An extremely light week following the FOMC, with the only note-worthy reporting being the Consumer Sentiment reports from the University of Michigan, which gives a long term outlook of the consumer on the economy. The report has come in well under expectations, much more so than any previous release in the last 6 months. This is largely due to the increase in the cost of living for every sector. Consumer Sentiment The University of Michigan’s gauge of consumer sentiment fell to 67.4 in a preliminary May reading, down from 77.2 in the prior month. Primary Mortgage Market Survey Index 15-Yr FRM rates are seeing a decrease by -0.09% with the current rate at 6.38% 30-Yr FRM rates are … [Continue Reading...]
Owning a home is a dream for many, representing a significant milestone and a considerable financial investment. However, along with the excitement of homeownership comes a set of responsibilities and financial commitments. One of the most crucial aspects of safeguarding your investment is securing homeowners insurance. Protecting Your Investment Your home is likely the most valuable asset you own. Whether you've recently purchased a property or you're considering buying one, protecting it against unforeseen events is paramount. Homeowners insurance provides financial protection against damages to your home and its contents caused by fire, theft, vandalism, natural disasters, and other … [Continue Reading...]
Buying a home is one of the most significant financial decisions most of us will ever make. It's a journey filled with excitement, anticipation, and sometimes, a touch of anxiety. Among the many steps involved in this process, understanding mortgage underwriting is crucial. To demystify this complex process, let's delve into the 5 C's of mortgage underwriting. 1. Credit Score: Your credit score is often the first C considered by lenders during mortgage underwriting. This three-digit number, typically ranging from 300 to 850, reflects your creditworthiness based on your credit history. Lenders use this score to assess the risk associated with lending to you. The higher your credit score, the … [Continue Reading...]
If you're gearing up to dive into the world of real estate, there are a few key terms you'll want to wrap your head around before taking the plunge. Today, we're demystifying APR and interest rate, two crucial concepts that can impact your home-buying journey. Don't worry, I'll break it down in simple terms so you can confidently navigate the process like a pro. Interest Rate: Let's start with the basics. The interest rate is the percentage charged by a lender for borrowing money to buy your home. It's essentially the cost of borrowing the principal amount. When you're comparing loan offers, you'll often see this prominently displayed. A lower interest rate generally means lower monthly … [Continue Reading...]
Are you in the market for a new home? One of the most crucial decisions you'll face is choosing the right mortgage term. With options like 30-year and 20-year mortgages available, it's essential to weigh the pros and cons to make an informed decision that suits your financial goals. Let's discuss the debate of 30-year versus 20-year mortgages and explore which option might be better for you. The Case for a 30-Year Mortgage A 30-year mortgage is often the default choice for many homebuyers due to its lower monthly payments. By spreading the repayment period over three decades, borrowers can enjoy more manageable monthly installments, which can be particularly attractive for those on a tight … [Continue Reading...]
Week in Review With the passing of the Federal Open Market Committee rate decision panel, we now have definitively confirmed that the Federal Reserve intends to keep the rates at a two-decade high, for the sixth straight meeting by a unanimous vote. Jerome Powell had stated during the Q&A that they do not intend to cut rates until they have confidence that inflation will, “sustainably stay lower than the 2% objective.” Lending partners have responded in kind by a rush in an increase of rates the last three weeks in a row, with expectations tempered about impending rate cuts any time soon. Markets across the board have experienced a cooling off as a result. Manufacturing … [Continue Reading...]
