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Holiday Wrapping Ideas

by Tom Stachler,ABR,CDPE - Group One Realty Team

5 DIY Wrapping Ideas for the Holidays

 

Santa Claus is coming to town, so we need to get our wrapping A-game on. The thing is, as cute as snowmen wrapping paper is, we’ve all seen it. A million times. Every Christmas. Aunt Sally could really use a new style. The important thing is that, whether Aunt Sally made it here herself or she’s just “asking for a friend,” we’ve got her covered with these alternative wrapping ideas.

Brown Paper Gift Wrap
What you’ll need: 
Uncoated wrapping paper, white acrylic paint, paint brush

brown paper

I found this simple, yet artsy DIY idea from Go Forth. All you have to do is roll out a generous amount of paper and splatter it with some paint. Think of yourself as a kind of Jackson Pollock and just therapy-splatter the living heck out of your brown wrapping paper. You can add accents like the black string used above or just present it solo.

Kid-Friendly Wrap
What you’ll need: 
Uncoated white wrapping paper, crayons, washi tape

kids wrap

Cute, I know. Craftionary recommends this for kids who have to wait to open their presents. It’s like doodling on a Starbucks cup, except less hipster and with a much shorter lifespan. But, hey - all you have to do is wrap the gift and attach the crayons with some washi tape and voila. For extra fun, psychoanalyze your kids’ drawings before they tear the whole thing up.

Pringles Cookie Can Wrap
What you’ll need: 
Thoroughly cleansed Pringles cans, scrapbook paper, glue, bows for fun

Pringles

Recycling has never looked so good, am I right? Fun Squared has come up with a Pinterest project that will actually make you feel good about yourself (because it’ll work). You even get to do several delightful things like A) eat all the Pringles, B) bake cookies and eat the leftovers, and C) gift the most stylish cookies ever. All you have to do is assemble these bad boys and ensure your cookies will fit inside the cans. Don’t want to commit to a huge can? Pringles come in smaller sizes, young grasshoppers.

Black Wrapping Paper & Metallic Markers
What you’ll need: 
Black wrapping paper and some metallic Sharpie markers

sharpie

Ling Yeung B’s amazingly chic gift wrapping idea is awesome for two reasons. One, if you’re really artsy you can accomplish some of the most intricate patterns shown above. And two, if you’re as artistically challenged as I am, just writing “To: Dad” and “From: Favorite Daughter” is still bound to come across as sophisticated. He might even believe that you got him really expensive cufflinks when in reality, it’s just another tie.

Furoshiki Wrap
What you’ll need: 
Um, furoshiki wrap

Furoshiki

If you care for the environment, Evermine has just the thing for you. Actually, all of Japan does. Furoshiki is a reusable wrapping cloth that you are invited to think of as origami. There are so many different ways to go about wrapping things with furoshiki, no gift can escape. Don’t worry, the furoshiki page comes with instructions. And evidently, if the cloth is nice, then the wrapping is done.

And that, Aunt Sally, is how you wrap up the holidays.

 

Tom Stachler is a licensed Broker and Builder marketing homes and properties in the Ann Arbor Michigan area.  Also search for properties, houses, and condos for sale in Saline, Dexter, Chelsea, Milan and the Ypsilanti real estate markets.  Check out the handy Links for realty related information and and MLS inventory access above.  

Is Home Equity Still a Retirement Failsafe?

by Tom Stachler,ABR,CDPE - Group One Realty Team

Homeownership is one of the more viable paths to a secure retirement—but many older homeowners missed the prime opportunity to leverage that equity before the recession. How much usable equity can older homeowners now expect in retirement, given the rebound in home values?

A recent study by the Urban Institute explored the answer to this question, analyzing the equity patterns among older households before, during and after the recession.

“Not only does a house meet the basic need of shelter, but it’s an asset that typically can be used to build wealth as homeowners pay down their mortgages,” the study’s authors state. “In fact, many retirement security experts argue that the conventional three-legged stool of retirement resources—Social Security, pensions and savings—is incomplete because it ignores the home.”

The swings not only parallel the movement of the market—according to the study’s findings, equity patterns follow mortgage debt trends, as well. From 1990 to 2006, national mortgage debt grew to $11.3 trillion from $2.5 trillion, then fell to $9.9 trillion by 2015; for the average older homeowner, debt grew from $44,000 to $82,000 between 1998 and 2012.Homeowners aged 65 or older, according to the study’s findings, could have used their home’s equity to grow their retirement income by over 50 percent (up to $60,000) pre-recession, either by borrowing a home equity line of credit, selling their home at a profit, or taking a cash-out refinance or second mortgage. That percentage dropped to 40 percent (up to $49,000) by 2012, despite accumulating an average 10 percent more equity then than in 1998. Home values, still, grew 3 percent by 2014. Monetarily, the average older homeowner’s equity stake increased from $117,000 to $166,000 between 2000 and 2006, then decreased to $129,000 by 2012.

