WHAT'S HAPPENING WITH MORGAGE RATES, AND WHERE WILL THEY GO FROM HERE?

Based on the Primary Mortgage Market Survey from Freddie Mac, the average 30-year fixed-rate mortgage has increased by 1.2% (3.22% to 4.42%) since January of this year. The rate jumped by more than a quarter of a point from just a week ago. Here’s a visual to show how mortgage rate movement throughout 2021 was steady compared to the rapid increase in mortgage rates this year:

Just a few months ago, Freddie Mac projected mortgage rates would average 3.6% in 2022. Earlier this month, Fannie Mae forecast mortgage rates would average 3.8% in 2022. As the chart above shows, rates have already surpassed those projections.

Sam Khater, Chief Economist at Freddie Mac, explained in a press release last week:

“This week, the 30-year fixed-rate mortgage increased by more than a quarter of a percent as mortgage rates across all loan types continued to move up. Rising inflation, escalating geopolitical uncertainty and the Federal Reserve’s actions are driving rates higher and weakening consumers’ purchasing power.”

Where Are Mortgage Rates Going from Here?

In a recent article by Bankrate, several industry experts weighed in on where rates might be headed going forward. Here are some of their forecasts:

Greg McBride, Chief Financial Analyst, Bankrate:

“With inflation figures continuing to surprise to the upside, mortgage rates will remain above 4.0% on the 30-year fixed.”

Nadia Evangelou, Senior Economist and Director of Forecasting, National Association of Realtors (NAR):

“While higher short-term interest rates will push up mortgage rates, I expect some of this impact to be mitigated eventually through lower inflation. Thus, I expect the 30-year fixed mortgage rate to continue to rise, although we aren’t likely to see the big jumps that occurred over the past few weeks.”

Len Kiefer, Deputy Chief Economist, Freddie Mac:

“Mortgage rates are likely to continue to move higher throughout the balance of 2022, although the pace of rate increases is likely to moderate.”

In a recent realtor.com article, another expert adds to the conversation:

Danielle Hale, Chief Economist, realtor.com:

“. . . As markets digest the Fed’s updated economic projections, I anticipate a continued increase in mortgage rates over the next several months. . . .”

What Does This Mean for You if You’re Looking To Buy a Home?

With both mortgage rates and home values expected to increase throughout the year, it would be better to buy sooner rather than later if you’re able. That’s because it’ll cost you more the longer you wait. But, there is a possible silver lining to buying a home right now. While you’ll be paying a higher price and a higher mortgage rate than you would have last year, rising prices do have a long-term benefit once you buy.

If you purchase a home today valued at $400,000 and put 10% down, you would be taking out a $360,000 mortgage. According to mortgagecalculator.net, at a 4.42% fixed mortgage rate, your mortgage payment would be $1,807 a month (this does not include insurance, taxes, and other fees because those vary by location).

Now, let’s put that mortgage payment into a new perspective based on the substantial growth in equity that comes with the escalation in home prices. Every quarter, Pulsenomics surveys a panel of over 100 economists, investment strategists, and housing market analysts about their expectations for future home prices in the United States. Last week, Pulsenomics released their latest Home Price Expectation Survey. The survey reveals that the average of the experts’ forecasts calls for a 9% increase in home values in 2022.

Based on those projections, a $400,000 house you buy today could be valued at $436,000 by this time next year. If you break that down, that means the equity in your home would increase by $3,000 a month over that period. That’s greater than the estimated monthly payment above. Granted, the increase in your net worth is tied to the home, but it is one way to put the home price appreciation to use in a way that benefits you.

Bottom Line

Paying a higher price for a home and a higher mortgage rate can be a difficult pill to swallow. However, waiting will just cost you more. If you’re ready, willing, and able to buy a home, now will be a better time than a year, or even six months from now. Connect with a real estate professional to begin the process today.

Based on the Primary Mortgage Market Survey from Freddie Mac, the average 30-year fixed-rate mortgage has increased by 1.2% (3.22% to 4.42%) since January of this year. The rate jumped by more than a quarter of a point from just a week ago. Here’s a visual to show how mortgage rate movement throughout 2021 was steady compared to the rapid increase in mortgage rates this year:

Just a few months ago, Freddie Mac projected mortgage rates would average 3.6% in 2022. Earlier this month, Fannie Mae forecast mortgage rates would average 3.8% in 2022. As the chart above shows, rates have already surpassed those projections.

Sam Khater, Chief Economist at Freddie Mac, explained in a press release last week:

“This week, the 30-year fixed-rate mortgage increased by more than a quarter of a percent as mortgage rates across all loan types continued to move up. Rising inflation, escalating geopolitical uncertainty and the Federal Reserve’s actions are driving rates higher and weakening consumers’ purchasing power.”

