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May 26, 2023

Mortgage Interest Rates in the Last 30 Days: Understanding the Trends

If you’re planning to buy a home or refinance your existing mortgage, one of the most important factors to consider is the mortgage interest rate. Mortgage interest rates can have a significant impact on your monthly mortgage payment and the total cost of your mortgage. Here’s a look at the mortgage interest rates in the last 30 days and the trends that are emerging.

Overview of Mortgage Interest Rates

Mortgage interest rates are determined by several factors, including the Federal Reserve’s monetary policy, inflation, and the demand for mortgages. In general, when the Federal Reserve increases interest rates, mortgage interest rates also increase. Conversely, when the Federal Reserve decreases interest rates, mortgage interest rates tend to decrease.

Current Mortgage Interest Rates

Over the last 30 days, mortgage interest rates have remained relatively stable. According to data from Freddie Mac, the average interest rate for a 30-year fixed-rate mortgage was 3.28% as of April 13th, 2023. This is slightly lower than the average interest rate of 3.31% on March 16th, 2023.

The average interest rate for a 15-year fixed-rate mortgage was 2.59% as of April 13th, 2023. This is also slightly lower than the average interest rate of 2.63% on March 16th, 2023.

Trends in Mortgage Interest Rates

While mortgage interest rates have remained relatively stable over the last 30 days, there are some trends that are emerging. One trend is that interest rates for adjustable-rate mortgages (ARMs) are increasing. ARMs typically have lower interest rates than fixed-rate mortgages, but the interest rate can change over time, depending on market conditions.

Another trend is that interest rates for jumbo mortgages (mortgages for homes that exceed the conforming loan limit) are increasing. This is likely due to increased demand for jumbo mortgages as home prices continue to rise.

What This Means for Borrowers

If you’re in the market for a mortgage, it’s important to closely monitor mortgage interest rates and the trends that are emerging. While interest rates have remained relatively stable over the last 30 days, there is always the potential for fluctuations. It’s also important to consider factors beyond interest rates when choosing a mortgage, such as the total cost of the mortgage, the terms of the loan, and your personal financial situation.

In conclusion, mortgage interest rates have remained relatively stable over the last 30 days, with some trends emerging for ARMs and jumbo mortgages. Borrowers should closely monitor interest rates and consider a range of factors when choosing a mortgage.

May 8, 2023

The Most Recent Inflation Report: Understanding What It Means

The latest inflation report from the Bureau of Labor Statistics (BLS) was released on April 13th, 2023. The report provides important insights into the state of the economy and the current inflation rate. Here’s what you need to know about the most recent inflation report.

What Is Inflation?

Inflation refers to the rate at which prices for goods and services rise over time. When inflation is high, the value of money decreases, and consumers are able to buy fewer goods and services for the same amount of money. Inflation is measured by tracking the price changes of a basket of goods and services over time.

The Latest Inflation Report

The latest inflation report from the BLS showed that the Consumer Price Index (CPI) increased by 0.7% in March 2023. This is the largest monthly increase since June 2022 and higher than the market expectations of a 0.5% increase. The CPI measures the changes in prices of a basket of goods and services purchased by households.

The report also showed that the annual inflation rate increased to 5.2% in March 2023, up from 4.6% in February 2023. This is the highest inflation rate since 1991, indicating that prices for goods and services are rising rapidly.

What Is Driving Inflation?

Several factors are driving the current inflation rate. One of the main factors is supply chain disruptions caused by the COVID-19 pandemic. The pandemic has disrupted global supply chains, leading to shortages of goods and materials, which has driven up prices. Additionally, there has been an increase in demand for goods and services as the economy recovers, which has also contributed to higher prices.

What Does This Mean for Consumers?

The current inflation rate has significant implications for consumers. Higher prices mean that consumers will need to spend more money to purchase the same goods and services they bought in the past. This can lead to a decrease in purchasing power and a decrease in the standard of living for many households.

Higher inflation also has implications for the broader economy. It can lead to higher interest rates, which can make it more expensive for consumers and businesses to borrow money. Additionally, it can lead to a decrease in consumer confidence and a slowdown in economic growth.