Mortgage loan-to-value (LTV) ratios also moved in tandem; in fact, the proportion of older homeowners with LTV ratios at 80 percent or more doubled from 1998 to 2012, according to the study. The proportion of underwater homeowners tripled over the same period.

Older homeowners overall, however, have more of an opportunity now to unlock the wealth potential of their homes in retirement, even with the recession in the rearview. Their prospects, as the study demonstrates, lean on home value, as well as mortgage debt. State the study’s authors, “The majority of older adults, regardless of income, race and ethnicity, and education, own homes that they could use to help finance their retirement.”Older homeowners today have more favorable retirement conditions, but not without contingencies. Low-income and minority homeowners tend to have most of their wealth tied up in their homes, but accumulate the least equity overall, according to the study—with loan approval related to income, these segments could become challenged, even though they have the potential to increase their retirement incomes considerably more so than other higher-income or majority groups. Low-income and minority homeowners, the study’s authors postulate, will likely rely on Social Security as their primary source of income in retirement.

Tom Stachler is a licensed Broker and Builder marketing homes and properties in the Ann Arbor Michigan area.  Also search for properties, houses, and condos for sale in Saline, Dexter, Chelsea, Milan and the Ypsilanti real estate markets.  Check out the handy Links for realty related information and and MLS inventory access above.  

Homewonership Rate Rallies

by Tom Stachler,ABR,CDPE - Group One Realty Team

Is the tide turning? The homeownership rate rallied slightly at 63.5 percent in the third quarter, higher than the 62.9 percent rate in the second quarter—the lowest point in more than 50 years, according to the U.S. Census Bureau’s Quarterly Housing Vacancies and Homeownership report. The third quarter homeownership rate did not differ considerably from last year’s third quarter, however, at 63.7 percent.

On inventory, roughly 87 percent of housing was occupied in the third quarter, with 55.5 percent owner-occupied and 31.9 renter-occupied.

The Midwest saw the highest homeownership rates in the third quarter at 68.6 percent; the West saw the lowest, at 58.2 percent.

Non-Hispanic white homeowners held the highest homeownership rate in the third quarter, as well, at 71.9 percent. Asian or Native Hawaiian and Pacific Islander homeowners held the second-highest rate at 55.6 percent. Hispanic homeowners held the third-highest, at 47.0 percent. Black homeowners held the lowest rate, at 41.3 percent—though both the Hispanic and Black rates were higher than those of last year’s third quarter.Homeownership rates in the third quarter were also highest among homeowners aged 65 and older, at 79.0 percent, and lowest for homeowners aged 35 and younger, at 35.2 percent.

The homeowner housing vacancy rate came in at 1.8 percent in the third quarter, while the renter vacancy rate reported 6.8 percent. Homeowner vacancy rates were highest outside metro areas at 2.5 percent, followed by inside principal cities at 1.9 percent and in suburban areas at 1.5 percent. Renter vacancy rates mirrored those of homeowners: highest outside metro areas at 9.6 percent followed by inside principal cities at 6.9 percent and in suburban areas at 6.0 percent.

“Optimists and pessimists alike have fodder for their cause,” wrote Trulia Chief Economist Ralph McLaughlin. “On the optimist’s side, household formation—whether it’s from new renter or new owner households—is good for both the housing market and the general economy, as some renters eventually become owners and new households drive demand for Home-related goods and services. On the pessimist’s side, there are headwinds for those that want to own a home, but can’t: prices and rents have outpaced incomes, credit standards are higher, and a high share of young households are still living with their parents.The median list price of vacant for-sale housing in the third quarter was $157,500.

“Given other evidence from the [Census] release, my views swing more with the optimists than the pessimists.”

Tom Stachler is a licensed Broker and Builder marketing condo and home in the Ann Arbor Michigan are including other surrounding areas such as Dexter, Saline, Chelsea, Milan Ypsilanti and Pinckney real estate markets.  Note the Search Properties link above to view a complete Inventory of homes and condos for sale.  Also click on the resources tab above for other helpful information Links, contractor discounts and sources.   Have questions want a price on your home or searching for homes, hit the contact me link or call us, we would love to hear from you.  

