Real Estate Information Archive

Why Do This?

Even if you’ve taken precautions to prevent frozen pipes, it can still happen during single-digit nights. Frozen pipes can lead to expensive water damage, so you want to thaw them as soon as possible. However, hiring a plumber to do this for you can cost $200 or more, so you can save a lot of money by getting it done yourself!

Time: 60 minutes

What You'll Need:

• hairdryer
• patience

How To:

Safety Note: NEVER use an open flame to thaw your pipe! This will permanently damage the pipe and may even start a fire. It’s also best to avoid “thawing machines,” which are expensive and can be dangerous when they’re not operated by a professional.

1. Check the weather forecast. If your pipe froze because of a freak cold snap, but the weather has warmed up since then, the pipe may thaw on its own. If the foreseeable forecast is frosty, you’ll probably need to take action.
2. Locate the main shut-off valve. Before you begin, locate your main shut-off valve to make sure you know how to turn off your water. Once your pipe thaws, leaks are common. So, it’s important to be ready!
3. Turn your hot and cold faucet handles. Check to see if water will come out of your cold water faucet handle, and then do the same for your hot water. If your cold water pipe has frozen, but water is still flowing from your hot water pipe, you’re in luck! Turn on your hot water and let it run for 10-20 minutes. The heat will usually transfer to the frozen pipe and fix the problem.
4. Grab a hairdryer. If that doesn’t work (or your hot water pipe is frozen, too), it’s time to break out the hairdryer. If you can see the frozen area, great. Set your hairdryer to high heat and blast away (holding the dryer a few inches from the pipe) until your water returns. If you can’t see the freeze because the pipe goes into a wall, just aim your hairdryer as close to the problem as possible. Pipes conduct heat extremely well, so even if the freeze is behind a wall, you can usually thaw it out. Just note that this can take 30-45 minutes (sometimes more) to work.
5. Call a professional (optional). If you continue to have trouble, your best bet is to call a professional plumber. If you ask nicely, most of them are willing to talk you through other solutions at no charge.

Information provided by BrightNest.com.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

There is a common misconception that consumption is the prime driver of the economy. To be sure, consumption matters (because everything is made to be consumed), but production and investment shouldn't be overlooked. After all, production precedes consumption. You have to produce before you get paid with the money to consume.

With that in mind, residential real estate investment (defined as investment in new single family structures, multifamily structures, home improvement and commissions on existing home sales) matters. Investment goes hand-in-glove with production.

The good news is that residential investment was up strongly in 2012 and 2013. The even better news, it still has a long way to go to reach historical norms. Demand for new investment should be strong through 2014, and very likely through 2015.

Stronger residential investment isn't just good for us, it's good for the aggregate economy. Residential investment is a powerful contributor to gross domestic product (GDP) growth and employment. Housing activity contributes up 5% of GDP. The simple logic is that more investment activity will lead to more economic growth.

The bottom line is that we look for another strong year for housing. As long as the economy continues to improve, rising lending rates won't alter our outlook.

 Courtesy of Jessica Regan.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

Trends Persist Heading into 2014

Trends established in 2013 show signs of persisting into 2014... but for how long?

Take home prices, which continue to move strongly higher. The latest edition of the S&P/Case-Shiller Home Price Index shows prices rose 1.05% in October. Year over year, prices are up 13.63% in the composite 20-city index to post the strongest year-over-year gain since February 2006.

There are a couple points worth noting: First, the latest index reading is for October, so it's two-month in arrears. That said, price data from other providers point to continued gains in November and December. The Case-Shiller index will very likely show that 2013 was a very good year for home prices.

It's also worth noting that there is some market rotation going on. Gains are no longer being paced by formerly depressed Phoenix and Las Vegas (where sales dropped to a five-year low in November). Instead, they are being paced by Detroit and Atlanta – markets that have been struggling until recently. This makes sense: Trees don't grow to the stratosphere and holes aren't dug to the center of the earth. There is a limit to how high or how low markets will go until they reverse course.

With that in mind, the Case-Shiller index has performed exceptionally well over the past two years. Aside from a hitch in 2010, the index has been on a tear since January 2009. This is unprecedented. And as we've noted before, it's also unsustainable. Once the last of the depressed markets rally, we expect national price appreciation, as well as price appreciation in more local markets, to slow. We wouldn't be surprised to see that begin as early as the first quarter of 2014.