In conclusion, the most recent inflation report shows that inflation is continuing to rise rapidly, driven by supply chain disruptions and increased demand. This has significant implications for consumers and the broader economy, and it will be important to closely monitor inflation trends in the coming months.

May 4, 2023

Why You Should Work with a Mortgage Broker

If you’re planning to buy a home or refinance your existing mortgage, you may be wondering if you should work with a mortgage broker. While you can go directly to a bank or lender to obtain a mortgage, there are several benefits to working with a mortgage broker. Here are some reasons why you should consider working with a mortgage broker.

  1. Expertise and Knowledge

Mortgage brokers are experts in the mortgage industry. They have in-depth knowledge of the different types of mortgages available, interest rates, and the requirements for obtaining a mortgage. They can provide valuable advice and guidance on which mortgage options are best for your financial situation.

  1. Access to Multiple Lenders

Mortgage brokers work with multiple lenders, including banks, credit unions, and mortgage companies. This gives them access to a wide range of mortgage options and interest rates. They can shop around on your behalf to find the best mortgage terms and rates that fit your needs.

  1. Saves Time and Effort

Finding the right mortgage can be time-consuming and overwhelming. Mortgage brokers can save you time and effort by handling the research and paperwork involved in obtaining a mortgage. They can streamline the process and help you navigate the complex mortgage application process.

  1. Personalized Service

Mortgage brokers provide personalized service to their clients. They take the time to understand your financial situation and goals and work with you to find a mortgage that fits your needs. They can also answer any questions you have and provide guidance throughout the process.

  1. Cost Savings

Mortgage brokers can also help you save money. They can negotiate lower interest rates and fees on your behalf, which can result in significant cost savings over the life of your mortgage.

In conclusion, working with a mortgage broker can provide many benefits, including expertise and knowledge, access to multiple lenders, time savings, personalized service, and cost savings. If you’re in the market for a mortgage, consider working with a mortgage broker to help you find the best mortgage options and terms for your needs.

April 21, 2023

Real Estate Investment to Build Wealth

if you have equity sitting in your property and you’re trying to find out how to get some cash for potential future investments, this video is for you. The point of owning real estate is obviously to have a home to live in… but probably the biggest benefit is the many ways it helps you build wealth using other people’s money. This is what banks do with our money all day. For example, if you have a home worth $500,000 and your mortgage balance is only $300,000, You can cash out up to 80% of your home’s value without selling it.  This means you can take out up to $100,000 tax free and still keep $100,000 in equity in the home. Since investment properties only require a 15% down payment, that hundred thousand dollars can allow you to buy up to another $660,000 in investment real estate and have other people pay you’re your mortgage for you. Now you own over 1.1 million dollars worth of real estate by using the bank’s money that was just sitting in your equity. Let the equity grow and repeat!

April 7, 2023

Credit Scores Determine Rates and Fees


Whether you’re hunting for easter eggs or hunting for a new house this weekend, here’s a little mortgage tip from the Easter bunny! If you’re ever shopping for a mortgage, obviously double check the lender’s rates and fees; but also make sure to look at their monthly PMI also known as mortgage insurance. When it comes to rates and fees, most people don’t realize that certain lenders have better deals depending on the credit scores. Some lenders have better rates and lower fees for lower credit score customers and some lenders are more ideal for higher credit score customers. Aside from that, some lenders also get cheaper PMI for conventional loans than others. Yesterday, we saved a customer $30 a month on their rate with the same closing costs as their other lender… but an additional $55 a month on their PMI compared to the competitor. Shop us out and see for yourself, but look at the whole picture.

