Here at Bedico Creek Preserve, we are about information for our builders, our buyers, our homeowners, our partners, and our vendors. If you are looking for a dependable source of information about real estate in Southeast Louisiana, specifically the Greater New Orleans area, please use our blog as much and as often as possible to read informative and timely real estate information. We promise you, you won’t be disappointed!

The Difference Between Annual Percentage Rates and Interest Rates

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If you are looking around for the best rates and options for a mortgage, then you are probably familiar with interest rates and annual percentage rate (APR). The majority of consumers think that these are one and the same, but they are not. They are related but that is as close as it gets.

What is the interest rate?

Simply put, interest rate is the percentage you pay to borrow the principal amount on your loan on an annual basis. The interest rate applies to the life of the loan, from the day it’s borrowed to the day it’s paid off. There are two types of interest rates, fixed or variable. When you get a fixed interest rate, the interest rate stays the same throughout the life of the loan. A variable rate varies and will change over the life of the loan. A variable rate is based on the prime rate and when the prime rate changes, so will your variable rate. This means that the payment on your variable rate will go up or down when the Fed moves to change the rate.

What is APR?

This can be a bit confusing but just remember that the interest rate is what the lender will charge the borrower for the loan. The annual percentage rate is the total price of the loan expressed as a percentage. The annual percentage rate will include lender fees as well, so the APR will be the same as the interest rate if the loan does not have any additional fees. If the loan does have additional fees, then the APR will be higher.

Why do you need to understand both APR and interest rate/?

When you are shopping for a loan, you want the lowest rates. Most consumers look for the lowest interest rate but if they do not include the APR rate, they will not get a full picture of the amount they will owe. The interest rate only calculates the cost that it will be to borrow the principal, but the APR will give you the cost of the total lifetime cost of the loan. For example, if you borrow $15,000 to be paid over 72 month at an interest rate of 7.99% with no origination fees, the APR will also be 7.99%.

How are interest rates calculated?

When determining your interest rate, a lender will look at your credit history, application information and the terms you selected. This means that the better your credit score is, the better interest rate you will be able to obtain. So getting your credit score the highest you can get it will get you the lowest rate. To ensure that you have a healthy credit score, you need to pay your loans and bills on time, do not use all of your credit that is available, pay any debt you have down, and don’t apply for a new loan or credit cards right before you are applying for a mortgage.

How is APR calculated?

When APR is calculated, a lender will take into consideration your interest rate, finance charges, and fees you will have on your loan. Remember that the APR can be affected by the origination date and your payment’s due date.

All financial decisions are a big part of your life, so you need to make them wisely. Remember to get all of the facts before you decide to borrow. If you are working with a real estate agent, they can refer you to a lender that is right for you.

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July 2023 Saw Rising Home Sales

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According to the National Association of Realtors (NAR), US pending home sales rose 0.9% for the second month in a row. This does come as a surprise due to the elevated home prices and rising mortgage rates. This still was lower than a year ago, as the year-over-year pending transactions dropped by 14%.

“The small gain in contract signings shows the potential for further increases in light of the fact that many people have lost out on multiple home-buying offers. Jobs are being added, thereby enlarging the pool of prospective home buyers. However, rising mortgage rates and limited inventory have temporarily hindered the possibility of buying for many,” said Lawrence Yun with NAR.

Pending home sales and contract signs for a new construction still top the existing home sale by about one to two months. There was an increase though in existing home sales in July. “But, unlike the market for new homes, which has received convincingly above last year’s lows, pending home sales continue to lag behind year-ago levels. This means more of the same is ahead for existing home sales, which have bounced back only modestly,” said Danielle Hale of Realtor.com.

“Today’s data suggests that home sales activity is unlikely to see a strong pick up in the next few months as limited options and significant affordability headwinds weigh on buyers,” says Hale.

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More Backing by FHA Loans for New Home Sales

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According to the National Association of Home Builders, the Quarterly Sales by Price and Financing report shows that FHA backed close to 14% of new home sales in the second quarter of 2023. Conventional loans went down to 73.7% of new home sales the same quarter while VA-backed sales were up to 5.4%. Cash purchases declined to 6.5% of new home sales. In fact, the share of cash purchases has decreased 2.9 percentage points over the past year and has ranged from 4.1% to 10.7% since Q2 2020.

