06/02/2023
Subject Line: Debt crisis averted!
Nothing says governmental bureaucracy quite like suspending an arbitrarily created debt ceiling in order to avoid an economic disaster, but we did it!
Check out the details of the big Biden-McCarthy compromise, what ONE+ by Rocket Mortgage® can do for your clients and more!
Fuel Up! 🚀
Agent News
Tell your clients they can upgrade to three bedrooms with savings from ONE+. They just need 1% of their 3% down payment, and the mortgage insurance is also covered.1 Call me to learn more.
Biz Buzz
Can You Spell That For Me?
The Scripps National Spelling Bee took place this week, its 95th edition. Test your spelling prowess with this quiz from Merriam-Webster, using some of the winning words of the last century.
The Rocket Fuel team taking this quiz:
Caffeinated Trends
We Have A Deal!
President Biden and Speaker McCarthy reached a deal on spending cuts in exchange for a revised debt ceiling over Memorial Day weekend.
Political sickos can comb through the full text of the bill in the “In The Weeds Reads” section below, but in general, Biden and the Democrats agreed to spending cuts and caps while McCarthy and the Republicans agreed to make these cuts and caps temporary while also tabling the next debt ceiling until after the 2024 election.
Specifically:
- Suspension of the debt ceiling until January 1, 2025
- Spending caps for 2024 and 2025, and targets for 2026 – 2029
- Raising the maximum age for work requirements to receive food stamps from 50 to 54 (through 2030)
- Ending the current pause on student loan repayments (beginning in August 2023)
- Recovering unspent pandemic relief funding
- And more
The House passed the bill late Wednesday night with bipartisan support, but not without objections from both sides.
Progressive Democrats criticized Biden for agreeing to additional work restrictions for food stamp recipients and for limiting non-defense discretionary funding for several years, both of which progressives see as an affront to their legislative goals.
McCarthy has a similar problem with the Freedom Caucus in the House, who had a laundry list of demands for McCarthy in negotiating a deal. This group, however, can (and might) strip the Speaker of his title. Recall from May 20’s “Caffeinated Trends” section that it takes just one House representative to call a vote to oust the Speaker – McCarthy just called the Freedom Caucus’s bluff with this deal.
If the Freedom Caucus decides to act, it will put the entire House on record for whether they vote for chaos (ousting McCarthy) or stability (keeping McCarthy). If they don’t, the Freedom Caucus will be all bark and no bite, and essentially lose whatever power they had over the House agenda.
Markets have responded well across the globe due to the level of bipartisan support that the bill received (314 – 117), namely 2-year treasury bonds, which rose 2.7 basis points now that the debt ceiling conversation has been kicked down the road until 2025.
In The Weeds Reads
1. Full Text Of The Debt Ceiling Bill
2. Consumer Confidence Falls In May
3. Job Openings Increase In April To 10.1 Million
Disclaimers:
1Client will be required to pay a 1% down payment, with the ability to pay a maximum of 2.99%, and Rocket Mortgage will cover an additional 2% of the client’s purchase price as a down payment. This offer is only available on Fannie Mae conventional purchase loans. Primary residence only. Cost of mortgage insurance premium not passed through to client. Offer valid only for home buyers when qualifying income is less than or equal to 80% area median income based on county where property is located. Must lock rate on or after 5/22/2023. Not available with any other discounts or promotions. Offer cannot be retroactively applied to previously closed loans or loans that have a locked rate. This is not a commitment to lend. Rocket Mortgage reserves the right to cancel this offer at any time. Acceptance of this offer constitutes the acceptance of these terms and conditions, which are subject to change at the sole discretion of Rocket Mortgage. Additional restrictions/conditions may apply.
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