When Huge Lots Kill Transactions; What Are The Rules & Solutions?
Thursday, November 16
We recently had a transaction on 46 acres that died. The “land-to-value” ratio was way too high, making the financing effectively a “lot loan,” and mortgage lenders won’t go near lot loans! The land-to-value ratio was over 70% because the dwelling was a primitive 750 sf cabin with 2 bedrooms, 1 b...
Inflation Cools & Rates Shoot UP! Why? “Rates Down In March!”
Wednesday, November 15
The markets are going crazy, as everyone tried to anticipate the Fed’s next move. When deciding to raise or lower rates, the Fed watches (1) the labor markets; (2) inflation; and (3) consumer spending – and ALL THREE sent the markets and rates into a tizzy this week. The Consumer Price Index (CP...
14 Factors That Impact Your Mortgage Rate
Tuesday, November 07
We often have buyers or agents ask: “What is your 15-year rate today?” Or “What is today’s interest rate?” We always respond by explaining there is “no single rate” because the market moves so often and because there are so many things that affect an individual borrower’s rate. Here are 14 facto...
CalHFA Dream For ALL Or A Select Few? (Probably a Good Thing); NAR Law
Monday, November 06
I blogged last summer about the return of CA’s Dream For All Program: CA’s Dream For All Program (100% Financing) Returns – Worse Than Ever Too! Briefly, this is probably the most popular down payment assistance program we have ever seen, as the program offers a full 20% down payment in exchange...
CRACK!! That Was The Sound of The Labor Market Breaking!
Friday, November 03
“Heard on the Street: A top recruiter in the tech sphere told me he’s having the hardest time in over a decade finding jobs for those laid off in the sector.” The above quote is from Leonard Steinberg’s Compass blog yesterday. I am sharing it because I have been reading and hearing similar statem...
Everyone Wants To Jump In The Mortgage Pool! Come On In – It's Boiling
Thursday, November 02
Rates Down Interest rates fell this week more than most analysts expected, and the 10 Year Treasury Yield is down to 4.67% – surprising everyone, given that we heard so many predictions about the 10-Year staying above 5%. Here are a few reasons why: (1) The Fed announced yesterday that they are ...