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THINK TWICE BEFORE WAITING FOR 3% MORTGAGE RATES

Rick Cunningham • Jan 18, 2023

By Rick Cunningham, 


Last year, the Federal Reserve took action to try to bring down inflation. In response to those efforts, mortgage rates jumped up rapidly from the record lows we saw in 2021, peaking at just over 7% last October. Hopeful buyers experienced a hit to their purchasing power as a result, and some decided to press pause on their plans.


Today, the rate of inflation is starting to drop. And as a result, mortgage rates have dipped below last year’s peak. Sam Khater, Chief Economist at Freddie Mac, shares:



“While mortgage market activity has significantly shrunk over the last year, inflationary pressures are easing and should lead to lower mortgage rates in 2023.”




That’s potentially great news if you’re a buyer aiming to jump back into the housing market. Any drop in mortgage rates helps boost your purchasing power by bringing down your expected monthly mortgage payment. This means the lower mortgage rates experts forecast this year could be just what you need to reignite your homebuying goals.


While this opens up a window of opportunity for you, remember: you shouldn’t expect rates to drop back down to record lows like we saw in 2021. Experts agree that’s not the range buyers should bank on. Greg McBride, Chief Financial Analyst at Bankrate, explains:




“I think we could be surprised at how much mortgage rates pull back this year. But we’re not going back to 3 percent anytime soon, because inflation is not going back to 2 percent anytime soon.”




It’s important to have a realistic vision for what you can expect this year, and that’s where the advice of expert real estate advisors is critical. You may be surprised by the impact even a mild drop in mortgage rates has on your budget. If you’re ready to buy a home now, today’s market presents the opportunity to get a more affordable mortgage rate, find your dream home, and face less competition from other buyers.


Bottom Line

The recent pullback in mortgage rates is great news – but if you’re ready to buy now, holding out for 3% is a mistake. Work with a local lender to learn how today’s rates impact your goals, and let’s connect to explore your options in our area.



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EMBRACE THE SEASON: INSPIRATION FOR A VIBRANT SPRING

By Rick Cunningham • 08 Apr, 2024
As Earth Day approaches, it’s the perfect opportunity for us to embrace the spirit of eco-friendly living right in our backyards. In a city known for its sunshine and unique climate, sustainable gardening can be a rewarding way to contribute to environmental health. Let’s explore how you can turn your Los Angeles garden into a flourishing, sustainable oasis. The Basics of Sustainable Gardening Sustainable gardening is about creating a garden that lives in harmony with the local environment. Due to L.A.’s Mediterranean climate, it’s important to choose gardening practices that conserve water and support native wildlife. Whether you have a spacious yard or a cozy balcony, every green space can become an eco-friendly haven. Choosing the Right Plants In Los Angeles, the key to a sustainable garden is selecting native and drought-tolerant plants. Native plants such as the California Poppy, Matilija Poppy, and various types of sage not only require less water but also provide essential habitats for local pollinators. Consider incorporating plants like Lavender, Salvia, and California Lilac, which thrive in L.A.’s climate while adding beauty and biodiversity to your garden. Water Conservation Techniques Water is a precious resource in Los Angeles. Implementing water-wise practices is essential for a sustainable garden. Drip irrigation systems and soaker hoses are efficient ways to water plants, minimizing waste. Also, consider installing rain barrels to collect and reuse rainwater for your garden. Organic Gardening Practices Embrace organic gardening by avoiding chemical pesticides and fertilizers. Composting kitchen scraps and yard waste not only reduces landfill waste but also enriches your soil naturally. In L.A., composting can be a year-round activity due to the mild climate. Natural Pest Control In an L.A. garden, natural pest control means encouraging beneficial insects and birds that keep harmful pests in check. Planting a variety of species creates a balanced ecosystem where nature manages itself. For example, attracting ladybugs can help control aphid populations naturally. Upcycling and Creative Use of Space Los Angeles’s diverse culture is reflected in its creative use of space. Upcycling old furniture or containers into planters not only adds character to your garden but also aligns with sustainable principles. Utilize vertical spaces like walls or fences for gardening to maximize your area. Community Involvement This area is home to numerous community gardens and environmental initiatives. Engaging with local community gardens can be a great way to learn and share sustainable gardening practices. Participate in local plant swaps or workshops to deepen your knowledge and connect with fellow garden enthusiasts. Conclusion: Making a Difference in L.A. Starting a sustainable garden in Los Angeles this Earth Day is more than just a hobby; it’s a step towards a greener, more resilient community. Embrace these practices and watch your garden transform into a vibrant, eco-friendly ecosystem, right in the heart of the city.

