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Biennial Harvard Remodeling Report Due Out Next Month Harvard University's Remodeling Futures Program is set to release in February its biennial report on remodeling. Among other findings, it will offer key insights on the demo- graphic impact of millennial and boomer homeowners on remodeling demand. These cohorts are increasingly dominating the market for professional home im- provement and remodeling services. Familiar president/CEO for Wellborn Forest Products Wellborn Forest Products announces the appointment of Tim Wellborn as president and CEO, effective December 19, 2016. Having served as the company's president and CEO previously from 1996-2008, Tim will be leading with a new strategic vision, which includes advancing the high-end, semi-custom cabinet operation's growth and profitability with an emphasis on craftsmanship through product innovation and reinvesting in technology. Wellborn Cabinet Company was founded in 1963 by Tim's father and uncle, Doug and Paul Wellborn. Tim's roles in the company have included Vice President of Sales for Wellborn Cabinetry Company and Vice President of Sales at Wellborn Forest Products. As the company grew, Tim and his father Doug began to shift the company toward higher-end, semi-custom cabinetry (over the low-end price point cabinetry for the multi-family industry it had been pro- ducing), which it is still producing today. Beyond the company, Tim has applied his time and experience to serving on the Board of Directors for the Kitchen Cabinet Manufacturing Association for more than seven years. Tim's wife, Pam, served as Director of Design and Color until 2008 and will continue to influence the compa- ny's product design and finish options. Learn more about Wellborn Forest Products at wellbornforest.com. | borrowers will rely more heavily on loans tied to short-term interest rates. Findings from an October 2016 Piper Jaffray Home Improvement Survey are consistent with previous consumer sur- veys regarding how owners pay for major home improvement projects. Savings con- tinue to be the principal source of funds as 62 percent of respondents indicated they would use savings for all or part of the payment. Another 37 percent said they would put all or part of the cost on a credit card, with many of these planning to immediately pay off their balance. In con- trast, only 18 percent said they planned to use a home equity line of credit to fully or partially fund their projects. The relatively low use of home equity loans is due in part to the fact that home equity levels for homeowners fell dramat- ically after the housing crash. Long-term interest rates have been trending down for the past decade, and many owners who want to borrow to finance a home im- provement project had another appealing and readily available option: They could refinance their principal mortgage to take advantage of lower rates, and simulta- neously pull out some of their equity by increasing the loan amount on their low-interest, fixed-rate, first mortgage. Signs are quite clear now that we are at the end of this near decade-long interest rate down cycle. Interest rates on 30-year fixed rate mortgages, which have been trending up since last summer, spiked al- most 50 basis points (one-half percentage point) after the presidential election. While higher interest rates will discour- age some owners from cashing out home equity to undertake home improvement projects, they may actually promote re- modeling spending by others. Rising mort- gage rates may encourage many owners to remain in their current homes. Interest rates for 30-year fixed rate mortgages have been below 5 percent since early 2011, so virtu- ally everyone who has purchased a home or refinanced their fixed rate mortgage over the last six years has locked into a histor- ically low mortgage rate. This means that if rates rise, trading up to a more desirable home also involves paying off a low interest mortgage and taking out a new higher rate loan. Facing this prospect, many owners may instead decide to improve their cur- rent home rather than buying a home with the features they now desire. Data from October indicates home prices continue to rise nationwide The latest results for the S&P; CoreLogic Case-Shiller Indices show that home pric- es continued their rise across the country over the last 12 months. Data for October 2016 from the S&P; CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reports a 5.6 percent annual gain, up from 5.4 percent the previous month. Before seasonal adjustment, the National Index posted a month-over-month gain of 0.2 percent in October; both the 10- and 20-City Composites each reported a 0.6 percent month-over-month increase. The 10-City Composite reports great- er price increases in the year end- ing October 2016 vs. the year ending September 2016. Seattle, Portland and Denver reported the highest year-over- year gains among the 20 cities over each of the last nine months. "Home prices and the economy are both enjoying robust numbers," says David M. Blitzer, managing director and chairman of the Index Committee at S&P; Dow Jones Indices. "However, mortgage interest rates rose in November and are expected to further rise as home prices continue to outpace gains in wages and personal income. Affordability measures based on median incomes, home prices and mortgage rates show declines of 20- 30 percent since home prices bottomed in 2012. With the current high consumer con- fidence numbers and low unemployment rate, affordability trends do not suggest an immediate reversal in home price trends." Higher interest rates could promote remodeling spending Originally posted on the Joint Center for Housing Studies' blog, Housing Perspectives by Kermit Baker: The recent hike in short-term interest rates by the Federal Reserve Boar raises concerns about what rising interest rates mean for consumer borrowing, particular- ly as it affects the demand for home im- provement loans. The counterintuitive but probable outcome is that home improve- ment borrowing is likely to increase, and 12 January 2017 QR QualifiedRemodeler.com IN BRIEF