CHM Blog

That first house might be the last for a while. Why not give it a facelift in 2024?

In these days of high interest rates and home prices that keep rising, perhaps it’s time to think of that “starter” home you purchased as a keeper for the long term.

Realtor’s Larissa Runkle spoke to home renovation experts to find out what projects are worth tackling in 2024 to make your fixer-upper feel more like a forever home and found a few projects you should consider adding to your home’s (eventual) resale value.

Of all the least expensive and best return on investment improvements you can make, paint tops the list. “Giving everything inside your home a fresh coat of paint isn’t just a staging trick—it’s something you can do while still living in your house to refresh the entire look and feel of the place,” says Runkle. Apart from regular maintenance, interior painting is the most affordable project. Choose colors according to how you’d like a room to feel rather than simply hopping on the latest color trends.

New appliances is next. “Getting new appliances was the third most popular project in 2023—a big change from 2022, when this project wasn’t even in the top 10,” says Angie Hicks (former of AngiesList, now called Angi). “Getting an updated appliance that allows you specific features and a look you want—it’s a great upgrade that won’t need to break the bank.” And guess what? The supply chain has gotten a lot better.

Starter homes often have dated or Spartan bathroom and kitchen amenities. Refinishing the cabinets can work wonders in these very important spaces, getting rid of the previous homeowner’s grease, grime, scratches, and dings, but also allowing you to refinish them to a color that better represents your style. Other minor projects might be replacing the tile, adding a new tub, or changing out the sink(s).

Outdoor spaces are more important than ever when planning to stay put for a good, long while. It’s like adding additional square footage to your house. And the best part is that adding a deck doesn’t have to cost an arm and a leg, especially if you opt for wood instead of composite material. A modestly sized deck starts at about $1,200.

If your home has carpeting that just has to go, perhaps it’s time to make your starter home feel a bit more permanent by upgrading its materials—like ripping out that old carpet and upgrading your floors. New hardwood or luxury vinyl planking can make it feel like a new home, bringing increased resale value along with matching your aesthetic.

And how about that basement — if you’ve got one? Now might be the time to invest in transforming it into a more livable space, like an in-law suite or entertainment den, according to Runkle. While she admits it’s a large project, it comes with some great benefits—like a lot of extra space that can be used for an expanding family or guests. And the return on investment might just make you smile someday when you sell.

“When planning your basement remodel, make it as livable as possible. This can be achieved by increasing the natural light with windows or a glass door, opening up the floor plan, and investing in high-quality flooring that will withstand moisture and colder temps,” says Runkle.

When you chose this home, was it the exterior that appealed to you most? No? Ultimately, how you feel about your home has a lot to do with what it looks like on the outside. So Runkle says to go ahead and paint the door your favorite color, upgrade the porch with a few fun curiosities, and even consider spending some of your hard-earned cash on leveling up your landscaping.

“Improving the landscaping around your home can have a dramatic impact on curb appeal and make you happier every time you pull into your driveway,” says Hicks. “Consider planting new garden beds, building raised beds, planting trees, or even upgrading your outdoor lighting.”

Realtor, TBWS

How Rates Move:

Conventional and Government (FHA and VA) lenders set their rates based on the pricing of Mortgage-Backed Securities (MBS) which are traded in real time, all day in the bond market. This means rates or loan fees (mortgage pricing) moves throughout the day, being affected by a variety of economic or political events. When MBS pricing goes up, mortgage rates or pricing generally goes down. When they fall, mortgage pricing goes up. Tracking these securities real-time is critical. For more information about the rate market, contact me directly. I'm among few mortgage professionals who have access to live trading screens during market hours.

Rates Currently Trending: Higher

Mortgage rates are under pressure today. The MBS market improved by +14 bps last week. This was not enough to decrease mortgage rates or fees. The market experienced low volatility last week.

This Week's Rate Forecast: Neutral

Three Things: These are the three areas that have the greatest ability to impact rates this week. 1) Jobs 2) The Fed and 3) ISMs.

1) Jobs: We will have huge amount of job and wage related data all week long culminating in Big Jobs Friday. The relative strength of the job market and wage pressures will have a big impact on pricing. This week we will get JOLTS, ADP, Challenger Job Cuts, Initial Claims, Non Farm Payrolls, Unemployment Rate, Average Hourly Earnings and more.

2) The Fed: We will get the Minutes from the last FOMC meeting on Wednesday.

3) ISMs: After weaker than expected manufacturing data last week (Chicago PMI/Richmond Fed MF), this week's ISM Manufacturing report will carry a lot of weight. But so to will the ISM Services report as the services sector is 2/3 of our economic engine.

This Week's Potential Volatility: High

This morning markets are under mild pressure. Volatility has started at moderate levels but will likely increase as the week goes on.

Bottom Line:

If you are looking for the risks and benefits of locking your interest rate in today or floating your loan rate, contact your mortgage professional to discuss it with them.

Richard Sardella has been actively managing and providing services in the mortgage industry for over 30 years. Richard serves on the board of directors as President of Colorado Home Mortgages Inc.

All information furnished has been forwarded to you and is provided by thetbwsgroup only for informational purposes. Forecasting shall be considered as events which may be expected but not guaranteed. Neither the forwarding party and/or company nor thetbwsgroup assume any responsibility to any person who relies on information or forecasting contained in this report and disclaims all liability in respect to decisions or actions, or lack thereof based on any or all of the contents of this report.

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