As home remodeling increases, the EPA is warning remodelers to take special precautions in older homes and watch out for lead-based paint violations.

Lead-contaminated dust from chipped or peeling lead-based paint in homes built prior to 1978 is one of the most common causes of elevated blood levels of lead in children, according to the U.S. Environmental Protection Agency.

Lead-contaminated dust from chipped or peeling lead-based paint in homes built prior to 1978 is one of the most common causes of elevated blood lead levels in children, according to the U.S. Environmental Protection Agency. Even low levels of lead in a child’s blood can result in behavior and learning problems, slowed growth, and hearing problems.

Home remodeling has surged since the pandemic as more homeowners have sheltered in and looked to spruce up their places. According to the Joint Center of Housing Studies of Harvard University, the home remodeling wave is expected to continue to increase in 2022.

Renovations occurring in homes built prior to 1978, which may be at risk of having lead-based paint, may require extra precautions. Lead dust can occur when lead-based paint deteriorates or is disturbed, according to the EPA. “And with more kids spending more time in the home during the COVID-19 pandemic, their risk of exposure to lead chips and dust may increase,” the EPA notes in a statement. About 3.6 million American households have children under six who live in homes with lead exposure hazards, according to the EPA.

Identifying and mitigating exposure in any renovation is critical, the National Association of Home Builders warns on its site. For example, during the renovation, ducts need to be properly covered. Improper removal or disturbance of lead-based paint can generate lead dust and paint chips and pose a health hazard.

Homeowners doing a repair, renovation, or painting project in a home or apartment built prior to 1978 should hire an inspector to determine whether lead-based paint is present and ensure the work is done safely. Homeowners could also consider hiring a certified lead-safe contractor.

How to Tell if a Home Has Lead Paint

Buyers Eye Older Homes for Affordability, Historic Charm

The EPA’s Lead Renovation Repair and Painting Program rule aims to protect the health of the occupants of a home and remodelers. Homeowners and remodelers will want to use lead-safe practices when lead-based paint is assumed or confirmed to be at the residence. An EPA inspection—either of remodeling records or of the active job site—will require documentation on compliance with the RRP rule as well. You can view the inspection manual here.

The EPA recently fined eight residential home remodeling businesses for violations of federal lead-based paint regulations.

“Reducing exposure to lead-based paint, especially among children, is a top priority for EPA,” Ed Kowalski, director of EPA Region 10’s Enforcement and Compliance Assurance Division, said in a statement. “The Agency is committed to ensuring that home renovators follow the law and protect people from exposure.”

Fannie Mae will launch RefiNow this week, which could help lower-income homeowners save hundreds of dollars a month on their mortgage payments.

The program, which begins June 5, aims to help about 2 million homeowners lower the interest rates on their mortgages. Eligible homeowners could save an estimated $100 to $250 a month, according to the Federal Housing Finance Agency, Fannie Mae’s regulator.

Among the eligibility requirements, homeowners must earn 80% or less of their area’s median income to apply. Borrowers also must have a Fannie Mae–backed mortgage (use the loan lookup tool to find out). Borrowers must be current on their mortgage and have no missed payments in the last six months. The mortgage also can’t have a loan-to-value ratio above 97%, and borrowers’ FICO credit scores must be at least 620.

“Lower-income borrowers typically refinance at a slower pace than higher-income borrowers, potentially missing an opportunity to save on housing costs,” says Malloy Evans, senior vice president and single-family chief credit risk officer at Fannie Mae. “Fannie Mae’s new RefiNow option will help homeowners refinance by removing some of those barriers, improving affordability, and promoting sustainable homeownership.”

Under the program, participating lenders would be required to reduce eligible borrowers’ interest rate by at least one-half of a percentage point. That could be higher, however. Lenders also must waive the adverse market refinance fee for borrowers whose loan balance is no more than $300,000. Lenders must provide a credit of up to $500 if the borrower is ineligible for an appraisal waiver.

Lenders aren’t required to participate in RefiNow.

Freddie Mac will start its own refinance program later this summer.

Pandemic-related moratoriums on foreclosures and evictions are set to expire June 30, and some lenders plan to start resuming foreclosures in July. About 2.1 million homeowners are still in mortgage forbearance, according to the Mortgage Bankers Association. As of April, about 1.8 million households who aren’t in forbearance were 90 days delinquent on their loan, according to Black Knight data.

Bank of America says its suspension of foreclosures will end on bank-owned loans and government-backed loans when the national moratorium ends at the end of June. “The good news is the amount of deferrals is way down, and most of the clients have become current,” Brian Moynihan, CEO of Bank of America, said at this week’s Senate hearing, as reported by CNBC. “Irrespective of that deadline passing, we’ll continue to work with a few clients we have left to help them.”

JPMorgan Chase also said during the hearing that about 90% of its customers have exited forbearance programs.

Forbearance and delinquency rates have gradually dropped since the nation started reopening last summer. Nearly 92% of mortgage holders were making loan payments as of April 23, the largest share for any month since the onset of the pandemic, Black Knight reports.

Some lending giants plan to delay taking any action against delinquent homeowners even after federal moratoriums expire. For example, Wells Fargo told lawmakers this week that it plans to extend moratoriums on foreclosures and evictions for loans that they own until the end of the year. Wells Fargo also said it supports the Consumer Financial Protection Bureau’s proposed rule that would prevent lenders from initiating foreclosure proceedings until 2022.

