Tracy Mortgage Interest Rates Stage Surprise Turnabout

 It usually takes at least some digging to come up with relevant news for Tracy real estate watchers. Last week provided an exception. 

The boldest headlines, cable TV info crawls, and email announcements dealt with the unexpected move in mortgage interest rates. The welcome news for Tracy home sellers and prospective buyers came with Freddie Mac’s midweek announcement that the benchmark 30-year mortgage rate had fallen to 3.97% “for the first time since November.”

Beneath the “Mortgage Rates Tumble Below 4 Percent” headline, the quasi-government site elaborated on the importance of the move. The drop had pierced “the psychologically important 4 percent level.” Freddie doesn’t usually delve into psychology, but in this case, it was well warranted. Locally, Tracy mortgage interest rates had been expected to trace a slow but steady rise, paralleling the Federal Reserve’s announced intention to nudge bank borrowing rates upward. Last month, after the Fed did exactly that, Tracy mortgage interest rates behaved as expected, tiptoeing upward.

Of course, since higher lending rates mean buyers experience higher monthly payments, that could mean less real estate activity. But since the Fed was expected to continue with two or three more Fed funds rate hikes in 2017, the opposite had been expected. More likely, prospective homebuyers would appreciate that the 4+% rates were still lower than average—and want to take advantage of them before they moved higher. 

And in fact, by Friday the NAR’s Realtor^® website could confirm that U.S. “Existing-Home Sales Jumped 4.4% in March.” The spring selling season was off to a robust start, chalking up the strongest month of sales in a decade. That was all well and fine, but how to explain the drop in mortgage interest rates?

Some informed opinion had it that world financial markets were queasy about an election in France, so capital was seeking safety (real estate lending fits the bill). When lenders have lots of investors sending cash into their coffers, rates get competitive. Others saw signs that the Fed might once again fail to follow through on future rate hike promises.

As for the most important takeaway—namely, what should local buyers and sellers expect for the immediate future of mortgage interest rates in Tracy, prognosticators were saying things like, “it’s important not to over-interpret” the latest news. Translation: “It’s anyone’s guess.”

One thing that is certain: we’re again seeing absolutely terrific Tracy mortgage interest rates! For potential buyers and sellers who choose to take advantage of that window, the way to get started is as easy as giving me a call!

Home Design Trends Reflect Changing Environment

 Tracy real estate—like all real estate—is a supremely local activity. Area homeowners who like to keep an eye on California and national trends do so because some of them may surface in future buyer preferences. For Tracy homeowners in a remodeling frame of mind, it doesn’t hurt to be aware of “what’s hot.”

When it comes to nailing down the latest home design trends, there’s no shortage of commercial firms whose publicity departments are determined to make convincing arguments that their products are in the vanguard. Since the National Association of Realtors^® isn’t selling anything, that’s one good reason to give special attention when Realtor Magazine puts out its annual “Home Design Trends” roundup.

This year, though, much of what they reported had more to do with American community and social environments than with the kind of details Tracy homeowners will find very useful. Those wider trends included a continuation of consumer preferences for “walkability”—in suburbs as well as in urban areas. Homes “far from everything” lose out in the “walk scoring” calculation. In a similar vein, as more and more people spend more and more time on social media and in front of computer screens at work, there is growing awareness that typical Americans crave more actual live human interaction: hence, proximity to social gathering places (clubs and clubhouses; community centers) is being newly emphasized in real estate sales materials.

But some more traditional kinds of home design trends were mentioned, as well, such as the finding that “taupe is the new gray” and a movement toward “naturally renewable, warmer surfaces.” Taupe’s slightly rosier tone conveys a friendlier feel than plain gray, which fits in with the turn away from colder black, white, and metallic palettes. Natural cork is one low-maintenance material offered as an example: it adds aesthetic appeal to walls and flooring. (Besides, it bounces back when dented)!

Other specifics include a shift away from traditional log-burning hearths to natural gas and even alcohol-burning fireplaces. Tracy homeowners who have done without fireplaces entirely may take note: since they don’t require vents, alcohol burning hearths can be installed just about anywhere with minimal construction expense.

One home design trend that is definitely applicable in Tracy is a consequence of the ever-diminishing size of today’s electronic technology tools. For those whose careers make working from home at least part of their professional work week, it means that the necessity for a full-room home office is gradually waning. Now almost any corner of the home can suffice. When designers speak of “dual-purpose areas” with “dual-purpose furnishings,” they probably have this trend in mind. A further step into the future is the “movable wall concept.” That’s not here yet: it’s projected for the futuristic Home of 2050. (I, for one, am willing to wait).

One trend that’s unlikely to change is the advantage to both buyers and sellers of being able to count on the services of an experienced Tracy Realtor. I’m always just a phone call away!

