Tag Archive for: interest rates

Price Limits For First-Time Homebuyers? Other Limits?

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We have had young first-time homebuyer tech employees come to us wanting to buy $2 million+ homes with $400,000 to $500,000 down payments – and there were no major issues. […]Read More

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

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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

Israel-Iran War – Impact On Rates; Price of Gold; What Do Billionaire Insiders Know?

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Rates are way up this morning again, and nobody is happier about that than me – even though these high rates are extremely costly for JVM and the mortgage and real estate industries. On Saturday, I expected rates to be much lower today because I was reading all of the WW III predictions on X in response to Iran’s attack on Israel – and it certainly seemed like things were bound to escalate.Read More

Terrifying Class Action Suit Against UWM (Largest Mortgage Bank); Just like NAR!

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We compete viciously against mortgage brokers who send their loans to United Wholesale Mortgage (UWM) – and I am going to defend those brokers and UWM equally viciously. UWM is […]Read More

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

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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

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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

Why ARMs Remain Awful; Is Crypto Cool for Mortgages? Rates Lower Than Last Year!

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Borrowers still frequently request ARMs because they have short-term time horizons and want to save as much as they can on their mortgages. They either expect to move or sell in under 5 years, or they’re expecting a liquidity event (very common in Austin and the San Francisco Bay Area) that will enable them to pay off their mortgages. BUT – the problem is that ARM rates are not lower than 30-year fixed rates.Read More

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

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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

Can Communists and Federal Reserves Control Economies Forever? No. So, Buckle Up!

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Which country has far more debt than the United States? The answer is China, along with many other countries. Everyone focuses on the United States’ massive federal debt levels, but […]Read More

Awful Disease Severely Impacting Mortgages and Real Estate! (It’s Worse Than You Think)

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The disease is called Gell-Mann Amnesia and it is costing you far more business and goodwill than you can possibly imagine. And worse – we ALL suffer from it! I will explain why, but I want to share a little background first.Read More

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

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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)

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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

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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

FHA Vs. USDA Home Loans: Which Mortgage Is Better For Buying A Home

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As a first-time homebuyer with limited savings for a down payment, navigating the world of mortgages can be daunting. Thankfully, there are options available to help low-to-moderate income borrowers achieve […]Read More