Archive for March, 2018


As was widely expected, The Federal Reserve raised interest rates, and indicated that they will continue to do so throughout the year.  This actually indicates that things are good in our economy… a positive sign that consumers are spending money, and prices are being pushed upward by the forces of supply and demand.  Interest rates are like a “brake system” on a train, when things start moving too fast apply the brakes, to slow the train down.  Likewise, when the economy starts to “move too fast”, prices are getting pushed higher (Inflation) so a slight increase in interest rates will temper, or slow down, these price increases.  Inflation, like our debt, diet, and data, needs to be managed so it  doesn’t become a problem.  Which was why The Fed repeatedly lowered interest rates during the depths of The Great Recession – to spur economic activity (buying stuff.)

1st Home Mortgage

What will this mean for me?  If you have a 30 year mortgage of $250,000, at a fixed interest rate of 5%, the monthly payment (not including taxes and insurances) would be about $1,342. A rate increase to 5.25% would raise your monthly payment by about $35.  Most consumers spend more than that on coffee every month.  Will that be detrimental for some consumers? Probably.  However, rising incomes, should mitigate that affect.  The US unemployment rate is 4.1%, and Full Employment is considered to be about 5%.  Many economists believe that this dynamic pushes wages higher so (theoretically) more people should be able to afford the extra $35/month.

resnick logo

If you are considering Selling your house, you should act sooner and not later. Inventory is tight, so there is not much competition at this time; but more people may list their homes for sale increasing the competition. You best option is to contact a Full Time, Experienced, REALTOR® to get the answers to your questions for your situation.  Feel free to call me, Joe Luca at 401-580-9797.  All questions are welcomed and answers are free and without obligation.

GentryMoving

REALTOR® Colleagues and Consumers alike have had questions and comments since the RI Statewide Multiple Listing Service (MLS) introduced the “Coming Soon” status on the MLS. First of all, for the Consumer, a “Coming Soon” status is nt an Active Listing, it is considered to be “Off Market”; which means the house CANNOT be shown by the Listing Agent. This is probably fine if you are not ready to show your house because you need to de-clutter, make repairs, or take care of other “last minute” items…as long as it is completed in less than 30 days, because the listing will automatically switch to Active and will have to be shown to Buyers. A Coming Soon listing is NOT an opportunity for the Listing Agent to show the home to Buyers without other REALTORS® haveing the opportunity for their Buyers to see the house. If the Listing Agent attempts to do this, he or she is doing the Seller a disservice because other Buyers will not have an opportunity to make a potentially higher offer on the house. If this happens to you, or someone you know, call the local Board of REALTORS® because it is a violation of MLS rules and the REALTOR® Code of Ethics.

The REALTOR® Code of Ethics is the demarcation line between individuals buying and selling their own real estate, licensees selling the real estate of others (who are required to only abide by the law,) and REALTORS®. We are held to a higher standard of conduct. We “police” our members for the protection of the consumers and other members.

REALTORS® demand a higher level of business conduct and professionalism from our members, and we are always striving to provide better service for the consumer. Full time REALTORS® treat the job as the profession it is by continually taking classes and attending webinars in addition to the required Continuing Education classes mandated by the state licensing body.

If you are interested in a Coming Soon listing feel free to give ma a call at 401-580-9797.

Architecture Here and There

Style Wars: classicism vs. modernism