Tag Archive for: mortgage rate

U.S. Men’s Hockey Team Wins Gold For Obvious Reason; How It Applies To Mortgages

/in ,
The U.S. Men’s Hockey Team won the gold medal yesterday for the first time in 46 years. And what really frustrated me was how EVERYONE missed the obvious implications this has for the mortgage market. Hat tip to the U.S. women as well, who also took home gold. But A) They’ve won gold a bunch now, and B) I don’t have salary data for women, so I can’t draw irrational conclusions.Read More

3 Reasons Stock Market Crashes Stimulate Homebuying; Unlocking Mortgage Rate Lockdowns

/in ,
I used to dread stock market crashes because they brought homebuying in the San Francisco Bay Area to a standstill. But now that much of our business is outside of the Bay Area, I can’t wait for the next one… (notwithstanding the damage to my own portfolio 😊) A surprisingly high percentage of our Bay Area buyers have always been heavily invested in the stock market, due to the nature of their jobs and the prevalence of stock options. But buyers outside the Bay Area, especially first-time buyers, are not nearly as invested in the stock market or as reliant on gains. In the olden days (circa 2019), there was only one reason a stock market crash would stimulate homebuying. But today, there are three – and that is what makes this topic so interesting.Read More

Weak Jobs Report; Rates Hit 11 Month Low; Do Rate Cuts Work?

/in ,
The average mortgage rate is 6.29% today, per rate surveys. It is a low we have not seen since October of last year. Here’s what’s interesting, though. When mortgage rates were this low last time, the 10-Year Treasury Yield was about 3.85% - while today’s yield is around 4.07% (as I type this blog). Average mortgage rates are lower today relative to 10-Year Treasury Yields because the “spread” between the two has tightened this year, as demand for mortgage-backed securities has increased relative to the supply.Read More

How Does America’s Doom Loop Play Out?

/in ,
I interviewed with the President of Bear Stearns in the late 1980s. The interview went well, but he looked at my background in law and finance and said something like […]Read More

How to Save On Your Mortgage With A 3-2-1 Buydown

/in , ,
Are you in the real estate market to buy a home and looking for ways to save on your home loan payments? If so, you've come to the right place! In this blog post, we'll be discussing 3-2-1 buydowns, an intriguing option for home buyers.Read More

Points, Discount Points, & Origination Fees – Avoid Them In 2022!

/in ,
Even though distinctions can be made, Points, Discount Points, and Origination Fees are effectively the same thing, and they are used interchangeably. A “point” typically represents 1% of the loan […]Read More

How Credit Scores Affect Mortgage Rates; Real World Examples

/in ,
We recently had an agent scream at us (yes, scream) because of the rate we quoted to her client. Our rates of course are notoriously low and we also are not allowed to quote different rates to different clients. As I remind readers often in this blog, there is "no one interest rate for every borrower" because there are so many factors that influence every borrower's rate.Read More

Many Things Affect “The Rate:” Fico; LTV; 80/10/10; Condo vs. SFR

/in ,
Several factors impact mortgage rates, including property type, credit score, subordinate financing, and loan size. Borrowers should understand these to avoid misquotes.Read More