Tag Archive for: interest rates

Rates Fell 3/4% Since Mid-October – Defying Predictions Of “Rate-Ageddon”

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Mortgage rates fell almost 3/4% since mid-October – while the 10 Year Treasury yield fell about 6/10%. We’ve seen rates fall before, so who cares? Read More

How Much House Can I Afford? A Guide to Home Buying

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Wondering how much house you can afford? Dive into our comprehensive guide covering everything from mortgage basics and down payments to credit scores and debt-to-income ratios. Gain the knowledge you need for a confident and informed home purchase journey.Read More

Understanding APR vs. Interest Rate

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When comparing loans, the APR is an invaluable tool. It's not just about the rate of interest; it's about the overall costs of a loan. By factoring in additional fees and costs, APR provides a more comprehensive picture of what you’ll actually pay. This is crucial for making informed decisions, especially when comparing loans with different structures and fees.Read More

World To Drown in U.S. Debt – Pushing Rates WAY UP; Moody’s Downgrades U.S. Debt; Bond Auctions Fail! But Rates Fall??? Why???

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EVERYONE and I mean EVERYONE is in a panic over our massive deficits and the subsequent borrowing by the U.S. to cover them – because it has the potential to push interest rates through the roof! Last week alone, Moody's downgraded U.S. Debt (or lowered its bond rating over deficit concerns) and a Treasury auction "failed," meaning there were not enough buyers for our Treasury bonds at the offered rates.Read More

Inflation Cools & Rates Shoot UP! Why? “Rates Down In March!” RATE ROLL-DOWNS

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The markets are going crazy, as everyone tried to anticipate the Fed’s next move. When deciding to raise or lower rates, the Fed watches (1) the labor markets; (2) inflation; and (3) consumer spending – and ALL THREE sent the markets and rates into a tizzy this week.Read More

5 Reasons Why Interest Rates Matter So Much – For Real Estate Agents

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They Screamed: “Never Sell Rates!” I was a member of The CORE Training Program years ago, and it was very effective, as they preached focus, financial discipline, time-blocking, non-stop selling, […]Read More

CRACK!! That Was The Sound of The Labor Market Breaking! This Is A VERY BIG DEAL!

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There is simply no way the Bureau of Labor Statistics can show rosy jobs data forever. Unemployment climbed to 3.9% from 3.8% and the number of job creations came in below expectations. Some media sources and the current administration are trying to spin the sheer number of job creations as a huge positive, but the market knows otherwise and rates fell sharply.Read More

Why The Fed Must and Will Lower Rates!

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I frequently remind readers that a recession is likely and that the Fed will lower the Fed Funds rate when the recession hits. The Fed will do this to revive lending, to make borrowing costs cheaper, and to stimulate the economy overall. The risk of doing so will be more inflation, but the Fed will likely have no choice if it wants to keep the economy from completely collapsing.Read More

How To Get 1% Below Market Rates Without Paying Points!

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Rates hit a 20-year high yesterday, and we still had 8 contracts come in. So, this is another reminder that real estate still happens – no matter how high rates get.Read More

Payment Relief Loans: Interest-Only; 40-Year Amortization; Buydowns; Graduated Payment Loans; Overrated?

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Buyers are desperately looking for payment relief options right now in today’s high-rate environment. But many of the options available come with higher interest rates that not only offset the relief, but they also come with payments that are actually higher!Read More

Rates Hit Record High (Again); 2007 vs. 2023 – A Worrisome Comparison!

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Rates hit a new record high today, as the 10 Year Treasury hit levels not seen since 2007, and mortgage rates are back to 2000’s peak levels.Read More

“Inflation Relief Loans” = Lender Paid Buydowns = Bullsh*t or Reality?

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The Consumer Price Index reading for September came out hotter than expected today, but rates only moved a bit higher. The reason is partially because the markets are learning to dig into these numbers and realize that they are often just… wrong.Read More

Inflation Up and Rates Down??? Impact of Hamas/Israel Conflict

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Producer Price Index (PPI) or “Wholesale” Inflation came in much hotter than expected, but rates fell nonetheless. This surprised many market watchers, as hot inflation reads normally send rates much higher.Read More

1% Drop In Rates Brings 5 MILLION Buyers Into the Market; The Real Crash: Interest Rates

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Joe Brown, Jeff Snider and Stephanie Pomboy spent the weekend just shredding Friday’s BLS jobs “positive” report. They pointed out how full-time (as opposed to part-time) job numbers are actually falling; how wages are flat (they’d be increasing if the labor markets were actually tight); how the BLS estimates are suspect and constantly getting revised; and how many of the jobs created were part-time, 2nd, or government jobs. In other words, the BLS is full of BS.Read More