US Mortgage Rates Continue to Decline, Offering Relief Amidst Housing Affordability Challenges

In a welcome development for prospective homebuyers, US mortgage rates extended their downward trend this week, providing a respite in the face of the most challenging housing market affordability since the 1980s.

According to data released by Freddie Mac on Thursday, the 30-year fixed-rate mortgage rate dipped to an average of 6.67% in the week ending December 21, down from 6.95% the previous week. This marks the eighth consecutive week of declines, with rates falling below 7% for the first time since mid-August. A year ago, the average 30-year fixed-rate stood at 6.27%.

The sustained decline in mortgage rates has been fueled by expectations of Federal Reserve rate cuts in the coming year. The anticipation of these cuts has contributed to a positive trend, with lower rates drawing potential homebuyers back into the market.

Freddie Mac's Chief Economist, Sam Khater, noted, "Lower rates are bringing potential homebuyers who were previously waiting on the sidelines back into the market." Additionally, the positive effects are reaching homebuilders, as evidenced by a rise in confidence and an increase in new home construction levels.

The recent surge in rates, which had exceeded 7% in mid-August and peaked at 7.79% in October, seems to have subsided. The consecutive weeks of declining rates indicate a shift away from the highest mortgage rates of this cycle, offering encouraging news for aspiring homebuyers.

The Federal Reserve's indication of potential rate cuts in 2024 further supports the expectation of continued decline in mortgage rates, as stated by Lisa Sturtevant, Chief Economist at Bright MLS. While the Fed doesn't directly set borrower interest rates, its actions influence them, with mortgage rates closely tracking the yield on 10-year US Treasuries.

Projections from Bright MLS suggest that the average fixed-rate mortgage rate could fall to 6.5% by mid-year and decrease further to 6.2% by the end of the next year. Lower rates are anticipated to enhance affordability, with potential monthly savings on mortgage payments for homebuyers.

However, despite the positive impact of lower rates on affordability, a significant obstacle persists – a shortage of housing inventory. The lack of available homes continues to keep prices high and rising, affecting the ability of young buyers to enter the market.

Sturtevant highlighted, "Young buyers are having to delay homebuying as it takes them longer to save for a downpayment and they often have to make offers on multiple homes before they are successful. Many first-time homebuyers have been priced out of the market altogether."

While lower rates are expected to improve affordability, challenges remain. A report from Redfin reveals that just 15.5% of homes for sale in 2023 were affordable for the typical US household, the lowest share on record. This decline is attributed to both a drop in overall listings and the impact of elevated mortgage rates and high home prices.

As the market cautiously adapts to incremental improvements in affordability, it's acknowledged that the journey back to balance will be gradual. Mortgage rates and home prices, currently above pre-pandemic levels, are projected to remain elevated through the coming year, maintaining pressure on prices as buyer demand increases.

Realtor.com's Senior Economic Researcher, Hannah Jones, observed, "Though recent data signals a shift towards a more hospitable housing market, the return to balance will be slow." Despite the challenges, each incremental gain in affordability is seen as a positive step, gradually thawing the market and offering hope to prospective homebuyers.

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Choosing the Right Roof with this Guide to Roofing Materials

The roof of your home serves as more than just a protective barrier against the elements – it's a key visual element that significantly contributes to your home's curb appeal. Selecting the right roofing material is crucial, as it not only influences the aesthetics of your property but also affects its longevity and protection. In this comprehensive guide, we'll explore various roofing materials, their pros and cons, average lifespan, and costs to help you make an informed decision.

1. Asphalt Shingles:
Asphalt shingles are the most popular residential roofing material in the U.S. due to their affordability, ease of installation, and adaptability to most climates. With three main types – 3-tab, dimensional, and luxury – asphalt shingles offer a cost-effective and durable solution, though they may have a shorter lifespan compared to some other options.

2. Wood Shingles or Shakes:
Wood roofing, made typically of cedar, adds a natural and stylish touch to homes. While providing energy efficiency and resistance to impact, wood roofing is best suited for dry climates. However, it is vulnerable to moisture, mold, insects, and fire, making it important to consider your local climate.

3. Slate Tiles:
For a long-term investment, slate tiles stand out with a lifespan of 75 to 100 years or more. Durable and fire-resistant, slate roofs can withstand high winds and resist moisture. However, their heavy weight makes installation challenging, and they come with a higher price tag compared to other materials.

4. Clay and Concrete Tiles:
Clay and concrete tiles offer longevity, with lifespans of 100 years or more. Resistant to high winds, hail, and fires, these tiles are well-suited for warm, dry regions. While they add curb appeal, their heavyweight requires professional installation and might not be suitable for steeply sloped roofs.