Percentage of Condo Owners Required for Financing

by Tom Stachler,ABR,CDPE - Group One Realty Team

The Federal Housing Administration (FHA) has lowered its owner-occupancy requirement for condominiums, marking progress in an issue believed to be preventing homebuyers from entering the real estate market. The action, announced in a mortgagee letter issued this week, lowers the requirement from 50 percent to 35 percent, effective immediately.

Condo projects older than 12 months with at least 35 percent owner occupancy (and less than 50 percent) can qualify for FHA certification, provided other conditions are met. From FHA’s letter:

  • Applications must be submitted for processing and review under the U.S. Department of Housing and Urban Development (HUD) Review and Approval Process (HRAP) option;
  • Financial documents must provide for funding of replacement reserves for capital expenditures and deferred maintenance in an account representing at least 20 percent of the budget;
  • No more than 10 percent of the total units can be in arrears (more than 60 days past due) on their condominium association fee payments; and
  • Three years of acceptable financial documents (defined in the letter) must be provided.

The action is a win for the real estate industry, which has been advocating for changes, and homebuyers, especially first-time buyers for whom condos are the most affordable housing option.

“NAR has been fighting for changes to FHA’s condominium rules for years, and the mortgagee letter announced will bring some much needed relief to the market,” says Salomone. “Condominiums will have a much easier time getting certified by FHA, and Realtors® will have more options for clients looking to purchase a condo with an FHA mortgage. This is a big win for NAR, and while we believe all condominiums should have the rules applied to them equally, we also believe FHA has heard the concerns of Realtors® and is moving in the right direction.”The lowered requirement is a step forward, says National Association of REALTORS® (NAR) President Tom Salomone.

NAR will continue to work with FHA to address transfer fees, commercial space requirements, and other issues, Salomone says.


FHA’s action comes following the passage of the “Housing Opportunity Through Modernization Act,” which mandated the lowered requirement

 

Tom Stachler is a licensed Broker and Builder marketing homes and properties in the Ann Arbor Michigan area.  Also search for properties, houses, and condos for sale in Saline, Dexter, Chelsea, Milan and the Ypsilanti real estate markets.  Check out the handy Links for realty related information and and MLS inventory access above.  


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Famous Encino, Calif. Home Hops on Market - Jack Bauer Fox Show 24

by Tom Stachler,ABR,CDPE - Group One Realty Team

Famous Encino, Calif. Home Hops on Market

 

Encino

Fans of the Fox show "24," listen up: Jack Bauer's fictional home is now for sale for a cool $3.9 million. The posh space, located at 4620 Rubio Ave in Encino, Calif., was also featured in "CSI" and the 90s classic "Beverly Hills, 90210."

Stretching 6,000 square feet with 5 bedrooms and 6 bathrooms, the modern home was designed in 1939 by prominent architect J.R. Davidson, who went on to design three Arts & Architecture magazine Case Study homes.

The one story home sits on two-thirds of a seriously lush acre, with a pool perfect for lounging, sleek spaces for entertaining both indoors and out, a home gym, an outdoor kitchen, fireplace and fire pit. If that's not impressive enough, you'll be comforted to know that early photos of the residence hang in the Getty Center.

Listed byAlan Taylor of the John Aaroe Group
Listed for: $3,999,000

Photos by James Moss

Encino 2

Encino 2

Encino 3

Tom Stachler is a licensed Builder and Broker marketing homes in the Ann Arbor Real Estate Market and servicing Saline, Dexter, Chelsea, Milan and the Ypsilanti Michigan home and condo real estate for sale communities.  Check out our helpful Links section or contact us if you are considering Buying or selling a house or commercial property.  

 

Pest Maintenace for the New Homeowner

by Tom Stachler,ABR,CDPE - Group One Realty Team

5 Pesty Mistakes New Home Owners Make

Some tips about home Pest maintenance around the house.  Check out the Video below.  

Tom Stachler is a licensed Builder and Broker in the Ann Arbor Michigan area also serving Saline, Dexter, Chelsea and the Ypsilanti real estate home and condo sales market.  Check out the home search or Listings tab link above for an inventory of properties for sale.  Also win dinner for two by visiting our Facebook page at www.Facebook.com/annarborhome

Information about Automated or Autonomous Vehicles in MIchigan

by Tom Stachler,ABR,CDPE - Group One Realty Team

Mcity Information at the University of Michigan Mobility Transformation Center

Testing new technologies in a realistic off-roadway environment is an essential step before a significant number of highly automated vehicles can be deployed safely on actual roadways. Working with the Michigan Department of Transportation, U of M researchers have designed Mcity, a unique test facility for evaluating the capabilities of connected, autonomous and automated vehicles and systems.

