August 2008    


Weekly AveragesThis Week+/-Last Week
30 yr fixed6.52%6.63%
15 yr fixed6.07%6.18%
1 yr ARM5.27%5.49%
Points & Fees0.6250.6
Source: Freddie Mac's Market Mortgage Survey



Fuel Saving Driving Strategies

Gas prices are sky-rocketing across the nation and there is no indication that they are going to be going down in the near future. In light of this, I have decided to include some non-real estate tips in this months newsletter that will help you to stretch your fuel budget a little further.

Observe the speed limit. Those of us with a lead foot should look to our gas gauge rather than our speedometer. Over 50 percent of the energy required to move our vehicle is exhausted overcoming aerodynamic drag. The faster you drive the more drag you can expect. Studies have shown that when you drive over 60 mph, ever 5 mph can be equated to paying an additional $.10 per gallon for gas.

Use overdrive. Most automatic vehicles come equipped with an overdrive gear. The overdrive gear allows the driver to maintain freeway speed while decreasing engine speed. Using the overdrive gear will enable you to reduce fuel consumption and engine wear.

Cruise Control. Cruise control will enable you to maintain a constant, steady speed rather than a variable speed and as a result helps reduce fuel consumption.

Anticipate Traffic. In these times it is almost impossible to avoid traffic. However, careful planning can help minimize the amount of traffic that you get stuck in. By avoiding traffic you will subject yourself to less stress and at the same time reduce fuel consumption by eliminating stop and go driving.

Avoid Unnecessary Idling. Most modern cars do not need to be warmed up. If you are waiting in the car at the drive-in or picking up a friend, think about turning off your car rather than leaving it running. In the long run, this will help you reduce fuel consumption, save money, and is more environmentally friendly.

Tire Maintenance. Properly inflated tires are important. Though your tires may appear properly inflated, you should check your air level frequently in order to ensure recommended inflation. On average, tires lose one psi per month and one psi for every 10-degree drop in temperature. Under inflated tires can cause fuel consumption to increase by as much as six percent, cause tires to wear faster, and make it harder to handle your vehicle.

Replace Oil Regularly. By regularly replacing your car's motor oil you will increase the life of the engine and increase engine efficiency. Some oils also contain additives that reduce friction and may increase fuel economy by as much as three percent. Such fuel efficient oils are usually labeled with the Energy Conserving API label.

Home Inspections are a Good Investment

Whether you are buying or selling a home, it's crucial to include a thorough home inspection as part of the process. It might be tempting to save a couple of dollars by passing on a home inspection, however this short sighted approach could end up costing you big time in repairs, such as leaky roof or an unsound foundation. Here are some other reason a home inspection is such a good investment:

  • Consumers can only see so much on pre-owned homes. A home inspection goes beyond the cosmetic to give buyers a clear look at what's behind the walls.
  • From a seller's standpoint, offering an inspection to potential buyers goes a long way to ensure peace of mind.

The bottom line is that a home inspection is one of the best financial investment consumers can make.

 

Does your Home have Curb Appeal?

First impressions make a difference, particularly when it comes to your home. Curb appeal is the visual impression that your home makes to anyone viewing it from the street. If your home has curb appeal it will stand out from the rest and usually results in more money when you decide to sell.

Curb appeal can be as complicated as building a new entryway or as easy as painting your mailbox. The following list contains some quick fixes that will have your home creating a great first impression in no time at all.

  • Windows: Clean windows sparkle and help show off your beautiful home.
  • Window Coverings: How do your curtains and blinds look from the outside? Are your windows cluttered with knickknacks and stickers? Neaten up the insides of your home’s window areas that are visible from the curb.
  • Painting: Walk around your home and keep an eye out for peeling, flaking, or faded paint. If found, it is probably a good time to paint. Neutral colors are a good bet as they appeal to a wider group of people.
  • Don’t forget the mailboxes: Be sure it is painted or polished. All numbers should be clean and easy to read.
  • Clutter: Remove anything that is cluttering the front area. Locate trash bins in the back yard or garage so that they are not visible.

Existing-Home Sales Down In June

Existing-home sales – including single-family, townhomes, condominiums and co-ops – fell 2.6 percent to a seasonally adjusted annual rate of 4.86 million units in June from a pace of 4.99 million in May, and are 15.5 percent lower than the 5.75 million-unit rate in June 2007.

NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said there is something of a quandary in the current market. "A recent online survey of Realtors® shows nearly a quarter of potential home buyers are waiting on the sidelines," he said. "However, timing the market can be very tricky, which is why home buyers should always have a long-term view to build wealth."

Lawrence Yun, NAR chief economist, said first-time home buyers are critical to the health of the housing market. "About four in 10 homes are purchased by first-time buyers, which frees existing owners to trade up," Yun said. "With many potential first-time home buyers on the sidelines, a first-time buyer tax credit would have a significant positive impact on both housing and the economy. Combined with permanent increases to mortgage loan limits and enhancing the FHA loan program, the housing stimulus package working its way through Congress would go a long way toward helping consumers and boosting the overall economy."

The national median existing-home price for all housing types was $215,100 in June, down 6.1 percent from a year ago when the median was $229,000.

Yun said there is a downward distortion in the price data. "With short sales and foreclosures accounting for approximately one-third of transactions, it’s hard to make an apples-to-apples comparison with a year ago when they were only a minor portion of the market," he said.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 6.32 percent in June from 6.04 percent in May; the rate was 6.66 percent in June 2007.

Source: National Association of Realtors®