Real Estate Talk With Joe 

Weekly we will post about all things Real Estate.  We invite your questions and comments.     

 

 

Jan. 12, 2023

What Will Happen With The Housing Market In 2023?

If you're looking to buy a home in the next few years, you'll want to take a close look at what's expected to happen with the real estate market. While the housing market will continue to be strong, the Freddie Mac forecast model predicts that prices in the United States will drop by 0.2% in the next three years. The good news is that mortgage rates are expected to remain steady, and hold near 7% over the next five years.

Freddie Mac forecast model predicts U.S. home prices falling 0.2% in 2023

If you're considering buying a home, you may have heard that housing prices will begin to decline in 2023. In fact, a Freddie Mac forecast model predicts that prices will fall by 0.2% in 2023.

The prediction is based on a combination of lower demand and a larger supply of homes. Many economists believe that the U.S. is poised to enter a recession in late 2023 or early 2024. However, there are some forecasts that see a milder downturn in prices.

Homebuyers are facing mortgage rates that have doubled in the past year. This has caused the affordability of many homes to get worse. That's not enough to push the housing market into a recession, but it can make consumers feel like they're in the middle of a downturn.

In addition, a shortage of homes on the market is weighing on buyers. Economists also expect that the job market will slow down. These factors are causing a rebalancing of the power in the housing market.

Millennials fuel home price growth in first time home buyer neighborhoods

The millennial generation is the largest cohort of homeowners in the country, and with a few billion dollars in disposable income, they're going to start buying homes in droves. A massive wave of first time homebuyers is forecasted for the next three years.

Although the millennial generation is the biggest homebuyer group, it isn't the only one. Generation X and Baby Boomers also form households at a record pace. However, the millennials are the most tech savvy of the group, making use of gadgets like smartphone apps to find properties and schedule showings.

Millennials also face the usual challenges of saving for a down payment, securing a mortgage, and balancing the family budget. In addition, the cost of homes is on the rise.

Fortunately, fewer buyers means less competition, which is a good thing for the housing market as a whole. But inflated housing prices can be intimidating.

Mortgage rates expected to hold close to 7% in 2024

As the Federal Reserve continues its efforts to fight inflation, interest rates are rising. The Fed's benchmark federal funds rate is expected to increase to 2% in the next two years. However, mortgage rates are expected to drop to just over 5% by the end of 2023.

Mortgage rates are influenced by a number of factors, including inflation. This has made it difficult to accurately predict the direction of the market. But if you look at the broader economic picture, you'll see that the economy has been slowing in recent months.

Recent trends show that the risk of a recession is increasing. Business investment will likely decline, and the overall economy will likely contract. These conditions will cause a reduction in the housing market. Eventually, this will lead to higher unemployment and a recession.

Although the Fed has slowed its pace of rate hikes, experts expect them to continue at least until mid-2020. In the meantime, however, the 10-year Treasury note yield has remained largely stable.

Dec. 28, 2022

How To Succeed With New Years Resoloutions

The start of a new year is always a time of renewal and positivity. It is the perfect time to begin working on your health, your relationships and yourself. Here are some tips to help you get started!

Socialize more

The best way to improve your social life is to actually have a social life. It's a fact that you are more likely to live longer if you have a rolodex of friends. To that end, it's a good idea to make a list of your favorite people and see who can turn up. Whether it's a dinner out or a night at the movies, a little socializing goes a long way.

While you're at it, why not check out a local book club? Not only will you meet like-minded bookworms, you'll be rewarded with recommendations on your next book of choice. Best of all, you'll have a blast doing it! You'll also have something to do on those rainy days. And the best part is, you'll probably be able to get a sitter.

Overcome fear and insecurities

Having the courage to overcome fear and insecurities is a must. You should start with small goals and then work your way up. This way, you will be able to experience the thrill of the journey without getting discouraged along the way.

One of the best ways to overcome your insecurities is to talk with others. Find positive people to surround you with. It will also help to be around those who have succeeded in their respective fields.

Another way to get over your insecurities is to make a list of your fears. Once you have a list, you will be able to figure out the best way to overcome them.