The other major trend – rising mortgage rates – is showing signs of being sustained into 2014.

Bankrate.com's national survey shows the rate on the 30-year fixed-rate mortgage rose six basis points to 4.69% in the past week. We're not surprised that rates moved higher, because the yield on the influential 10-year U.S. Treasury note is on the rise. In fact, the yield on the 10-year note is above 3%, the highest it has been in over two years.

The 30-year loan historically trades two percentage points above the 10-year note. Simple math, therefore, points to a 5% rate on the 30-year loan. We'll likely see 5% prevail by the end of the year, or even by mid-year.

On a more positive note, we see a trend reversal in existing home sales. After stagnating in the second half of 2013, sales should gain traction in 2014. We say that because we agree with NAR's chief economist Lawrence Yun and his assessment of the market. Says Yun, “ We may have reached a cyclical low because the positive fundamentals of job creation and household formation are likely to foster a fairly stable level of contract activity in 2014.”

We've expressed similar sentiments over the past few months. If our sentiment prevails, it's unlikely that markets will be derailed by higher lending rates and slowing home-price growth.

Courtesy of Jessica Regan.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

This post originally appeared on LearnVest, where smart people learn to manage their money and live their richest lives.

If you’re a homeowner, chances are you’ve taken on a home-repair project that you probably shouldn’t have. Whether the results were disastrous, costly or comical, we can all relate to the desire to do-it-yourself instead of calling a pro.

Meet four people who went it alone (with less-than-stellar results) and then find out what the experts say they should have done differently. These homeowner heartbreaks just might save you big the next time you decide to whip out the toolbox!

1. When Toddlers Attack

The Homeowner: Patrick Morris, Troy, New York

The Situation: “My wife and I were painting rooms," explains Morris, a public relations manager. "At one point, she went downstairs for something and came back to find that our two-year-old had used the paint roller as a push toy throughout the hardwood floors upstairs. There was light blue paint all over the floor in each room.”

What Went (Really) Wrong: “We tried to remove the paint. I went to Home Depot to get a floor sander, polyurethane finish, etc. Five minutes into sanding, there was wood dust everywhere. The sanding was uneven and a total mess. We ended up going to Sears and arranged to have wall-to-wall carpeting installed. The whole thing cost us $6,000!”

What the Expert Says: “When you’re painting walls, especially with children in the home, you should always be using a low VOC water-based paint on the walls,” says Amy Matthews, a home improvement expert. “When wet, it can be removed from most surfaces with soap and water. Always take the time finding a pro to solve home improvement issues for the right price at the right time. There is no crime in having a patch of temporarily damaged wood floor!”

2. The Bathroom Debacle

The Homeowner: Kathi Rollberg Boldt, Ashland, Massachusetts

The Situation: "We decided to renovate our bathroom while we were also doing the kitchen because there was a sale on bath countertops. If you ordered them with the kitchen, you saved a bit," says Boldt, a middle school math teacher and married mother of three.

What Went Wrong: "We had to buy a different sink because the countertop wouldn’t fit the dimensions of our bathroom,” she explains. “After demolishing the wall tile, we found water damage on the walls. When all was said and done, the job that was going to just cost us for the tiles, countertop and cabinet ended up being about $3,000!”

What the Expert Says: Beware of what seems to be a “good deal,” but leads you to expand the size of your project, suggests Matthews. “If you don’t assess the reality of the cost, physical commitment and tools needed for the job, you will always end up biting off more than you can chew,” she says.

3. A Mudslide in My Backyard

The Homeowner: Kyle James, 
Redding, California

The Situation: “I fancy myself a pretty handy guy,” says James, the founder of Rather-Be-Shopping.com and a married father of three. “So last year, after we had our pool professionally installed, I took on the task of doing some erosion control on a fairly large slope created by the pool installation. I did some research, installed jute netting to hold the soil and seeded the hill with seasonal rye grass.”

What Went Wrong: ”One afternoon, I went outside and turned on the sprinkler on the hill to water the seed. We left for a family get-together and returned only to discover that I hadn’t turned the water off. The hill got completely saturated, and the sprinkler created a mudslide. After a phone call and a $2,500 bill, I learned to leave some D.I.Y. projects to the pros.”

What the Expert Says: "Kyle’s only mistake was not turning off the water! When doing your own projects, you have to be very mindful. Attention to detail can make the difference between a successful project and a debacle.”