Where Are Mortgage Rates Going from Here?

In a recent article by Bankrate, several industry experts weighed in on where rates might be headed going forward. Here are some of their forecasts:

Greg McBride, Chief Financial Analyst, Bankrate:

“With inflation figures continuing to surprise to the upside, mortgage rates will remain above 4.0% on the 30-year fixed.”

Nadia Evangelou, Senior Economist and Director of Forecasting, National Association of Realtors (NAR):

“While higher short-term interest rates will push up mortgage rates, I expect some of this impact to be mitigated eventually through lower inflation. Thus, I expect the 30-year fixed mortgage rate to continue to rise, although we aren’t likely to see the big jumps that occurred over the past few weeks.”

Len Kiefer, Deputy Chief Economist, Freddie Mac:

“Mortgage rates are likely to continue to move higher throughout the balance of 2022, although the pace of rate increases is likely to moderate.”

In a recent realtor.com article, another expert adds to the conversation:

Danielle Hale, Chief Economist, realtor.com:

“. . . As markets digest the Fed’s updated economic projections, I anticipate a continued increase in mortgage rates over the next several months. . . .”

What Does This Mean for You if You’re Looking To Buy a Home?

With both mortgage rates and home values expected to increase throughout the year, it would be better to buy sooner rather than later if you’re able. That’s because it’ll cost you more the longer you wait. But, there is a possible silver lining to buying a home right now. While you’ll be paying a higher price and a higher mortgage rate than you would have last year, rising prices do have a long-term benefit once you buy.

If you purchase a home today valued at $400,000 and put 10% down, you would be taking out a $360,000 mortgage. According to mortgagecalculator.net, at a 4.42% fixed mortgage rate, your mortgage payment would be $1,807 a month (this does not include insurance, taxes, and other fees because those vary by location).

Now, let’s put that mortgage payment into a new perspective based on the substantial growth in equity that comes with the escalation in home prices. Every quarter, Pulsenomics surveys a panel of over 100 economists, investment strategists, and housing market analysts about their expectations for future home prices in the United States. Last week, Pulsenomics released their latest Home Price Expectation Survey. The survey reveals that the average of the experts’ forecasts calls for a 9% increase in home values in 2022.

Based on those projections, a $400,000 house you buy today could be valued at $436,000 by this time next year. If you break that down, that means the equity in your home would increase by $3,000 a month over that period. That’s greater than the estimated monthly payment above. Granted, the increase in your net worth is tied to the home, but it is one way to put the home price appreciation to use in a way that benefits you.

Bottom Line

Paying a higher price for a home and a higher mortgage rate can be a difficult pill to swallow. However, waiting will just cost you more. If you’re ready, willing, and able to buy a home, now will be a better time than a year, or even six months from now. Connect with a real estate professional to begin the process today.  If you are in the market to buy a rural property, give the Rural KC Team-Keller Williams Partners a call at 913-837-0760 or 913-837-0411.  We can help you.

WOOD IS NOT YOUR ONLY OPTION!

Whether you’re adding a shed to your property, expanding with a new room, or building an entire house, the cost of lumber is likely going to affect your plans. Though not quite as high as it peaked early in the pandemic, buying lumber in any quantity still isn’t exactly what one would call a cheap endeavor. There may be a bright side to all of this, however; the high cost of lumber is highlighting the fact that there are actually a few alternatives to wood out there that you might not have thought of.

This doesn’t mean that you can completely avoid the use of wood in every project, of course. Some projects work better with alternative materials than others. Still, the fact that there are options out there other than just using lumber for everything might help you to think outside of the box and find at least some cheaper (and in some cases, possibly even better) options when planning out your next construction project.

Non-Lumber Construction Materials

Lumber is probably the most well-known material that’s used for framing construction and building out projects, but it isn’t the only option out there. When it comes to creating frames for rooms and buildings, steel and other metals are not only an option but they’re actually becoming an increasingly popular one because of the added strength that they provide. Metal framing is used in everything from sheds to exterior garages to whole homes and creates very sturdy structures that can stand up well against severe weather and other events.

Metal isn’t the only wood alternative that you can use in construction around the home, either. Plastics such as composite decking and fencing are increasingly popular for use around the home, creating a look that is often reminiscent of wood while providing superior resistance to fading and weather damage. Bamboo products are also seeing an increase in use as a building material, as they have similar capabilities to wood but often come at a lower cost than wood lumber because of the fast rate at which bamboo grows. Even concrete and fiber cement are seeing a growing popularity as materials, especially given their relative strengths and the ability to mold both to a variety of shapes to better match the project at hand.