One of the best ways to overcome fear and insecurities in the new year is to start with the right mindset. Be aware of your triggers, such as envy, jealousy, and procrastination. These feelings can sabotage your resolutions. However, if you identify your triggers, you will be able to address them before they derail you.

Control your emotions

It's important to control your emotions and thoughts as you plan for the new year. You want to make sure that you have a healthy mindset for 2018. There are many ways to do this, and some tips can help you succeed.

The key is to set a goal and work towards it. For instance, you may have a goal to lose weight or to exercise more. Identify your goal, then write down your action plans. This can give your mind a fresh start and give you a sense of accomplishment.

When you reach your goals, be thankful and celebrate your success. Remember, every step counts in reaching a goal. Also, you should know what will get in the way of your progress.

Control your emotions to prevent distractions. A good strategy is to set up a resolution journal. Make a list of your goals and obstacles. Be open to changes. Sometimes, it takes a while to get comfortable with a new change.

Overcome compulsiveness

New year resolutions are a common way for people to set goals and make plans for the year. Unfortunately, many people fail to achieve their resolutions because they take on too much, or their plans are redirected by drastic changes. If you want to avoid failure, you can follow some of these tips.

First, you need to choose the right goal. There are two types of goals: approach-oriented and avoidance-oriented. A resolution oriented on desire to do something is more likely to be achieved than an approach-oriented goal, which is based on the desire to avoid something. Therefore, you should focus on a goal that is oriented on approach rather than an avoidance-oriented goal.

Then, it is important to note any obstacles you may face as you work toward your resolution. In most cases, these obstacles will not be difficult to overcome. Instead of trying to change your entire life in one go, you should focus on a series of small steps. Once you have achieved the first step, you can then focus on the second and third. Finally, it is important to celebrate your progress.

I hope you have a happy and safe New Year and that you achieve all of your goals and resouloutions.   

Posted in General Interest
Dec. 23, 2022

The Meaning of Christmas

There is no better time than now to reflect on the meaning of Christmas. As we celebrate the birth of Jesus, we should be reminded of the significance of the holiday and how we can continue to bring joy into our lives and into the lives of others. We should also be aware of the ways in which we can use our gifts of time, money, and talents to help those in need.

Traditions

The Christmas season is a time of celebration, and there are several traditions that are associated with the holiday. Some families may continue a tradition from the past, while others may create a new one. Regardless, these traditions can help make your celebrations merrier.

Christmas is a holy day celebrated by many Christian denominations. It is also a festival to celebrate the birth of Jesus. Christians may also participate in traditional celebrations, such as caroling and gift giving.

Another popular tradition is to eat a traditional Christmas dinner. Several countries have unique traditions related to this event. Japan, for instance, has a special celebration on Christmas day, but it is not a widely observed holiday.

Children often sleepover on Christmas Eve, and some may even go to their grandparents' homes. This is a way for them to spend time with their extended family.

Spiritual reflection

The true meaning of Christmas lies in its celebration of God's ultimate gift to us. Every day is a chance for God to reshape our lives. So what's the best way to make the most of this occasion?

First, you have to have a good reason to celebrate. If you are feeling depressed or down, take a few minutes to consider the blessings that the season brings. You will feel much better once you have a clearer head.

It is easy to become so wrapped up in the nitty gritty of life that you lose track of the big picture. Take a look around you. There are many things to celebrate, but not all are equally significant.

One of the most important is humility. Humility is a gift from God.

Consumption

Christmas is a festive time of year and there is a lot to be learned from studying the significance of consumption during this period of the year. Consumption is a fundamental aspect of human life and those without the means to do so face social exclusion.

Consumer Culture Theory is an interdisciplinary framework addressing the active role consumers play in creating meaning from their consumption and interactions with the wider world. This model has three major sub-themes: hedonic consumption, ritualistic consumption, and aesthetic consumption.

The most obvious function of consumption is to provide basic interpersonal relationships. However, many people live in societies that encourage materialistic values. These values cause tension and lower overall wellbeing.

For example, a recent study suggests that those without access to consumer products and services have limited options when it comes to dealing with difficult life situations. In order to solve this problem, a movement has begun to encourage more responsible shopping.

Helping the needy

One of the best things about the holiday season is the chance to do good. There are a number of ways to help the less fortunate and doing a little good can really make you feel great.