Occupying 32 acres at the University’s North Campus Research Complex, autonomous simulates the broad range of complexities vehicles encounter in urban and suburban environments. It includes approximately five lane-miles of roads with intersections, traffic signs and signals, sidewalks, benches, simulated buildings, street lights, and obstacles such as construction barriers. Mcity celebrated its grand opening on July 20, 2015 with representatives from government, industry, & the university. 

The University of Michigan is know world wide for its work in the transportation research and standards field.  Ann Arbor is also known as the Michigan Hub for research for many different interests in medicine, transportation and information systems.  

Looking to relocate to Michigan?  Contact area realty broker and builder Tom Stachler at Real Estate One for more information or use the handy navigation tabs above to find current properties for sale in the residential or commercial markets.  Other Links will provide contractor, school and other moving related information and references.  

 

Brian Wilson’s Lake Arrowhead Estate

by Tom Stachler,ABR,CDPE - Group One Realty Team

brian_wilson_lake_arrowheadAfter Elvis and before the Beatles, the Beach Boys were America’s favorite rock ‘n’ roll group. The band, led by Brian Wilson and his two brothers, a cousin and a family friend, began performing in 1961 in Hawthorne, Calif., as The Pendletones. Within less than two years—and a name change later—the Beach Boys ruled the U.S. airwaves with “Surfin’ Safari,” “Surfin’ USA” and “Surfer Girl.” Between the Boys’ own hits and the No. 1 song “Surf City” that Wilson wrote and produced for American rock duo Jan and Dean, Wilson pretty much created the California beach music sound.

Today, Wilson and his wife Melinda are surfing onto the real estate scene, having recently listed their professionally decorated vacation retreat on Lake Arrowhead in the San Bernardino National Forest west of Los Angeles. At 4,500 square feet, the five-bedroom, five-bathroom, three-story Home is equipped with an elevator to access each floor, terraces/balconies on each level, two fireplaces and views of the lake from all the common rooms. A perfect blend of formal and casual, soaring ceilings give the interior an airy, cheerful vibe. The open layout lends itself to entertaining, as does the outdoor kitchen on the deck overlooking the lake. A single, solar-powered boat slip is included in the sale. Wilson had another home in Lake Arrowhead that he sold in 2003 to buy an equestrian property for his daughters, but he returned to the area in 2011.

Lake Arrowhead has been a peaceful retreat for the rich and famous and a backdrop in films since the early 1900s. Early actors decided to build vacation homes in the area after making films in the prestigious locale, and, today, many celebrities continue to visit and own homes there. Lake Arrowhead has been a popular hangout for Howard Hughes, Charles Lindbergh, Bugsy Siegel, Michael Jackson and many others.

 

Tom Stachler is a licensed broker and builder marketing properties in the Ann Arbor Michigan area and specializing in the Saline, Dexter, Chelsea, Milan, Pinckney and Ypsilanti communities. Use the helpful tabs and Links above to search for homes and condos for sale or Lease.  

How to Lower Your Energy Bill

by Tom Stachler,ABR,CDPE - Group One Realty Team

Winter is still a few months away, but it’s not too early to start thinking about cutting cold-weather energy costs. Taking some time to weatherproof your Home and maintain or upgrade appliances can result in significant savings when the snow starts falling. And making a few small lifestyle changes can help both the environment and your bank balance.

Consider these tips to help slash your energy bills this winter — or even year round.

Bundle Up

This small sacrifice can slash 5 percent to 20 percent from your heating bill. And if you want to take the strategy to the next level, turn the temperature on your water heater down to 120 degrees, which is safe and sanitary for most households, according to the U.S. Department of Energy.Don’t shed that sweater when you get home. Instead, wear warm clothing inside and turn your thermostat down. You can save 5 percent on heating costs for every degree you drop your thermostat in the 60-70 degree range, according to the California Energy Commission’s Consumer Energy Center, which suggests a maximum setting of 68 degrees during the day. Unless you have a heat pump, consider cranking the thermostat setting down to 55 degrees when you’re sleeping or away from home for an extended period.

