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What To Look For From This Week’s Fed Meeting

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What To Look For From This Week’s Fed Meeting

You may be hearing a lot of talk about the Federal Reserve (the Fed) and how their actions will impact the housing market right now. Here’s What to Look for From This Week’s Fed Meeting.

NOTE: BE SURE TO CHECK AN ADDITIONAL PIECE OF INFORMATION BELOW! 

The Fed meets again this week to decide the next step with the Federal Funds Rate. That’s how much it costs banks to borrow from each other. Now, that’s not the same thing as setting mortgage rates, but mortgage rates can be influenced through this process. And if you’re thinking about buying or selling a home, you may be wondering about the downstream impact and when mortgage rates will come down.

Here’s a quick rundown of what you need to know to help you anticipate what’ll happen next. The Fed’s decisions are guided by these three key economic indicators:

  1. The Direction of Inflation
  2. How Many Jobs the Economy Is Adding
  3. The Unemployment Rate

Let’s take a look at each one.

1. The Direction of Inflation

You’ve likely noticed prices for everyday goods and services seem to be higher each time you make a purchase at the store. That’s because of inflation – and the Fed wants to see that number come back down so it’s closer to their 2% target.

Right now, it’s still higher than that. But despite a little volatility, inflation has generally been moving in the right direction. It gradually came down over the past two years, and is holding fairly steady right now (see graph below):

a graph of a graph with textThe path of inflation – though still not at their target rate – is a big part of the reason why the Fed will likely lower the Fed Funds Rate again this week to make borrowing less expensive, while still ensuring the economy continues to grow.

2. How Many Jobs the Economy Is Adding

The Fed is also keeping an eye on how many new jobs are added to the economy each month. They want job growth to slow down a bit before they cut the Federal Funds Rate further. When fewer jobs are created, it shows the economy is still doing well, but gradually cooling off—exactly what they’re aiming for. And that’s what’s happening right now. Reuters says:

“Any doubts the Federal Reserve will go ahead with an interest-rate cut . . . fell away on Friday after a government report showed U.S. employers added fewer workers in October than in any month since December 2020.”

Employers are still hiring, but just not as many positions right now. This shows the job market is starting to slow down after running hot for a while, which is what the Fed wants to see.

3. The Unemployment Rate

The unemployment rate shows the percentage of people who want jobs but can’t find them. A low unemployment rate means most people are working, which is great. However, it can push inflation higher because more people working means more spending—and that makes prices go up.

Many economists consider any unemployment rate below 5% to be as close to full employment as is realistically possible. In the most recent report, unemployment is sitting at 4.1% (see graph below):

a graph of a number of peopleUnemployment this low shows the labor market is still strong even as fewer jobs were added to the economy. That’s the balance the Fed is looking for.

What Does This Mean Going Forward?

Overall, the economy is headed in the direction the Fed wants to see – and that’s why experts say they will likely cut the Federal Funds Rate by a quarter of a percentage point this week, according to the CME FedWatch Tool.

If that expectation ends up being correct, that could pave the way for mortgage rates to come down too. But that doesn’t mean they’ll fall immediately. It will take some time. Remember, the Fed doesn’t determine mortgage rates. Forecasts show mortgage rates will ease more gradually over the course of the next year as long as these economic indicators continue to move in the right direction and the Fed can continue their Federal Funds rate cuts through 2025.

But a change in any one of the factors mentioned here could cause a shift in the market and in the Fed’s actions in the days and months ahead. So, brace for some volatility, and for mortgage rates to respond along the way. As Ralph McLaughlin, Senior Economist at Realtor.com, notes:

“The trajectory of rates over the coming months will be largely dependent on three key factors: (1) the performance of the labor market, (2) the outcome of the presidential election, and (3) any possible reemergence of inflationary pressure. While volatility has been the theme of mortgage rates over the past several months, we expect stability to reemerge towards the end of November and into early December.”