A great way to do good is to donate to a charity, and there are a number of worthy organizations out there. In addition, you can make a big difference in someone's life by adopting an orphan in need.

The biggest thing to remember is that you should give to charity based on your own means. You should not feel pressured to buy something you cannot afford, or give money to an organization that does not have the resources to match your donation.

Symbolism

Christmas is a holiday celebrated throughout the world, and its traditions and symbols are quite diverse. Some are quite traditional, while others are more religious. Understanding the symbolism of Christmas will help you understand the history behind the holiday, and what it means.

During the ancient days of Christianity, the holly plant was regarded as a holy plant. Its glossy red berries and sharp-toothed leaves reminded Christians of the crown of thorns. Using holly during the holidays helped Christians remember that Christ's blood was shed for all mankind.

Another important symbol of Christmas is the Christmas tree. It represents the original Tree of Paradise, and also represents Jesus' birth, life, death, and resurrection. A Christmas tree with stars on top symbolizes the star that shone over Bethlehem when Jesus was born.

Posted in General Interest
Dec. 23, 2022

The History Of Hanukkah

The history of Hanukkah is the history of a holiday that is held every year on the 25th day of the month of Kislev, when the Jewish people commemorate the rededication of the Second Temple in Jerusalem, a time when the Maccabees, an ancient Jewish resistance group, defeated the Seleucid Empire, a Greek empire of the time. In addition to celebrating the rededication of the Second Temple, the holiday also honors the Maccabees, a group of Jewish rebels who overthrew the Seleucid Empire in the 2nd century BCE.

Menorah

The menorah is a striking symbol of the Jewish faith. Traditionally used in worship and prayer, it represents God's boundless light. It also serves as a reminder of Hanukkah, the Jewish festival of lights. This festive holiday is celebrated during eight days of the year.

Originally, the menorah was a sacred vessel used in the Holy Temple of Jerusalem. During the time of the Second Temple, the menorah had six branches. In later years, seven-branched candelabras were used. These are now widely used as symbols of the Zionist movement and Israel.

Menorahs are made from many different materials. They can be papier-mache or carved from wood, clay, or metal. Some are made to last for generations.

The story of the menorah is one that is told every year during family gatherings. This holiday is a special time for families to light candles and enjoy a meal together.

Latkes

Latkes are a Hanukkah tradition, and they are a delicious way to celebrate the holiday. Latkes are crispy, oniony potato pancakes that are fried. They are served with traditional toppings like apple sauce and sour cream. The tradition ties back to the story of the oil that kept the temple's lamp lit for eight days.

While latkes have a long history, the dish has changed considerably. Today, people across the globe eat latkes to commemorate the holiday. Most recipes use eggs, potatoes, and onions. Some Jewish communities include sesame seeds or sugar in the batter.

The original latke was not a potato pancake. Rather, it was a ricotta cheese pancake. Ricotta cheese pancakes are thought to have originated in southern Italy. However, they were not called latkes until the middle ages.

Sufganiyot

Sufganiyot, doughnuts filled with jelly, are a staple of the Hanukkah festival in Israel. They are also widely eaten in other countries. Their popularity has grown with the passage of time.

The origins of sufganiyot date back to the 16th century in Europe. According to Jewish food historians, this tradition is probably rooted in the Ashkenazi culture.

Although sufganiyot have been a part of Hanukkah for a long time, their official status as a Hanukkah food was only recognized in the 1920s. At that time, they were marketed as a way to keep people employed during the holiday season.

Today, the word sfganiyot refers to a variety of fried pastries. It is believed that the first sufganiya were fried on a kerosene heater called a primus.

Dreidel

One of the most popular traditions during Hanukkah is playing the dreidel game. This game is played with a variety of different materials and is usually played in groups.

A dreidel is a small spinning device with four sides that include Hebrew letters. The Hebrew letters on a dreidel represent individual characteristics and spiritual concepts. Depending on which letter lands on the top of the dreidel, the player wins one of the items in the pot.

During the Second Temple's time, Jews were forbidden to practice their religion openly. They could only study their scriptures in secret. Using a dreidel, they would pretend to play a gambling game and hide their study from the soldiers.