Get Smart

“According to Energy Star, a programmable thermostat can save households up to $180 per year in heating and cooling costs,” says Kendal Perez, a savings expert with CouponSherpa.com who also operates the site Hassle-Free Savings. “These devices optimize your energy use by heating your home only when you’re there — or awake — to enjoy it.”Smart home systems can adjust the thermostat for you — and cut your residential energy costs.

The Nest thermostat, for example, automatically adjusts the temperature after users set it manually for the first few days to establish usage patterns and preferences. It can also adjust according to factors such as draftiness or how long a home takes to get warm.

The Nest Learning Thermostat sells for $249, but some energy companies offer rebates or even send plan participants small thermostat models free of charge.According to the Nest site, two independent studies analyzing energy bills before and after homeowners installed Nest’s thermostat showed that it cut cooling costs by 15 percent and reduced heating usage by 10 percent to 12 percent. Consumers enjoyed average savings of $131 to $145 a year. Tom Stachler also has a Honeywell wall thermostat product he uses at his home and income properties that only runs 110 to purchase is wifi enabled and has free online subscription.  Call or email us for more info on this energy saving thermostat.  

Upgrade Kitchen Appliances

Replacing old appliances can cut energy bills across the board. In fact, 20 percent of our electricity bill’s balance comes from running appliances, according to This Old house. However, opting for Energy Star-qualified dishwashers, washing machines and refrigerators can dramatically reduce that percentage.

For example, Energy Star refrigerators use 50 percent less energy than those manufactured 15 years ago and 15 percent less than fridges without the efficiency rating. Moreover, Energy Star washers are 40 percent more efficient than their conventional counterparts lacking the Energy Star label.

Look at Other Major Appliances

Considering water heating costs account for 11 percent of your utility bills, switching out your water heater can drastically cut energy bills, according to This Old House. Consider gas and solar options, many of which are tankless to maximize efficiency.

“Traditional water heaters maintain a full tank of warm water, which requires constant energy to keep warm,” says Than Merrill, founder and CEO of the real estate investment education company FortuneBuilders. “Tankless water heaters, on the other hand, only heat water on demand. That way, you do not have the extra energy consumption occurring when hot water is not being used.”

Additionally, homeowners should assess the condition of their furnaces. The average life expectancy for a gas or oil-fired furnace is 15 years to 20 years, according to This Old House, and an aging, inefficient model could be inflating your energy bill. On the other hand, an Energy Star-certified furnace is at least 15 percent more efficient than a standard model and can save you up to 20 percent on heating costs. Although replacing major appliances can be expensive, doing so will probably pay off if you plan to stay put for several years.

Additionally, replacing HVAC equipment can qualify you for a tax discount.

“Right now, the government is offering a $500 tax credit for purchasing new, high-efficiency appliances like furnaces, but this credit runs out Dec. 31,” says Rob Haines, marketing manager for Service Experts Heating & Air Conditioning. “This tax credit can be combined with any manufacturer’s rebate or added to any sale price you find on HVAC equipment.”

Decimate Drafts

There are many ways to keep out the cold, including insulating windows with clear plastic sheeting and installing insulated window coverings, according to the U.S. Department of Energy, which offers tips on detecting and sealing air leaks. Detect drafts around chimneys, in unfinished spaces behind cabinets and closets, and in other areas and seal them. Additionally, lose your fireplace’s damper when it’s not in use, and apply weatherstripping or caulk around drafty doors and windows to stop cold air in its tracks.

“One of the best ways to lower your winter energy bills is to reseal your home,” says Ryyan

Murphy, owner of Irish Heating and Air in Tracy, Calif. “The average homeowner should be able to weatherstrip their windows and caulk their air leaks in only a few hours, with very low material costs, and see an immediate savings. If you’re looking for a change that provides real returns and doesn’t require any change in lifestyle — like turning your water heater down — this is the solution for you.”

Set Home Health Resolutions

Shane Kenny, founder of the subscription air filter company FilterSnap, recommends using the beginning of the year as a time to take care of many routine home maintenance tasks, such as changing the batteries in smoke and carbon monoxide detectors, vacuuming the refrigerator coils and checking its seals to improve efficiency and changing refrigerator water filters and furnace air filters. Regularly changing filters can be a big energy saver and improve air quality in your home.

“Keep your HVAC, home and yourself happy this year and change your filter every three months, at least,” he says.

Schedule a Furnace Physical

Arrange for an HVAC professional to give your furnace a once-over before the cold kicks in, says Murphy.

