David Miramontes - Mortgage Loan Officer

09/14/2022

Week of September 12

Mortgage rates rose again as markets continue to manage the prospect of more aggressive monetary policy due to elevated inflation

Major focus will continue to be on news pertaining to any anticipated future rate adjustments. Tuesday brings the release of the Consumer Price Index. The Consumer Price Index (CPI) is a key indicator that lets us know if there are any inflation concerns. In addition to that Thursday will bring us the release of the Retail Sales information. This is always important since consumer spending makes up almost 70% of the economic data in the United States.

08/16/2022

Week of August 15, 2022
Present Market Conditions

“The 30-year fixed-rate went back up to well over five percent this week, a reminder that recent volatility remains persistent,” said Sam Khater, Freddie Mac’s Chief Economist. “Although rates continue to fluctuate, recent data suggest that the housing market is stabilizing as it transitions from the surge of activity during the pandemic to a more balanced market. Declines in purchase demand continue to diminish while supply remains fairly tight across most markets. The consequence is that house prices likely will continue to rise, but at a slower pace for the rest of the summer.”

Expectations
Major focus will continue to be on news pertaining to any anticipated future rate adjustments. This week looks to be relatively light for financial data. Tuesday brings the release Housing Starts information. Wednesday follows with the Retail Sales report. This is always important since retail spending makes up 70% of US economic activity. Existing Homes statistics will be released on Thursday.

Guidance
It’s still a good time to be in the market for a mortgage! With home prices moderating and growing inventory, you’ll want to make sure you take advantage of this great time to buy!

08/09/2022

Week of August 8, 2022
Present Market Conditions

“Mortgage rates remained volatile due to the tug of war between inflationary pressures and a clear slowdown in economic growth,” said Sam Khater, Freddie Mac’s Chief Economist. “The high uncertainty surrounding inflation and other factors will likely cause rates to remain variable, especially as the Federal Reserve attempts to navigate the current economic environment.”

Expectations
Major focus will continue to be on news pertaining to any anticipated future rate adjustments. Wednesday brings the first major report with the release of the CPI. The Consumer Price Index (CPI) is a key indicator that lets us know about inflation details. Thursday follows up with the jobless claims information and the Producer Pricing Index. The PPI is another key inflation report that will be watched closely. Friday finishes up the week with the Import Pricing and Consumer Confidence reports.

Guidance
It’s still a good time to be in the market for a mortgage! With home prices moderating and growing inventory you’ll want to make sure you take advantage of this great time to buy!

08/05/2022

Offering a temporary buydown can give homebuyers an extra incentive to purchase your property, without you having to lower the list price.

Here’s an example: the buyer locks in a 4.500% interest rate, the seller offers to pay a 2-1 Buydown that would allow them to make monthly payments at a 2.500% interest rate for the entire first year of your mortgage. Then, in year two, the payments would be based on a 3.500% interest rate. After that, their payments would reflect your originally-agreed-upon 4.500% interest rate.

That's BIG savings for both the seller and the buyer!

The buyer's happy, the seller's happy and you make money 🤑

How many listings do you need help boosting?

08/01/2022

Week of August 1, 2022
Present Market Conditions

“Purchase demand continues to tumble as the cumulative impact of higher rates, elevated home prices, increased recession risk, and declining consumer confidence take a toll on homebuyers,” said Sam Khater, Freddie Mac’s Chief Economist. “It’s clear that over the past two years, the combination of the pandemic, record low mortgage rates, and the opportunity to work remotely spurred greater demand. Now, as the market adjusts to a higher rate environment, we are seeing a period of deflated sales activity until the market normalizes.”

Expectations
Major focus will continue to be on news pertaining to any anticipated future rate adjustments.

After several very busy weeks, this week will be a bit quieter. Monday kicks things off with the ISM national manufacturing index. Wednesday brings us the ISM national services index. Friday then finishes up with the always impo

07/28/2022

The Fed just raised it's fed funds rate by .75%😱

HOWEVER, this is GOOD for buyers!

The Fed rate doesn't drive mortgage rates as they do short-term products, like savings yields, CD rates, HELOCs, ARMs.

Here is what DOES influence mortgage rates:

1) The 10-year Treasury rate. When that rate goes up, the popular 30-year fixed-rate mortgage tends to do the same, and vice versa.

2) Supply and demand. When mortgage lenders have too much business, they raise rates. When business is light, they cut rates to attract more consumers.

3) Price inflation. When inflation is low, rates trend lower. When inflation picks up, so do fixed mortgage rates.

4) Mortgage Backed Securities. Banks bundle the mortgages they underwrite and sell them to investors. When investor demand is low, lenders raise rates to attract them.

This move will improves 30-yr fixed rates by: lowering the expectation for inflation AND increasing demand for Mortgage Bonds.

Don't believe it? Well, this already happened! the 30-yr fixed rate went down .5% since June 15, the last time the Fed raised fed rates.

The question is: How low will it go?

Time to go house hunting!! 💸

07/26/2022

Week of July 25, 2022
Present Market Conditions

“The housing market remains sluggish as mortgage rates inch up for a second consecutive week,” said Sam Khater, Freddie Mac’s Chief Economist. “Consumer concerns about rising rates, inflation and a potential recession are manifesting in softening demand. As a result of these factors, we expect house price appreciation to moderate noticeably.”

Expectations
This week will bring us quite a bit of information to take in. Major focus will continue to be on news pertaining to any anticipated future rate adjustments and the next Fed meeting scheduled for July 27th. Tuesday kicks things off when the New Home Sales and Consumer Confidence data is released. Wednesday then follows up with the Durable Goods numbers and Jerome Powell’s press conference. The 2nd quarter Gross Domestic Product (GDP) will be released on Thursday. Friday then brings us the always important Core PCE price index which is the favored inflation indicator for the Fed.

Guidance
It’s a great time to be in the market for a mortgage! With rates still low and inventory growing, you’ll want to make sure you take advantage of this great time to buy.

07/16/2022

07/11/2022

Week of July 11, 2022🖇
Present Market Conditions

Over the last two weeks, the 30-year fixed-rate mortgage dropped by half a percent, as concerns about a potential recession continue to rise.While the drop provides minor relief to buyers, the housing market will continue to normalize if home price growth materially slows due to the combination of low housing affordability and an expected economic slowdown.

Expectations🧐

Major focus will continue to be on news pertaining to any anticipated future rate adjustments.
Looks like we’ll have a lot of information to look at this week. 

The Consumer Price Index (CPI) is a key indicator that lets us know if there are any inflation concerns.  The CPI will be released on Wednesday.  Friday follows up with the release of the Retail Sales report.  This is always important since retail spending makes up 70% of US economic activity.