CHM Blog

Beyond curb appeal

Walking through an open house is like window shopping. But smart buyers know how to dig deeper than granite countertops and crown molding. Compass Realtor Victoria Shtainer suggests starting with the most revealing question of all: "What do you love most about this property?"

Time to hone your listening skills, kind of like the cops on all those Law & Order episodes when investigating an incident. It’s important to pay attention to what gets mentioned first and what doesn't. For example, if the agent gushes about the neighborhood before praising the house itself? That could signal the property has issues worth investigating.

Broker Collin Bond recommends asking about recent improvements the agent hasn’t mentioned. For instance, knowing the boiler was just replaced or the roof was recently repaired means you won't face those expensive surprises immediately after move-in. “It's also smart to gauge your competition by asking about interest levels,” he says. “If responses seem lukewarm, you might have negotiating power.” Don’t settle for mentions of “tons of interest," however. Follow up directly by asking about actual offers.

It's also important to remember to ask about practical matters that affect your wallet and lifestyle, such as utility costs, since estimates are only available from current owners. Now query them on weekday traffic patterns if the open house falls on a quiet weekend — especially if there is a school nearby. New Jersey broker Dottie Winhold notes that buyers often discover unexpected expenses like separate electric bills after assuming monthly charges were all-inclusive. “Some buildings include electric and gas in monthly maintenance charges, while others require owners to set up separate utility accounts, potentially adding $300 monthly electric bills on top of building charges,” she says.

Finally, while fair housing laws limit how agents can describe neighborhoods, try to catch subtle clues about the community's character. If an agent mentions "a community playground in this cul-de-sac," you can probably deduce the area skews more family-friendly than upscale professional.

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: Neutral

Mortgage rates are moving sideways today. The MBS market worsened by -26 bps last week. This was enough to increase mortgage rates or fees. The market experienced high 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) Geopolitical, 2) Jobs and 3) ISMs

1) Geopolitical: There are plenty of hot spots geopolitically, however our own potential Government Shutdown is getting the most weight as the September 30th deadline is fast approaching. Will we get a "stop gap" measure (i.e. kicking the can down the road for the 100th time), or will get an actual resolution? Or is the Government shut down for a short period or a long period of time?

2) Jobs: IF there is no government shut down, then Friday's Jobs data will be the biggest market mover as the bond market focuses on NFP revisions and the rest of the data. However throughout the week we have a ton of job and or wage related data with JOLTS, ADP, ISMs, Challenger Job Cuts and Initial Claims.

3) ISMs: The ISM Manufacturing and Non Manufacturing are non-government reports, so they will hit the markets regardless of a shutdown. The ISM's contain solid data on Employment and Inflation (prices paid) that the bond market is very reactive to.

This Week's Potential Volatility: High

This morning markets are seeing a tiny amount of support. Volatility has started at moderate to low levels but will likely become high later in the week.

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.

MLO of record MLO.100007700 / NMLS#233568 / CHM NMLS#127716.