SPRING EVENTS

By Rick Cunningham • 05 Apr, 2024
LASAN's Earth Day LA 2024 April 20, 2024 https://allevents.in/los%20angeles/lasans-earth-day-la-2024/10000857119115347 LASAN's Earth Day LA 2024 is a community event organized by the Los Angeles Sanitation & Environment department to raise awareness about environmental issues and promote sustainability through workshops, exhibits, and interactive activities, encouraging residents to participate in eco-friendly practices and support conservation efforts in the city. Bob Barker Day April 21, 2024 https://bobbakerday.com/ Bob Baker Day celebrates the legacy of the renowned puppeteer Bob Baker with a day of puppet shows, live performances, workshops, and family-friendly activities, honoring his contributions to the arts and preserving puppetry as a cherished cultural tradition in Los Angeles. Festival of Books April 20-21, 2024 https://events.latimes.com/festivalofbooks/ The Los Angeles Times Festival of Books is an annual literary extravaganza featuring author panels, book signings, storytelling sessions, and a bustling marketplace with exhibitors showcasing a diverse array of books and literary merchandise, offering book lovers of all ages an immersive celebration of literature and storytelling in the heart of Los Angeles.

THE RISK OF OVERPRICING YOUR HOME

By Rick Cunningham • 05 Apr, 2024
Spring has sprung, and it's not just the flowers popping up – it's the "For Sale" signs too! If you're thinking of selling your house, you're in luck. We're riding the waves of a seller's market, thanks to a lean supply of homes. And let's not forget, spring is when buyers come out of hibernation, eager to find their perfect nest. So, slapping a "For Sale" sign on your lawn? Exciting times ahead! Pricing: The Make or Break Factor But here's the catch – while the market's in your favor, setting your asking price is like walking a tightrope. Aim too high, and you might just lose your balance. Why? Because a sky-high price tag could end up costing you more in the long run. Think of your asking price as your home’s first handshake with potential buyers. It’s that crucial first impression, along with those snazzy photos you’ve got lined up. Price it too steep, and you might as well be saying, “Thanks, but no thanks” to interested buyers. As U.S. News Real Estate points out, “Even in a hot market where there are more buyers than houses available for sale, buyers aren’t going to pay attention to a home with an inflated asking price.” Let’s face it, nobody wants to overpay. Today’s buyers are already feeling the squeeze from rising home prices and mortgage rates. An overpriced home? That's just going to send them walking, probably without even peeking through your front door. And if they sense it's too pricey, expect crickets instead of offers. Here’s the real kicker: if your house sits on the market too long because of an inflated price, people start to wonder. What’s wrong with it? Forbes explains that the longer a house lingers unsold, the more buyers start to get suspicious, even if there’s nothing actually wrong. It’s human nature, after all. Lean on Your Agent for the Golden Price Tag So, what's the game plan? Pricing your home at, or a smidge under, market value is the sweet spot. But how do you find that magic number? That's where a pro comes in. A real estate agent has the know-how to sift through market data and nail down a price that hits the bullseye. Your agent will consider your home's condition, any upgrades you've jazzed it up with, and how similar homes in your area are faring. This isn’t a guessing game; it’s strategy. The right price can bring a flock of buyers to your doorstep and even spark a bidding war. And let’s not forget, homes priced just right don’t tend to overstay their welcome on the market. The Takeaway Selling your home is about making a smart move, not just a bold one. Sure, you want to make a pretty penny on the sale, but overpricing? That's a strategy that can backfire big time. Connect with our team and we can help you strike that perfect balance. You want a price that's like a magnet for buyers – attracting and holding their attention. That way, you’re not just listing your home; you’re setting it up for a successful sale.
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