Weekly Newsletter July 22th-26th

Interest Rates – Inflation Week

30-yr fixed6.85%
15-yr fixed6.27%
30-yr fixed FHA6.76%
30-yr fixed VA6.79%
*These mortgage rates are estimated by a third party using industry averages for owner-occupied properties and do not include refinancing options. Rates may vary based on availability and lender approval.

This week, the PCE (Personal Consumption Expenditures Price Index) Inflation Report came in as expected, mortgage applications for purchase and refinance rose, and the rental lag in the inflation report is finally starting to show improvement. Next week, we get another round of jobs reports, but it will come two days after the Fed meets for their next rate consideration on Wednesday. They are not expected to change the rate at this meeting, but Friday’s report could be a good indicator of a rate change at their September meeting.

Program Spotlight: No-Ratio Primary Residence

There This week, a client who was pre-qualified for a conventional loan a few months ago updated me that they had changed from 1099 employment/income to start their own LLC business in a different industry. The traditional conventional loan no longer works for them, but they do qualify for a no-ratio loan. No ratio means their qualification’s income and employment piece is no longer considered. They have high credit scores, a 20% down payment, and over twelve months of mortgage payment reserves (as a qualification requirement). The catch? The interest rate is about 2% higher than a conventional loan. The strategy in this scenario is to buy a property at today’s prices while gaining equity at a higher appreciation rate rather than waiting until they again qualify for traditional financing (up to two years later). They can refinance after twelve months of on-time payments and use the high interest they paid as a tax deduction.

My Favorite Things

Now that we are seeing the light at the end of the dark, elevated interest rate tunnel, this month’s semi-annual business planning update was a bit more fun than at the beginning of the year. It’s definitely been another half-year full of changes, and I’m excited for a refresh in focus on my business. How is your business plan looking for the year so far? I would love to hear about it! One thing will never change – I must be helpful whenever someone needs it. This includes you and your clients! If you have an idea for a partnership you’d like to explore, think of me! I’m waiting to help.