National Housing Survey: Mortgage Rate Optimism Hits Survey High

Consumer Sentiment toward Housing at Highest Level in Nearly Two Years

WASHINGTON, DC – The Fannie Mae Home Purchase Sentiment Index® (HPSI) increased 3.5 points in January to 70.7, its highest level since March 2022, due primarily to increased consumer confidence in job security and another significant jump in the share of consumers expecting mortgage rates to decrease. In January, 82% of consumers indicated that they are not concerned about losing their job in the next 12 months, up from 75% last month. Additionally, an all-time survey-high 36% of respondents indicated that they expect mortgage rates to go down in the next 12 months, while 28% expect them to go up, and 35% expect rates to remain the same. However, consumer perceptions of homebuying conditions remain overwhelmingly pessimistic, with only 17% of consumers indicating it’s a good time to buy a home. Overall, the full index is up 9.1 points year over year.

“Mortgage rate optimism increased markedly again in January, with a survey-high percentage of consumers anticipating mortgage rate declines over the next year,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. “For the first time in our National Housing Survey’s history, a greater share of consumers believe mortgage rates will decrease over the next year, rather than increase. Consumers also expressed greater confidence in their job situations this month, another sign that housing sentiment may continue to improve in 2024.”

Duncan continued: “However, while home affordability may improve if actual mortgage rates continue moving downward, other parts of the affordability equation have yet to ease or improve for consumers. A large majority still think home prices will either increase or stay the same; the ‘good time to buy’ component continues to hover near its historical low; and fewer than one-in-five respondents indicated that their household income was significantly higher year over year, matching a survey low. All in all, while a lower mortgage rate path supports our forecast for a gradual increase in housing demand and sales activity in 2024, until we see a meaningful increase in housing supply, we expect affordability will remain a significant barrier to homeownership for many households.” 

On the right rail of this webpage, you will find a news release with highlights from the HPSI and National Housing Survey results, the latest Data Release highlighting the consumer attitudinal indicators, month-over-month key indicator data, an overview and white paper about the HPSI, technical notes providing in-depth information about the National Housing Survey methodology, the questionnaire used for the survey, and a comparative assessment of Fannie Mae’s National Housing Survey and other consumer surveys.

National Housing Survey Monthly Indicators Archive
Click here for an archived list of Fannie Mae's National Housing Survey Monthly Indicators.

Opinions, analyses, estimates, forecasts, and other views of Fannie Mae's Economic & Strategic Research (ESR) Group or survey respondents included in these materials should not be construed as indicating Fannie Mae's business prospects or expected results, are based on a number of assumptions, and are subject to change without notice. How this information affects Fannie Mae will depend on many factors. Although the ESR Group bases its opinions, analyses, estimates, forecasts, and other views on information it considers reliable, it does not guarantee that the information provided in these materials is accurate, current, or suitable for any particular purpose. Changes in the assumptions or the information underlying these views could produce materially different results. The analyses, opinions, estimates, forecasts, and other views published by the ESR Group represent the views of that group or survey respondents as of the date indicated and do not necessarily represent the views of Fannie Mae or its management.

For the original article, published on February 7, 2024 visit Fanniemae.com

Younger Buyers Want Baby Boomers to Update Their Homes

Millennials are worried they’ll inherit properties in need of major renovations and repairs, which could further hamper affordability, a new survey shows.

© Kim Sayer - OJO Images/Getty Images

Young move-up home buyers are growing increasingly worried that baby boomers, many of whom are staying put in their current home, won’t update their properties and will pass down costly renovations and repairs to the next generation of owners, according to a new study(link is external) from Morning Consult and Leaf Home, a national home improvement company.

Many baby boomers are choosing not to downsize, with 68% saying they’ve lived in their homes for 30 years or more, the study shows. Many in that group admit they’ve never done renovations or replaced major appliances—and they don’t have any plans to, either.

Source: “2024 Generational Divide in Homeownership Report,” Leaf Home/Morning Consult

Researchers say this could become a nightmare scenario for millennials, who may inherit or purchase these “time capsule” homes. Younger buyers’ budgets already are stretched thin by high home prices and mortgage rates. It’s difficult for many to add pricey renovations to their homebuying budget.

