Last week's release of CPI and PPI resulted in slightly higher than expected inflation rates which led to speculation that the Federal Reserve's decision to cut rates will likely come much further in the year than anticipated. There was some suspicion that if inflation rates would continue to exceed predictions, it could result in another rate hike. Lending partners have responded in kind with the first significant increase in lending rates since the end of November. However, The Federal Reserve will likely maintain its current stance. Other reports such as US Retail Sales are showing a drop, but this is contrasted by the Consumer Sentiment reports which show an opposite effect — … [Continue Reading...]
Are you considering taking the leap into homeownership, but feeling overwhelmed by the options? Purchasing your first home is an exciting milestone, but it can also be a daunting process. One option that may be particularly appealing for first-time homebuyers is a condominium, or condo for short. We will explore why a condo could be the perfect fit for your first venture into homeownership. Affordability: Condos often come with a more manageable price tag compared to single-family homes. For first-time buyers, affordability is a crucial factor to consider when taking out a mortgage. Condos typically have lower upfront costs and ongoing maintenance expenses, making them an attractive option … [Continue Reading...]
If you are thinking about buying a new home shortly, you may already be searching online to get a feel for the different types of homes available in the local area. You may have reviewed your budget, and you may have a fair idea about a sales price that is comfortable for you to afford. While you may feel as though you have taken the preliminary steps necessary to prepare yourself to buy a home, it is important that you also get a mortgage pre-approval letter for your financing before you start hunting for that perfect new house or condo. The Importance of a Pre-Approval Letter A mortgage pre-approval letter is issued to a loan applicant after he or she has passed through a preliminary … [Continue Reading...]
Whether you're a first-time homebuyer or a seasoned homeowner considering a refinance, the term "escrow account" often looms as a source of confusion. Yet, understanding the ins and outs of escrow accounts is crucial for managing your homeownership responsibilities effectively. In this article, we'll address some common questions and concerns regarding escrow accounts to shed light on their importance and functionality. What is an Escrow Account? Escrow accounts, sometimes referred to as "impound" accounts, serve as a financial mechanism to facilitate the payment of property taxes and homeowner's insurance. Typically, lenders require homeowners to contribute a portion of these expenses … [Continue Reading...]
While watching shows like Property Brothers, Flip or Flop, Fixer to Fabulous, Fix My Flip and Fixer Upper may paint a rosy picture of buying a remodeled home, the reality often differs significantly. While these shows depict smooth transformations and stunning results, real-life experiences with remodeled homes can be far more complex and challenging. Many flipped houses come with hidden issues. Contractors sometimes prioritize speed over quality, resulting in careless workmanship. Despite the initial aesthetic appeal, problems may emerge months down the line. While purchasing a flipped property can be enticing, thorough research is paramount. Here are some red flags to watch out for during … [Continue Reading...]
This week is the release of Core CPI and PPI numbers for January. The only data release of note is the trade deficit and the usual unemployment reports for the prior week. The current trade deficit for the U.S. is operating precisely within expectations and correlating GDP numbers. This current week will provide further guidance for the Federal Reserve as the next release of inflation data is released.
U.S. Trade Deficit
The U.S. trade deficit rose slightly in December, but the annual gap still fell to the lowest level in three years and added to the economy's strong performance in 2023.
Record deficits in 2021 and 2022, by contrast, acted as a big drag on gross domestic product, the … [Continue Reading...]