Bottom Line

While the Fed’s actions play a part, economic data and market conditions are what really drive mortgage rates. As we move through the rest of 2024 and 2025, expect rates to stabilize or decline gradually, offering more certainty in what has been a volatile market. 

HERE IS A SIDE ARTICLE WORTH MENTIONING:  

Mortgage Rates Set To Rise as Donald Trump Clinches Election Win

10 Appealing DIY Home Improvement Tips and Tricks

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10 Appealing DIY Home Improvement Tips and Tricks

Painting an Accent wall DIY Home ImprovementIf you’re looking to improve your home without breaking the bank or calling in a professional, DIY home improvement projects are a fantastic way to refresh your space. From simple upgrades to creative hacks, here are 10 Appealing DIY Home Improvement Tips and Tricks that will add style, comfort, and value to your home.

1. Paint an Accent Wall

One of the easiest and most effective ways to transform a room is by adding an accent wall. Choose a bold color or textured paint finish to make a statement. If you’re feeling adventurous, you could even try a DIY stencil pattern or mural. This can instantly make a bland room pop with personality.

**Tip:** Use painter’s tape to create sharp lines, and make sure to test out colors in small sections before committing.

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2. Install a Backsplash

Adding a backsplash to your kitchen or bathroom not only enhances the aesthetic but also protects the walls from spills and splashes. Peel-and-stick tiles make this project simple enough for any DIYer, and they come in a variety of designs that mimic expensive tiles at a fraction of the cost.

**Tip:** Measure your space carefully and plan your tile layout before sticking them to the wall to ensure an even, professional finish.

Install new lights for DIY Home Improvement3. Upgrade Your Lighting

Switching out outdated light fixtures can modernize a room instantly. Whether it’s a chic chandelier in the dining room or sleek pendant lights in the kitchen, lighting sets the mood. You can also replace traditional bulbs with energy-efficient LED bulbs to save on your electricity bill.

**Tip:** Ensure you turn off the power before working with electrical wires, and always follow safety guidelines.

 4. Add Crown Molding

Crown molding adds elegance and a finished look to any room. With the right tools, you can install it yourself. Pre-cut molding from your local hardware store makes it easier, and with some caulk and paint, you can achieve a professional look.

**Tip:** Measure carefully and use a miter saw to get the perfect angles.

 

 5. Refresh Cabinet Hardware

Instead of replacing your kitchen or bathroom cabinets, simply swap out the hardware. Sleek modern handles or knobs can completely change the look of your space without the expense of full cabinet replacement.

**Tip:** Make sure the new hardware fits the existing holes, or be prepared to fill and drill new ones.

 6. DIY Floating Shelves

Floating shelves are both functional and stylish, and they’re easier to build than you might think. Use wood planks, brackets, and a little elbow grease to create shelves that not only hold your belongings but also add a decorative element to your walls.

**Tip:** Always use a level when hanging shelves to ensure they’re perfectly straight.

Here are more of our 10 Appealing DIY Home Improvement Tips and Tricks

 

Statement Front Door DIY Home Improvement7. Create a Statement Front Door

Your front door is one of the first things people notice about your home. A fresh coat of paint in a bold color or a wood stain can make a huge difference. You can also add stylish house numbers or a modern door knocker for extra curb appeal.

**Tip:** Choose a paint color that complements your home’s exterior and is weather-resistant for durability.

 

8. Install a Smart Thermostat

Upgrading to a smart thermostat is a tech-savvy way to improve your home’s energy efficiency. Many smart thermostats allow you to control the temperature from your smartphone, helping you save on energy costs and keep your home comfortable.

**Tip:** Installation is usually simple and doesn’t require professional help, but always follow the instructions carefully.

 

9. Re-caulk Your Bathroom

If the caulk in your bathroom is looking worn, cracked, or mildewed, it’s time for a refresh. Re-caulking is a quick and inexpensive way to make your bathroom look cleaner and prevent water damage.