Minimizing Wood in Your Projects

Even with a variety of materials as options, you may still need to (or want to!) use some wood in your construction projects. You may simply prefer the look of wood, or have specific idea in mind that does require wood. This doesn’t mean that you have to commit to wood for the entire project, however, and you can use alternative materials in places where they aren’t visible or won’t affect the project in substantial ways as a means of reducing your overall project cost.

A great way to do this is to use alternative materials for framing and then attach wood to that frame. You can also use wood in areas where it’s strictly necessary for the project that you have in mind and then supplement that with paintable composites or fiber cement siding so that the end product can get a coat or two of paint to make it all mesh. There are a number of ways that you can be creative and keep your costs low while still giving you the look and functionality that you want in the end.

Thank you for reading the Rural KC Team-Keller Williams Partners blog.  If you are in the market for land to build your barndominium or alternative housing, please feel free to contact us at 913-837-0760 or 913-837-0411.  We can help you with the purchase of the land as well as a reputable builder.  Have a great day!

8 SURPRISING HEALTH BENEFITS OF GARDENING

  

Planting flowers and vegetables can reap bountiful bouquets and delicious harvests for your dining table. But did you know gardening also can do wonders for your well-being? Here are eight surprising health benefits of gardening.

1. Gardening can build self-esteem. 

Maybe you don’t think you were born with a green thumb, but after tilling, planting, nurturing, and harvesting plants, you might see a slightly different person in the mirror: a person who can grow things and is a little more in tune with the earth. 

It always feels good to accomplish new tasks, and if you can grow a garden, what can’t you do?

2. Gardening is good for your heart. 

All that digging, planting, and weeding burns calories and strengthens your heart. 

“There are physical benefits from doing the manual labor of gardening,” says UNC Health internal medicine physician Robert Hutchins, MD, MPH. “It’s hard work to garden, and it provides some cardiovascular benefit.”

3. Gardening reduces stress.

Gardening can help reduce symptoms of depression and anxiety. 

“Gardening gives you a chance to focus on something and put your mind to work with a goal and a task in mind,” Dr. Hutchins says, “which is helpful especially now with so much illness and death and talk of death, just to see things growing and things thriving.” 

4. Gardening can make you happy. 

Getting dirt under your nails while digging in the ground can make you pretty happy. In fact, inhaling M. vaccae, a healthy bacteria that live in soil, can increase levels of serotonin and reduce anxiety. 

5. Gardening can improve your hand strength.  

All that digging, planting, and pulling does more than produce plants. Gardening also will increase your hand strength. What a great way to keep your hands and fingers as strong as possible for as long as possible.

6. Gardening is good for the whole family.

Gardening can be a solo activity or an opportunity for bonding with your family and friends. The happiness and stress relief that gardening provides is a great thing to share with loved ones. Also, gardening has special benefits for kids. Early exposure to dirt has been linked to numerous health benefits, from reducing allergies to autoimmune diseases.

7. Gardening can give you a boost of vitamin D. 

A healthy dose of vitamin D increases your calcium levels, which benefits your bones and immune system. Exposure to sunlight helped older adults achieve adequate amounts of vitamin D. Just don’t forget your sunscreen.

8. Growing your own food can help you eat healthier. 

If you have a vegetable or herb or fruit garden, you’re getting fresh produce that you know hasn’t been treated with pesticides.

“It’s essentially as farm-to-table as it gets,” Dr. Hutchins says, “if you’re eating what you’re growing.”

Thank you for reading the Rural KC Team's blog.  Feel free to contact us with any questions you might have or if you are in the market to buy or sell rural real estate.  We are here to help.  913-837-0760 or 913-837-0411.  Have a great day!

MAKE YOUR HOME MORE PET FRIENDLY

Having pets can enrich your life in a number of ways and can even improve your overall mental health and wellbeing. Unfortunately, not every home is really set up for pets. By making some improvements to your home and its layout, you can make it much more pet friendly, and help keep your furry (or scaly or feathery) friends safe and happy as you spend your time together.

Exactly how do you go about making your home more pet friendly, though? There are a few things you’ll need to consider, including the type of pet you have, its indoor/outdoor habits, and its size. While many of these things are specific to your individual pet, there are some more general changes that you can make to help make your home more pet friendly as well.

Update Your Interiors

If you’ve got an older house, you might want to do a few interior updates to help ensure that your pets are safe from harm. Redoing the walls to remove old paint that could have lead or other unwanted compounds goes a long way toward this goal, while also giving you a way to significantly change the look of the inside of your home. Your floors may need an update as well, such as replacing old frayed carpet with new carpeting or installing new vinyl. This could also be a good idea if you’ve got old wood floors and are concerned about scratching or splinters as your pets go back and forth with heavy paws and claws.

There are other changes that you can make as well. Replace frayed curtains or broken blinds with something a bit more modern to not only keep your pets safe but also keep your home looking nice as well. Depending on your home, you might have additional projects in mind that will not only improve the look but also help to keep your pets much safer from day today.

