TurnKey Lending

Weekly Update: 10/06/2023

The higher rates continue!!!

This week we hit the highest mortgage rate since 2001, driven by multiple economic factors that are causing the US 10 year treasury (which mortgage rates track) to peak at its highest levels in years.
Most lenders rates without points added will be 8% or more right now but our consistently low pricing still has us 0.3%-0.6% better than most competitors! That's around a $25/mth saving for each 0.1% on the average purchase!

Fannie Mae announced this week that conventional loans on 2-4 unit multi-family properties that are owner occupied will only require a 5% down payment as of 11/18/23. This is huge news for investors as previously you would have required a 15-25% down payment!

Finally, with rates being higher, buyers and realtors need to be aware of lender pricing strategies. Be aware of ‘low rates’ being offered that require discount points to be paid upfront. Discount points are not a bad thing but paying discount points to get a rate that can be obtained for ZERO points is!!!

If you're looking at buying a home or you're a realtor working with clients, please reach out to discuss rates, affordability and how we can provide a value driven service for those buying a home!

Have a GREAT weekend!

Weekly Update: 9/15/2023

Higher rates are back this week with all eyes on the Fed meeting next week to see how they interpret the latest inflation data and their subsequent actions.

In July, we saw both producer and consumer inflation inch higher and that trend has now continued for a second month in a row in August. Although broader oil and gas industry pressures will have accounted for some of that, it’s now down to the Fed to see how they react. There’s above a 50% chance of a rate increase next week but the chances of at least one more rate increase by the end of the year are looking higher based on this latest data.

Despite the higher rates impacting home affordability, there are now better opportunities to negotiate seller concessions. Higher rates have lowered demand and as such, sellers are more open to offering concessions. Obtaining approx. 2% in seller concessions could allow you the opportunity to leverage a 2-1 buydown. Contact us to hear more!

If you're looking at buying a home or you're a realtor working with clients, please reach out to discuss rates, affordability and how we can provide a value driven service for those buying a home!

Have a GREAT weekend!

Weekly Update: 8/11/2023

After consecutive months of slowing and positive inflation data, July inflation numbers were out this week. They failed to wow us! Consumer inflation essentially met the expected targets, with a slight win with YoY core inflation beating estimates by 0.1%. The villain this week was the Producer inflation numbers, which is the cost of goods from producers to companies buying. This number went up slightly higher than expected in July. Why is this important? If companies are purchasing goods at a higher price, they potentially will pass that on to consumers….which means the next couple of months could see higher than expected consumer inflation.

So, rates remain stubbornly high and they are ranging based on conflicting economic data by the week. The good news is that the Fed is skipping their meeting in August, so the next one is in September on 9/16. Before that meeting, we will have August inflation data out on 9/13, so that data will likely be the deciding factor on whether another rate hike is added or if the Fed is confident skipping for a month.

Finally, information is key! You don’t know what you don’t know and there are so many factors when buying a home. We aim to provide information transparently and in an easy way to digest so that you can become better informed buyers. Take your affordability assessment on our website today, to get your rate, budget and likely loan approval amount.

If you're looking at buying a home or you're a realtor working with clients, please reach out to discuss rates, affordability and how we can provide a value driven service for those buying a home!

Have a GREAT weekend!