In the early days, the dreidel was used as a means to disguise Torah study. The tyrannical rule of that time outlawed all gatherings of Jews to study their scriptures.

Gift-giving

Gift-giving has come a long way from its modest beginnings. Today, giving gifts during Hanukkah is a time-honored tradition that extends to adults and children.

In fact, gift-giving during Hanukkah has its roots in Jewish learning. This is a surprisingly old custom, and the origin of it isn't entirely clear.

A good source for information about the history of Hanukkah and gift-giving is The Jewish Way: Living the Holidays, by Irving Greenberg. There's also a book about the history of the holiday by Dianne C. Ashton, entitled Hanukkah in America: A History.

One of the oldest traditions associated with Hanukkah is the distribution of gelt. Gelt is a type of money that predates gift cards. It was a token of gratitude to teachers and school administrators who taught children about the holiday and its traditions.

Posted in General Interest
Dec. 23, 2022

Protecting Your Pipes In Cold Conditions.

Protecting your pipes in cold conditions can be important, especially if you live in a region with winter temperatures that may drop to freezing. There are several things that you can do to protect your pipes from freezing, including thawing them, insulating them, and disconnecting garden hoses that may be left running throughout the winter.

Insulate pipes in unheated areas

If you live in an area where the temperatures regularly drop to below freezing, you may need to insulate pipes in unheated areas to keep them from freezing. This can save you from having to worry about burst water pipes and flooding your home. There are many ways you can do this.

The first step is to clean out your plumbing system. This can remove dirt, grease and moisture. It can also help the insulation stick better.

Adding insulation to your pipes can also reduce heat loss, which can make a big difference in how much you pay for your heating bills. Insulation can range from a simple wadded up newspaper to heat-tape and more.

Getting your water pipes insulated is an easy and cost-effective way to protect them from the cold. You can use duct tape as a temporary solution, or you can insulate them with foam pipe sleeves or self-sealing foam.

You may need to consider other options. For example, you can insulate the pipes that run through your attic or basement, or you can insulate your cabinets.

Allow heated air to circulate around the pipes

The best way to prevent pipes from freezing is to allow warm air to circulate around the plumbing. This helps to avoid pressure buildup, and also keeps the pipes from freezing. In fact, it may even save you money.

During cold weather, open cabinet doors below the sink to allow warmer air to flow around the plumbing. Do not forget to leave the doors closed during the day, as well. If your water bill is high due to the heat, this can help to make up for it.

You can also wrap your pipes with heat tape or insulation sleeves. It is important to follow the manufacturer's instructions carefully. Also, you should be aware that heating cables must be plugged in every time.

If you have exposed pipes, it is a good idea to have them drip 5 to 10 drops of water per minute. Allowing water to drip from the faucet can also help to prevent freezing.

Disconnect garden hoses

If you live in a cold climate, it's important to disconnect your garden hoses before winter sets in. Water freezing in hoses can cause significant damage to your home. It can also create pressure problems in your water lines, which could lead to leaks or even flooding.

Garden hoses can freeze and crack if left in the cold for long periods of time. It's best to disconnect a hose when the temperature drops below 32 degrees Fahrenheit.

A frozen garden hose can be a costly and time-consuming repair. It can also prevent you from watering your plants.

Garden hoses can be a valuable tool in your yard. However, if you leave them connected to your outdoor faucets, they may break or corrode. Also, the hoses are not protected against the internal heat of your home. During the cold months, it's best to store your hose in a warm area of your house or in a garage.

Thaw frozen pipes

Whether you have a frozen pipe in your home or a business, there are a few steps you can take to thaw it. A successful thaw will allow water to flow freely through the pipes.

The first step you should take when dealing with a frozen pipe is to turn off all water. In the worst case scenario, you may have to call a plumber. You can also use a space heater to help thaw a frozen pipe, but you should take care to follow safety precautions.

The second step you can take is to open a few faucets in the coldest areas of your house. This will help clear the ice from the line and relieve pressure.

Once you've done that, you'll want to keep the temperature above freezing. If your thermostat is set lower than the recommended 65 degrees, this could lead to frozen pipes.