“The housing market is caught in a generational tug-of-war,” says Leaf Home CEO Jon Bostock. “Boomers will soon face aging-in-place hurdles, while millennials will face the surprise of homes in need of major updates. With an aging and ignored inventory of homes available in the next decade, we may see a crisis that will overwhelm the home improvement industry and strain the budgets of inheriting millennials, impacting the housing market.”

Taking More Than Their Fair Share?

Empty-nesters own twice as many large homes as millennials with children, 28% versus 14%, respectively, according to a new study from Redfin. But many young families need extra space: Millennials with children comprise about a quarter of three-bedroom-plus rentals in the U.S.—the largest share compared to any other generation.

Some millennials are waiting out the housing market for more larger homes that can accommodate their growing families. Ten percent of millennials say baby boomers are staying in their homes too long and should free up housing for them, the Morning Consult and Leaf Home survey finds.

But baby boomers, like many other homeowners, have little incentive to sell. Some may not want to give up the ultra-low mortgage rate they got in recent years while others own their home outright and are sitting on record amounts of equity.

Housing Experts: Crisis Looming

The aging housing stock in America is an issue that experts have been flagging for years. Economists are concerned about the impact aging homes could have on a housing market already struggling with a historic inventory shortage.

The median age of an owner-occupied house is 40 years old, according to the American Community Survey. Slightly less than half of the owner-occupied homes were built prior to 1980; about 35% were built prior to 1970. As homes age, their components need to be replaced or repaired to keep them sellable. `A bloated, aging inventory of neglected homes could be the next big headache for the housing market, researchers warn.

For the original article, visit National Association of Realtors.

Home Equity Can Be a Game Changer When You Sell

Are you on the fence about selling your house? While affordability is improving this year, it’s still tight. And that may be on your mind. But understanding your home equity could be the key to making your decision easier. An article from Bankrate explains:

“Home equity is the difference between your home’s value and the amount you still owe on your mortgage. It represents the paid-off portion of your home.

You’ll start off with a certain level of equity when you make your down payment to buy the home, then continue to build equity as you pay down your mortgage. You’ll also build equity over time as your home’s value increases.”

Think of equity as a simple math equation. It’s the value of your home now minus what you owe on your mortgage. And guess what? Recently, your equity has probably grown more than you think.

In the past few years, home prices skyrocketed, which means your home’s value – and your equity – likely shot up, too. So, you may have more equity than you realize.

How To Make the Most of Your Home Equity Right Now

If you’re thinking about moving, the equity you have in your home could be a big help. According to CoreLogic:

“. . . the average U.S. homeowner with a mortgage still has more than $300,000 in equity . . .”

Clearly, homeowners have a lot of equity right now. And the latest data from the Census and ATTOM shows over two-thirds of homeowners have either completely paid off their mortgages (shown in green in the chart below) or have at least 50% equity (shown in blue in the chart below):

That means roughly 70% have a tremendous amount of equity right now.

After you sell your house, you can use your equity to help you buy your next home. Here’s how:

• Be an all-cash buyer: If you’ve been living in your current home for a long time, you might have enough equity to buy your next home without having to take out a loan. If that’s the case, you won’t need to borrow any money or worry about mortgage rates. Investopedia states:

“You may want to pay cash for your home if you’re shopping in a competitive housing market, or if you’d like to save money on mortgage interest. It could help you close a deal and beat out other buyers.”

• Make a larger down payment: Your equity could also be used toward your next down payment. It might even be enough to let you put a larger amount down, so you won’t have to borrow as much money. The Mortgage Reports explains:

“Borrowers who put down more money typically receive better interest rates from lenders. This is due to the fact that a larger down payment lowers the lender’s risk because the borrower has more equity in the home from the beginning.”

The Easy Way To Find Out How Much Equity You Have

To find out how much equity you have in your home, ask a real estate agent you trust for a Professional Equity Assessment Report (PEAR). 

Bottom Line

Planning a move? Your home equity can really help you out. Connect with a local real estate agent to see how much equity you have and how it can help with your next home.

For the original article, visit Keeping Current Matters.

