September 2021 Residential Lending Successes and News

Good morning to Summer fun rolling into September and Back to School, 

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

Sellers continue selling and Buyers are ready for action. 

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

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

We have added team members to our ‘associates’ to enhance our purchase market clients. The addition should help to shave a few days from each transaction. Needed in the ongoing hectic marketplace.

Recent News – Jobs Report: Dismal. Expecting a plus 750 K, the actual outcome was but 1/3 the number. Good News: Past weekend was the end of the free pandemic employment assistance monies. 

Questions Going Forward: Labor Supply – Will it be effected by the stock market. Will the pool of 1 M, 65 + who have left the labor market return to work? Will schools re-opening motivate people to return to work. Much is in flux and we can only wait and see. 

Good news: Assistance programs to help compensate landlords. But is it too late? “Past due rents” are near the breaking point for many small investors. BIG Question: Can there be an open, honest debate? 

Information and Helpful Insights 

Market News, Successes, And How We Can 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 seasonal slowing, as schools open and priorities shift to Fall activities.. 
  • Jobs: Supply chain restrictions and employment shortages give strong reason for more people to work. Hospitality industry is the current leading sector for those going back to work.
  • Refi: Mortgage rates remain attractive. Rates have made come quick moves, over the past couple of weeks. This is in response to fears of continued inflation spikes. 
  • Interest Rates: Low Rates are an incentive to Buy. But watch inflation. Risks of inflation do move rates higher. Full range and potential impact 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: Housing is a very important measure of our economy. Current drum beat from experts and media hype:  Real Estate Bubble. Yet when measured with perspective, based on monthly payment relative to household incomes, there is another view. Let’s compare 2006 data to today. 

Home price up + 41 %. Mortgage rates are lower, from 6 % to under 3 % today. Household incomes are up 55 %. In 2006, a 300,000 house at 6 %, gave a monthly of $1800. Today, 

423 K, at 3 %, is a payment of $1783. 

GOOD NEWS: Percentage of monthly mortgage payment to income fell – 30 % to 19 %.

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

Worst of CoVid is behind us and supply shortages are everywhere.

Job openings and more job openings are ready and waiting to be filled.

2) Federal Reserve Policies: Fed are keeping rates low, they prefer to not rock the boat. Thus the Fed’s latest action report, indicates a much quieter Fed, than the public comments of Fed members before their meeting. A little jaw-boning is part of the gamesmanship.

3) Employment: The numbers are strong and we are recovering. But, as mentioned last week, people receiving government hand-outs, is too high. Especially when compared to rapidly increasing number of job openings. The gap is eye-opening. The result: Tight labor market and temporary wages above what the market can bear. Outcome: Wage price inflation and a serious supply problems. Demand cannot be met, with out more workers. One understands the desires for extended Summer travel, especially with the free-money. But both must come to a needed end, and with schools -re-opening, markets may begin to find balance. Our work ethic makes us a strong nation. 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.  Zillow runs predictions as to the cumulative effect – on housing supply – due to forbearance.  They estimate 25 % of forbearances will come on the market.  At this level, cumulatively, this may add (point) .89 months of supply to the market.  NOTE: Quite amazing. This does not even return us to what is called, a normal market level of supply.

Bottom Line: Planning and preparation is key to being a step ahead.

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 often learns the hard way, about the temptation of the lowest rate. It often comes with many strings and many small detail. They mean strict underwriting, and many extra questions. The better answer: Targets about 1/8% above the “tease” rate. This often means better underwriting and a smoother flow to close. It can also means much less frustration and a timely close for 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’s 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 MY first priority.