April Letter from My Heart

Good morning to Spring in full-bloom,

After years of wrestling, world-wide economic realities are giving cause for the Federal Reserve to finally act. Growth numbers are expanding and in response, rates have bumped twice in 3 months. Can more be expected? Yes. Primarily because rates remain lower than traditionally expected and growth possibilities are quite positive. Consensus is for 2 or 3 more rate increases. Yet in a world of debt, the financial impacts suggest one does not try to out-guess future steps. For some, sustained and steady growth will prove a more important policy consideration than bumping rates. We will keep you updated.

The good news: Our resilient market keeps on ticking with continued excitement. Plus, “the Good, the Bad, and the Ugly” is back, with some “new” tools at the end of this letter.

Some interesting, fun facts:

  • Owning vs renting: Numbers peaked in 2007 @ 40 %, with a low of 5 % in 2011. Since, it has widened to 19 %, as home prices increased faster than incomes. Buyers understand their realities and are quick to respond

  • #1 Lending myth: Student loan debt. A student with a 50 K of debts, with a Masters Degree, has a 75 % chance of owning a home.  The same student with 30 K Debt, with a BS, has a 68 % chance. For many waiting to purchase until their 30’s, do so after first paying off their debt. Interestingly, debt for Graduate school is near 40 % of all federal student loans – with only a 3 % default rate.

  • #2 Lending myth: “Lender decline” closes the door. Not true! Often a decline is lender specific, with a different agent and lending partner, the easy answer moving from No to YES..

  • Supply vs. Demand: This supply challenge is Nationwide, not just our Bay Area. Bare cupboards are everywhere, with remaining houses commanding ever higher prices – up 7.1 % since last January – Nationwide. Eventually the market will find balance.

  • Santa Clara County: Added 31,100 jobs in 2016. However, January and February 2017 brought a drop of 8,100. This maybe a “quarterly adjustment” set in motion in 2016, yet it is a number to carefully watch, as we move forward.

Now into our monthly Good Bad n’ Ugly.

The Good: The Nationwide economy – growth in economic output, new jobs, and construction. Also we are seeing “web-cam” plus electronic signing and notary, beginning to come around. Currently Virginia and Montana allow such transactions.

The Bad: Half the country is happy, half afraid the world is ending. Yet, I know no one who lost their job due to a political change in D.C.? Most every Presidential election brings a public outcry and social response to fear. The Bad news: If we allow “fears” to overcome our historical perspective of being greater than one man or a political party.

The Ugly: The failure of elective representatives to do what we elect them; to move our country forward, as the nation voted. Is it possible for them to put aside personal peeves and political blathering, in order to get things done, regardless the political aisle.

Looking ahead:

One of our hopes is to answer your every questions, believing lasting success is founded on a broad base of knowledge and up-to-date information. Our goal is to make your life easier and to simplify the complexities of lending. To this end, we have great lenders, fascinating tools, and calculators more helpful than the internet. Best of all, they are only a call away. So call today and let the conversation to your next success, begin.

We not only discuss you and your expectations, but with our tools, we can even provide you a numerical viewpoints of your lending potential. Truly, a first step often proving to be the most valuable.

Why so? Because life is a participatory sport made up of many players. As a member of your team, we utilize our interactive conversations to provide data, insight, and helpful guidance. In addition, you will have my 27 years of success, to help you achieve your goals – with your safety and financial security a first priority. I was here in the difficult years and my proven team is available to you, today. With this in mind, my suggestion:

Click Here for a 30 Minute Phone Consult

If you have prior questions, send them to me, before we talk

Have fun, keep your dreams alive, and let’s talk. As we remain Gratefully Yours.

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