5. Metal Roofing:
Metal roofs, made from steel, aluminum, copper, or tin, have a lifespan of around 80 years. With rust-proof coatings and resistance to heavy snow, metal roofs are ideal for harsh winter climates. Despite being expensive, they are environmentally friendly and may increase a home's value.

6. Solar Roofs:
Solar shingles or solar roof tiles generate electricity from sunlight. Though they come with a higher initial cost, solar roofs can reduce energy bills and increase home value. Installation and maintenance costs, however, can be challenging.

7. Living Roofs:
Also known as green roofs, living roofs involve covering the roof with soil, vegetation, and plants. Sustainable and lasting 30 to 50 years, they contribute to environmental benefits. However, maintenance can be frequent and challenging, leading to higher expenses.

Choosing the right roofing material involves considering your budget, climate, and installation factors. Dan DiClerico, director of the Home Improvement & Outdoor Lab at the Good Housekeeping Institute, emphasizes the importance of coordinating the roof with the home's architecture. While costs can range from $10,000 to $20,000, the choice of material, size of the house, and installation complexity contribute to variations.

Your home's roof is a vital investment, both in terms of protection and aesthetics. By carefully weighing the pros and cons of different roofing materials, considering your climate and budget, and consulting with experts, you can make an informed decision that enhances the beauty and longevity of your home.

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Custom Can Balance Trends and Timelessness

 You don’t need an interior designer to buy custom furniture, you can actually do it on your own. Many stores like Sherrill Furniture have experts who will work with you on buying the perfect custom piece.

Inspiration Can Come From Anywhere

Getting inspiration for design and color can come from experiences or vacations or anywhere. Designers can tell you that some of their clients have gotten inspiration for a sofa from their favorite movie.

“A great benefit is that the design inspiration does not have to start with the piece. We can be inspired by wallpaper, art, or travel,” says DuVäl Reynolds of DuVäl Design. “Customization grants the freedom to select textures and colors that enhance our inspiration.”

“Instinctively, we rush to view all options,” he says. “Instead, opt for colors and tones that align with the design, rather than solely basing it on personal preferences. And consider taking calculated risks with only one or two elements of the custom item—not every piece should be overly prominent.”

Custom Covers a Lot of Ground

“A drawing or sketch with the customization details avoids mistakes,” Neal says. “Also, understand the parameters from the supplier, because there is custom and then semi-custom: You may be able to change the finish, but not the size.”

You want to envision what the whole piece will look like first, then work on the cover. Working with a store such as Sherrill Furniture who has a Design Your Own Custom Program will help you choose the frame shape, dimensions, and fabric of your ideal seating to smaller details like seam stitching, arm style, and leg shape.

Custom Can Be a Real Problem-Solver

Let’s say you choose a piece and design a room around it and when you go to purchase, you find out it has been discontinued or indefinitely delayed. If you work with a custom piece then this will not be a problem. “With constraints, or the need to fill a larger room, a custom piece may make most sense,” says Reynolds.

Custom Can Balance Trends and Timelessness

If you have a space in your home that is filled with heirlooms, then adding a new piece to the mix can look out of place. If you design a custom piece, you can make it blend with the older pieces. “In a current project, I specified a case-good piece from the Sherrill Occasional line, and we’re having a hand-applied striping decoration added, so it feels as aged and collected as an antique piece in the same space,” Sherrell Neal of Sherrell Design Studio says.

Finishes Can Make New Feel Heirloom

“I have a soft spot for the Mr. & Mrs. Howard line, and specified the Bambu bed for a project,” she says. “We chose a rich brown wood finish called Modern Walnut, designed to live between two chests in a Seaglass finish that are also from the line.”

“I really love the Sherrill family of brands, and how each one offers something distinctive in either style or customization,” Neal says. “With the array of finishes and customization options on offer, each project can be well-tailored but unique.”

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Covington Is Getting Ready for the Holidays

 Every year Old Covington has its Covington Heritage Foundation’s History and Holly Tour. Old historic homes will be decorated for Christmas and open their doors for patrons to tour them. The Heritage Foundation loves to keep this tradition going because it is a spirited way to get a look inside some of Covington’s most historic homes, and admire not only their charm, but their holiday extravagance.

“It’s a great way to kick off the holiday season, and it has become a signature event in Covington,” said Verret, who is also a council member for the city.

The Covington Heritage Foundation was founded in 2013 and created the History and Holly Tour as their biggest fundraiser. The foundation was created for Covington’s bicentennial and still is going strong today. They preserve the town’s history by hosting educational events throughout the year. These include a cemetery tour around Halloween, a mystery and history tour, a local farm-to-table dinner and historical talks.

The walking tour has four historic homes that Patrons can enjoy touring indoors and a fifth home that patrons can tour on the outside. During the tour, patrons will have areas where they can purchase drinks and socialize. The Louisiana Philharmonic Orchestra and Kiwanis Club Christmas will provide carolers that will entertain along the way to the tours.

