Real Estate Information Archive

Tight credit is frequent lament. In a Redfin survey , 16% of respondents stated that difficulty in obtaining financing was a challenge in the second quarter of 2014 compared to 8% in the first quarter.

This might be the perception, but the reality is that credit is gradually becoming easier to obtain, and that's been the case for the past two years. The Mortgage Bankers Association Mortgage Credit Availability Index continues to creep higher. In June, the index posted at 115.8 compared to 115.1 in May, which was better than the 113.8 in April. The index was set at 100 in March 2012.

To be sure, the younger crowd still has some difficulty with financing. As we noted a couple weeks ago, high student- loan debt is an issue. Obviously, that drives up the debt-to-income ratio. That aside, the issues aren't materially different for younger people today compared to younger people of previous generations. When starting off in life, most of us lack assets and have to scrimp to get head. That hasn't change.

The good news is housing continues to change for the better for all age groups. Price appreciation is falling back in line with historical norms. The prospect of slower price growth will bring more homes to market; there will be less incentive to hold out for a higher price. This, in turn, will further slow price growth.

The bottom Line: More people will be able to afford a home, and more funding will be available to those who want to buy a home. That's good news for everyone .

Information provided by 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.

Bill Gross Just Bought $60-Million Worth of Bonds: Why That's a Big Deal

The name Bill Gross is meaningless to most Americans. For those in finance, it's different. The name is universally known, because Bill Gross is the preeminent bond investor in the country. Specifically, Gross manages the $270-billion PIMCO Total Return Fund Institutional closed-end fund, which is the largest bond fund in the United States.

Gross' actions attract attention. This past week, he attracted considerable attention when it was revealed he had poured $60 million of his personal wealth into bond funds he manages. This $60 million is on top of the $140 million he already has invested in these funds.

In short, Gross in betting in a big way that low interest rates will remain low for quite a while longer.

When you look at the yield performance on the 10-year U.S. Treasury note over the past six months, it's difficult to disagree with Gross' bet. Yields have actually shown more of an inclination to go lower than higher.

The 10-year Treasury note is a good proxy for mortgage rates, particularly the 30-year fixed-rate loan. If you lack access to immediate mortgage information, a quick glance at the yield on the 10-year note (readily accessible at Yahoo! Finance) will give you a good idea to the direction of rates.

As for the actual 30-year fixed-rate loan, it remains subdued. Bankrate.com had the 30-year loan averaging 4.31% for the past week, a slight increase over the previous week. Freddie Mac had it at 4.15%. Over the past day or so, the rate has actually drifted a little lower.

Last week, we cautioned that another strong jobs report – which we got – would pressure rates to rise. Rates rose, but only by a few basis points. That interest rates remain low in the face of improving job prospects (which is indicative of an improving economy) suggests there is little impetuous for interest rates, in general, and mortgage rates, in particular, to rise.

As for our prediction of 5% on the 30-year fixed-rate loan by the end of the year? Anything can happen, but it's a more distant target than it was at the beginning of the year. That said, we still have nearly six month until Dec. 31. By October, the Federal Reserve is expected to have ceased buying Treasury notes and mortgage-backed securities (MBS). What's more, the Fed will likely cease or cut back reinvesting interest and principal from maturing notes and MBS into more notes and MBS.

Basically, this means that the Fed – a key factor to low mortgage rates for the past six years – will be a much smaller player as we progress through the fourth quarter. What this means to the direction of interest rates is anyone's guess. At least we know what Bill Gross' guess is – rates will remain low. But, of course, that's subject to change.

Information provided by 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.

Spiders.

If that word sends shivers down your spine, you’re not alone. According to a recent BrightNest poll, 85 percent of people Hate spiders with a capital H. But just because the eight-legged arachnids aren’t welcome in your home doesn’t mean they’ll always stay away.

To keep spiders out of sight and out of mind, try one of these natural deterrents before reaching for the chemical spray.

Here are five chemical-free methods to rid your home of spiders:

1. Essential Oils

Essential oils in scents like eucalyptus and peppermint are basically spiders’ worst enemy, because they find the intense smells overwhelming. Fill up an 8 oz. spray bottle with water and add about 15 drops of the oil of your choice. Spray the solution in doorframes, floorboards, bookshelves and any other small crevices. See ya, spiders!

2. Chestnuts

Believe it or not, chestnuts secrete a chemical that spiders can’t stand, so place chestnuts along your windowsills, under the fridge, in dark cabinets and wherever else you frequently see eight-legged enemies. Tip: This only works if the chestnuts are fresh, so it’s best if you store chestnuts in the fridge. Switch out your chestnuts on a weekly basis.