Depending on the size of your room, you can use a space heater to thaw your pipes. However, be sure to keep it away from any flammable materials.

Dec. 12, 2022

How Does Raising Interest Rates 50 Basis Points Affect Me?

Whether you are looking to buy a home or simply want to pay off your existing mortgage, raising interest rates can be a big deal. Not only will you have to pay more for borrowing money, but it can also slow the economy.

As with other policies of the Federal Reserve, the decision to raise interest rates affects the economy. The Fed raised the federal funds rate by 25 basis points in March and June and has been gradually moving the benchmark rate up over the past year. The effects of these changes can vary depending on the terms of the loan. In some cases, the change will increase monthly payments on a mortgage or auto loan. In other cases, it will have a more indirect effect on your savings.

In fact, the biggest question is not so much how raising interest rates will effect you, but rather how will you feel about it. The Fed's recent rate hikes have slowed the economy. This is one of the reasons that the unemployment rate is so high. However, raising rates can also create opportunities. For example, you may be able to take out a home loan or purchase a car that will be more affordable.

While the latest move by the Fed isn't going to have a sweeping effect on the economy, it is likely to have a significant effect on the short-term borrowing rates of consumers. For instance, the average savings yield rose from 0.06 percent in the week prior to the Federal Open Market Committee's (FOMC) announcement to 0.11 percent in the week following.

This is because banks use the interest rate to attract new deposits from the public. As the economy continues to grow, employers will have to hire more workers, which feed demand. When there is a shortage of workers, companies will have to increase their production to meet demand. When the economy grows, employers can expect an increase in consumer spending, which will help keep the unemployment rate down.

The FOMC also decided to reduce the target for the FFR by 1.5 percentage points. This decision was in response to concerns about inflationary imbalances. It's not surprising that the Fed is looking for a more measured approach. It would be a bit surprising if the Fed were to move the target to a higher level, especially in light of the fact that the current rate is already in the target range.

The Fed has raised interest rates by a total of 175 basis points in the past year, including a 0.5-percent boost in July and a 50 basis point increase in May. In the past nine tightening cycles, eight have ended in recession. The Fed hasn't been this aggressive since the days of Paul Volcker, who was the Fed chair for a short period in the late 1980s.

The Fed is not going to take time off. In fact, several officials, including Chair Jerome Powell, have said that they are ready to make the necessary adjustments to ensure that the economy stays on track. Hopefully, the resulting slower pace will give the Fed a chance to look at the results of its recent rate hikes in greater detail.

if you are in the market to buy a home, you have loan approival, and you find a home you like buy it.   Interest rates flucuate.  If you wait it could cost you thousands of dollars.  Marry the home, date the rate.   

If you are looking to sell your home, get your home ready now!!  The prices of homes have declined and we are undergoing what can be called a market adjustment.  

If you have any questions about the real estate market or need any help selling your home or buying a new home, please reach out to me @504-508-3149.  I am here to help you.   

 

Dec. 7, 2022

Remember Pearl Harbor!!

Whether you are a Pearl Harbor survivor, a World War II buff, or just a fan of history, the 81st anniversary of the attack is an important time to commemorate. This event not only changed the course of World War II but affected many people's lives. It galvanized military members, civilians, and those in the shipyards. The attack sparked a war effort that would affect the lives of 16 million Americans. It also served as a catalyst for the creation of fledgling democracies in former adversaries.

The attack, which killed over two thousand Americans, also permanently sank two U.S. Navy battleships, the USS Arizona and the USS Oklahoma. Almost every ship in the harbor at Pearl Harbor suffered significant damage in less than two hours. A large number of civilians and military members were injured.

Today, many Americans seem to be neglecting the anniversary of the Pearl Harbor attack. There are very few Americans who remember the event. The news media is inviting the United States to consider the anniversary. In response, Congress passed a resolution to make December 7 an official day of remembrance.

Remember Pearl Harbor was a phrase coined by Commander Lewis Preston. It became a popular slogan after the attack, and a generation of Americans grew up with it. The documentary features archival footage and first-person accounts from several sources. It also uses graphics and photos to show the events of the attack. It includes a political cartoon created by the U.S. Department of War after the event.