ICE Mortgage Monitor: Positive Signs in Housing, Mortgage Markets Ahead of Spring Homebuying Season

Affordability has improved along with rates in recent months, with the share of income required to purchase the median home falling nearly 5 percentage points from October’s 28-year high

• The national inventory deficit also improved for the 7th consecutive month which, along with improved affordability, points to a better housing market environment in coming months

• The ICE Home Price Index for December reported an annual growth rate of +5.6%, up from +5.1% in November, which at first glance suggests an accelerating housing market

• That acceleration, however, is a residual effect of last spring and summer’s strong run of growth, with more recent data suggesting that growth rate will begin to cool in coming months

• Lower interest rates have also begun to increase refinance incentive, albeit slowly, with more potential on the horizon, particularly among the 4.3M mortgages originated in 2023

• Of the 2023 vintage, 46% (2M) would be able to cut their first lien rate by 75 bps if 30-year rates fall to a projected 6% by year’s end, with 33% able to save a full percentage point or more

• Mortgage holders gained $1.6T in equity in 2023 to reach an aggregate $16T, the highest year-end total on record, two thirds of which is held by borrowers with credit scores of 760 or higher

• The average mortgage holder now has $299K in equity, $193K of which is “tappable” and could be withdrawn while still maintaining a healthy 20% equity stake

ATLANTA and NEW YORK, February 5, 2023 – Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of technology and data, released its February 2024 ICE Mortgage Monitor Report, based on the company’s industry-leading mortgage, real estate and public records data sets. Mortgage rates were at 6.71% as of January 24 according to the ICE US Conforming 30-year Fixed Mortgage Rate Lock Index – more than a full percentage point below their October 2023 high. As ICE Vice President of Enterprise Research Strategy Andy Walden explains, this and other recent market trends have produced positive, yet measured, signs for the 2024 housing market.

“Prospective homebuyers may feel an all-too-familiar sense of dread upon hearing that prices – already at record highs – rose another 5.6% in 2023 according to our ICE Home Price Index,” Walden said. “As always, the truth of the situation is more nuanced than one simple, backward-looking metric might suggest, and the data holds some encouraging signals for these folks. In recent months, we’ve seen improvement in rates, affordability, and for sale inventory, with monthly home price growth moderating on a seasonally adjusted basis. While we are still out of sync with historical norms on multiple fronts, each of those metrics have at least been moving in the right direction.”

Research in this month’s report shows today’s market remains interest-rate-driven. The recent rebound in affordability has increased purchase mortgage demand, comparable to levels seen last summer when interest rates were in a similar range. Purchase demand continues to trend very consistently with 30-year-rate changes and their downstream impact on affordability. As Walden explains, the refinance market  has also seen some modest improvement, with the potential for more growth throughout the year.

“While the mortgage market remains overwhelmingly purchase-centric, refinance incentive is rising, albeit slowly, alongside easing interest rates,” Walden continued. “Since interest rates peaked back in October, we’ve seen a threefold increase in the number of mortgage holders who could reduce their first lien rate by at least 75 bps with a rate/term refi. And while that population stands at roughly 1.7 million – up from 520K last fall – it is still a historically small number. Should rates fall to 6% by year’s end as current forecasts suggest, the number of borrowers with refinance incentive would rise, particularly among 2023 vintage originations.

“Under that scenario – a potential needle mover for the refinance market – some 46% of 2023-vintage borrowers would be ‘in the money,’ with nearly a third able to cut a full percentage point off their current rates. As more legacy mortgages regain rate incentive as well, the overall ‘in the money’ population would more than double to 3.8 million by the end of the year, with nearly 60% of that growth coming from loans originated in 2023. Originators would do well to identify and engage with these potential customers now. Of course, what’s good news for mortgage originators simultaneously heightens prepayment risk in the capital markets. Getting a granular, daily view of prepay activity will become essential this year as investors navigate an extremely rate-sensitive and volatile market.”

The month’s data also shows that aggregate American mortgage holder equity ended 2023 at $16T – gaining 11% ($1.6T) over the year to reach the highest year-end total on record. The average mortgage holder now has $299K in equity, up from $274K at the end of 2022. Such historically high equity levels create the conditions for an upswing in equity lending when interest rates ease enough to make withdrawals more attractive to homeowners. Two thirds of all equity is held by borrowers with credit scores of 760 or higher, offering lenders a likewise appealing, lower-risk cohort to whom they can offer equity-based products.

