Tag Archive for: COVID

Fastest Rate Increase Since 1981; Will Recession Lower Rates?

The Fed has engineered the fastest increase in mortgage rates since 1981 – as rates have nearly doubled over the last several months. And, interestingly, housing continues to appreciate for the usual reasons we cite often: (1) inventory remains at record low levels primarily due to a lack of building, not demand, since 2008; (2) demand remains stronger than ever primarily as a result of demographics or millennials hitting homebuying age; and (3) affordability has not been affected as much as people think because incomes have risen with inflation.Read More

Housing Inventory Crisis! How Bad Is It?

Picture yourself walking into your local Whole Foods and seeing 2/3 of the shelves entirely empty. That is exactly the state of the single-family residential real estate market today, according to Jason Hartman, a true expert when it comes to residential real estate. Mr. Hartman was recently on the Rebel Capitalist YouTube show making this […]Read More

“I’m Having My Best Year Ever; Why Don’t I Qualify?” “What Are My Options?”

The title of this blog is a lament we hear all too often from self-employed borrowers, and last week was no exception, as we received an email that said exactly that. MOST RECENT TWO YEARS OF TAX RETURNS TO QUALIFY Most readers know that lenders usually use the last two years of tax returns to […]Read More

America Always Bounces Back; Sage Investment Advice! Good For Psyche Too

FOUNDER BUYS STOCKS AFTER BLACK MONDAY CRASH I was working for an investment bank on “Black Monday” in 1987 when the stock market crashed and fell 20% in a single day – a record drop. Everyone was literally freaking out. But the day after the crash, the founder of the firm, who was in his […]Read More

5 Major COVID Effects After One Year; Way Hotter Housing Market – WHY?

It was one year ago this month that the World Health Organization declared that the “Coronavirus” (old-fashioned name for COVID) was a “pandemic.” And holy smokes has the world changed (understatement of the year). Here are some of COVID’s major effects on the Real Estate and Mortgage Industries: 1. INTEREST RATES Even though rates have […]Read More

2.7 Million Borrowers Still In Forbearance; Foreclosure Crisis Coming?

The WSJ reported recently that 2.7 million borrowers are still in forbearance. That is about 5.5% of all borrowers, down from about 8.5% in June, but the number of borrowers in forbearance is no longer falling and many market-watchers are nervous. A weakening economy is exacerbating concerns, as retail sales have been falling, employers have […]Read More

Biden Wins & Vaccine News; Effect On Mortgages & Interest Rates

Joe Biden was declared the winner of the election over the weekend, and the markets … did very little. When I refer to “the markets,” I am referring to both stocks and bonds – which often move in opposite directions. Hence, when stock prices move upward, bond prices often move downward (with the effect of […]Read More

4 Reasons NOT to Fear “The Coming Tsunami of Foreclosures”

Forbes.com recently published The Serious Disconnect Between A Hot Residential Real Estate Market And The Coming Tsunami of Foreclosures. And I thought, here we go again… The author expresses serious concerns about the frothy housing market, with both sales volume and prices increasing at double-digit rates. The market may in fact be overheating, BUT the […]Read More

Mark Cuban Was Right; SF’s Death & Revival; IKEA & Honey Badgers

A few weeks ago I blogged about The Death of New York City, citing another blog by James Altucher that set out reasons why NYC is not going to recover: the loss of business opportunities; the loss of cultural events; and the loss of restaurants. I also mentioned how Dallas Mavericks owner and Shark Tank […]Read More

Why COVID-19 Is Not Hitting Housing Prices

A few weeks ago, I blogged about why we are not seeing more foreclosures despite our severe recession and a huge number of delinquent borrowers. The reasons include: (1) borrowers have more equity and won’t abandon it; (2) lending guidelines have been much stronger since 2008; and (3) the housing market is on fire, making […]Read More