3. Vinegar

In addition to keeping colors fresh in the laundry and elminating mold, white vinegar is a spider-fighter, too! To fight arachnids, combine water and a dash of white vinegar in a spray bottle. Then, spritz doorframes, windowsills, under cabinets and anywhere else you think spiders could enter your home (like a doggie door).

4. Citrus

Spiders hate citrus: lemons, oranges, limes – you name it. To spread citrus throughout your house, rub orange peels on any surface where spiders could creep around or fill a spray bottle with water and citrus juice for a natural-deterrent spray. For more ways to clean with citrus, read: Power to the Lemon: 10 Amazing Household Uses.

5. Keep It Neat

Spiders love to camp out and spin their webs in cozy crevices. To prevent this, dust often and keep clutter to a minimum, especially in small spaces like cabinets and drawers. Flatten and recycle cardboard boxes and empty paper bags. Use the hose of your vacuum to clean floorboards by running the hose along where the floor meets the wall and along the edges of furniture.

What can unstick a zipper, remove stains and kill bugs on contact? No, it’s not Superman—it’s Windex!

Skeptical? Check out nine of Windex’s most impressive hidden powers:

1. Cut Through Grease

You know that pesky grease on your stove and pans that requires so much scrubbing to remove that you’re sore the next morning? There’s an easy fix: apply 2-3 sprays of Windex to the greasy area and let it sit for 15 minutes. Then, wipe it with a rag and the grease will slide off like butter. Note: Be sure to thoroughly wash your pans with dish soap before cooking again.

2. Unstick a Zipper

Spray 1-2 sprays of Windex on the area where the zipper is stuck. It acts as a lubricant. Slowly begin pulling the zipper back and forth until it starts it’s normal zipping duties again.

3. Add a Streak-Free Shine to Stainless Steel and Tile

Stainless steel and tile (especially tile floors) are prone to streaking, which is pretty irritating while you’re cleaning. Use Windex on countertop tiles and stainless steel appliances to find that elusive streak-free shine.

4. Actually, Add Shine to Almost Any Surface

Turns out you can use Windex on whatever surface you want! Looking to clean the kitchen in a pinch? Spray Windex on the countertops, fridge, stove top and sink. Then, quickly run a rag over everything. You can tell your houseguests it took all day – we won’t reveal your secret!

5. Clean Electronics

Windex can be used on the outer shell of electronics like DVRs, cable boxes, TVs, your laptop or desktop computer and lamps. It will pick up dust and leave your devices sparkling clean. However, we recommend avoiding the screen entirely!

6. Stain Remover

Yes, you read that correctly. Windex can be used on fabrics and carpet to remove most stains including coffee, food, drinks, blood (gross, but true), grease and oil. For small clothing stains, use two sprays and let the Windex sit on the fabric for 5-7 minutes. Then, throw it in the washer. If the stain is larger (about the size of your fist), try 5-6 sprays.

Use the same amount of Windex for carpet stains and lightly dab your carpet with a paper towel or clean rag. It may take a few rounds of spraying Windex and dabbing before the stain is gone, but if you persevere, it’ll work!

Tip: Test a small amount of Windex on an inconspicuous area of the fabric or carpet to be sure it won't damage the material before going gung-ho on the stain.

7. Calm Swelling

Did you know that Windex can be used to remove things like stuck wedding rings? It’s true! Windex reduces swelling. Apply 1-2 sprays to a swollen finger and after a minute you’ll be able to slip your ring off. Once your swelling goes down, make sure to wash the Windex off of you skin and jewelry.

8. Bug Deterrent

Windex works as bug spray for ants, flies, stinkbugs and most other creepy crawlers you will occasionally find around the house. However, we recommend that you only use Windex to kill bugs on contact, not as a preventative measure.

9. Clean a Clogged Printerhead

Your printerhead is the part of the printer that attaches to the ink cartridge and applies the ink to the page. They’re pretty temperamental, and get clogged easily especially if you have an older model.

If this happens, first turn off your printer. Then, wet a paper towel with 3-4 sprays of Windex, remove the ink cartridge, and place the paper towel on the printerhead. Leave the paper towel for 24 hours and make sure the printerhead is dry before you turn the printer back on and try to print with a new ink cartridge.

When it comes to 4^th of July gatherings, the old adage “the more, the merrier” almost always applies. With humans, that is. The thing is, insects also love a good party, but they’re much less fun to hang out with than your friends and family.

To avoid spending your holiday swatting at six-legged party crashers, keep these tips in mind:

1. Use Marigold Centerpieces

Not only are marigolds an attractive accessory, they’re also natural insect repellants. Placing a pot of them on the table will keep bees and other bugs from milling around your tasty 4^th of July treats.

2. Keep Food Covered

Speaking of treats, your guests won’t be the only ones attracted to your watermelon slices and potato salad. Keep bugs from sampling the spread by covering dishes with plastic wrap or aluminum foil.