Much more information on these and other topics can be found in this month’s Mortgage Monitor. Article found on Black Knight.

Why Pre-Approval Is Even More Important This Year

On the road to becoming a homeowner? If so, you may have heard the term pre-approval get tossed around. Let’s break down what it is and why it’s important if you’re looking to buy a home in 2024.

What Pre-Approval Is

As part of the homebuying process, your lender will look at your finances to figure out what they’re willing to loan you. According to Investopedia, this includes things like your W-2, tax returns, credit score, bank statements, and more.

From there, they’ll give you a pre-approval letter to help you understand how much money you can borrow. Freddie Mac explains it like this:

“A pre-approval is an indication from your lender that they are willing to lend you a certain amount of money to buy your future home. . . . Keep in mind that the loan amount in the pre-approval letter is the lender’s maximum offer. Ultimately, you should only borrow an amount you are comfortable repaying.”

Now, that last piece is especially important. While home affordability is getting better, it’s still tight. So, getting a good idea of what you can borrow can help you really wrap your head around the financial side of things. It doesn’t mean you should borrow the full amount. It just tells you what you can borrow from that lender.

This sets you up to make an informed decision about your numbers. That way you’re able to tailor your home search to what you’re actually comfortable with budget-wise and can act fast when you find a home you love.

Why Pre-Approval Is So Important in 2024

If you want to buy a home this year, there’s another reason you’re going to want to be sure you’re working with a trusted lender to make this a priority.

While more homes are being listed for sale, the overall number of available homes is still below the norm. At the same time, the recent downward trend in mortgage rates compared to last year is bringing more buyers back into the market. That imbalance of more demand than supply creates a bit of a tug-of-war for you.

It means you’ll likely find you have more competition from other buyers as more and more people who were sitting on the sidelines when mortgage rates were higher decide to jump back in. But pre-approval can help with that too.

Pre-approval shows sellers you mean business because you’ve already undergone a credit and financial check. As Greg McBride, Chief Financial Analyst at Bankrate, says:

“Preapproval carries more weight because it means lenders have actually done more than a cursory review of your credit and your finances, but have instead reviewed your pay stubs, tax returns and bank statements. A preapproval means you’ve cleared the hurdles necessary to be approved for a mortgage up to a certain dollar amount.”

Sellers love that because that makes it more likely the sale will move forward without unexpected delays or issues. And if you may be competing with another buyer to land your dream home, why wouldn’t you do this to help stack the deck in your favor?

Bottom Line

If you’re looking to buy a home in 2024, know that getting pre-approved is going to be a key piece of the puzzle. With lower mortgage rates bringing more buyers back into the market, this can help you make a strong offer that stands out from the crowd.

For the original article, visit Keeping Current Matters.

6 Actually Fun Kitchen Hardware Trends for 2024, According to Pros

Some say that hardware is the jewelry of the kitchen, and that certainly appears to be the case based on the kitchen hardware trend predictions for 2024.

Say goodbye to sleek finishes, simplistic silhouettes, and purely utilitarian design. This year, designers predict that homeowners will have fun when buying kitchen hardware, using it to infuse some serious personality and charm into their kitchens. 

Here are six kitchen hardware trends to watch out for in 2024, according to interior designers.

Rebecca Rollins Interiors

1. Textured Finishes

Across the board, designers agree that textured finishes are set to be one of the biggest kitchen hardware trends of 2024. Say goodbye to sleek finishes and hello to hammered, brushed, and knurled finishes on both knobs and pulls.

David Mason, founder of Knobs.co, a retailer of cabinet hardware, predicts that matte textured finishes in particular will reign supreme.

“The combination of matte finish and texture adds depth, visual interest, and a touch of luxury to any kitchen," Mason says. "Expect to see these trending in both modern and traditional kitchens."

2. Artisinal and Handcrafted Designs

The Home Consultant

A shift towards artisanal, handcrafted pieces has been a consistent trend in interior design over the past few years and we can expect to see that translate into kitchen hardware this year as well. Not only do these pieces add a sense of individuality to any space, but they can contribute to a warm and welcoming feel too.

