Your February 2021 Residential Lending News and Successes

Good morning to the Rainy Season

– Mortgage Rates Are Improving – Slowly


Our first American Dream TV segment was aired last weekend on KSBW – San Francisco. For our part, we interviewed our friends at Tico Coffee in Campbell. It can be enjoyed by placing this web address into your web browser: https://youtube/bl7KZlTgK2I

Spring Buying Season is upon us. Give a call if you, or someone you know, is considering buying a home or selling. Knowing your lender and lender options, before buying, gives you the freedom to choose wisely.  Good News: We have great Real Estate partners that we would gladly introduce to you. Being qualified upfront, prepares you for a more straight forward approach to buying – knowing your limits, your options, and questions to ask. It all starts with the first introductory conversation. Call today. We know how to help. 

The Good News: Our 30-plus years of putting you and your needs first. This includes my technical expertise and learned experiences. What I love best, my energies are activated and ready to go, with our first conversation. Your views and visions is where it begins. Let’s talk.

Our Goal: Helping you find a safe, sound, and secure loan. It is why every conversation matters and why we offer you the full benefit of our skills and talents, from start to finish. 

Points of interest:

  • Economic drivers: Most sectors of the economy are showing signs of easing pressures on the Fed’s need to raise rates further. This includes wage pressures. With this, initial jobless claims continue subdued. This despite headlines about a January increases in job cuts. Tech sector led the cuts, followed by retailers.
  • Stock market: Whether the markets are heading may well be answered by the next quarterly reports. Key:Watch liquidity, inventory, oil and gas prices, and personal savings – even events in the Ukraine. 
  • Incomes: 1) continue to show overall growth, 2) “local” unemployment, a hot 2.4 % – down from a year ago.  Key: Evaluating high-tech, high paying, layoffs and its ripple effects. This number?
  • Real Estate: Home prices decline for 5th month in a row.  Yet consider the fact this comes after 120 months of continued price gains. Even still, prices are down but 3.6% from the peak.  30,000 foot view helps one’s perspective. Some select markets are up, some product is still up.  This should help reassure Sellers and help to boost supply, as fears are tamed. This should prove to be Good News for Springtime buying – 2023. Start preparing today. Let’s talk. Don’t miss out.

Overall Market News

1) Overall Home Values: 37 % of homes are owned free and clear. For those with mortgages, it is estimated home equity has grown 16 % – over the past year. This due to price increases plus principle reduction, from mortgage payments. Homes under water continue holding very low at +/- 1.9 %. Less than last years 2.2 %. Good News: This is not a real estate “bubble”. During the financial debacle, numbers underwater were 25 %. 

2) Unemployment: Surprise results for January: 1) upward revisions of 71,000 to November and December numbers; plus 2) last Fridays BLS jobs report, for January, showed an increase of 517,000. This exceeded the estimated 185,000 job gains. The unemployment rate fell to 3.4 %. Jobs are a lagging indicator, yet may pressure the Federal Reserve Board to continue plans for future rate increases to control inflation.

3) Unemployment Surprise:  Again, we discover DC-Bureaucrats redefining terms to fit their narrative. This times, the BLS (Bureau of Labor) changed “their” methodology. Herein, one discover a “new” job input labeled: “2023 population control effect”. “?”

Bottom Line: Compared to the respected Business Survey, their job numbers overstate by near 35%. Said inflated numbers are then used to establish the unemployment rate. As a result, we may be reading numbers that overstate the strength of our economy. 

Pull out the adjustment and we see an increase of only 84,000 jobs – a number much closer to the estimate of 185,000. Another overlooked detail: 2/3 of jobs created are part-time. Still a plus!!

Of Note: Let’s hope our Federal Reserve is reading the proper numbers and works in the best interest of the American consumers, employees, and Small Business. 

Recent Residential Success Story:


For self-employed: Do you have great bank deposits, yet show low income on your tax returns? We can help. We offer loans based on bank statement and stated income. Sound favorable to your situation? Call for details.

Capital Gain Tax-Deferral: Have a client – with California investment property – wanting but not selling –because of Capital gains? We have IRS approved ways to defer such problems. We keep your client’s investment money working for them. Don’t miss out. We can help. Call. 

Preparing to buying your next home: How about a “tool” that uses your old property, as collateral for the new home? How about a tools whereby the current, “old” home payment, does not count against you, as you moved into the new.  Want More OptionsCall today.

Because You Matter

Our letters are a guidepost to buying, selling, or investing, doing so, wisely and with a sense of timing. Ours is to address questions and find real life solutions, customized to you. It is what I love about my work – the people to people, person to person aspect. Add to this, our complete set of helpful tools designed to complement our shared goal – your success, today and tomorrow. We are here for you.

Knowing you – individually – proves the best way to meet your needs – your unique viewpoint and dreams. Thank you for your trust and your referral. It’s greatly appreciated.

Call me – Your success is my success. 

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