Tag Archive for: low rates

Two Sure Signs Sh*t Is About To Hit The Fan – With a Huge Rate Drop and ZIRP II To Follow

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On average, when recessions hit, the Fed lowers the Fed Funds Rate by about 5%. Currently, the effective Fed Funds Rate (the overnight lending rate between banks) is 5.33%. So, if the Fed follows its normal course of procedures, we can expect the Fed to lower the Fed Funds Rate to almost zero when the next recession hits.Read More

Why I Was So WRONG About Rates; Why It Matters So Much

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If you google “wrongness,” you’ll see a picture of me screaming “Rates will fall by March of ’23!” I am wrong a lot actually and am not afraid to admit it because it makes for great learning and blog fodder. For example, I was wrong about when rates will fall, and I was wrong when I said that the Fed would not raise rates again after its June pause.Read More

First-Time Homebuyers = Expansive Term; Maximum Age For Mortgage; Competitors Come to Us

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Competitors Come To Us For A Mortgage We frequently have individuals from competing mortgage lenders come to us for mortgage financing because (1) we have more loan programs than they […]Read More

Rates Have Not Been This High Since… 2021

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RATES HAVE NOT BEEN THIS HIGH SINCE 2021! I thought I would put interest rates in perspective again, given that they have risen so much (1/4% to 3/8%) since last […]Read More

Beware of VACATIONS :) Rates Way Down Again; Why? Stimulus Will End

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HOLY LOW RATES, BATMAN! (Wallowing in Wrongness) For months now, I have been repeating the warnings of various pundits about runaway inflation and rising rates. But rates seem to continually […]Read More

Low Rates Make Real Estate Investing And Airbnb More Viable

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What I really find interesting is how robust the Airbnb market remains – either despite of COVID or because of COVID (because many travelers want to avoid hotels). I know this from firsthand experience, as Heejin has become somewhat of an expert at Airbnb too.Read More

JVM’s Relationship With Its Mortgage Bank

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Our plan is to continue growing indefinitely by taking advantage of our competitive edges (low-cost producer, lower rates, smoother client experiences, faster and better tech adoption, exceptionally talented team, training program, powerful sales and marketing machine, etc.).Read More

When 1.99% Is A Bad Deal; Why Rates May Not Fall Further

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1.99% – YAY!!!! OR NOT…. (LOOK AT THE FEES) Several lenders were touting their 1.99% interest rates recently, and we were getting emails from agents and borrowers alike asking about […]Read More

Why Low Rates Are BAD For Homebuyers

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Rates are about 1% lower than where they were last year at this time, as most people know. This enormous rate-reduction appears to be a huge boon for homebuyers, as […]Read More

Quicken’s IPO – So Much To Learn; Reason To Be Leery

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Rates edged lower again, so now instead of being really, really, really low, they’re really, really, really, really (4 really’s) low. It remains to be seen if we’ll hit “5 […]Read More

Purchase Applications Hit 11 Year High; Refis = 63% of Volume

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The Mortgage Bankers Association surveys multiple mortgage banks every week and then releases all of the data. The most recent survey, discussed in this National Mortgage News article, is particularly […]Read More

“Fed Plans to Keep Rates at Low Levels for Years” What Are “Rates?”

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This blog’s subject line is borrowed directly from this WSJ article. Fed Chairman Powell stated in early June that there are no rate increases in sight and that the Fed […]Read More

10 Cent Beer Night in Cleveland in 1974; How It Relates to Our Economy Now – More Black Swans

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The inevitable result was an entire stadium full of drunken fans, bench clearing brawls, a 9th inning riot with all the fans spilling onto the field to fight with both the Rangers AND the Indians, and the forfeiture of the game by the Indians.Read More

Rates Keep Falling, Down, Down; What’s Going On?

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In January I blogged about why I was so wrong when I predicted rates would increase. The reasons included a weak world economy, the Iran skirmish, the Coronavirus, weak trade deals, quantitative easing, and tame inflation.Read More