“As I can see, the trend of unique, artisanal, and handcrafted designs is gaining popularity in kitchen hardware," says Mason. "Expect to see intricate designs, textures, and materials being used in kitchen hardware such as brass, copper, wood, and even leather."

Becca Interiors

3. Mixed Metals

Mixing metals throughout the home has been increasingly popular and the experts don’t expect it to fall out of favor in 2024. Mark Cutler, cofounder of CutlerSchulze, an interior design firm based in Los Angeles predicts that homeowners will continue to mix metal finishes in the kitchen for a warmer, more eclectic look than the traditional matchy aesthetic.

“People are searching for comfort and approachability and using mixed metals creates kitchens that feel lived in and curated,” Cutler says.

As far as metal choices go, we’re not just talking about gold and silver here. “There will be more patina copper, flamed bronze, and rich texturing all blended with the usual stainless steel and nickel," he says. "The rule now is: there is no rule!”

4. Knobs Over Pulls

Kate Marker Interiors

Sleek pulls have been in style for the past several years, but this year designers expect to see a shift in preference towards knobs.

“My forecast calls for fewer pulls and more knobs in all different colors and textures, which are more versatile, less expensive, and easy to change up depending on the mood or season,” says Shani Core, founder and principal designer of Shani Core Interiors based in Palm Beach, Florida.

In line with most of the trend predictions on this list, Core predicts that fun, colorful, and textured knobs will be the big stars in 2024.

“Whether bringing in a different tone of wood to highlight beautiful floors or using as a bold accent to pick up a color in a piece of art, fun knobs are on my radar for 2024,” she says.

5. Fun Statement Hardware

Ashley Montgomery Design

Color and whimsical design is having a moment across all areas of interior design and the experts say that kitchen hardware is no exception. Think playful shapes, unexpected pops of color, whimsical motifs, and unexpected placements.

“Whether it’s vintage, fun shapes, or bold colors, we are about to see a lot more unique hardware,” says Julia Newman, founder and principal designer of Julia Adele Design based in Los Angeles.

6. No Hardware

Kate Marker Interiors

“I predict there is going to be a big trend of no hardware in cabinets and furniture," says Maren Baker, founder and principal designer of Maren Baker Design based in Boise, Idaho. "It is such a fun way to create a little opening or notch in a fun shape, showing personality and something totally unique."

This trend works particularly well in smaller spaces and homes where multi-purpose rooms are abundant. “Eliminating lots of knobs and pulls will make those areas blend and blur with the rest of the house," Baker says. "When people eliminate hardware from cabinetry they can really splurge where it is more necessary (like on doors)."

For the original article by CORI SEARS, visit The Spruce.

The Top Benefits of Buying a Multi-Generational Home

Has the idea of sharing a home with loved ones like your grandparents, parents, or other relatives crossed your mind? If so, you’re not alone. More buyers are choosing to go this route and buy a multi-generational home. Here’s a look at some of the top reasons why, to see if a home like this may be right for you too.

Why Buyers Are Opting for Multi-Generational Living

According to the National Association of Realtors (NAR), two of the top reasons buyers are opting for multi-generational homes today have to do with affordability (see graph below):

First-time buyers are focused most on cost savings – with 28% saying this was a key reason for them. By pooling their resources with others, they can share financial responsibilities like mortgage payments, utilities, and more to make homeownership more affordable. This is especially helpful for those first-time homebuyers who may be finding it tough to afford a home on their own in today’s market.

Buyers are also turning to multi-generational homes so they can more easily afford their dream home. Both first-time (28%) and repeat buyers (18%) chose to live with others so they could buy a larger home. When everyone chips in and combines their incomes, that big dream home with more space could be more within reach.

But multi-generational living isn’t just about the financial side of things. According to the same study from NAR, 23% of repeat buyers chose to buy a multi-generational home to make it easier to care for an aging parent. Many older adults want to age in place and a multi-generational home can help make that possible. For those older adults, it gives them an opportunity to maintain their quality of life while being surrounded by their loved ones. As Axios explains:

“Financial concerns and caregiving needs are two of the major reasons people live with their parents (and parents’ parents).”