**Tip:** Use a caulk removal tool to get rid of the old caulk and ensure the surface is clean and dry before applying the new caulk.

 

10. Build a Custom Headboard

A custom headboard can transform your bedroom into a designer-like retreat. You can create one from wood, fabric, or even reclaimed materials like pallets. Tailor the design to your style, whether you prefer minimalist, rustic, or luxurious.

**Tip:** For fabric headboards, use a staple gun to secure the material tightly for a smooth finish. If you’re working with wood, sand it down and finish with stain or paint for a polished look.

 

Conclusion

DIY home improvement projects don’t have to be complicated or expensive to make a big impact. These ten tips and tricks can help you refresh your space and add personal touches that make your home feel new and inviting. Whether you’re enhancing your living room with accent walls or boosting curb appeal with a painted front door, these ideas are great for any skill level.

 

7 Mistakes to Avoid When Hiring a Contractor

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Mistakes NOT to make When you hire a contractorA recent survey found that more than half (52%) of American homeowners have a renovation project planned this year.1 If you’re among them, you know that embarking on home improvements can be both exciting and daunting. According to the survey, the median renovation budget is around $15,000, so you’re probably investing a significant amount—and you’ll want to ensure your project’s success.1 One of the most critical decisions you’ll make is choosing the right contractor to bring your vision to life. However, many homeowners fall into common pitfalls during this process, leading to stress, financial strain, and subpar results. In this post, we’ll explore 7 Mistakes to Avoid When Hiring a Contractor to ensure your project runs smoothly from start to finish.
 

1. SKIPPING THE RESEARCH PHASE

A common mistake homeowners make is rushing into hiring a contractor without proper research. But to ensure the success of your renovation, it’s crucial to take time to meet with multiple candidates and educate yourself on best practices surrounding your project. If you bypass the interview process, you miss the opportunity to evaluate different approaches, pricing, and expertise. This can result in overpaying or hiring someone whose skills and vision do not align with your needs. Neglecting to research the processes and steps involved can also leave you vulnerable. Not only does it make it more difficult to ask the right questions, but you also risk hiring unqualified professionals or settling for subpar work. What To Do Instead:
  • Educate Yourself — Read up or watch YouTube videos to gain a better understanding of best practices surrounding your project.
  • Interview Multiple Contractors — Search for and interview at least three contractors who specialize in the type of work you need.
  • Ask Specific Questions — Inquire about the processes and materials each candidate will utilize.
  • Seek Recommendations — Get referrals from trusted sources like friends, neighbors, and real estate professionals. We’d be happy to share a list of referrals!

2. CHOOSING BASED SOLELY ON PRICE

 
Once you’ve interviewed candidates and reviewed their proposals, it’s time to choose your favorite. But don’t make the mistake of rushing to the lowest bid. While it’s natural to want to save money, selecting a contractor based entirely on price can be a costly mistake. Extremely low bids may indicate cut corners, subpar materials, or hidden costs that will surface later. According to the National Association of the Remodeling Industry, when evaluating bids, make sure you’re comparing “apples” to “apples” and considering factors like quality, timeline, and scope.2 Are they fully licensed and insured? How long have they been in business? Do they warranty their work? What To Do Instead:
  • Consider Overall Value — In addition to price, look at experience, reputation, and quality of work.
  • Ask for Detailed Breakdowns — Understand what’s included and what’s not in each bid.
  • Be Wary of Low Bids – Bids that are significantly lower than others may be too good to be true.
  • Invest in Quality — Remember that quality work comes at a fair price, and investing in a reputable contractor can save you money in the long run by avoiding costly mistakes or repairs.
 

