August 2021 Residential Lending Successes and News

Good morning to the heat of August, 

Home sales are healthy and home refi’s – incredibly strong. 

Sellers continue selling and Buyers are ready for action. 

The Good News: Confidence is steadfast in Real Estate. Don’t miss out.

The real estate market remains a frenzy of activity. Call today. Let’s prepare for the fun.

Recent calls for indoor mask mandates has raised questions, but in recent travels, I encounter little open push back. The hope is it is temporary, as we begin to put a reality check on CoVid variants. 

The same is not true for the extension of the rental moratorium, for evictions. This is another troubling mess that will not go away, easily. Supreme Court says one thing and the White House says otherwise. 

At the same time, recent reports indicate job opening up 7 %, month-over-month. Good news: There are social programs helping compensate landlords. But “past due rents” are near the breaking point for many small investors. So, the $ 64 dollar question: “Can there be an open, honest discussion?” 

Good NewsThrough it all, we have a joyful appreciation of our homes, families, and neighborhood. We have more savings, lower debt, and increasing equity in our homes. A thankful amen. And a key to long-lasting success? The solid footing of self-discipline and sound preparation. Call Today.

Information and Helpful Insights – Market News, Successes, How We Help

Points of interest:

  • HousingYear-over-Year: Cash buyers: 23 %; Inventory down 20 %; Values up 14 %. And this in the shadows of CoVid? We are resilient. Anticipate some slowing, as schools open. 
  • Jobs: As a restrictions ends, the time to regain full employment, is always of interest. The current – and better calculated – unemployment is below 10 %. For now, single digits are good. The added Good News: New job openings are up to 10 M. Our rebuilding is in the early stages. 
  • Refi: Mortgage rates remain attractive. Rates made some come quick moves, over the past couple of weeks. This in the fears of inflation. This has resided as rates are again at the low rates of July 15. In review: Freddie Mac rates in September 2018, were 4.6%, now 2.77%. 
  • Interest Rates: Low Rates are an incentive to Buy, as we watch inflation. inflations fears do move rates higher. The full range and potential effect of the supply-chain problem is real. 
    • Conventional loans: Tracking high 2’s to low 3’s, with cash-out refinance and investor loans running a bit higher. 
    • VA rates and FHA ratesIf a Vet? Call today.  Fixed still in the low 2’s. Plus Veterans refi special: 1) Refi from conventional loan into a VA loan, and 2) Rate-reduction refi’s have NO income, NO asset documentation. 
  • CA Jumbo: Yes to: Self-employed, Yes to: 80/10/10. Or, bigger down payment and no income / no employment documentation. Call. Let’s make it happen, today.
  • Underwriting: Purchases – first priority of the underwriterTurn around time can be a quick couple of days. Amen. How about Refinance? Patience wins. Best to start today.

Key to SuccessStart the paperwork today. Let talk.

Market News

1) US Economy: Downside is supply chain shortages and shortage of employees. In my travels, the number of help wanted signs are many ! We see the effects with every order. Plastics, often coming from overseas, backed up at ports. This keeps shelves thin.  Good News: Up the coast, the lumber yards stacked full of cut lumber. Markets are finding balance and consumers are happy. 

The US Economy: Pent-up Demand on full display !

 Worst of CoVid is behind us. 

Time to move on 

2) Federal Reserve Policies: Fed are keeping rates low, with their interdiction to the market.  Talks of tapering are a needed caution, with GDP above its 12/31/20 level. Yet we are still 2.4% smaller, than numbers absent Covid-19. Plus payroll is still 4.4% below pre-Covid levels. Let’s not rock the boat.

3) Employment: The numbers are strong and we are recovering. But, as mentioned last week, people still receiving government hand-outs, is too high. Especially true when compared to increasing job openings. This has brought a tight labor market, wages above what the market can bear, and serious supply problems – supply unable to meet the pent-up demand. I understand the desires of extended Summer travel, and accept the incentive to take free-money, but both are coming to a needed end and markets will once again find balance between supply-demand. Good News for all.