The attack was the first of its kind on the Pacific Fleet. It was designed to cripple the Pacific Fleet and prevent an American fightback. The attack also temporarily crippled the Pacific Fleet, but it would quickly rise again. There would be many more battles that would determine the fate of the war.

The attack at Pearl Harbor sparked a war effort that would last for years. The attack galvanized military members and civilians in the shipyards, on the frontlines of the war, and in other places where the United States fought. It also served as a catalyst for an international struggle against fascism and totalitarianism. It was a critical moment in modern history. Despite the fact that the United States was in World War II, many Americans are still confused about the events of that day. It is important to remember the people who sacrificed their lives for the United States.

The United States entered World War II with a "Remember Pearl Harbor" battle cry. It was a tactic that galvanized 16 million Americans to serve in the war. It was a powerful way to demonstrate heroism and valor to the rest of the world. It is also a reminder that the American people have a long history of giving their lives for freedom.

The attack on Pearl Harbor was one of the most important moments in modern history. It changed the course of World War II and forever changed the United States' relationship with Japan. It also affected the lives of civilians and military members in the shipyards, on the front lines, and in other places where the United States battled totalitarianism.

Posted in General Interest
Dec. 5, 2022

Does the Crypto Currency Market Have an Effect on Real Estate?

Despite the fact that the crypto currency market has been around for many years, the industry has only recently started to embrace it. Cryptocurrency is a decentralized peer-to-peer currency that allows direct transactions and keeps information safe.

Cryptocurrency has become a viable way for foreign investors to invest in the United States. Cryptocurrency has also provided a more convenient method of purchasing real estate. The market is still in its infancy, but more and more countries are allowing real estate purchases using crypto.

Cryptocurrencies have many applications in the real estate sector, including improving efficiencies in rental properties and managing rental properties. However, while crypto is the hot new kid on the block, there are still a few caveats to keep in mind.

While the crypto-real estate boom in Miami is making waves, there are still a few red flags to watch out for. Despite the hype, there is little proof that crypto actually has an impact on real estate.

For example, it is hard to tell whether or not a crypto crash will actually boost real estate. It is possible that a crypto crash will create a wave of interest in real estate, but not all crypto-first investors are willing to jump into the real estate market.

It's also important to remember that not all real estate is serviceable. For example, 29% of the world's land area is unusable glaciers and salt flats. However, these areas have always held value.

The Real Estate Market and the Crypto Market are complicated.  If you need help call me. Joe Lorenzo@504-508-3149.

 

Dec. 1, 2022

New Orleans Homes For Sale - Record-High Home Interest Rates in December

 

Despite the record-high home interest rates, you can still get a great deal on a home in New Orleans, Louisiana. In fact, buying a home in December is the best time to do so.

Mortgage rates are at multi-decade highs

Increasing mortgage rates are making it more difficult to afford the home of your dreams. As more and more people are priced out of the market, more buyers are pushed to the sidelines.

Mortgage rates are rising at the fastest rate in 35 years. This is due to demographic factors, strong income growth, and demand. However, the supply of new homes is not keeping up with demand. It is estimated that there are four million homes in the market that are not being built. The result is a shortage of homes that could cause prices to drop.

Mortgage rates are also driven by the 10-year treasury note, which is used as a proxy for mortgage costs. As the Fed raises interest rates, the 10-year treasury note rises. This helps keep inflation in check.

December is the best time to buy a home in Louisiana

Buying a home is a big decision, and you'll need to have your ducks in a row. You'll need a down payment, a mortgage preapproval letter, and a good local real estate agent to help you navigate the process. The process can be stressful, but if you plan your move wisely, you can make the whole process easier.

The best time to buy a home in Louisiana can vary depending on where you live. In general, the housing market in Louisiana is very active in the spring and summer months, and slows down in the fall. Buying a house at the wrong time can make the process more stressful and expensive. However, it can also be an exciting time to get into the market, especially if you know where to look.

New Orleans home prices are down 4.1% compared to last year

Despite the fact that New Orleans has been hit hard by Hurricane Katrina, the real estate market in the city has rebounded. The metro area has seen a 9.2% increase in home values over the past year.