4. How Not to Fix a Leaky Toilet

The Homeowner: Marci Echeverria, 
West Orange, New Jersey

The Situation: One afternoon, I heard the toilet running. I tried playing with the handle, which didn’t help at all. My husband Tony came home and he went upstairs to fix it. Neither one of us had any experience in this area. Still, Tony found some online videos explaining how and began to work on it. He came downstairs and declared that the toilet was fixed.”

What Went Wrong: ”Two days later, I saw drops of water on the floor of the second-floor hallway,” says Echeverria. "The next day, there were more drops on the floor. Then, I saw water dripping down from a huge wet spot. I called the plumber right away. Total cost: $300–$400, including paying the plumber to fix the toilet and a contractor to patch the ceiling. For every other repair since, we’ve gone straight to the pros!”

What the Expert Says: “Water damage can be one of the most costly (and inconvenient) repairs in a home," Matthews says. "And, though a running toilet can be an easy fix, ask yourself if the risk is worth the reward when a professional can often leave you dollars ahead in the long run.”

Information provided by BrightNest.com.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

The holidays are almost here, so your guest bedroom is probably about to earn its keep. Hosting large groups of people is never easy – especially when crazy Aunt Rita decides to stay for a few extra days – so it’s a good idea to be proactive and organized. We partnered with Jill Pollack, organizational expert and host of HGTV Canada’s show Consumed, to come up with these 10 tips for taking great care of houseguests.

1. Break Out the Hotel Toiletries

If you secretly pocket those mini shampoo and moisturizer bottles from hotels, you’re not alone. But do you ever actually use them? Unexpected houseguests give you an excellent opportunity to use your stash of small toiletries to turn your guest bathroom into a four-star hotel.

2. Kid-Proof Your House

You may not have any little ones in the house right now, but if your guests have young children, it’s a good idea to take some basic safety precautions. Pay special attention to the kitchen, which will likely see a lot of action during the holidays.

3. Prep Your Front Porch

You probably use your side or garage door most of the time, but guests will park on the street and enter through your front door. Do a quick check to make sure your porch lights are working, and have some salt and a shovel handy to keep walkways safe if it snows or freezes overnight.

4. Set Up a Shoe Basket

This is more for you (and your house) than for your guests. Place a big basket near your front door to store shoes. This will prevent dirt from being tracked through your house, which wreaks havoc on your carpets and hardwood floors. If you don’t want to go through the hassle of making everyone take off their shoes, at least throw down some welcome mats so they can wipe the worst of winter off before they explore your house.

5. Test-Drive Your Guest Room

This is an easy way to find out what’s working and what isn’t. Is the temperature comfortable? How about the pillows and mattress? If there are any issues, you may want to balance your heating system or flip your mattress. And don’t forget to wash the pillows and sheets!

6. Check Your Outlets

These days, most people travel with a smart phone, laptop and possibly an iPad. If everyone is going to stay fully charged, you may need to increase your outlet availability. Grab a few extra power strips from storage (or Best Buy) and set them up in common rooms. That way, everyone can get their Angry Birds fix before dinner.

7. Remove Pet Hair

If you have a furry friend in the house, your guests may not find his or her hair quite as endearing as your immediate family does (they might even be allergic). So, go on a quick pet-hair removal mission before people arrive. Our favorite method? A rubber cleaning glove.

8. Clean Out Your Closets

If you’ve been using your closets to hide a bunch of clutter, you should probably take care of the problem now before your niece or nephew gets buried in an avalanche of knickknacks. For step-by-step instructions, read: Organize Your Closet.

9. Demystify Your Bathroom

Have you ever gotten all undressed and ready for a shower in an unfamiliar bathroom only to realize you can’t figure out how the faucet works? It’s a major bummer. If your bathroom has a few quirks (like the hot water only works if the faucet is set just right) make sure you let your guests know before it’s too late.

10. Break Out the Photos

This is a good tip if you’re the kind of host who takes an above-and-beyond approach. Guests will feel more welcome if they can check out some photos of shared experiences and memories that are placed around your house. If you’ve moved all the photos of some people on your guest list into a box somewhere, make sure you pull them out of storage!

Information provided by BrightNest.com.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

The principal reason we remain housing bulls is that we have a lot of ground to make up.