3. Place Cucumbers on the Ground 

To keep ants from scaling the table, place slices of cucumber (which ants hate) on the ground surrounding its legs. Tip: If you don’t want to confuse your guests with strangely-placed vegetables, grate the cucumber into fine shreds so that it is camouflaged in the grass.

4. Distance the Trash

Placing the garbage can near your eating area is a logical-but-buggy choice because trash is a major pest magnet. To spare your guests unnecessary swatting efforts, keep your waste covered and away from the action.

5. Grill with Herbs 

Sage and rosemary smell dreamy to us, but they’re a bug’s worst nightmare. Placing these herbs directly on the coals of the grill when barbecuing (AKA “The BBQ Bomb”) will have your human guests gathering around and insects fleeing for the neighbors’ yard.

6. Garden Smart 

If you have a garden, plan ahead and plant natural bug-repellants like lavender, citronella, spearmint and chrysanthemum so that they’ll be in full bloom by the time your party rolls around. Tip: If you’re late to the planting game, you can still buy these plants in pots and place them strategically around the yard.

Existing home sales account for the majority of sales and mortgage-finance activity, but new home sales and construction contribute more to overall economic growth.

Therefore, we were someone disappointed that housing starts eased in May, with starts falling 6.5% month over month to a 1.001 million annualized rate. Single-family starts dropped 5.9% after a 4.6% rise in April. Permits followed a similar pattern, falling 6.4% month over month. This suggests starts could tread water over the next month or two.

That said, we could still see a pick up in starts based on home builder sentiment. The National Association of Home Builders' confidence index rose four points to a seasonally adjusted 49 in June. The future sales component also moved higher, up 3 points, to 59. This is the best reading since January. This is particularly encouraging, because the future matters more than the past.

Topping our wish list, though, is rising purchase mortgage activity. Unfortunately, purchase applications – after posting a couple weeks of gains – decreased 5% in the Mortgage Bankers Associations' latest survey. With institutional buyers (cash buyers) pulling back, we want to see the individual owner-occupied buyer – the buyer likely to take on mortgage – move into the lead. We still haven't seen that. Until we do, we don't expect to see continual improvements in the housing numbers.

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.

Bond markets were given a slight jolt this week on unexpectedly high consumer-price inflation.

Specifically, the Consumer Price Index (CPI) jumped 0.4% month over month in May. This was the largest monthly increase since February 2013. The latest increase in consumer prices lifted annual CPI to 2.1%. This is within the Federal Reserve's tolerable inflation range, but it still raised a few eyebrows.

Eyebrows were raised because inflation influences interest rates. When inflation rises, bond yields rise as well. At the same time, bond prices fall. Investors want to be compensated for lost purchasing power over time (which is the result of inflation). If investors anticipate higher inflation, they will demand a higher interest rate.

The CPI was released Tuesday, and mortgage rates rationally rose. But they've actually eased back since. When we look at the national averages we don't see much change week over week: Bankrate.com's survey has the 30-year fixed-rate loan at 4.33%, a basis point lower than the previous week. Freddie Mac's survey pegs the 30-year loan at 4.17%, a three-basis point decrease.

To be sure, the national surveys unlikely captured the full impact on rates when the CPI was released. (The 10-year U.S. Treasury note serves as a good proxy for the 30-year fixed-rate mortgage. You can see that the 10-year note's yield spiked higher .) But there is a mitigating factor for rates to remain subdued – low Gross Domestic Product (GDP) growth.

We've been cautiously optimistic that growth would accelerate this year. Indeed, we've been encouraged by the trend in job growth, with the economy adding 200,000-plus new jobs each month for the past three months. This seemed like a good omen.

Today, we are a little more cautious and a little less optimistic. This past week, the Fed cut its growth prediction to 2.2% from 3% for 2014. That's a sharp reduction and reflects the 1% economic contraction that occurred in the first quarter. The reduction also suggests the Fed is still wary that widespread predictions for an economic growth breakout will not occur.

Low growth, in turn, will hold inflation at bay, because loan demand will remain muted. For anyone unfamiliar with how our banking system – which is based on fractional reserves – works, more lending increases the money supply. More money chasing the same amount of goods and services eventually leads to consumer-price inflation.

Today, the 30-year fixed rate mortgage is as close to 3.5% as it is to 5% – the year-end prediction we proffered in January. So do we still think we'll hit 5% by the end of December? We have to confess that it's appearing less likely. That said, keep an eye on the monthly employment numbers, which are released the first Friday of every month. Should the economy continue to create jobs at a 200,000-plus rate each month, 5% on the 30-year remains a possibility.

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.