According to the New Orleans Metropolitan Association of REALTORS (c), Inc., the average sale price was up 8%. During the same period, the number of homes sold decreased by 2%. In addition, the average home stayed on the market for an additional 39 days, compared to last year's 34 days.

New listings in the city also decreased. The average number of homes for sale in the metro area decreased by 10%.

Sellers are adjusting to the new normal of 7% mortgage rates

Historically low mortgage rates have led to a seller's market, but that is no longer the case. In fact, many homeowners are refusing to sell because of the high rates. However, some sellers are offering concessions to lower the rates.

The biggest challenge for agents is adjusting their sellers' expectations. For example, a couple earning $100,000 a year can only afford a $486,00 house at a 36% DTI. However, if they were to finance the same home at 7%, they'd be paying $760 more a month.

This is a major change in the housing market. In June, the average mortgage rate was 3.2%, and by September it was 6.8%. These increases have eroded buying power, which makes home ownership more difficult.

Lender fees and prepaid costs

Among the many things you need to do in order to buy a home in New Orleans is applying for a loan. Lenders charge fees for underwriting the loan, as well as for checking your credit history. The fees are usually included in the lender's closing disclosure, which you must receive within three days of signing the contract.

In addition to the fees associated with closing the deal, you will also have to make a down payment. The lender will require that you pay off any outstanding property taxes that you owe. There are also prepaid costs to consider, such as homeowners insurance. Fortunately, the average home in New Orleans costs around $265,000, so the amount you'll have to pay will probably be manageable.

I am here to help you with anything real estate.  Call or text me at 504-408-3149.

 

Oct. 25, 2022

What Effect Will The Mid-Term Elections Have On Interest Rates?

 

The Mid-term elections will be an interesting time for markets. While Stocks will likely rally after the elections, it is also important to note that inflation is a hot topic for voters. Foreign policy is another hot topic. While both issues are relevant, there is a possibility that they will influence interest rates in different ways.

Stocks rally in post-election months

The post-election months are traditionally favorable for stock markets. Though midterm election years are notoriously volatile, with an average drawdown of 19%, historically, the year after these elections has been a remarkably positive time to invest in the stock market. Despite the uncertainty that may accompany the upcoming midterm elections, the performance of the equity market is not dependent on whether Democrats or Republicans control Congress.

The reason that the market usually outperforms during the post-election months is fairly simple. Since the first midterm election in 1946, the S&P 500 has risen by at least 15 percent. However, the market has strayed from this trend in recent years. This divergence can be attributed to other factors, such as the potential for a U.S. recession and international economic worries.

The past two midterm elections have been relatively good for the stock market. Although the major indexes have fallen into bear market territory in recent years, the S&P 500 index has rallied 14.4% in the six months following the vote, and 15.6% in the year following. This trend holds even when the market plunges in the months prior to the election.

Inflation is a key issue for voters

Inflation is one of the top issues on the minds of most voters as the midterm elections approach. A Reuters/Ipsos survey of likely voters shows that nearly three in four Americans say it is a top concern. While crime and abortion are also top concerns, they rank lower than inflation. Inflation is a top issue among independents and Democrats.

Recent data from the Bureau of Labor Statistics shows that consumer costs increased 8.3 percent compared to a year ago. While the increase in prices was lower than earlier this summer, it was still high enough to cause concern among voters. A recent New York Times/Siena College poll showed that a large percentage of voters ranked inflation as their top concern, and more than half of them said it negatively affected their lives.

Meanwhile, Democrats must make sure that they are able to combat inflation and continue to address the issues that matter to the voters. The Democrats hold a trifecta in the federal government, and voters need to see that they are taking action on those issues.

Foreign policy

The mid-term elections in the United States are generally seen as a referendum on the effectiveness of the president and his party. In addition to higher interest rates, voters are concerned about higher gas prices, a weak economy, and higher costs of goods. Although foreign policy issues are not a top concern, the recent war in Ukraine and sanctions on Russia will likely affect energy prices.

The markets are often a good guide for interest-rate expectations. A Republican-controlled congress would likely boost interest rates, but a Democratic-controlled administration would boost growth. A Democratic-controlled Congress would likely amplify any upward movement in interest rates, dampening any downward move in market rates. If the Democrats take control of both chambers, market rates are likely to fall through 2023.