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How Buying or Selling a Home Benefits the Economy and Your Community

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How Buying or Selling a Home Benefits the Economy and Your Community | MyKCM

If you’re thinking of buying or selling a home, chances are you’re focusing on the many extraordinary ways it’ll change your life. But do you know it has a large impact on your community too?

To measure that impact, the National Association of Realtors (NAR) releases a report each year to highlight just how much economic activity a home sale generates. The chart below shows how the sale of both a newly built home and an existing home impact the economy:

How Buying or Selling a Home Benefits the Economy and Your Community | MyKCM

As the visual shows, a single home sale can have a significant effect on the overall economy. To dive a level deeper, NAR also provides a detailed look at how that varies state-by-state for newly built homes (see map below):

How Buying or Selling a Home Benefits the Economy and Your Community | MyKCM

You may be wondering: how can a single home sale have such a major effect on the economy?

For starters, there are multiple industries that play a role in the process. Numerous contractors, specialists, lawyers, town and city officials, and so many other professionals are all necessary at various stages during the transaction. Every individual you work with, like your trusted real estate advisor, has a team of professionals involved behind the scenes.

That means when you buy or sell a home, you’re leaving a lasting impression on the community at large. Let the knowledge that you’re contributing to those around you while also meeting your own needs help you feel even more empowered when you decide to make your move this year.

Bottom Line

Homebuyers and sellers are economic drivers in their community and beyond. Let’s connect so you have a trusted real estate advisor on your side if you’re ready to get started. It won’t just change your life; it’ll make a powerful impact on your entire community.

Saving Up for Your Down Payment? Try These Money-saving Tips to Speed Things Up

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Saving Up for Your Down Payment? Try These Money-saving Tips to Speed Things UpOne of the most significant challenges that many people face when preparing to buy a first home relates to saving money for a down payment. While there are many different loan programs with varying down payment requirements, the fact is that it can still be difficult to save up a large sum of money. Some programs may require you to save as much as 10 percent or 20 percent of the sales price of the home.

You can employ a few different tips and techniques to save money for a down payment more quickly, and these are some of the options that others have successfully used to save money for their home purchase.

Make Saving Automatic

One idea that works well for many people is to make saving for your new home automatic. This may be as simple as scheduling a regular draft or transfer from your checking account when your paycheck is deposited into your savings account. Some employers may even facilitate this process by contributing some of your funds into a savings account on your behalf. With this option, the money would go directly into your savings account without you having a chance to spend it.

Take Advantage of Retirement Accounts

If your employer provides you with the option of investing in an employer-sponsored retirement account, you should take advantage of this option. Many will offer a dollar-for-dollar matching program, and this may essentially double the amount of money that is saved in the account.

More than that, the funds from many retirement accounts may be withdrawn without penalty if they are used for a first-time home purchase. There are some rules and regulations regarding this, so you should research this option more thoroughly.

These are among the two best options for saving money for a down payment for your first home purchase. There are other ideas that you can consider as well. For example, you may borrow from a whole life insurance policy, obtain a gift from a family member or even sell some of your personal belongings that you no longer need or use.

When you combine many of these ideas together, you may be surprised how quickly your down payment fund can grow. You can also speak with a mortgage professional to learn more about the actual amount of money that you may need for the down payment and closing costs.

What’s Ahead for Mortgage Rates This Week – May 23, 2022

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What's Ahead For Mortgage Rates This Week - May 23, 2022

Last week’s economic reporting included readings on sales of previously-owned homes, building permits issued, housing starts, and weekly readings on mortgage rates and jobless claims.

 Sales of Previously-Owned Homes Fall in April

The National Association of Realtors® reported 5.61 million sales of previously-owned homes in April;  analysts expected 5.64 million sales as compared to the March reading of 5.75 million sales calculated on a seasonally adjusted annual basis. Home sales generally increase in prime spring and summer home-buying seasons, but high gas prices, rising inflation, and economic uncertainty likely sidelined some prospective home buyers. Affordability is an increasing obstacle for first-time and moderate-income home buyers; the combined impact of rising home prices and mortgage rates has priced some buyers out of the market.

Analysts said that fewer available homes also caused lagging sales, which were 2.40 percent lower month-to-month and 5.99 percent lower year over year. The total inventory of all homes for sale was 10.40 percent lower year-over-year in April.

The Commerce Department reported 1.72 million housing starts in April; The March reading was 1.73 million starts. Rising materials and labor costs continued to challenge home builders and rising home prices discouraged buyers.

Mortgage Rates Fall; Jobless Claims Mixed

After weeks of rising mortgage rates, Freddie Mac reported lower fixed mortgage rates last week. Rates for 30-year fixed-rate mortgages averaged 5.25 percent and were five basis points lower than for the previous week. The average rate for 15-year fixed-rate mortgages also fell by five basis points to 4.43 percent. Rates for 5/1 adjustable-rate mortgages averaged 4.08 percent and were ten basis points higher. Discount points averaged 0.90 percent for fixed-rate mortgages and 0.20 percent for 5/1 adjustable-rate mortgages.

Initial jobless claims rose to 218,000 new claims filed last week as compared to the previous week’s reading of 197,000 new jobless claims filed. Analysts predicted a reading of 200,000 first-time jobless claims filed. Continuing jobless claims fell to 1.32 million claims filed as compared to the prior week’s reading of 1.34 million ongoing claims filed.

What’s Ahead

This week’s scheduled economic reporting includes readings on new and pending home sales, inflation and consumer sentiment. Weekly reports on mortgage rates and jobless claims will also be released. 

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