You can save up to 10 percent on your energy bill by targeting your energy hogs and unplugging them when you aren't using them regularly! While refrigerators and air conditioners consume the most energy, there are many small appliances that consume large amounts of unnecessary energy, too. These ‘vampire’ products cannot be turned off without being unplugged, and draw power 24 hours a day.

1. If you want to know what current energy hogs you’re using, buy a low-cost wattmeter to measure the devices in your home.

2. Identify the vampire appliances in your house. If you don't use the following appliances regularly, unplug them!
    
3. Computers. Whether you have a desktop or a laptop (or both), your computer is a Dracula-level energy vampire. By turning your computer off instead of letting it idle or sleep, you can reduce its energy usage by as much as 250 percent.
    
4. Toaster. Once your crispy toast is on your plate, there’s no need to leave your toaster on. Unplug it until it’s time for your next snack.
    
5. Cell phones. Even when your phone is plugged-in and fully charged, it’s sapping energy from your outlet. Make a point to unplug your cell phone once the battery is full. Same goes for the charger.
    
6. DVR and cable box. Even when your cable setup isn’t recording and is turned off by remote control it uses a whopping 43.46 watts an hour. When you’re going to sleep or leaving the house for a while, unplug your setup completely.
    
7. Coffee machine. You may take your cup of java to go in the morning, but your coffee machine hangs out all day draining power. Unplug it once you have your brew, or go classy and switch to a French press!
    
8. To make unplugging appliances easier, consider using a switchable power strip to easily unplug a cluster of cords all at once. If there are energy hogs you aren't use regularly, plug them into the power strip and get in the habit of switching it off.

Investment is just as important as consumption in driving growth. Indeed, investment sets the stage for consumption. You invest to produce, and what is produced is consumed.

This brings us to residential real estate investment, which has been on the upswing since mid-2010, but it still has a long way to go. In 1999, the housing sector was investing over $600 billion annually. Today, that figure is less than $500 billion.

This suggests that there is plenty of room for more growth and overall housing improvement. The peak that was achieved in late 2005 has been offset by a decade of low investment. We think housing is well-positioned to increase investment, which will increase housing supply, housing consumption, and overall housing activity.

We say that because we think demand will pick up in the second half of 2014 and continue into 2015. As we note, job growth is on the upswing, which points to an upswing in the overall economy.

In other words, the positive trend in the labor market, and even that in the mortgage market, will eventually set housing on its own positive trend.

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.

We've been keeping a close on employment numbers since the 2009 recession. Many times in these pages we've noted that as job growth goes, so goes the economy... and, of course, so goes housing.

Job growth is finally going the way we want. The economy added 217,000 new jobs in May, with the private sector by far leading the increase, adding 216,000 new jobs. The gains in May come on top the 282,000 new jobs in April and the 203,000 in March.

This is good news, because we haven't seen monthly job growth continually exceed 200,000 each month until recently. To sustain a recovery, the economy needs to add 200,000-or-more jobs each month. With the recent gains, total employment is now 98,000 above the pre-recession peak and at an all-time high. (Though it's worth noting that the population continues to grow as well: 10 years ago there 290 million of us; today there are 317 million).

Interestedly, another month of strong job growth hasn't had much impact on mortgage rates. Rates moved up this past week, but only slightly. Looking at the national averages, Bankrate.com's survey shows the 30-year fixed-rate mortgage averaged 4.34%, which is two basis points higher than the previous week. Freddie Mac's survey shows the 30-year loan averaged 4.20%, a six-basis-point increase. Rates are still very reasonable.

More borrowers took advantage of low mortgages last week. The Mortgage Bankers Association (MBA) reports that application activity for the week ending June 6 was up strongly. Week over week, refinances were up 11%, while purchase applications were up 9%. This is one of the strongest weekly gains in months.

Our enthusiasm is somewhat tempered, though. Too many times we've seen purchase applications string together two or three weeks of gains only to reverse course. But with institutional buyers (the cash buyers) pulling back, we are cautiously optimistic the individual buyer – using mortgage financing – will pick up the slack. Recent job growth is behind our optimism.

Given recent job data, we wouldn't be surprised to see mortgage-purchase activity trend higher. More people working is obviously a plus. At the same time, mortgage credit continues to avail itself to more people. The MBA, which produces the Mortgage Credit Availability Index (MCAI), reports that the MCAI rose in May to 115.1, from 113.8 in April. So, yes, underwriting standards are easing, and actually have been easing over the past two years when you consider the MCAI base was 100 when it was introduced in March 2012.

This isn't a surprised. As the economy improves (which it has), lenders become more willing to extend loans, and to extend loans to lower-rated borrowers. This is another positive trend we've seen developing in the past two years, as evinced by the MCAI.

The trends we see in job growth and mortgage lending bode well for housing, which is why we remain bullish on housing.

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.