3. NEGLECTING TO CONFIRM CREDENTIALS & INSURANCE

 
7 Mistakes to Avoid When Hiring a ContractorWhen you’ve established a good rapport with a contractor, it’s natural to want to believe the best in them. But neglecting to check references and verify licensing and insurance could come back to haunt you.3 Hiring an untrained or unlicensed contractor puts you at risk for safety and code violations, not to mention shoddy workmanship. Without proper insurance, you could be left footing the bill for costly repairs, legal issues, or even medical bills if someone gets hurt on the job.4 Skipping out on a reference check can be equally problematic. It’s your best opportunity to ensure that their promises and your expectations line up with reality. What To Do Instead:
  • Verify Licensing and Insurance — Confirm that the contractor is licensed according to local requirements and verify insurance, including general liability and workers’ compensation coverage.
  • Check Reviews — Read online reviews and confirm that the business is in good standing with the Better Business Bureau and other relevant trade groups.
  • Call References — When contacting references, ask questions and request to see photos of the contractor’s completed projects.
  • Visit Job Sites — If possible, visit a current job site to observe the contractor’s work in progress and interaction with clients.

4. PROCEEDING WITHOUT A WRITTEN AGREEMENT

 
A handshake deal might seem friendly and straightforward, but it’s a recipe for misunderstandings and potential legal issues. Verbal agreements are difficult to enforce and leave room for miscommunication about project scope, timelines, and costs.5 Instead, you should have a signed contract in place before any work begins.3 Paperwork can be tedious, but don’t skip the important step of carefully reading over your contract, asking questions, and pushing back on any terms that make you uncomfortable. Don’t forget to ask for payment receipts and document any change orders or issues that arise throughout the project, as well. What To Do instead:
  • Insist on a Written Contract — Outline all aspects, including scope, materials, timeline, payment schedule, warranty information, and a process for handling change orders.
  • Understand and Agree — Don’t sign anything until you fully understand and agree to all terms.
  • Keep Documentation — Once you’ve made your final payment, request a lien waiver or receipt marked “Paid in Full” to keep on file for legal and tax purposes.6
 

5. PAYING TOO MUCH UPFRONT

 
7 Mistakes to Avoid when hiring a ContractorAnother common misstep is paying a large sum upfront or the full cost of the project before the work is completed. This can leave you vulnerable if the contractor fails to complete the work or disappears with your money. According to the home services platform Angi, deposits typically range between 10% and 33% of the total project cost.7 The remaining payments should be tied to progress milestones outlined in your contract. Construction attorneys caution against paying a greater share of the project cost than the percentage of the work that’s been completed.3 If you end up dissatisfied with the outcome, you’ll have much less leverage if you’ve already paid. What To Do Instead:
  • Be Cautious — Avoid contractors who demand large upfront payments or cash-only deals.
  • Establish a Payment Schedule — Tie payments to project milestones and stick to them.
  • Pay Only Upon Completion — Never pay in full until the project is completed to your satisfaction and all required inspections have been passed.

6. FAILING TO GET NECESSARY PERMITS

 
Skipping the permit process might seem like a way to save time and money, but it can lead to serious consequences. Without the proper permits, you risk running afoul of local building codes and regulations, which could result in fines, forced removal of work, or even legal action.8 Additionally, unpermitted work might compromise the safety and structural integrity of your home, potentially leading to hazardous conditions or diminished resale potential. Homeowners may also find themselves without recourse if issues arise later, as insurance companies often exclude coverage for unpermitted renovations.8 If your community has a homeowners association (HOA), don’t forget to check their requirements, as well. You may need prior approval to make modifications to your home or yard. HOAs have the power to enforce these restrictions with fines, and they can even put a lien on your home—so don’t skip this important step.9 What To Do Instead:
  • Discuss Permits — Talk about permits and HOA requirements with your contractor before work begins.
  • Include Permits in the Contract — Ensure that obtaining necessary permits and approvals is part of your contract.
  • Verify Inspections — Make sure all required inspections are completed during the project.
  • Keep Records — Keep copies of all permits, HOA approvals, and inspection reports for your records.

