New Home Friday - February 2nd, 2024

NHA A REAL ESTATE NEWSLETTER FEBRUARY 2, 2024

WHAT IS GOING ON IN THE MARKET An update of the real estate market

HOMEKEEPR Moving Made Simple

E-CREDIT ADVISOR Get Mortgage Ready

DESIGN TRENDS Major Exterior Design Drivers for 2024

HOMEOWNER TIPS Chic Laundry Room Ideas That Make the Most of a Small Space

PAINT DESIGN BOARD Virtual Color Consultation

HOUSING UPDATE

If you’re looking to buy a home, you’ve probably been paying close attention to mortgage rates. Over the last couple of years, they hit record lows, rose dramatically, and are now dropping back down a bit. Ever wonder why?

The answer is complicated because there’s a lot that can influence mortgage rates. Here are just a few of the most impactful factors at play.

Inflation and the Federal Reserve The Federal Reserve (Fed) doesn’t directly determine mortgage rates. But the Fed does move the Federal Funds Rate up or down in response to what’s happening with inflation, the economy, employment rates, and more. As that happens, mortgage rates tend to respond. Business Insider explains: “The Federal Reserve slows inflation by raising the federal funds rate, which can indirectly impact mortgages. High inflation and investor expectations of more Fed rate hikes can push mortgage rates up. If investors believe the Fed may cut rates and inflation is decelerating, mortgage rates will typically trend down.”

Over the last couple of years, the Fed raised the Federal Fund Rate to try to fight inflation and, as that happened, mortgage rates jumped up, too. Fortunately, the expert outlook for inflation and mortgage rates is that both should become more favorable over the course of the year. As Danielle Hale, Chief Economist at Realtor.com, says:

With the Fed meeting later this week, experts in the industry will be keeping a close watch to see what they decide and what impact it’ll have on the economy.

“Mortgage rates will continue to ease in 2024 as inflation improves .”

There’s even talk the Fed may actually cut the Fed Funds Rate this year because inflation is cooling, even though it’s not yet back to their ideal target.

The 10-Year Treasury Yield Additionally, mortgage companies look at the 10-Year Treasury Yield to decide how much interest to charge on home loans. If the yield goes up, mortgage rates usually go up, too. The opposite is also true. According to Investopedia: “One frequently used government bond benchmark to which mortgage lenders often peg their interest rates is the 10-year Treasury bond yield.”

Historically, the spread between the 10-Year Treasury Yield and the 30-year fixed mortgage rate has been fairly consistent, but that’s not the case recently. That means, there’s room for mortgage rates to come down. So, keeping an eye on which way the treasury yield is trending can give experts an idea of where mortgage rates may head next.

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When you call us a personal advisor will review your credit profile to determine how our program will effectively increase your credit scores.

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6 KITCHEN TRENDS THAT PACK A PUNCH IN 2024 The tried-and-true hub of the home is back in focus for 2024 with homeowners more willing to invest larger amounts of money in kitchen remodels and undergo substantial structural work. The 2024 U.S. Houzz Kitchen Trends Study reveals that 42% of homeowners upgrade their kitchen because they “can no longer stand the style of the old kitchen.” Other reasons prompting upgrades are finally having the means (36%) and the old kitchen deteriorated or broke down (35%), followed by personalizing a recently purchased home (28%). The top five features upgraded are countertops at 91%, backsplashes at 86%, cabinets at 85%, faucets at 83%, and light fixtures at 79%, according to the study. So, with these upgrades in mind, a host of features packing functionality, and tech are on trend for 2024. These include:

Transitional Style Stays

As the most popular choice three years in a row, transitional remains as the top pick for kitchen style. The style is followed by modern at 12%, contemporary at 11%, traditional at 11%, and farmhouse at 9%. Traditional and farmhouse both declined two points year over year. While transitional remains on trend, there’s no surprise that white cabinets are top choice at 46%, followed by wood tones at 25%. For twotone kitchens, white reigns supreme for uppers (52%) and wood on bottom at 28%. White countertops also lead with 43%, which marks the highest preference for white since 2020.

Layout Revamp In addition to knocking down walls, homeowners are changing the layout (43%) and upgrading systems (43%). One in seven are modifying the kitchen ceiling height, and 5% are restructuring flooring. These changes are largely to gain square footage with 37% doing so and over half of upgraded kitchens reaching 200 square feet or more. Additional reasons for changing the function are for aging household members’ future and current needs at 36% and 27%, respectively. Elements to add function and safety include pullout cabinets (58%), extra lighting (54%), wide drawer pulls (48%), non-slip flooring (37%), and rounded countertops (34%).