The tour will begin at the Covington Trailhead and will cover an area around S. America Street and Jahncke Avenue. The homes are decorated by their owners and the tours will be guided by the Heritage Foundation volunteers.

“We pick between three and five properties that have historical significance or where people would love to go into that home and see,” said Verret. “They are decorated for the holiday season, and homeowners welcome up to 700 guests.”

“We’re trying to make history come to life,” said Verret. “And the History and Holly Home Tour helps us do that throughout the year.”

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Know What To Spend On Housing

 Today’s mortgage rates are still rising and will remain high for the foreseeable future. It is harder these days to know how much to spend on housing. When there is such demand, it is easy to jump the gun which can hinder you financially. Here are some rules the professionals say to follow when it comes to buying or renting a home.

The 30% Rule

This is a popular and common rule that is followed to decide if a certain home is affordable for you. The 30% rule is easy to follow, just do not spend more than 30% of your gross income on housing. Housing expenses are more than just your rent or mortgage payment. When figuring out how much your housing expenses are, if you are a homeowner, you will need to factor in your utilities, mortgage interest rate, homeowner’s insurance, property taxes and HOA fees or if you are a renter, include renter’s insurance and other fees from your landlord.

The 28/36 Rule

This rule is just for homeowners only. You will be covered in two ways with this rule. Your housing expenses which include your mortgage payment, property taxes, insurance and utilities cannot be more than 28% of your gross monthly income. Your total debt which includes credit cards, student loans, and auto loans, cannot go over 36% of your gross monthly income.

Don’t get stuck with real estate regret. If you are looking for a new home either by purchasing one or renting one, you need to contact your local real estate agent. A local real estate agent can help you determine what is right for you.

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Home Upgrades For The Extreme Weather

 Weather can wreak havoc on a home which is a very important investment in our lives. In recent years we have seen unprecedented flooding, record-setting temperatures, and out-of-season storms. To prevent anything from happening to your home, do these five easy things to upgrade your home.

Install an Effective Home Generator

Not only will a home generator save you in a bind, but will also add value to your home’s resale price. “Standby generators are becoming more of a necessity than a luxury because of health issues that rely on powered devices, like CPAP or home dialysis machines,” says Woods. When choosing a generator, choose one that is commercial-grade for your home. Consider one with an automatic transfer switch and a corrosion-proof enclosure.

Invest in Modern Windows

Windows can help keep your environment warm in the winter and cool in the summer. If you have old single-paned windows, they can cost you as much as 30% of your heating and cooling monthly bill. Older windows do not let in the outdoor air, but will also let in water. If left leaking a while, there can be a lot of damage done to your home.

Add a Rain-Barrel System

Every house has a gutter system that runs the rainwater away from the home, but they can get backed up or not work very will during heavy rainfall. Gutter runoff can cause damage by allow water to seep into your home. Adding a rain barrel can help as backup for your gutter system. A rain barrel will collect gray water which you can use on your landscaping.

Repoint Your Chimney Mortar

If you live in the Northeast region of the country, this tip will come in handy. Fireplaces are perfect during those cold winter days, but if not maintained, they can actually backfire. Checking the structure of your chimney is very important. The brick used on your chimney will expand and shrink when there are temperature changes. This will cause some wear and tear allowing water to creep in. To ensure this does not happen, repoint your chimney so the gaps will be closed.

Go Big on Landscaping

Trees can help with shading which can help cut the cost of your energy bill during the warmer months. Their roots can also help with flooding as well and also serve as buffers to the harsh winds.

Remember to follow these tips to help keep your home ready for the harsh weather. Harsh weather can wreak havoc on your living space and your life.

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Holiday Library Fun

 This December, St. Tammany Parish Library will have its Annual Winter Bingo. Bingo is for all ages and will be a great way for residents to enjoy some holiday fun together.

The way it works is to sign up for Beanstack to play. Patrons have a chance to complete five badges in a row and win blackout (all badges on the card). Beanstack is available online or in the app store for phones. If you cannot do the game electronically, you can go to your local library and get a physical bingo sheet (you will still have to sign up for Beanstack.

Beanstack is a great way to get patrons motivated to read. It is a great way to hold a reading challenge by using this free online service. Started by a family who wanted to have a way to create love and passion for reading in communities around the world. Create an account then log in to the books you read for credit.

You can create an account at sttammanylibrary.beanstack.org and you will get your first prize for just registering for the Winter Reading Challenge! Bingo prizes this year include treasure chest goodies for children, library swag for teens and special edition coloring books for adults. If you win a blackout card, you will then have a chance to register for the big prize drawings. These include a Lego set for kids, a $25 gift card for teens and a Disney puzzle for adults.

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