7. IGNORING RED FLAGS AFTER THE PROJECT HAS STARTED

 
Sometimes a contractor can check all the right boxes—until the work begins. Unfortunately, red flags that are spotted mid-project can be especially challenging to address. If you’ve already paid a substantial amount or had a portion of your home demolished, you may feel trapped in a bad situation. However, if there are major problems that the contractor is unwilling to address, ignoring them can make things exponentially worse. Don’t be afraid to seek legal or professional advice if issues persist. Taking immediate, informed, and decisive action is crucial to safeguarding your investment and ensuring the project’s ultimate success.10 What To Do Instead:
  • Review Your Contract — Make sure you thoroughly understand your rights and the agreed-upon terms.
  • Document Issues — Keep detailed records, including dates, descriptions of problems, photographs of subpar work or materials, and any communications with the contractor.
  • Communicate Professionally — Arrange a meeting to discuss your concerns, ensuring you remain calm and professional while clearly expressing your expectations.
  • Request a Resolution Plan — Ask for a plan to address the issues, set a timeline for resolution, and put everything in writing to ensure you’re both on the same page.
  • Seek Advice — If the contractor is uncooperative or dismissive, consider seeking advice from a legal professional. You could also contact your local licensing board or consumer protection agency for guidance.
 

BOTTOMLINE

 
Hiring the right contractor is crucial to the success of your home improvement project. By avoiding these common mistakes, you can significantly increase your chances of a smooth and successful renovation experience. Remember, taking the time to thoroughly vet contractors, communicate clearly, and plan carefully will pay off in the long run. Your home is likely your most significant investment, and it deserves the care and attention that comes with making informed, thoughtful decisions about who works on it. If you’d like help finding a contractor or want to know how planned improvements could impact your home’s resale potential, reach out for a free consultation!
The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs. Sources:
  1. USA Today – https://www.usatoday.com/money/homefront/moving/home-renovation-statistics/
  2. National Association of the Remodeling Industry – https://remodelingdoneright.nari.org/Homeowner-Resources/Questions-to-ask/How-to-select-a-remodeler
  3. The Washington Post – https://www.washingtonpost.com/home/2024/07/08/how-to-find-good-honest-contractor/
  4. MarketWatch – https://www.marketwatch.com/guides/insurance-services/home-insurance-during-renovations/
  5. LegalZoom – https://www.legalzoom.com/articles/oral-contracts-do-they-carry-any-weight
  6. Better Business Bureau – https://www.bbb.org/all/home-improvement/your-home-improvement-contract
  7. Angi – https://www.angi.com/articles/how-much-should-i-pay-general-contractor-prior-starting-job.htm
  8. Bob Vila – https://www.bobvila.com/articles/remodel-without-permit/
  9. Bankrate – https://www.bankrate.com/real-estate/hoa-homeowners-association-rules/
  10. Angi – https://www.angi.com/articles/how-complain-contractors-effectively.htm

Housing Market Forecast: What’s Ahead for the 2nd Half of 2024

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Housing Market Forecast: What’s Ahead for the 2nd Half of 2024


As we move into the second half of 2024, here’s what experts say you should expect for home prices, mortgage rates, and home sales.

Home Prices Are Expected To Climb Moderately

Home prices are forecasted to rise at a more normal pace. The graph below shows the latest forecasts from seven of the most trusted sources in the industry:

No Caption Received

The reason for continued appreciation? The supply of homes for sale. Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), explains:

“One thing that seems to be pretty solid is that home prices are going to continue to go up, and the reason is that we don’t have housing inventory.”

While inventory is up compared to the last couple of years, it’s still low overall. And because there still aren’t enough homes to go around, that’ll keep upward pressure on prices.

If you’re thinking of buying, the good news is you won’t have to deal with prices skyrocketing like they did during the pandemic. Just remember, prices aren’t expected to drop. They’ll continue climbing, just at a slower pace.

So, getting into the market sooner rather than later could still save you money in the long run. Plus, you can feel confident experts say your home will grow in value after you buy it.