It's worth mentioning that the new-home market is not the existing-home market. Many people want new homes, and there aren't as many of them as there was in the recent past. This suggests that we will see a sustained uptrend in housing construction over the next few years. This is important not just for us, but for the economy in general, as housing has historically contributed 2%-to-3% to gross domestic product.

The good news is that we see stronger economic growth and stronger job growth in 2014. The bad news is that this growth will ensure higher lending rates.

 Courtesy of Jessica Regan.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

Strangely Calm and Settled

The employment numbers for November were better than expected. Payrolls increased by 203,000 for the month, which handily beat the consensus estimate for 180,000. These new jobs helped drop the unemployment rate to 7.2% from 7.3%.

Last week, we mentioned that an unexpected spike in job growth would likely move mortgage rates higher. Interestingly, that wasn't the case: Bankrate.com's national survey held steady at 4.55% on the 30-year fixed-rate mortgage. Freddie Mac's survey shows that the rate on the 30-year loan actually declined four basis points to 4.42%.

Some credit-market analysts believe the mortgage-rate spike that occurred last week was a matter of market participants anticipating a strong employment report. That's plausible, given strong gross domestic product (GDP) growth, which also beat most economists' estimates.

More likely, though, uncertainty surrounding the federal budget kept investors in bonds, and, thus, kept mortgage rates under wraps. We say that because after a budget agreement was announced late Tuesday, mortgage rates moved discernibly higher.

This suggests economic growth will pressure mortgage rates going forward. By that, we mean growth will pressure rates to move higher. The meeting of Federal Reserve officials this coming Wednesday will provide further insight. The odds are rising that the Fed will initiate some level of tapering of its monthly Treasury and mortgage-bond purchases within the next couple months.

Frankly, when we look at the rebound in the yield on the 10-year Treasury note – a good proxy for the 30-year fixed-rate mortgage – we see a yield poised to move higher. And as the 10-year Treasury note goes, so, too, goes the rate on the 30-year loan.

But even if rates stand pat, costs on many mortgage products will rise beginning in 2014. The Federal Housing Finance Agency says Fannie Mae and Freddie Mac will increase the fee they charge lenders to guarantee mortgage loans. Of course, consumers don't directly pay for the fees, but lenders must recoup costs. So in the end, the consumer does pay.

Stricter rules on ability to pay also kick in. Stricter rules mean circumstances will arise where people who should get a mortgage won't. There are no free lunches: If costs aren't covered monetarily, they are covered through reduced opportunity.

That said, if rates don't stand pat, and we doubt they will, a 50-basis-point rise isn't out of the question. Many economists predict the rate on the 30-year loan will gradually work its way up to at least 5% by the end of 2014. We think that's a conservative estimate.

If we've said it once, we've said it a 100 times: risk in this market is in the waiting. Holding out for a meaningfully lower rate can potentially be very costly at this point. Courtesy of Jessica Regan.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

Everything is tucked away and out of sight. You can relax now, right? Not so fast! Just because something is put away doesn’t mean it’s put away correctly. Sometimes organizing your abode can actually do more harm than good!

Follow these storage Dos and Don’ts to protect your belongings, keep your family safe and even make your food taste better:

In the Bedroom

DON’T: Hang pearls. If you have a strand of pearls, it requires special TLC. Never hang the strand, because the necklace’s thread will stretch out prematurely. Also, keep the pearls away from other jewelry, because the surface of a pearl is easily scratched. The best place to store pearls is in a silk bag or velvet-lined box.

DO: Store seasonal clothes in a dry spot. Dark, damp areas of the home are basically mold’s paradise! Keep your seasonal clothes safe from mold and mildew by storing them in a dry, well-ventilated area (like under the bed). Unless you live in a dry climate, keep your storage units out of the basement or attic.

In the Bathroom

DON’T: Ignore the space above your toilet. What’s under your bathroom sink? If you have a long list of beauty tools, toiletries and cleaning supplies, it’s time to find those items a new home. Don’t let the spot over your toilet go vacant. Grab a few easy-to-install shelves at your local hardware store and start re-organizing your bathroom supplies above your toilet.

DO: Move medicine out of the bathroom. “Medicine cabinet” is a total misnomer – the bathroom is actually the worst place to store your meds! Bathrooms tend to get hot, muggy and damp – all bad things for medication. Humid environments cause medications to break down and lose their potency far before the expiration date. The best place for your pills is in a desk drawer or a kitchen or dining room cabinet. If you haven’t checked out your medicines in awhile, it’s probably time to safety check your medicine cabinet.

