Is Tech Taking Over Real Estate and Mortgages?
Thursday, September 15
I have a very successful friend who owns a mortgage bank, and who still originates loans just to stay in the game. He spent six months pre-approving, educating and counseling a young millennial couple – only to see them leave for another lender offering an 1/8% lower rate after they got into con...
Why Agents Should Provide Rental Comp Data to Appraisers
Tuesday, September 13
We have had numerous deals almost die or come close to dying over the years – solely because our appraisers could not find adequate rental comp data. There are several reasons why we often need to support the full market rent in an appraisal, including: The borrowers often need every penny of th...
Inflation Drives Interest Rates – Except When The Fed Gets Involved
Friday, September 09
As most people know, inflation drives interest rates because investors do not want to accept yields that are lower than the inflation rate because they will effectively be losing money if they do. If you loan somebody $1,000 for one year at 5%, and inflation is at 8%, at the end of the year, you...
Fed’s Raises Rates 3/4%; CoreLogic Predicting 4% Home Appreciation
Wednesday, September 07
The Fed let it be known yesterday that it will definitely raise the Fed Funds Rate by 0.75% on September 21st… and the market yawned. As Barry Habib reminded us this morning, everyone used to engage in a huge guessing game – in regard to what the Fed might do. And – if the Fed did something actu...
The True Cost of “Low Rate” Commercial Bank Mortgages
Monday, August 29
Some regional commercial banks are buying the jumbo loan market right now with very aggressive rates. BUT – they come with an enormous cost that most borrowers do not take into account. At one of the more prominent banks – that cost is a mandatory deposit equal to 15% of the mortgage! In other w...
Fed: We're Going to Beat The S** Out Of You Until Inflation Goes Away
Friday, August 26
Fed Chair Powell spoke today in Jackson Hole, Wyoming, in a much-anticipated speech – and it roiled the markets. Here is a brief summary in case readers are interested. 1) CONTINUED RATE INCREASES/0.75% HIKE LIKELY. Powell implied that the Fed is going to continue raising rates aggressively, des...