Mortgage Rates Are Forecast To Come Down Slightly

One of the best pieces of news for both buyers and sellers is that mortgage rates are expected to come down a bit, according to Fannie Mae, the Mortgage Bankers Association (MBA), and NAR (see chart below):

No Caption Received

When you buy, even a small drop in mortgage rates can make a big difference in your monthly payments. For sellers, lower rates will bring more buyers back into the market, which can help you sell faster and potentially at a higher price. Plus, it may help you get off the fence, if you’ve been hesitant to sell due to today’s rates.

Home Sales Are Projected To Hold Steady

For 2024, the number of home sales will be about the same as last year and may even rise slightly. The graph below compares the 2024 home sales forecasts from Fannie Mae, MBA, and NAR to the 4.8 million homes that sold last year:

No Caption Received

The average of the three forecasts is about 5 million sales in 2024 – a small increase from 2023. Lawrence Yun, Chief Economist at NAR, explains why:

“Job gains, steady mortgage rates and the release of inventory from pent-up home sellers will lead to more sales.”

With more inventory available and mortgage rates expected to go down, a few more homes are expected to be sold this year compared to last year. This means more people will be able to move. Let’s work together to make sure you’re one of them.

Bottom Line

If you have any questions or need help navigating the market, reach out.

Thinking About Selling Your House? “Life Happens” Buyers Are an Opportunity You Don’t Want to Miss

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Where Are People Moving Today and Why?

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Where Are People Moving Today and Why?

Plenty of people are still moving these days. And if you’re thinking of making a move yourself, you may be considering the inventory and affordability challenges in the housing market and wondering what you can do to help offset those. A new report from Gravy Analytics provides insight into where people are searching for homes and what they’re prioritizing most right now. That information could help you plan your own move.

1. People Are Moving to Cities with Lower Housing Costs

One big factor motivating where buyers are going is affordability and that’s no big surprise. People are relocating to areas that have less expensive housing options. As a result, small cities are thriving. Hannah Jones, Economics Data Analyst at Realtor.com, summarizes why:

“Affordability is still very much front and center . . . a lot of what’s available is outside of the price range of many buyers. . . . so they look elsewhere for a little more bang for the buck.”

The takeaway for you? If you’re having trouble finding a home that fits your budget, it may help to browse other, more affordable locations nearby.

Live Where you vacation
Photo by David Kovalenko on Unsplash

2. People Want to Live Where They Vacation

And, if you’re already expanding your search radius, you may be able to include a location that features your favorite type of destination, like a suburb near the beach or a mountain town. Data shows many other homeowners are making that type of move a priority today. According to the same report from Gravy Analytics:

“Whether it’s the opportunity to enjoy more weekend hikes in the mountains or to wake up to a lakeside sunrise, people are moving to areas that were once thought of as vacation spots.”

Even with today’s home prices and mortgage rates, here’s why a move like this could be possible for you. If you’re already a homeowner, the equity you’ll get when you sell your current house can help fuel that move and give you the down payment you’d need for your dream home.

3. People Who Work Remotely Are Taking Advantage of that Flexibility

Ongoing remote work is another major factor in where people are moving. A recent report from the McKinsey Global Institute says this about recent movement patterns:

“Many of these moves happened because employees untethered from their daily commutes began to care less about how far they lived from the office.”

If you’re a remote or hybrid worker, you don’t have to live in the same city, or sometimes even the same state, as your job. That means you can prioritize other things, like being closer to loved ones, when buying a home.

In fact, the same McKinsey Global Institute report notes for people who moved during the pandemic, 55% reported moving farther from the office. And since remote work is still a popular choice today, homebuyers will likely continue to take advantage of that flexibility.

Bottom Line

Lots of people are still moving today. If you want help navigating today’s inventory or affordability challenges, and expert advice to help you find your ideal home, let’s connect.

Thom Abbott

Associate Broker, REALTOR(R)
905 Juniper Street, NE Suite 110
Atlanta, Georgia 30309
770.713.1505 Direct
404.876.4901 Office

 
 
 
 
 
 
 
 
 
 

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