March 31, 2023

2:1 Buydown for Spring Buying Season

Alright, it is Friday and we’ve officially made it to Spring and buyer interest is accelerating. Given rates are still putting pressure on affordablility, here is a way to make your monthly payments a little more reasonable. We’ve talked about seller concessions where the seller gives you money as an incentive and you can use those funds toward closing costs. You’ve also hear us talk about another option for seller concessions called a 2-1 buy down. With a 2-1 buydown, a buyer can receive seller concessions to essentially buy down the interest rate by 2% in the first year of the mortgage and 1% in the second. For example, let’s say you close your loan at a 6% interest rate. The first year, your payments will reflect that of a 4% rate and the second year is a 5% rate. On a $400,000 loan, the 2-1 buydown would save you almost $6000 in the first year of your new home! The best part is, if you refinance or sell your home within the first two years, you get to keep the left over seller credits! Buying a home can be more affordable than you think! Check out your options!

March 17, 2023

Silicon Valley Bank Closure: Mortgage Impact

It’s been all over the news but last week silicon valley bank and signature collapsed and its generating all kinds of ripple effects across markets. Since we know how to stay in our lane, let’s look at what this means for mortgages and the housing market. The easy answer is that mortgage rates dropped quickly but it has nothing to do with the bank. Mortgage rates are tied to bonds and the bond market is heavily influenced by FED decisions. The idea here is that the collapse of the banks may lead the FED to reduce or pause rate hikes in the near term. Most experts don’t look at this event as the catalyst for mortgage rates to begin a sustained decline but it may kick off the spring buying season to a different tune. Inflation remains the adversary of low rates. Higher rates led to a slower purchase market and most believe the purchase market will rebound quickly if interest rates dip. Buyer demand is still high, those are just on the sidelines waiting for affordability.

March 10, 2023

Investing in Real Estate

Investing in real estate continues to be a popular vehicle to build wealth. Accumulating properties is often difficult due to the capital required but here’s strategy that can help you build your cash flowing portfolio. Buying an investment property has different conditions than a primary home. For instance, the down payment requirement is often 20% down and the rates are over a percent higher. When you buy a primary, you only have to put 3-5% down, rates are much lower, and you are essentially stating that you plan to live in the home for one year. Then at the one year mark, you can now look for a new primary residence and convert your current home to a rental. With the same capital required to buy 1 investment property, you can acquire 4 properties in 4 years with this strategy. In addition, you’ve locked in much lower rates on all properties during that span to increase your cash flow! If you want to invest in real estate, give us a call to see how you can build your portfolio!

March 3, 2023

Loan Level Pricing Adjustments

With all the good news last week about FHA loans becoming cheaper, it’s also important to understand what’s happening with Conventional Loans this year. So Fannie Mae and Freddie Mac announced earlier this year that they are making some significant changes to what’s called Loan Level Pricing Adjustments which determines how much the interest rates are impacted by your credit score and down payment on Conventional mortgages. But now your debt to income will also play a big factor in your rates. This applies to Conventional mortgages and does not impact FHA and VA loans and a lot of lenders have already implemented these changes causing rates to go up for many home buyers, and so what that means is that it is super important to speak with a loan officer that is well versed on these impacts so they can best advise you on how to structure your loan if you’re looking at buying or refinancing your home. For example, 1st time buyers will now have better pricing adjustments than before, but if you put too much money down, you may miss out! Before you do anything, give us a call!

February 24, 2023

Basis Points for FHA Loans Reduced

The FHA has just announced a significant reduction in the mortgage insurance premiums on FHA loans! FHA loans are federally insured loans which are great option for first time homebuyers and are more lenient on down payments, credit, and income requirements. These programs were created to increase homeownership. Because FHA loans are insured by the government, they are less risky for lenders and have lower rates. However, they still require Mortgage Insurance to help protect the government in the form of monthly MIP or Mortgage insurance premium. Here’s the great news: This week, it was announced that the mortgage insurance on FHA loans will be reduced by 30 basis points effective immediately.  The MIP was previously set at 85 basis points meaning for ever $100k financed, loan holders would pay $70/mo. Now that number is reduced to $45/mo. That may not sound like a big difference but consider a real example. On a $400,000 loan, homeowners will now save $1200 per year! If you have an FHA loan currently and want to lower your payment or buy a house and take advantage of these savings, give us a call today!