Kay Monigold, Author at Avenue Mortgage, LLC

Let's Talk Basements: How to Finish Your Basement so It Adds Value to Your Home Are you on the hunt for home renovations that will boost usability and value? Look no further than that unfinished basement. In this article, we’ll show you how to turn that dusty cave into an amazing new living space.

Note: finishing a basement isn’t the easiest job. For most basements, it’s a lot more than a weekend do-it-yourself project. If you’re not comfortable with construction be sure to enlist the help of a professional.

Step 1: Plan Everything Out

The first step is to plan out how you’re going to use the space. Are you going to make an office? A full suite? Is there any plumbing or wiring involved? Will you need to create full walls? Map out how you plan to use the available space so you have an idea of what you’ll need.

Step 2: Measure And Deal With The Floor

Once you figure out how you’ll use the space, you’ll need to measure everything out. Height can be an issue — especially in basements not designed as a living space. You can solve height problems by digging out the concrete slab. Once you get down deep enough, you pour a new slab.

Step 3: Frame Everything In

Is the basement at a good height? Next you’ll need to start framing everything in. Depending on how you have your walls mapped out, this might take a while. You may also need permits or to enlist licensed tradespeople, such as an electrician. If you’re just framing in a single room to add walls, it will be easier.

Step 4: Insulate And Install The Walls

After the framing process, you’ll insulate everything before installing the walls. Adding insulation can drive energy and heating costs down by a lot. So much so that in colder areas of the country, new homes must have insulated basements. After the insulation is in place, you’ll install the drywall and ready the walls for painting.

Step 5: Paint, Carpet And Finish Up

The final step is to get everything painted and finished. If you chose to go with a carpeted floor, you’ll want to save this for last. Once the painting is complete, install the carpets, baseboard and trim. Touch up any final areas and you’re all set.

Finishing your basement into a usable space is an excellent way to add value to your home. To learn more about building your home’s equity, give us a call.

Last week’s economic reports included new and pre-owned home sales, new jobless claims and Freddie Mac’s weekly mortgage rates survey.

Home Sales Mixed in October

According to the National Association of Realtors®, sales of previously owned homes reached a seasonally adjusted annual level of 5.60 million sales, which exceeded expectations and October’s reading of 5.49 million sales. Analysts had expected a rate of 5.44 million sales.

October sales of preowned homes rose 2 percent over September’s reading and were 5.90 percent higher year-over-year. This was the highest reading for sales of pre-owned homes since February 2007. High demand for homes is driving housing markets in spite of obstacles including rising mortgage rates and tight mortgage approval requirements.

Sales of new homes were lower in October, which indicated continued ups and downs in the economic recovery. October’s reading of 563,000 sales on a seasonally adjusted annual basis was lower than expectations of 595,000 sales and September’s downwardly revised reading of 574,000 new homes sold.

New home sales were 17.80 percent higher year-over year and 12.60 percent higher year to date, but analysts said that housing markets continue to be constrained by a short supply of available homes. Inventories of available homes are slowly increasing, which is expected to help curtail rapidly rising home prices caused by pent-up demand.

The median price of a new home was $304,500 in October as compared to September’s median price of $314,100 and October 2015’s median price of $298,700. There were 246,000 new homes for sale in October, which was the highest quantity of new homes on the market since September of 2009.

Mortgage Rates, New Jobless Claims Rise

Mortgage rates jumped last week in response to an increase in the 10-year Treasury note rate. The average rate for a 30-year fixed rate mortgage rose nine basis points to 4.03 percent; the average rate for a 15-year fixed rate mortgage was 11 basis points higher at 3.25 percent. The average rate for a 5/1 adjustable rate mortgage was five basis points higher at 3.12 percent. Last week’s readings were the first time in 2016 that mortgage rates exceeded four percent.

New jobless claims were also higher last week with 251,000 claims filed as compared to expectations 248,000 new claims and the prior week’s reading of 233,000 new claims filed. Last week’s reading marked the 90^th consecutive week of new jobless claims less than the benchmark of 300,000 new claims, an event that hasn’t occurred since 1970.

What‘s Ahead

Economic reports scheduled this week include Case-Shiller Housing Market Indexes, pending home sales and construction spending. Readings on inflation and labor will also be released along with weekly reports on mortgage rates and new jobless claims.

Let’s Talk Basements: How to Finish Your Basement so It Adds Value to Your Home

What’s Ahead For Mortgage Rates This Week – November 29, 2016

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