B4 • Friday, October 28, 2022
thegardenisland.com
THE GARDEN ISLAND
RENTAL REMODEL DONE RIGHT BRANDPOINT
U.S. mortgage rates top 7% for first time in two decades ASSOCIATED PRESS WASHINGTON, D.C. — The average long-term U.S. mortgage rate topped 7 percent for the first time in more than two decades this week, a result of the Federal Reserve’s aggressive rate hikes intended to tame the nation’s stubbornly high inflation. Mortgage buyer Freddie Mac reported Thursday that the average on the key 30-year rate jumped to 7.08 percent from 6.94 percent last week. Last year at this time, rates on a 30-year mortgage averaged 3.14 percent. Higher mortgage rates reduce homebuyers’ purchasing power, resulting in fewer people being able to afford to buy a home at a time when home prices continue to climb, albeit more slowly than earlier this year. The combination of higher rates and home prices means a typical mortgage payment for a homebuyer is up hundreds of dollars compared to what it was earlier this year. “We’re really viewing this as a spike in mortgage rates that is pretty dramatically impacting affordability in the market, really sharply curtailing demand,” said Mike Fratantoni, chief economist at the Mortgage Bankers Association. The last time the average rate was above 7 percent was April 2002, a time when the U.S. was still reeling from the Sept. 11 terrorist attacks, but six years away from the 2008 housing market collapse that triggered the Great Recession. Many potential homebuyers have moved to the sidelines as mortgage rates have more than doubled this year, a trend that’s knocked the once red-hot housing market into a slump. Sales of existing homes have declined for eight straight months as borrowing costs have become too high a hurdle for many Americans already paying more for food, gas and other necessities. Meanwhile, some homeowners have held off putting their homes on the market because they don’t want to jump into a higher rate on their next mortgage. In effort to tamp down inflation, which is the highest in four decades, the Fed has raised its key benchmark lending rate five times this year, including three consecutive 0.75 percentage point increases that have brought its key short-term borrowing rate to a range of 3 percent to 3.25 percent, the highest level since 2008. At their last meeting in late September, Fed officials projected by early next year they would raise their key rate to roughly 4.5 percent. Despite the rate increases inflation has hardly budged, remaining above 8 percent at both the consumer and wholesale level. Even as the housing market slows considerably, the job market remains strong and consumer spending is resilient. The Fed is expected to raise its benchmark rate another three-quarters of a point when it meets next week. While mortgage rates don’t necessarily mirror the Fed’s rate increases, they tend to track the yield on the 10-year Treasury note. The yield is influenced by a variety of factors, including investors’ expectations for future inflation and global demand for U.S. Treasurys. The monthly payment on a median priced home is 78 percent higher now than it was a year ago for buyers who are able to make a 20 percent down payment. This translates to a $1,000 rise in the typical home payment in the last year, according to Realtor.com.
When it comes to upgrades and functional design, a rental property is often a space that’s left on the backburner. Whether it’s prepping for new tenants or simply giving a space a quick face lift, these projects can sometimes become overwhelming. See below for easy installation ideas and simple tips to ensure you have a fully functional bathroom with a beautiful design aesthetic. Bring purpose to the sink It doesn’t matter if the goal is to upgrade a bathroom or if one is starting from scratch, assuring the sink space is multi-functional is a crucial step! Replacing a faucet could seem daunting, but the Peerless® Precept® Single-Handle Bath Faucet makes this process a breeze. What’s great about it is it saves both time and money as it comes with a Push Pop-Up Drain Assembly included! Unlike other drain assemblies that require multiple parts (and purchases), this user-friendly accessory works seamlessly with the faucet itself and comes with all necessary parts to easily install it. By simply pushing down on its head, a sink can quickly be filled up with water for a variety of uses. One can create an at-home ice water face dip for the ultimate selfcare regimen, an emergency stain soak, or even a bath for the little ones. Establish a complementing look with a unified finish
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The Peerless Precept Slide Bar with Hand Shower delivers an at-home, spa-like experience. forgo this overwhelming feeling is by implementing a uniform finish. Not only will one finish and style lend clarity to a bathroom design, but it will also help deliver that polished and flawless look. For instance, for a bath space that has a black finish, small adds like a black-rimmed mirror, dark-stained stool, or charcoal vase will provide the accents to the overall color scheme. The possibilities are endless!
A bathroom can easily feel clutAdd more functionality tered when it has too many eleRental property bathrooms ofments and colors. A simple way to
tentimes deliver the bare minimum by only providing a basic toilet, working faucet and a showerhead. For those looking to level up their rental shower experience without breaking the bank, an easy way in is by installing a multifunctional fixture beyond just a showerhead. The Peerless® Precept® Slide Bar with Hand Shower delivers just that. When added onto an existing showerhead, it can operate on its own or also at the same time, creating an instant at-home spa-like experience. Not to men-
tion its pause feature reduces water to a trickle, giving space for shaving and lathering - ideal for any guest shower. When thinking through ways to transform a rental investment property, being efficient, yet thoughtful is the way to go. Extensive restorations are a thing of the past when one can find easy-to-install and functional items that still deliver a beautiful design. From unifying the color scheme to implementing new fixtures, even the slightest updates can make the biggest difference.