Your May 2023 Residential Lending Successes and News

Good morning to Springtime.. May May flowers benefit from all the rain

Mortgage Rates Continue Sideways –


WOW!! This is an information packed update !

Our Goal: Turning words, charts, and data into cash, assets, and wealth.

How? By developing successful investment strategies, ones designed for immediate needs and future events – kids in college, inheritance, vacations, and then retirement. For our working years, one pursues the accumulation of assets and daily cash demands. For our retirement, the strategy becomes more of seeking lower-risk investments, having reliable cash flow with upside appreciation. Conceptually easy, but it doesn’t happen in a vacuum. We often need help of those who know and are experienced. Our monthly Good, Bad n’ Ugly will put special emphasis on one’s daily challenges and planning for the future.

One hope: Uniting the promise, ideal, and spirit of the American Dream TV, with the goals of fulfilling your personal dreams of financial independence.


Points of interest:

  • Economic Drivers – Part 1: Latest jobs numbers are out. ADP non-farms payroll report is receiving limited respect, after last year’s changing of their calculations. This leaves a less than reliable track. Regardless, “Leisure and Hospitality” has been on fire, returning to pre Co-Vid levels, which also leaves limited additional growth.
  • Economic Drivers – Part 2: Bureau of Labor Statistics – BLS Jobs report – shows a 253 K increase. Good news with the caveat – each of the past 2 months were later revised downwards – over 70 K each. We will keep watch, as we consider the Household survey. It showed only 140 K new jobs with over 40 K leaving the workforce. Interestingly, the unemployment rate actually ticking down a tenth of a percent.  At the same time, the average hourly earnings is often the better number to track. This month it is up 0.5 %, month-over-month, while average weekly hours remains unchanged at 34.4 – lowest since April 2020.
  • Federal Reserve: Fed actions of last week, continue to show a rear view mirror approach to viewing business.  Such an approach risks damaging the economy, with the beneficial reminder that what the Fed is doing, should lead to lower interest rates and strong US dollar. Let’s watch for new downward pressure on interest rates.
  • Real Estate: Nationwide, housing price starting declining 2nd half of 2022.  These numbers come from hundreds of Realtors across the nation. At the same time, formal notice groups – Zillow, FHFA, CoreLogic, Black Knight and Case-Shiller – all reported gains in February.  Good News: The Spring bounce has begun.

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 the price increases seen from the last couple of years, plus principle reduction from mortgage payments. Homes under water continue holding very low at +/- 1.9 %. Less than last year’s 2.2 %. Good News: This is not a real estate “bubble”. Be mindful that during the financial debacle, numbers of properties underwater were 25 %.

2) Overall Labor Market: Shifting sands seem the norm. Data from S&P 500 Companies in 2022: 300 mentioning labor shortages vs. 25 talking job cuts.  Mid 2022:  200 mentioning labor shortages vs. 50 talking job cuts.  Most recent, 100 talking labor shortages vs. 150 talking job cuts. Good News: Labor markets are settling down.

Helpful: With weekly “initial jobless claims” around 240,000, the labor market continues to be tight. Further, “continuing claims” continues with slow increase. Both lead one to believe that for those seeking work, they are finding jobs, just slower. Keep watching.

Recent Residential Success Story:

Now the Fun of what’s new – from me to you: Home Remodels and Upgrades

On the topic of home prices, the average homeowner sits on a $348,000 net equity – an all-time high. Thus small declines in home values, won’t have the same negative impact on remodeling activity, as in the past. Homeowners will remain quite wealthy while adding to the value of their homes.

And for those seeking to evaluate their debt load – relative to remodeling costs, credit cards debt, car loans, etc – there is what may seem crazy. Let’s take a refinance. It can offer a nice boost to savings, net lower monthly payments, and even away to paying off your home early.  Good News: I have the tools to bring it all together, to grasp the big picture before deciding. Such information makes sense. For it is not about having to, but about having the whole picture before deciding. Even better, a short call will get the answers you need, even if you have a very low interest rate now. It is that easy. Please call and let’s talk.

Even More: We have the best financing options the market offers. Quick list: 1) Veterans, 2) 1st time homebuyers with some fabulous new programs out, 3) self – employed, and 4) investors with and without traditional income sources. Good News: The marketplace, being heavy in cash, benefits the well prepared borrower. There are now more lending options than before Co-Vid. Call. Lets talk before you buy. Let’s talk today.

Market Disciplines

Rule # 1: Desire to create ‘more’ wealth for tomorrow? How? By start sacrificing today.

Consider a recent Freddie Mac study: In 2009, 34 % of people were considered financially literate. In 2018, this number dropped to 16 %. Not necessarily a surprise, considering today’s high tech financial tools. They make the importance of being financially literate, a low priority. This should be worrisome to all.

Investing – Equities. I strongly suggest and recommend one maxes out on the retirement account contributions – each year. This deferred income, with tax benefits, builds for future years. Many such plans are offered, with an employer matching contribution plan. A great perk. Don’t leave it on the table, always being aware of how it’s invested. For many, a great way to keep your money working for you.

Investing – Real Estate. Yes, yes and yes. Yes today. Yes yesterday. And Yes tomorrow. This is much the same as putting money aside in retirement accounts, while adding diversity. If your focus is in the “building for tomorrow’ stage”,now is the time to talk.

Divesting: There are times in life where one needs to sell an investment, due to life’s uncertainties. It brings home the need for a carefully review of one’s investment inventory and see if they remain on-track to achieving the intended goals. One needs to flexible and willing to go to cash or find an alternative. Good News: We are here to not only set a plan in motion, but also ready to discuss the handling of the unexpected or even better – issues such as capital gains. More good news: We have IRS approved tools and techniques to help keep your hard earned capital gains working for you – to keep them away from the taxman – federal and state – on a deferred basis. Such is the beauty of working with Mike Ryan and Associates. We are just a call away. Planning amongst friends.

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

Truly, our letters but scratch the surface of available options, alternatives, and potentials. We are ready and experienced in most every stage of life, to directly help you build a strong investment portfolio – regardless life’s ebb and flow. It is why a key approach to serving you, is to work with your unique view of life – today and tomorrow.

Because You Matter

Our letters are a guidepost to buying, selling, or investing. Of doing so, wisely and with a sense of timing. We address your questions and find real life solutions customized to you. It is what I love about my work. It is that people-to-people exchange of thoughts and ideas. 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 proves the best way to discovery and address your needs and unique viewpoint. Your dreams matter. Thank you for your trust and referrals. It’s appreciated.

Call me – Your success is my success.

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