Shiny Trinket

Design by-products of pandemic life create elements that are here to stay for 2021

By now, homeowners have had a good chunk of time to decide what they like about their house and what they’d like to change, having spent a lot of time there in 2020. Redfin’s Mekaila Oaks teamed up with Hunker (a design firm) and came up with several ways to revamp your space for 2021 if the spirit moves you.

The kitchen has never ever been more the heart of the home. “When it comes to kitchen design trends this year, think functional yet stylish,” says Oaks. “Spacious, open concept kitchens with top-notch stainless steel appliances will continue as a ‘must-have’ for homeowners, but they’re also seeking a beautiful and stylish design.” She’s talking bolder color palettes, contrasting backsplashes, and sleek hardware that could pass for jewelry.

Bonus spaces are now all the rage since working from home will continue to be a theme in years to come. If you’re looking to create a dedicated workspace within your home, think double duty like a sunroom or an additional guest room, as it’s a feature that’s here to stay.

Textures bring dimension to any room. 2021 will see some minimalism using colors like white, cream, beige, rust, and sage, but layered in with multiple textures — such as a living room that combines jute, oak, and linen, or a kitchen with colored stone countertops and rich velvet banquette seating.

As for countertop materials, quartz has taken over. While quartz was popular around Europe for decades, it didn’t hit U.S.markets until the 1990s, and now no one can put that genie back in the bottle. “Versatile, practical, contemporary and elegant, quartz is basically the full package — and we expect to see more of it moving into 2021,” says Oaks. “Quartz countertops pair well with both light and dark colored cabinets, making them easy to integrate into any kitchen color scheme.”

Outdoor dining is now taking on a life of its own, not limited to season or locale. “With people less focused on eating out, they’ll be looking to take advantage of outdoor entertaining with spaces that can function as open-air dining rooms — whether that be a deck, a gazebo, or a patio overhang.” Outdoor space heaters make outdoor spaces extensions of indoor living as well.

Source: Redfin | TBWS

How Rates Move:

Conventional and Government (FHA and VA) lenders set their rates based on the pricing of Mortgage Backed Securities (MBS) which are traded in real time, all day in the bond market.  This means rates or loan fees (mortgage pricing) moves throughout the day, being affected by a variety of economic or political events.  When MBS pricing goes up, mortgage rates or pricing generally goes down.  When they fall, mortgage pricing goes up.  Tracking these securities real-time is critical.  For more information about the rate market, contact me directly.  I’m among few mortgage professionals who have access to live trading screens during market hours.

Rates Currently Trending: Higher

Mortgage rates are trending slightly higher this morning.  Last week the MBS market worsened by -95 bps.  This was enough to worsen mortgage rates or fees.  There was a good deal of rate volatility through the week.

This Week's Rate Forecast: Higher

Three Things: These are the three areas that have the greatest ability to move rates this week. 1) The Fed, 2) Domestic Flavor, and 3) Stimulus.

1) The Fed: We have a busy week for Fed Speak with the release of the Beige Book and a speech by Fed Chair Powel. The bond market is acutely focused on any further discussion/direction on "taper talk" for the reduction in bond purchases by the Fed. Here is this week's schedule:

• 01/11 Bostic, Kaplan
• 01/12 Bostic, Brainard, Kaplan, Mester and George
• 01/13 Beige Book, Bullard, Brainard, Harker, and Clarida
• 01/14 Powell, Bostic and Kaplan

2) Domestic: We have a big week for Economic Data. The releases that will get the most attention from bond traders are: CPI, Initial Weekly Jobless Claims, and Retail Sales.

3) Stimulus: Now that much of the geopolitical uncertainty has been removed from bond prices, bond traders are focused on the timing and size of the next round of stimulus out of Congress which may include an additional round of direct checks to consumers.

Treasury Dump: We have a big week for dumping our debt into the marketplace, with Wednesday's 30 year Treasury bond auction being the most important for our pricing.

• 01/11 3 year note
• 01/12 10 year note
• 01/13 30 year bond

This Week's Potential Volatility: High

For the first time in a long time, geopolitical events will not likely have an effect on rate markets. Rate markets will pay very close attention to the Fed and their view on tapering. There'll be a lot of focus on additional stimulus talks as well.

Bottom Line:

If you are looking for the risks and benefits of locking your interest rate in today or floating your loan rate, contact your mortgage professional to discuss it with them.

Matt McGuire is a Mortgage Loan Originator with Edge Home Finance, specializing in residential home loans for real estate purchase and refinances. He enjoys making his clients happy while helping them achieve their dreams and goals. Matt has spent the last 10 years in the mortgage and banking industries, gaining valuable experience in loan origination, loan processing, underwriting, post-closing/loan servicing, and management. This unique blend of skills and knowledge helps Matt walk all of his customers through each step of the loan process with the care and guidance they deserve. Matt was born in Florida, is a proud Richfield Spartan, and currently resides in Lakeville with his wife, two dogs, and two cats. Matt is a huge sports fan and also enjoys traveling, fishing, and boating.

All information furnished has been forwarded to you and is provided by thetbwsgroup only for informational purposes. Forecasting shall be considered as events which may be expected but not guaranteed. Neither the forwarding party and/or company nor thetbwsgroup assume any responsibility to any person who relies on information or forecasting contained in this report and disclaims all liability in respect to decisions or actions, or lack thereof based on any or all of the contents of this report.

Matt McGuire (NMLS 1535656) - A Member of Edge Home Finance Corporation (NMLS 891464)