Preparing for Tracy Appraisals, 5 Stress-Reducing Tips

 You’ve probably heard the wry old saying: “Nothing clears the mind like the prospect of being hanged at dawn.” For some homeowners, you could add an equally wry modern real estate version: “Nothing clears the mind like having a real estate appraiser drop by for a look-see.”

I’d like to counter that notion—there’s really not much to worry over when the Tracy real estate appraiser is scheduled to make an appearance. The stress level can be lowered by keeping a few simple ideas in mind:

1. Appraisals aren’t showings. Sure, you want to have the house as spruced up and orderly as you would for any visitor. But your Tracy property doesn’t have to present the kind of perfection it will for an open house or prospective buyer showing. Experienced Tracy appraisers aren’t looking for a 100% clutter-free, immaculate show-stopper of a home: they will be concentrating on physical details like square footage and structural and mechanical features. They are more like backstage workers than audience members—but neatness can’t hurt!

2. Paperwork is a plus. If they are available, dig out any floor plans or location plats you may have filed away. Also, the age of your home is one thing, but updated features can boost the end appraisal value. If you prepare a list of improvements and the years in which they were completed, it will make the appraiser’s job that much easier—and your Tracy home’s appraisal that much better.

3. Curb appeal is the exception. Appraisals aren’t showings, but no one—even the professional who prepares your Tracy appraisal—is immune to the “first impression” effect. Condition is a factor in any appraisal, so it will be worthwhile to be sure the front lawn is mowed and plantings trimmed. If the front doorway is in need of a paint refresher, it will be effort worth making.

4. Consideration helps. The appraiser’s job is part physical, so being considerate of that part of the appraisal process will be appreciated. Be sure that obstructions are cleared, that rooms are appropriately heated and cooled—and that Lassie and Garfield aren’t allowed to pester.

5. New good news is good news. If there have been positive changes in the neighborhood, it can’t hurt to let the appraiser know about them. Tracy may be part of a rising market, but appraisers don’t speculate on future values. Supplying some positive neighborhood developments can be persuasive.  

There is another “nothing clears the mind” quote, too: Nothing clears the mind like buying property. That saying isn’t wry at all: it’s absolutely true! If you are setting out on your own Tracy house hunt, I hope you’ll give me a call to help focus your search. And if you’re readying to sell your own Tracy property (which puts you in the soon-to-be-visited-by-the-appraiser category) the same applies. Please don’t hesitate to give me a call!

Tracy Tax Refunds, a Fool, a Mogul, and a Samurai

 This past Tuesday’s tax filing deadline didn’t pass without standing as the annual reminder to all of Tracy’s taxpayers that time seems to pass ever more quickly—as do the comings and goings of our earnings. The best estimate is that this year 70% of Americans will have overpaid by close to $3,000—making their tax refund checks the only smile-producing part of the annual ritual.

The Motley Fool financial site offered its insight into how most people plan to spend their refunds—but at least one real estate mogul counseled for a definite ultimate destination for those dollars. Tracy real estate could play an important role.

According to the Fool, 38% of respondents will use their refunds to pay off existing debts. Only 11% will direct the cash toward vacations; 5% will splurge on some kind of purchase; an equal number will put the cash toward a major purchase. The largest percentage— 41%— will sock their refund dollars into savings accounts. That’s where the real estate mogul agrees.

The gentleman in question is Sean Conlon, himself a multi-millionaire and host of his own TV show. This time of year, with income tax refund dollars rolling into more than 100 million households, he makes it a point to recall his own point of departure from day work as a janitor into being the owner of his own real estate mortgage company. 

He saved. Stuffed every spare dollar into a shoebox until he’d scraped together enough to buy his first house. CNBC quoted Conlon’s dictum last week: “I’m a true believer that you should save every penny…until you buy your first house.” Tracy tax refund checks would more than qualify as major stepping stones toward what Conlon assesses as being “still the fastest path to wealth in this country.”

Another pointed tax refund observation came from a website called Financial Samurai. “Sam” points out that with tax refunds nearing the $3,000 mark, that amounts to nearly 6-7% of typical after-tax income: “a pretty meaningful number.” Since saving (that is, not spending!) $250 a month in that income bracket is difficult for most, the tax refund checks provide a one-shot opportunity to make saving a done deal. The same applies to those in higher brackets. In short, since out of sight is out of mind, Samurai recommends the best course of action for any tax refund check is “to make it disappear” into a savings account. Then there’s at least one other relevant tax consideration—one that fattens many a refund check: that whopping mortgage interest tax deduction!  

The mogul and the Samurai both have valid points—and Tracy real estate opportunities (there are plenty on hand at the moment) certainly fit into that picture. Good reason to give me a call today!