It’s All About Access

A big part of making a home pet-friendly comes down to controlling access. The parts of the house (or outdoors) that your pet is allowed into should be easy for them to access. Areas, where they aren’t allowed, should be difficult for them to access, but ideally easy for you to get into. Home updates to accommodate this can include things like adding pet doors, installing new doors that latch easily, or hanging interior gates that you can use to block and unblock access to specific rooms or other areas with ease.

If you have pets that are allowed outside, these sorts of considerations apply out there as well. Installing a fence, adding a watering station, or making other exterior accommodations for your pets will help keep them safe while outside, even as they’re allowed more freedom than they would have gotten as an indoor-only pet. Just make sure that any exterior changes that you make don’t run afoul of local ordinances or HOA agreements before you start work, so you can avoid problems down the road.

It’s Their House Too

In some cases, you may find yourself wanting to make some bigger changes to your home in order to better accommodate pets. Perhaps you want to change out some of your windows with larger ones so that your pets can more easily look outside. Maybe you need to update your HVAC system to better remove pet dander from the air. You might even decide to add on a small room or another area that’s designed specifically for your pets’ use.  Anything you do to enhance their lives, your pets will thank you!

For questions on this article or any real estate question, please feel free to contact the Rural KC Team at 913-837-0760 or 913-837-0411. Have a great day!

Help Your Loved One Transition to a Senior Living Community with These Expert Tips

 

Help Your Loved One Transition to a Senior Living Community with These Expert Tips

 

Have you reached the point in your caregiving journey where you honestly feel like you can no longer provide the proper care for your loved one? If so, you are now in a position where it is most responsible to work with your family member to help him or her transition to a senior living community. While this realization can cause mixed emotions, it is ultimately what is best—not just for you but for your parents, grandparents, or relatives.

 

If you are ready to begin helping your loved one move from their current home to a top-quality senior living community, use the following tips.

 

Have open and sensitive conversations about the benefits of moving

 

This entire process should begin with an open, compassionate, and sensitive discussion with your family member. While this shift in your loved one’s needs may be causing you to feel a number of emotions, this reaction will likely be more pronounced for this individual. For many seniors, moving out of their home—which they may have lived in for decades—is a concrete event that marks the loss of independence. Experiencing a loss of full independence can be a heartbreaking time. Additionally, having to say “goodbye” to the home in which they’ve made hundreds of wonderful memories is also an emotional thing to do.

 

When first mentioning the need to move into an assisted living community, keep all of these factors in mind. Your loved one may react poorly, but it is important not to take their comments personally. You will likely have to have multiple conversations with this individual—all of which should be filled with love, care, and understanding.

 

If you have not yet done so, this is also an appropriate time to begin discussions about end-of-life care. If you and your loved one plan on you acting as the decision maker should the circumstances arise, there are several necessary forms needed to ensure you’ll be able to. Having these documents ready will give you and your loved one peace of mind.

 

Be involved in the selection of their senior living community

 

Once your family member is on board with the idea of moving, it is important to be involved with the selection of their senior living community. Rather than choosing one for them without any input, make the process one that is enjoyable, and that ultimately puts the decision in the hands of your loved one.

 

Schedule tours of prospective senior living homes for you and your loved one to take together. This will allow you to see living spaces up close, talk with staff, and get an overall feel for the place. Doing this will be far more comforting for you and your loved one, and will help them feel in control of their future.

 

Work with a realtor to sell your loved one’s home

 

After your family member selects their new assisted living residence, it is time to begin the process of selling their current home. Because so much is involved with selling a home, as well as moving to a long-term care facility, it is worthwhile to get expert help from a realtor.

 

Hiring a realtor like The Rural KC Team will free up hours upon hours of your time, which will allow you to dedicate more time to your needs and the needs of your loved one. It will also give you peace of mind in knowing that the house will sell for the highest possible price.

 

You might also want to consider relocating closer to your loved one to better assist them with the process. Whether your move is permanent or temporary, there are plenty of affordable rentals available to suit your needs. You can even search for accessible options, as well as things like pet-friendliness, number of bathrooms, and so forth. The key is to sort and prioritize criteria before settling on the best choice.

 

Pay for care with the proceeds from the sale of their home

 

If your loved one does not currently have the financial means to pay for their care, they can often pay for all of their living expenses from the proceeds of their home sale. You can expedite the home selling process by offering COVID-safe options for touring your loved one’s home—including video-chat tours, innovative 3D walkthroughs, and virtual open houses.

 

As your caregiving comes to an end, be sure that you are addressing your needs throughout each stage of this transition. When you are functioning at your peak, you can be an even better caregiver for your family member.

 

This article is brought to you by The Rural KC Team. For more information, please visit our website today!