In the Kitchen

DON’T: Keep unused appliances on the countertop. Unless you drink smoothies at every meal, the blender probably doesn’t belong on the countertop 24/7. Same goes for the toaster and the coffee grinder – put them away! Tip: If your lack of cabinet space is forcing the appliances onto the counter, try one of these new spots to store kitchen gadgets.

DO: Store some veggies out of the fridge. Your fridge may have a crisper drawer, but that doesn’t mean every veggie belongs there! Some produce – like avocados, onions and tomatoes – thrive outside of the refrigerator. For a full list, check out: Fridge or Counter: Where Should Fresh Foods Go?

Information provided by BrightNest.com.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

A month or so ago, we opined that home prices would cease to appreciate at a double-digit rate. Perhaps we jumped the gun. Trulia reports average asking prices rose 1% in November compared with October. This helped lift the year-over-year rate to 12.1%.

But in our defense, Trulia reports that price appreciation is slowing in some markets, particularly in ones that experienced the greatest price growth. Among the 100 largest metropolitan markets, the quarterly price increase in the 10 metropolitan areas where prices rose more than 20% year over year fell to 3.7% in November from 6.1% in August. This is no surprise; the hottest markets are always the first cool (and vice versa).

The point we want to emphasis is that many local real estate markets have been hot over the past two years, so we should expect to see more cooling in more local markets. Three months from now, we wouldn't be surprised to see a cooling trend appearing in Trulia's data.

Courtesy of Jessica Regan.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

Will the Fed Cease Ruling the Roost?

Mortgage lending rates have made a beeline northward in recent weeks. This past week, Bankrate.com's national survey of lenders shows the average rate on a 30-year fixed-rate mortgage rose 11 basis points to 4.55%. Freddie Mac's survey shows an even bigger jump, with the average rate on the 30-year loan spiking 17 basis points to 4.46%. (A basis point is 1/100th of a percentage point.)

So what's going on?

By initial appearances, the economy is stirring to life. Revised gross domestic product (GDP) data for the third-quarter point to accelerating economic growth. The latest revision shows GDP growth increased 3.6% when annualized, exceeding most economists' estimates.

The $64,000 question is can the current growth rate be sustained?

As we've seen in the recent past (such as in the fourth-quarter of 2011), a couple quarters of growth are strung together, but the trend peters out. Companies building inventory levels was a key contributor to growth in the third-quarter. Most economists would have preferred to see more capital investment and more hiring leading the charge. That said, companies frequently build inventory in anticipation of increased business activity.

Friday's employment report will provide additional information to the state of the economy. We noted last week that the Federal Reserve keeps a close eye on employment numbers. Fed officials have said they'd like to see the unemployment rate below 6.5%. It stands at 7.3%.

The trend is the key, though. If job growth again beats the consensus estimate – as it did last month – this suggests the GDP-growth trend that's developed over the past year will be sustained. That in itself points to greater loan demand, which will pressure interest rates, including mortgage rates, to move higher.

Just as important, more growth (economic and payroll) will embolden the Fed to finally taper; that is, reduce its monthly purchases of Treasury and mortgage-backed securities. The Fed's demand for these securities has been key to holding mortgage rates so low for so long.

As we all know, mortgage rates have been moving higher ahead of actual data releases. This is normal, because markets are anticipatory: they act on expectations, not what's known at the moment.

It's obvious that more credit-market participants expect stronger economic growth; hence the rise in mortgage rates. Should Friday's job numbers support that contention, by meeting or beating the consensus estimate for 180,000 payroll additions in November, rates will likely move higher still. We stay that because exceptions for stronger future growth will rise.

But nothing is certain. The majority can be wrong – as it was when it expected the Fed to begin tapering in September. If job growth disappoints, interest rates will likely fall because the Fed will have less incentive to taper.

Back in September, we were among the correct minority: We didn't think the Fed would taper. More recently, we thought the economy still wasn't that strong and that the Fed might not begin to taper until 2014. We still believe the Fed will hold off until next year. That said, next year is less than a month away.

The bottom line is that pressure is building for the Fed to taper, which strongly suggests mortgage rates are much more inclined to go higher in coming months.

Courtesy of Jessica Regan.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.