The housing industry is anticipating more inventory in the coming months. Lawrence Yun, chief economist at the National Association of REALTORS®, said after last week’s existing-home sales report: “We’ll see more inventory come to the market later this year as further COVID-19 vaccinations are administered and potential home sellers become more comfortable listing and showing their homes. The falling number of homeowners in mortgage forbearance will also bring about more inventory.”

Ultra-low mortgage rates returned this week, with lenders offering home buyers and refinancers a chance once again to lock in a rate below 3%. But the National Association of REALTORS® warns that these low rates in the 2% range won’t last much longer, and mortgage rates likely will edge up soon. The 30-year fixed-rate mortgage averaged 2.95% this week, Freddie Mac reports.

“Mortgage rates are continuing to offer many homeowners the potential to refinance and increase their monthly cash flow,” says Sam Khater, Freddie Mac’s chief economist. Homeowners who refinanced their 30-year fixed-rate mortgage in 2020 saved more than $2,800 annually, Khater notes. “Substantial opportunity continues to exist today, as nearly $2 trillion in conforming mortgages have the ability to refinance and reduce their interest rate by at least half a percentage point.”

Freddie Mac reports the following national averages with mortgage rates for the week ending May 27:

• 30-year fixed-rate mortgages: averaged 2.95%, with an average 0.7 point, dropping from last week’s 3% average. Last year at this time, 30-year rates averaged 3.15%.
• 15-year fixed-rate mortgages: averaged 2.27%, with an average 0.6 point, falling from last week’s 2.29% average. A year ago, 15-year fixed-rate mortgages averaged 2.62%.
• 5-year hybrid adjustable-rate mortgages: averaged 2.59%, with an average 0.2 point, unchanged from last week. A year ago, 5-year ARMs averaged 3.13%.

Freddie Mac reports average commitment rates along with average points to better reflect the total upfront cost of obtaining a mortgage.

After more than a year of masking and social distancing, more people are returning to a normal routine as COVID-19 vaccines blunt the effects of the pandemic. But with more coronavirus restrictions coming to and end, many people are wondering what the workplace will look like moving forward and how business etiquette will change. For now, experts say, you may need to continue keeping the handshake—a traditional greeting and symbol of agreement on a transaction—in your back pocket.

“Don’t offer to shake hands if you are introduced,” writes etiquette expert Eva Del Rio in a column for The Gainesville Sun in Florida. “Simply say, ‘It’s nice to meet you,’ with a smile and a nod of the head while keeping your hands by your side. If someone offers their hand to you, it’s okay to say, ‘It’s so nice to meet you, but I’m not shaking hands yet,’ implying that someday you will.”

Elbow bumping, Del Rio notes, was a fun, new way to greet others at the beginning of the pandemic, but now she says it’s unnecessary and can come across as gimmicky in the workplace. Also, continue to respect personal space. Some consumers may be uneasy with someone who comes too close to them or if a shopper stands right behind them in line.

In March, nearly half of Americans—an equal share of vaccinated and unvaccinated people—said they felt uneasy about adjusting to in-person interaction again, according to a survey from the American Psychological Association. Del Rio says you don’t have to space yourself too far from others, but be mindful that people now consider “personal space” to be a larger area than before the pandemic.

Everyone has different comfort levels, James Honeycutt of the University of Texas at Dallas told Cleveland.com. In describing proxemics, the study of social space, Honeycutt says that about 18 inches around your body are considered intimate space, up to four feet is personal, 12 is social, and 36 is public.

Also, follow local mask guidance as a show of respect to others. “Remember, etiquette is not so much about rules; it’s about being considerate and thoughtful of others,” Del Rio writes for the Sun. “This means always carry a mask with you—just in case. And never make fun of someone for wearing a mask or taking a precaution.”

he lack of inventory continued to chip away at pending home sales last month, but the home-buying craze is still going strong.

The National Association of REALTORS®’ Pending Home Sales Index—a forward-looking indicator of home sales based on contract signings—fell 4.4% month-over-month in April. Still, pending home sales are up nearly 52% compared to a year ago. However, NAR notes that the year-over-year comparison is skewed since it’s from a time when pandemic-related shutdowns prompted home sales to dip to all-time lows.

Nevertheless, “contract signings are approaching pre-pandemic levels after the big surge due to the lack of sufficient supply of affordable homes,” says Lawrence Yun, NAR’s chief economist. “The upper-end market is still moving sharply as inventory is more plentiful there.”

Yun anticipates the overall housing supply to see an increase in the fall as more homeowners warm up to the idea of selling. An increase in inventory is largely predicted to occur as vaccine rates increase and sellers realize the equity they’ve accumulated. Also, more inventory likely will arise once the end of the eviction moratorium at the end of June as homeowners exit forbearance.

For now, the Midwest is the only region seeing a month-over-month increase in pending home sales, NAR reports. “The Midwest region, which has the most affordable homes, was the only region to notch a gain in the last month,” Yun says. “Some buyers from the expensive cities in the West and Northeast, who have the flexibility to move and work from anywhere, could be opting for a larger-sized home at a lower price in the Midwest.”

© National Association of REALTORS®