Market Update-Bright MLS Coverage Area

Philadelphia Metro, Central Pennsylvania, Baltimore Metro, MD/WV Panhandle, MD Eastern Shore, Washington DC Metro, North Central Virginia and Southern Maryland

^{Why Pre-Approval Is Your Home buying Game Changer}

If you’re thinking about buying a home, pre-approval is a crucial part of the process you definitely don’t want to skip. So, before you start picturing yourself in your new living room or dining on your future all-season patio, be sure you’re working with a trusted lender to prioritize this essential step. Here’s why.

While home price growth is moderating and mortgage rates have been coming down in recent weeks, affordability is still tight.  At the same time, there’s a limited number of homes for sale right now, and that means ongoing competition among hopeful buyers. But, if you’re strategic, there are ways to navigate these waters – and pre-approval is the game changer.

What Pre-Approval Does for You

To understand why it’s such an important step, you need to know more about pre-approval. As part of the homebuying process, a lender looks at your finances to determine what they’re willing to loan you. From there, your lender will give you a pre-approval letter to help you understand how much money you can borrow. Freddie Mac explains it like this:

Maximizing rental income from a rental property requires strategic planning and effective management. Here are some key tips to help you make the most out of your investment:

1. Set the right rental price: Conduct thorough market research to determine the optimal rental price for your property.

2. Enhance the property's appeal: Make your rental property attractive to potential tenants by investing in upgrades and renovations. Focus on improving key areas such as kitchens, bathrooms, and curb appeal. A well-maintained property will not only attract higher-quality tenants but also allow you to charge a premium rent.

3. Market effectively: Utilize various marketing channels to reach a wider audience. Advertise your property on popular rental websites, social media platforms, and local classifieds. Use high-quality photos and detailed descriptions to showcase the property's best features and attract potential tenants.

4. Screen tenants thoroughly: Implement a rigorous tenant screening process to ensure you select reliable and responsible tenants. Conduct background checks, verify employment and income, and contact previous landlords for references. This will help minimize the risk of late payments, property damage, and eviction.

5. Offer desirable amenities: Consider adding value to your rental property by offering desirable amenities. This could include in-unit laundry facilities, parking spaces, storage options, or access to communal areas such as gyms or pools. These extras can justify higher rental prices and attract tenants willing to pay a premium for added convenience.

6. Regularly review and adjust rent: Stay updated with the local rental market and periodically review your rental rates. If the demand for rental properties in your area increases, consider adjusting the rent accordingly to maximize your income. However, be mindful of not pricing yourself out of the market and driving away potential tenants.

7. Maintain good tenant relations: Building positive relationships with your tenants can lead to longer tenancies and reduced turnover. Respond promptly to maintenance requests, address concerns, and communicate effectively. Happy tenants are more likely to renew their leases, saving you the costs associated with finding new tenants.

By implementing these strategies, you can effectively maximize the rental income from your property. Remember, it's crucial to strike a balance between charging competitive rent and providing a desirable living experience to attract and retain quality tenants.

Inflation Data Keeps Low
Rate Hopes Alive

The much-anticipated Consumer Price Index (CPI) was released this week. For those seeking evidence that inflation will soon be back at the Fed's target level, it wasn't the triumph it might have been. Even so, rates managed to move lower.

Mortgage rates and, indeed, most rates are determined by trading levels in the bond market.  Bond yields/rates move higher when inflation is high, and the market has been waiting on signs of lower inflation before trading in a way that allows interest rates to move lower.

The Consumer Price Index (CPI) is the biggest name in monthly inflation reports.  It's caused big reactions in rates many times over the past few years.  In recent months, it's been showing more and more promise regarding a return to inflation levels that would allow for significantly lower rates.

But CPI has given false hope before, so traders are wary.  This week's report definitely stopped short of providing resounding confirmation that inflation is defeated.  That said, it didn't send any signals that were too troubling either.

With that in mind, it's not too surprising that rates actually didn't move much in response to CPI.  If anything, the initial impulse was toward slightly higher rates.  It wasn't until the following day's Producer Price Index (PPI) that bond traders saw better evidence of calmer inflation. Both CPI and PPI have been moving lower, but PPI is now all the way back down to target levels.