Have Patience: Fall will be a better judge of how best to move forward. 

3) Real Estate: ‘Amazing‘ ! Don’t miss the excitement. New homes starts-up are good, with big back log of authorized starts of 60 %. Actual “Completions” are showing a decline due to a shortage of supplies, including household appliances. With this, new permit requests are off a bit, as the market digests its supply issues and supply problems.

Bottom Line: Planning and preparation is key.

Give a call. Let’s talk ideas, money, and possibilities of home ownership

Success Stories

Key to Success: We continue to hammer out successes – “hammer” the operative term. Yes, lenders want to sell loans and love promoting an “easy” process. Then the reality called nuisance, nonsense, and small details. Thus the careful review and close attention to verifying details and “Verifications”. 

Success Story: One learns the temptation of the lowest rate, often comes with the craziness of the small detail, strict underwriting, and extra detail confirmations. Lenders are increasingly adverse to risk. Thus, if one targets about 1/8% above the tempting rate, this often means better underwriting and a smoother flow to close. It can also means much less frustration to the client.

Retirement? Few of us have a silver bullets solution? Yet if we have built up significant equity in our homes, new doors of opportunity open. It can become a welcome gift for the many years of being disciplined and diligent – each month.  Question: How best to use this is gift? Good News: We have the tools to address this opportunity. Plus we are here for you, to help you learn and explore them. 

I look forward to your call. Call today. We are here for you. 

We have a team of experienced agents, covering a full range of specialties. Give a ring. 

Highlights of How We Serve You 

1) Long-Term: Traditional financing.  The Good News: No age restriction.

2) Short-term: A great tool in this market of very low interest rates is Home Equity Lines of Credit (HELOC).  Perfectfor short-term ‘chunk cash’, plus the benefit of flexible repayment. 

2) Keeping One’s Home: Key is an interactive discussion. Let’s talk the benefits of keeping or selling. Is this home design best for any age limitations? Is there a willingness to relocate geographically? What about Estate planning concerns, outstanding debt, or simply meeting monthly expenses? What about Proposition 19? My job is to address your concerns and lay out straight forward solutions. Let’s talk. A call worthy of your time.

3) Reverse Mortgage: Often offered as a great way to eliminate stress, especially the monthly burden of the home mortgage payment. It stops, while adding new income, each month. Call. Let us show you. 

The Good News: Rates Remain Awesome

– New Homes or Refinance – 

Self-employed: Times are tricky, but we are prepared to take up your challenge. Call when ready. Let’s talk and review your unique situation. We can lay out workable options and best possibilities. I do love and stand with Small Business. Who cannot respect those daring to be self-employed – the backbone of America. They speak to the living spirit of our free enterprise system. Let’s stand together. Call today. 

Buying your next home: Two very helpful “tools”. 1) A client uses their old home, as collateral for their new home!! 2) A tool whereby one’s current payment on the “old” home, does not count against your client, while settling into their new home. Excellent. You need options, tools, and alternative ideas? We have them. Call today.

Renting, but wanting to Buy?

The pricing pressures are not just with home buyers.  Invitation Homes, the nations largest landlord shows rental demand is up 14 %, with annual rents, for renewals, up 5 %. In a recovering economy and appreciating values, there is no safe haven to avoid rising rents and property values. Let’ talk. The best long-term answer maybe to buy now, while rates remain excellent, relative to value. Call today. 

Good News: We offer market-based tools comparing rents to the benefits of home ownership. We look beyond boiler plate, short-cuts numbers. We understand ‘affordability’ to be unique to each and every individual and family. Our focus is understanding you, asking pertinent questions able to help guide your financial future. Our concern is more about “live-ability”, and less about ‘how big a home can I afford.’  A big, first step made better. Finding answers and discovering options are both rewarding. 

Call me – Your success is our first priority.