask a local expert which plants to fertilize before the first frost. For example, you won’t want to fertilize roses because it discourages winter growth and makes them vulnerable to extreme weather.

3. New plantings. For a nice spring bloom, plant bulbs such as tulips, daffodils, and hyacinths. Day lilies and dahlias are also good for fall planting. To fill bare spots in your lawn, plant cool-season grasses such as perennial rye, bluegrass, and fescue.

4. Deck or patio. Sweep off leaves and debris. Cover patio furniture or remove and store if you have space. Wipe each piece with damp cloths and dry with towels. Remove or cover your grill and store it if possible. Remove mildew on decks with a solution of 3 quarts of water to 1 quart oxygen bleach and 1/4 cup of ammonia-free liquid dishwasher detergent. Put this in a garden sprayer and apply liberally. Let it set for 10 to 15 minutes.

5. Gutters. After most of the leaves have fallen, clean out and repair your gutters. Clogged and leaky gutters can flood the basement and cause other water damage to your home when snow melts.

6. Hoses and Mowers. Disconnect garden hoses and store inside. Turn off water supply at shutoff valve inside the house and open the outdoor spigot to drain it. Drain the gas from your lawn mower and sharpen or replace blades on garden tools.

If you’re thinking about buying a home in today’s market, here’s some great advice from CNN Money. Click here to view. When you’re ready, we can answer any questions about financing. We can also help with refinancing your existing home or funding home improvements. Please call or email us any time. We’re always here for you…. Have a great day!

P.S.: In the recovering housing market, mortgage rates are volatile, but remain at historically attractive levels. When buying or refinancing, it’s smart to start the process early. Please call or email us to explore the appealing options available now.