Tag Archive for: inflation

Waiving Appraisal Contingencies; Property Tax Appeals; Uh Oh – STAGFLATION!

/in ,
Charles Dickens famously wrote: “It was hottest of markets, it was the coldest of markets…” Or something like that. And – that is precisely what we are seeing across the 9 states in which we do business. Some markets are still seeing bidding wars no matter how high rates go, and some are seeing price reductions and stale inventory.Read More

Why The U.S. Can Print Money With No Inflation – But Other Countries Can’t

/in ,
There is probably no more important concept for people to understand than this: why can the U.S. print so much money without inflation when other countries can’t? It is so important because so many people are under the impression that our massive government deficits are going to crash the dollar from all the “printing” and bring on “hyperinflation.”Read More

What’s Balance Sheet Runoff? (You Need to Know); Highest Rates in 2024; Rental Income From Departing Residence; Can Agents Do Loans?

/in ,
Today’s blog is a “random show” of short and unrelated (but interesting, I promise) snippets. Interest Rates Hit Peak for 2024 Rates are their highest level of the year and […]Read More

Inflation Comes In Hot! Rates Shoot Up; BUT – Will It Last? Maybe Not

/in ,
Today’s Consumer Price Index (CPI) inflation report came in hotter than expected, and the markets went into panic mode. Rates shot way up, as rate cuts by the Fed seem less and less likely. (Rates are 3/8% higher than where they were a few weeks ago, but still over 1/2% LOWER than where they were in October).Read More

Rates Scream Higher In Response to Hot Jobs Report! Uh Oh… Will It Last?

/in ,
Rates shot way up again this morning (before pulling back) in response to an ADP employment report indicating that private payrolls increased by 184,000 in March, far exceeding estimates and hitting a number we have not seen since last July. So, the question is, will it last, and will the upward trend in rates continue?Read More

2 Reasons Why Agents Should Alert Lenders Every Time They Make Offers

/in ,
There are two huge reasons why agents should alert their lenders every time they make offers. Reason #1: Insurance Costs! Hazard insurance costs have gone exponentially higher in some areas, […]Read More

Why I Still Love Stocks – Despite the Looming Crash

/in ,
I have blogged about a potential stock market crash or at least a substantial correction many times. I still think the stock market will correct, and it will likely do so this year** – but I don’t think anyone should sell all of their stocks. I always just repeat George Gammon’s advice and advocate diversification across asset classes and remaining liquid enough to pick up bargains – should the stock market correct significantly.Read More

Fed Promises 3 Rate Cuts This Year – But WHY? (Very Confusing Message)

/in ,
The Fed held the Fed Funds Rate steady this month – which was no surprise. The big surprise was that it announced that we’d see 3 rate cuts this year […]Read More

Why Fed Chair Powell Is TERRIFIED of Arthur Burns! (Why Powell Will Not Cut Rates Now; Why He Will Cut in June)

/in , ,
Jerome Powell is terrified of having an Arthur Burns legacy. So, he’d much rather push the U.S. into a severe recession than risk cutting too soon – and re-igniting inflation. Yes, recessions and all the job losses and suffering are bad, but as Mr. Volcker’s legacy has shown us – Americans forgive Fed Chairs who cause horrible recessions, but we don’t forgive Fed Chairs who ignite inflation.Read More

LOs Can Quote ANYTHING When You’re Not In Contract; Owner-Occupancy Fraud Alert! Hot Inflation = Higher Rates

/in ,
We lost a borrower during the pre-approval stage to another loan officer (LO) who quoted an “estimated” interest rate that was 1/4% lower than ours. We tried to explain to the borrower that LOs often quote below market rates to lure borrowers in before they’re in contract – but our borrower fell for the ruse. LOs get away with this because they know they don’t have to lock in the rate before borrowers are in contract. The LOs hope that rates will fall, that borrowers will have short memories, that they can tell borrowers rates went way up since the last quote, or that borrowers just won’t want to go to the trouble of going to a new lenderRead More

Everyone You Know Is Rich & That’s Why You’re Confused

/in ,
To be in the top 10% of the wealthiest Americans, you only need a net worth of $854,00, per Yahoo Finance (this is pretty much everyone who owns a home in CA). The top 5% have net worths of $1 million and the top 2% have net worths of $2.5 million. To be part of the famous and “evil” “top 1%,” you only need a net worth of $5.8 million. Read More

Will Biden’s Housing Assistance Plan Help Housing?

/in , ,
My son and I recently visited a fast-food restaurant in CA’s Central Valley where the new minimum wage laws ($20 per hour starting in April) had been implemented – and […]Read More

Dangerous Myth: “Market Is Soft So I Can Lowball”

/in ,
One of the biggest misconceptions our pre-approved buyers have is that the market is soft because of today’s higher rates. While it is a fact that today’s higher rates are keeping an enormous number of potential buyers on the sidelines, it is also a fact that inventory levels remain at record lows.Read More

Interest Rates Up Again; Trends Vs. Blips; How Worried Should We Be?

/in ,
The “average interest rate” peaked at just over 8% in October. Interest rates then slid downward 1.5% over the next few months before heading back north over the last few weeks. While they remain 1% lower than where they were in October, the slide upward over the last few weeks has left many people in the real estate and mortgage world all too worried. Read More