“Have your furnace inspected before you need to run it daily,” he says. “For under $100 in most markets, you can get your system examined by a professional who can spot air duct leaks, intake blockages, mechanical failings, electronic failings and more. A pre-season tune-up can also help prevent breakages during periods that require emergency repairs, when service calls can cost considerably more.”

Start Small

Even apartment dwellers can cut their average energy bills by turning off and unplugging unused electronics and small appliances. According to EPA estimates, idle gadgets waste more than 100 billion kilowatt hours of electricity annually — costing consumers $10 billion a year.

“Some of the biggest energy suckers are set top boxes, video game consoles, microwave ovens and battery chargers,” says Rob Caiello, vice president of marketing for Allconnect, a utility services company. “A good tip is to wire energy-hogging appliances to the same power strip, making it easier to cut them all off at once with a simple flip of a switch.”

Opt for LEDs

Replacing conventional bulbs with LED alternatives can add up to significant savings. Residential LEDs — especially Energy Star-rated products — use at least 75 percent less energy and last 25 times longer than incandescent lighting, according to the Energy
Department. And savings-savvy homeowners can even upgrade their holiday lights.

“LED string lights consume much less energy than standard lights, and switching to LED lights can produce serious savings if you tend to keep your lights plugged in for hours at a time,” says Caiello.

For example, the estimated cost of electricity to light a 6-foot tree for 12 hours a day for 40 days is $10 with incandescent C-9 lights, compared to just 27 cents with LED lights of the same size.  Tom is not only using regular LED lights in his properties but also the smart wifi enabled Phillips Hue system.  Check ou the previous Blog posting for more LED tips.  

Tom Stachler is Michigan licensed real estate broker working in the Ann Arbor and Saline house and condo sales market.  Please use the helpful Links contained above for more information and check out the All MLS tab above for a complete home inventory

Mortgage Rate Trends

by Tom Stachler,ABR,CDPE - Group One Realty Team

Will The Presidential Election Create Higher Mortgage Rates?

Will presidential election raise mortgage rates?Will mortgage rates rise or fall because of the election? Will either Trump or Clinton impact the Rent we pay for real estate money?

Since neither the president nor the federal government directly sets mortgage rates no candidate once elected can just sign a proclamation and directly cause interest levels to change. However, the election results could very much change the cost to finance or refinance a Home.

To understand how this might happen consider the Federal Reserve. It has the ability to directly raise bank rates. It can wave its magic wand and rates will rise or fall because it says so. Unlike bank rates, the Fed does not control mortgage rates, but the theory is that if the Fed raises bank rates then mortgage costs will naturally follow in large measure because banks have traditionally been a major source of mortgage funding.

You can see that mortgage rates rise whenever the Fed hints or leaks information that it expects to increase bank charges. And, when the Fed fails to deliver, mortgage rates sink back to lower levels. For example, just before the Fed increased bank rates in December Freddie Mac said the typical 30-year prime mortgage was priced at 3.95 percent versus 3.42 percent last week. That a difference of more than half a percent, or, as some candidates might say, a huge change, the best change.

Mortgage rates today would actually be lower but the banks have parked $2.25 trillion in excess reserves with the Fed, money taken out of circulation. It can be argued that this is a smart strategic move because it makes no sense to lend money at cheap rates, or – take your choice – it can be said that the banks have conspired to raise lending costs, a huge tax on the entire economy.

The ability of banks to raise mortgage rates is now in question. The reason is that an increasing amount of money to finance real estate doesn’t come from banks, it comes from investors worldwide working through nonbanks, mortgage providers not dependent on the traditional banking system for funds. This explains why the Fed raised rates in December and mortgage levels have since taken a nose-dive.

Presidents & Mortgage Rates

But what about our presidential candidates? If one of the two major nominees gets elected will that make a difference in mortgage costs?

The answer, I suspect, is largely no. First, mortgage money flows into the US from across the world. Second, Congress is subject to various lobbyists and many of them don’t want to see higher rates. Third, Wall Street understands that higher rates mean lower corporate profits and that’s bad for business.

But is there any circumstance under which a president cause mortgage rates to rise? Yes. Investors want as little risk as possible and a disruptive presidency could cause interest rates to soar.

So, like the Fed itself, the president is increasingly irrelevant when we look at home financing costs. Then again, the presidency is not without its powers, including the ability to move markets.

Tom Stachler is a real estate broker in the Ann Arbor Michigan area who also works in Saline, Dexter, Chelsea and Ypsilanti residential and income property markets.  Please check out some of the other helpful Links found on this page by using the handy navigation tabs provided above to search for homes and condos for sale in Washtenaw county.  

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