One of the critical indicators for mortgage rates, the 10-Year Treasury Note, broke under 4% today. This is a support level, and may indicate rates are coming down. The Freddie Mac Primary Mortgage Market Survey showed the 30-year fixed mortgage rate at 6.73% today. Hopefully, this is a sign of further decreases to come. Seems that speculation the Fed maybe decreasing the Fed Funds rate next month has led to a buying of bonds thereby driving the yield under 4%. We’ll be tracking this and will keep you posted. If you are considering your mortgage financing options, give us a...
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ONE FOMC MEETING AWAY
Today’s post is written by Michael Green, Senior Commercial Loan Originator with Counsel Mortgage Group, LLC. Mike writes monthly on the commercial mortgage market. Check back each month for his commentary. Markets are poised today awaiting the FED announcement tomorrow of interest rate policy for the next 6 weeks. A heavy abundance of FED watchers collectively anticipates no change in the Fed Funds rate. The post-meeting press conference is expected to phrase in no uncertain terms that the next rate decrease will occur at the September meeting in 6 weeks. (We note that black swans regularly upset the smart-money majority...
July 30, 2024July 30, 2024
MAKE SURE THE CONDO IS APPROVED UP FRONT
In order to obtain financing, the condo must be approved by the lender. Fannie Mae, Freddie Mac, FHA, and VA have condo approval lists. If the condo appears on the list, you can go ahead and make an offer. Contact us to see if your condo is on the list. If the condo does not appear on the list, you may still be able to get it approved. The HOA would have to complete a questionnaire, provide the budget and insurance, and potentially other information and documentation to get approved. If the condo is still not approved after a review...
July 10, 2024July 10, 2024
HOW TO GET A LOWER MORTGAGE PAYMENT
With higher mortgage rates, many people are sitting on the sidelines and choosing not to purchase a home as the payment is high. Here are some suggestions to get a lower payment. If the seller has a VA or FHA loan, you may be able to assume their mortgage, and their low interest rate. So, if the seller has a 4% rate, or a 3% rate, you may be able to take over that mortgage. If you are looking to purchase a home and assume the seller’s mortgage, contact us and we can help you. You can buydown the rate....
July 5, 2024July 5, 2024
WHAT’S NEW IN THE WORLD OF CRE LENDING?
Today’s post is written by Michael Green, Senior Commercial Loan Originator with Counsel Mortgage Group, LLC. Mike writes monthly on the commercial mortgage market. Check back each month for his commentary. For the answer, consider what’s in the recent headlines of industry tabloids, websites, BLOGs, social media platforms, etc. Fed Holds Fed Funds Rate at 5 ¼-5 ½ %, Fed Raises Specter of Rate Hike Again, Distress Jumps While Extend-and-Pretend Continues, Interest Rate CAP Costs Surging Again, FDIC Lists 56 Banks on Insolvency Watch List Top Rated CRE Bond Fund Hit with Losses. There are more of the same, that...
June 28, 2024June 28, 2024
JUNE 2024 INTEREST RATES AND VALUES UPDATE
Mortgage rates dipped a little in the last month, while home prices appear to be leveling. The Freddie Mac Primary Mortgage Market Survey shows a dip in the 30-year fixed mortgage rate to 6.87%, and the 15-year fixed rate to 6.13%. This survey is based on mortgage rates of purchase applications of conventional single-family conforming loans, for borrowers with good/excellent credit, and 20% down payment. These rates may include discount points to buy down the rate. Also, the rates are based on applications, not necessarily closed loans. Values appear to be leveling off as you can see in the chart...
June 25, 2024June 25, 2024
WILL MORTGAGE RATES GO UP OR DOWN? LOOK TO THE 10-YEAR T-NOTE
In order to determine where mortgage rates will go on a day-to-day basis, we look at the yield on the 10-year Treasury Note. This is a leading indicator for mortgage rates. If the yield on the 10-year Note goes down, then mortgage rates typically follow. On the other hand, if the yield goes up, then the mortgage rates tend to go up. The economic factors that go into whether the yield on the 10-year Note will go up or down are the same factors to be considered for mortgage rates. Factors include inflation, unemployment, Federal Reserve policy, gross domestic product,...
June 19, 2024June 19, 2024
DEBT-TO-INCOME RATIO
Debt-to-Income ratio (known as DTI) is the backbone to qualification for a home loan. Lenders look to this ratio to determine how much of a mortgage payment along with other debts is permissible to qualify you for a loan. Depending on the loan, a general rule is that lenders will approve a DTI up to 50%. Not all debts are included in DTI. For example, phone bills, internet, and utility bills are typically not included. Debts that are included are car payments, student loan payments, and credit card payments. Most of the scrutiny by underwriters is in the calculation of...
June 11, 2024June 11, 2024
THE CRE MARKET WILL HEAT UP IN H2-24 . . . GET READY
Today’s post is written by Michael Green, Senior Commercial Loan Originator with Counsel Mortgage Group, LLC. Mike writes monthly on the commercial mortgage market. Check back each month for his commentary. As CRE data reflecting the post-COVID damage emerged last summer (or so), we began to notify you that investors were penciling out shark-in-the-water deals. Last fall and through the winter we highlighted hesitancy/reluctance/inability of traditional lenders (banks) to make “reasonable” CRE loans, either for refi or acquisitions. This activity and posturing was mostly happening quietly behind the scenes, and often by smaller players. The cycle is reminiscent of 2001-2002,...
June 1, 2024June 1, 2024
MAY 2024 INTEREST RATES AND VALUES UPDATE
The data this month is similar to prior months. The 30-year fixed mortgage rate is hovering around 7% while property values continue to increase. The Fed has been steadfast in their policy that they will wait for inflation to get to 2% before reducing the Fed Funds rate. The April CPI index came in at 3.4%. The Fed came off indications of three rate decreases this year to maybe one. It seems the Fed will maintain policy until they see a decrease in inflation. While the Fed has been maintaining policy, 30-year fixed mortgage rates have remained around 7%. It...
May 26, 2024May 26, 2024