Backsplash Refresh

Airy and Open

Following a time where homeowners were looking for separation during the pandemic, openness returns with nearly two-thirds (64%) removing any wall separation and 25% choosing double doors, a row of doors, or a wide opening to the outdoors. A pass-through window is emerging as a trend at 18%. The reasons behind the open-concept kitchen are improving functionality (64%), enhancing entertainment capability (54%), and aesthetics (47%).

With most homeowners (86%) replacing the backsplash during a renovation—a share up 2 percentage points from last year—62% extend it to the cabinets or range hood, but 10% are covering the entire wall up to the ceiling. Material trends include ceramic or porcelain tile at 54% and engineered quartz at 11%. Trending natural stone for 2024 includes marble (9%), quartzite (6%), and granite (4%).

Techy Appliances Stretched Islands

More than 2 in 4 homeowners chose islands that are 7 feet or longer. The preference has increased by 10 percentage points since 2020. Islands less than 6 feet long are declining in popularity, losing 5 points since 2023. Within the island, drawers (80%) and cabinets with doors (79%) are the two most common features. Rectangular and square islands remain top pick at 80%.

With 54% preferring to replace all appliances during a renovation, homeowners are reaching for ones with high-tech features (44%), and nearly 30% are choosing appliances with Wi-Fi connectivity. An increase of 5 percentage points from 2023, 29% opted for models with smartphone or tablet control, and there’s higher interest in touch screens, smart home connectivity, and built-in apps and cameras.

With major changes on trend, the median spending in which all cabinets and appliances are replaced grew 22% in 2024, increasing from $45,000 in 2022 to $55,000 in mid-2023. The median cost for remodels of small and large kitchens has increased by 35% and 32%, respectively.

Chic Laundry Room Ideas That Make the Most of a Small Space This collection of stylish laundry room ideas includes helpful storage solutions and a ton of decorating inspirations, like trendy paint colors, whimsical wallpaper designs, and beautiful flooring ideas. Since the laundry room tends to be a smaller space, it presents the perfect opportunity to show off your personal aesthetic, whether it's upgrading cabinet hardware, installing wall tiles, or tackling a completely new design style.

1. CHOOSE A GEOMETRIC WALL TILE

8. DECORATE A SHELF

To streamline supplies, professional organizers at Organized by Design bring in wicker bins, woven hampers and gold curtain rods. For a pop of color, add blue, gray and white patterned tiles behind the washer/dryer to contrast the other walls.

Love the look of your well-decorated living room mantel?

Recreate a similar arrangement in your laundry room by propping art against the wall and placing greenery in a small decorative jar. You can also store laundry extras there.

2. BUILD A COUNTERTOP

9. INCORPORATE A WORK STATION

If you plan to do most of your folding in the laundry room, install a countertop at a comfortable height over your front-loading washer and dryer.

If a dedicated office and laundry area don't work for your home, combine the two in one space. Punch up the look with cheery wallpaper and pastel blue cabinets.

3. CREATE CONTRAST

10. MAKE USE OF A TRAY

4. HANG A CLOTHES RACK WITHIN REACH

Trays are one of the most versatile items you can have in your home. Place one on top of your washer and dryer to keep everything you need handy to tackle a load of laundry. And the best part is that it's easy to move around the room, if necessary.

As you pull damp clothes from the washer, quickly air-dry clothes on a convenient clothes rack.

11. INTRODUCE A POP OF YELLOW

Especially if your kitchen is all neutral, consider deep, moody cabinetry in the laundry room.

5. INSTALL PATTERNED WALLPAPER You might be reluctant to try graphic wallpaper in a living room or dining room, so experimenting with it in a smaller space, like a laundry room, is a good solution.

6. GO TONE-ON-TONE Choose cabinets and machines in the same color family to create a sense of harmony.

7. HANG A PENDANT LIGHT Lighting is key in functional spaces, especially in laundry rooms. Show off your style with a sleek pendant light that'll make it easier to spot stains.

If your laundry room is fairly small, don't shy away from energizing it with color. Deck out cabinets in a lively shade of yellow, and if you dare, complement the layout with floral wallpaper (a removable design counts too!).

12. CREATE A MULTI-FUNCTIONAL MUDROOM Put machines on one side and built-in shelves on the other to give one room multiple purposes. Tie everything together by covering the walls with playful wallpaper.

13. CREATE A MULTI-FUNCTIONAL MUDROOM Built-ins that extend from floor to ceiling offer plenty of opportunities to store extra cleaning products, linens and more. Mix in a few cubbies next to the machines to keep your laundry day must-haves within reach.

BENJAMIN MOORE PAINT DESIGN BOARDS

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