Different regions within the US are backed by different financing sources. The national median sales price of a new home was $416,100. Split by types of financing, the median prices of new homes financed with conventional loans, FHA loans, VA loans and cash were $458,100, $346,500, 392,600 and 364,300, respectively. The price of a new home did decline in the past year. The biggest drop seen was a 20.1% decline.

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The Best Investment You Could Make

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Today’s housing market is all over the palace. There are prospective homebuyers out there who are asking themselves if this is the right time to purchase a home.

The pandemic caused a crazy housing market with home prices skyrocketing and buyers in bidding wars. Today, the market is cooling off a bit because of the high inflation.  The average interest rate for the benchmark 30-year fixed mortgage reached 7.29%, as of July 31.

Even though these red flags might scare you, this is a great time to invest in the real estate market. According to Mike Biryla with The Agency, when there’s volatility in the housing market, it is a great time to purchase. “Sellers that are on the market right now are not opportunistic sellers. This isn’t the market where sellers can just try for a high number and see if it’ll happen,” says Biryla.

When investing in real estate, you need to remember that you are setting yourself up for the future. “If you’re not ready to take on that responsibility just yet but want to lock in an interest rate, buy it now. When it comes to real estate, I think it’s one of the best investments you could possibly make. It’s great for your portfolio and it’s great for your retirement,” says Emma Hernan of the Oppenheim Group.

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Window Treatments That Are Currently Trending

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You might think of window treatments as the framing of a window, almost like a piece of art. In fact, interior designers will tell you that curtains are one of the most important elements of a room. The curtains you use can either make or break your look.

There are tons of window treatments out there to choose from. A good rule of thumb is to look at the current trends. Here are several current trends to follow.

Roman Shades

Roman shades are an updated version of blinds. According to Sarah Marks, an interior designer, Roman shades will stand the test of time. You can add different details to shades to give them a unique look. Marks explains, “For example, I love adding a bold, colorful micro welt to a Roman shade. This small detail can create depth and interest while keeping a simple and chic feel.”  You can add multicolor tassels to shades to give them a bit of color.

“When you’re working with a pattern that’s busier, fold the fabric and imagine it as a stacked curtain panel. What you get is a lot of movement and color without being overwhelmed by the pattern. If you were to use the same pattern for a Roman shade, you’d see the full pattern in a bold and dramatic way you may not want for the space” remarks Joshua.

Sheer Curtains

Sheer curtains can have an effect on a room. They let in soft light so it is a perfect way to delicately brighten up a space. If you have a small space or a space that you do not want to overwhelm with a window dressing, this is the perfect item.

“Sheers are so amazing because they give us the ability to add verticality and drapery without feeling heavy or weighing down a room. They bring a softness to very hard lines of architecture and allow light to still filter in while providing privacy. We want all the light to come in during summer,” says Joshua.

Drapery

They say that drapery is timeless. So if you want to have something that will last, choose curtains. “Personally, I love a fuller curtain so I add a little extra on to the drop. A little pooling of fabric will create a more luxurious feel. They are elegant, soft, luxurious, and visually make a dramatic impact,” says Tori Murphy, a textile designer.

“Layered drapery is a great solution for the summer and year-round. Using sheer panels combined with thicker panels is a wonderful way to achieve flexibility with both privacy and light. There is something so ephemeral about subtly filtered light shining through sheer curtains on a bright summer day,” says Davina Ogilvie of Wovn Home.

There are fun new trends always emerging and interior designers will always keep up to date when it comes to the current trend. Window treatments can be expensive but are worth it in the long run.

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Storytime At St. Tammany Parish Library

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A fun time for young St. Tammany residents is the storytime events at the St. Tammany Parish Public Libraries. The storytime events returned to the library system at the end of the summer.

This is a perfect segway as the Summer Reading Challenge came to an end. The Fall storytime calendar can be found online and includes StoryTots, Play Date, Storycraft and Family Storytime. Along with these events also come many different classes and events for all residents in the community.

The Friends of the Library of West St. Tammany also holds monthly book sales for the community. The event is held at the building close to the Parish Fairgrounds at 1301 N Florida Street in Covington. There you will be able to purchase children’s books for $0.25 each, paperbacks for $0.50 each, hardbacks and audiobooks for $2.00 each. The Friends of the Sliddell Library also holds a used book sale. This event is held in the Slidell Library meeting room where books will be from $0.10 to $3.00.

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