Avoid using ‘Unique’ words in your listing
With unemployment rates low, interest rates low and the amount of good quality inventory low, the stage is set for sellers to continue to enjoy higher prices for their home. But be careful, how you describe your listing can have an impact on its final selling price.
Location and price aren’t everything. Success in getting top dollar for your home may also come down to a few “unique” factors, such as the words you use in your property listing.
According to Stan Humphries, author of “Zillow Talk: The New Rules of Real Estate.” and also the chief economist at Zillow.com, be careful what you write about your home. It can influence how many buyers decide to visit, and what they are willing to pay. Listings that include the word “unique” sell for 30 to 50 percent less than comparable properties, said Humphries, while those that use “nice” sell for 1 percent less. “Basically what you’re saying is, ‘I like the home, but few others will like the home,'” he said. That said, don’t be afraid to wax poetic about home features that will appeal to buyers, like spacious closets and granite countertops. “The longer the description, the more the home sold for, up to about 250 words,” said Humphries. “If you’ve got it, flaunt it.”
What Happened to Rates Last Week:
Mortgage backed securities (MBS) gained +75 basis points (BPS) from last Friday’s close which caused fixed mortgage rates to move lower than the prior the week.
Another week, another mixed bag for the U.S. Economy. We saw some very positive economic releases with much better than expected readings in Pending Home Sales (3.1% vs est of 0.4%), Consumer Confidence (101.3 vs est of 96.2) and Factory Orders (0.2% vs est of -0.4%).
But the above positive economic report was trounced by Friday’s big Non-Farm Payroll (NFP) report.
There was some good and bad news (ok mostly bad) in this report, here is our breakdown:
Negative: The Non-Farm Payroll (NFP) report was a huge miss. The consensus estimates were in the 240K to 250K rand with the “whisper” numbers on Wall Street of 100K below that. Plus to add insult to injury, February was revised downward from 288K down to 264K. In fact, the last three months worth of readings were revised lower by a combined -69K and we have now broken our streak of readings above 200K for 12 straight months.
The Unemployment Rate remained unchanged at 5.5% but the Participation Rate dropped once again from 62.8% down to 62.7% which is a level not seen since February 1978. There are now 93.2 million Americans who are not being counted in the Unemployment Rate because they are not working but also not looking for jobs either. Yikes!
Positive: We got our third straight month of some solid wage growth and on a month-over-month basis, it was stronger than expected (0.3% vs est of 0.2%). On a year-over-year basis, wages grew at a 2.1% clip which is not the same inflationary measure as the Feds 2% target rate but it is something that Janet Yellen said she would consider in their rate hike timing. Also, while NFP missed….we still ADDED 126K new jobs. That is still a slight positive for the economy and based upon the improvement in the average wages, these are higher paying jobs.
As a direct result of the lighter than expected NFP report above, our benchmark FNMA 3.00 made some solid gains which in turn, gave us our lowest mortgage rates of the week.
What to Watch Out For This Week:
|Date||Time (ET)||Economic Release||Actual||Market Expects||Prior|
|6-Apr||10:00 AM||ISM Services||–||56.9||56.9|
|7-Apr||10:00 AM||JOLTS – Job Openings||–||NA||4.998M|
|7-Apr||3:00 PM||Consumer Credit||–||$11.5B||$11.6B|
|8-Apr||7:00 AM||MBA Mortgage Index||–||NA||4.60%|
|8-Apr||10:30 AM||Crude Inventories||–||NA||4.766M|
|8-Apr||2:00 PM||FOMC Minutes||–||–||–|
|9-Apr||8:30 AM||Initial Claims||–||287K||268K|
|9-Apr||8:30 AM||Continuing Claims||–||2407K||NA|
|9-Apr||10:00 AM||Wholesale Inventories||–||0.30%||0.30%|
|9-Apr||10:30 AM||Natural Gas Inventories||–||NA||-18 bcf|
|10-Apr||8:30 AM||Export Prices ex-ag.||–||NA||0.20%|
|10-Apr||8:30 AM||Import Prices ex-oil||–||NA||-0.30%|
|10-Apr||2:00 PM||Treasury Budget||–||NA||-$36.9B|
It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets. Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon.The above are the major economic reports that will hit the market this week. They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages. I will be watching these reports closely for you and let you know if there are any big surprises.