Lean on an Expert

Finding the perfect multi-generational home isn’t as simple as shopping for a regular house. That’s because there are more people with even more opinions and needs to be considered. It’s like solving a puzzle, and the pieces need to fit just right.

So if you’re interested in the many benefits multi-generational living offers, partner with a local real estate agent who has the expertise to help.

Bottom Line

Whether your motives are financial or focused on the people you’ll share your home with, buying a multi-generational home may make sense for you. If you’re interested in learning more, connect with a local real estate agent.

For the original article, visit Keeping Current Matters.

Why It’s More Affordable To Buy a Home This Year

Some Highlights

• Home affordability depends on three factors: mortgage rates, home prices, and wages.

• Mortgage rates are down from their recent peak, home prices are expected to rise at a slower pace, and wages are increasing faster than usual.

• That’s good news if you want to buy a home because it means affordability is getting better.

For the original article visit Keeping Current Matters.

Bathroom Blunders: 6 Things About Your Loo That Give Buyers ‘The Ick’

A rule of thumb in the real estate world is that kitchens and bathrooms sell a house. So if you’re about to put your home on the market, you’ll want to laser focus on how your bathroom appears to home shoppers.

You especially want to check for anything that will give buyers the ick—that instant enthusiasm killer when they notice a turnoff in your bathroom.

“Bathrooms are intimate spaces, and their state tells a deeper story about the overall care and love poured into a home,” says Jim Olenbush, a real estate professional and founder of the brokerage Austin Real Estate. “For the average homebuyer, issues there could be major deal breakers.”

Why icky bathrooms can be deal breakers

Olenbush recalls flipping a 1920s bungalow that had a bathroom with an awkward layout. It had a lot of old-world charm, but the fixtures were oddly positioned.

“The sink was so close to the toilet that, in theory, one could wash their hands while—well, you get the picture,” Olenbush says with a laugh.

The negative bathroom details did not deter him from making an offer on the home. But it likely turned off other prospective buyers—and caused the seller to leave money on the table.

“It armed me with leverage for negotiating a better deal,” adds Olenbush.

To help you “un-ick” your home, we turned to the professionals. Here are six things that give would-be buyers the ick.

1. The little details

Beware of small things in your bathroom that can repel would-be buyers.

For Erin Hybart, a real estate professional in Baton Rouge, LA, who was shopping for a home for herself, the bathroom ick kept her from making an offer on what initially seemed like a “gem of a house.” But the bathrooms were stuck in the 1950s—an era of pastel toilets and sinks.

And it isn’t only bigger items like fixtures. Beware of small things in your bathroom that can have an outsized impact and repel would-be buyers. Old cracked soap (or no soap at all) can have a buyer wondering why you aren’t more invested in general cleanliness.

2. Old or cracked fixtures

An outdated bathroom, say our pros, is one of the main things that turn off buyers. When buyers see fixtures from another era, they worry that the plumbing is also ancient.

“Age might bring character, but poor plumbing can quickly flush down any rose-tinted sentiments,” says Olenbush.

Another thing that turns off buyers is broken fixtures. If there’s a chip in the sink or a dent in the tub, that’s a visual reminder that someone else shaved or bathed there. No one wants this reminder.

3. Mystery stains, hair everywhere, and carpeting

Carpeting in the bathroom is a huge turnoff for buyers. Buyers might seem like detectives when encountering unidentified stains on bathroom surfaces. Are they water stains, coffee spills, or ancient toothpaste art? The mystery can amp up the ick factor.

Another thing that is a universal turnoff is carpeting in this space. The bathroom Hybart ultimately passed on had it—wall to wall.

“The matching pink and blue carpet made the bathroom even worse,” says Hybart, “It likely held 40-plus years of smells and contributed to the overall smell in the house.”

4. Questionable DIY Repairs

DIY enthusiasts might proudly display their handiwork in the bathroom. However, buyers might encounter the aftermath of “creative” plumbing solutions that leave them reluctant to enter the room.

When repairs are made to a bathroom piecemeal, using random materials, it makes a buyer think that the homeowner cheaped out. And if corners are cut here, could the homeowner’s careless DIY effort be hiding something more serious?

Olenbush’s bathroom, for example, had a mishmash of tile.

“It looked like a patchwork quilt, and not in a good way,” Olenbush says. “Each wall seemed to champion a different decade.”

5. Lack of ventilation

No homebuyer wants to deal with mold. Mold in a bathroom is invariably icky and can even be a health issue. Olenbush’s renovation included mold remediation.

“The lack of a vent or window had allowed the moisture to party hard, resulting in dark patches on the ceiling,” says Olenbush.

No homebuyer wants to deal with mold. When they see mold in a bathroom, they automatically assume it’s black mold—the worst type—even if it’s not. And they also inflate in their minds the price they might pay to have it professionally removed.

6. Privacy issues

The final beige flag in the bathrooms of the home Hybart gave up on was a strange door situation. And we’re not talking about the entrances to the bathrooms. More like the exits.

“There was an exterior door installed in each of the custom showers—which exited to the back patio,” says Hybart.

Maybe the backyard once had a pool or spa. But in most cases, an exit door off the bathroom will not be an attraction because the main thing most of us require in a bathroom is total privacy. Not a quick exit.

Fix the ick

When preparing your home to sell, you must remove all signs that someone else has lived there. This goes double for the bathroom, which should be clean and fresh. So if you spot mold, get an expert in there—pronto.

If your bathroom has carpeting, pull it up before an open house. There are tons of budget-flooring options out there.

Consider updating fixtures and old tile with more modern and stylish options. Ensure all windows have blinds or curtains. A bathroom that offers the necessary level of privacy can help buyers feel more comfortable with the space.

These relatively small investments will not only banish the ick but can also make a big difference in how buyers perceive the overall quality of the bathroom.

For the original article By Sally Jones, visit Realtor.com.

Homeownership Is Still at the Heart of the American Dream

Buying a home is a powerful decision, and it remains at the heart of the American Dream. Unlike renting, owning a home means more than just having a place to live – it offers a sense of belonging, stability, and freedom. According to Nicole Bachaud, Senior Economist at Zillow:

“The American Dream is still owning a home. There’s a lot of pent-up demand for ownership; that isn’t going to go away.”

Let’s explore just a few of the reasons why so many Americans continue to value homeownership. 

The Financial Benefits of Owning a Home

One possible reason homeownership is viewed so highly is because owning a home is a significant wealth-building tool. That may be why Jessica Lautz, Deputy Chief and VP of Research at the National Association of Realtors (NAR), says:

“Homeownership is the number one way to build wealth in America.”

Over time, owning a home not only helps boost your own net worth, but it also sets future generations up for success as you pass that wealth down. Habitat for Humanity explains:

“Overall, homeownership promotes wealth building by acting as a forced savings mechanism and through home value appreciation. Homeowners make monthly payments that increase their equity in their homes by paying down the principal balance of their mortgage. . . . In addition, owning a home promotes intergenerational homeownership and wealth building. Children of homeowners transition to homeownership earlier — lengthening the period over which they can accumulate wealth . . .”

It can also provide meaningful financial stability compared to renting. When you buy with a fixed-rate mortgage, you can lock in your monthly housing payments for the length of your home loan.

The Non-Financial Benefits of Homeownership

But, owning a home offers more than just financial benefits—it benefits you socially and emotionally too. Your home provides feelings of achievement, responsibility, and more. In a recent survey, Fannie Mae outlines just a few of these more emotionally-driven benefits, including:

“The top three were having control over what you do with your living space (94%) to having a sense of privacy and security (91%) and having a good place for your family or to raise your children (90%) . . .”

What Does That Mean for You?

If your idea of the American Dream involves greater freedom, security, and prosperity, homeownership could be a key player in bringing that dream to life. And with mortgage rates now on a downward trend, it might be a good time for you to consider making a move.

If you’re ready and able to buy, know that there are incredible benefits waiting at the end of your journey. You’ll gain more than just a home – it’s a place to grow your wealth and call your very own. Like Ksenia Potapov, Economist at First American says:

“…homeownership remains an important driver of wealth accumulation and the largest source of total wealth among most households.”

Bottom Line

Buying a home is a powerful decision and the cornerstone of the American Dream. If finding a place to call your own is part of your dream for this year, connect with a local real estate advisor to start the process today.

For the original article, visit Keeping Current Matters.