Today's Headlines - Realty Times
Posted On Tuesday, 12 October 2021 00:00 Written by

Nicolas Manetta-“Those who don’t think outside the box are easily contained.”

“We have reached a tipping point,” real estate market experts are saying.   They point out that more homes are being listed for sale, and the prices are still rising, but not at the double-digit frenzy we have seen over the last year.

Homebuyers are stepping back into action and making offers on homes now that there may be only five competing offers on the house they want instead of twenty-five offers.

Buyers want to lock in a fixed mortgage rate in high two’s or three’s to give themselves an affordable house payment and a design on building their personal wealth.  

Home sellers sitting on the fence are now staking the “For Sale” sign out in the yard.     While home prices are high and demand is red hot, sellers want to realize the highest profit and not regret later that they did not sell high when they had the chance. 

Home prices and borrowing costs that continue to climb crimps affordability on homes for sale.  Homebuyers who are committed to get the life they want have to think outside the box.  If the home that fits their design is too high for their budget, they look for a home that they can convert to their desired design.   

Some homebuyers find a lower-priced fixer-upper home. We put together the special loan programs it requires to finance the purchase and the fix-ups.  

Others find homes that have not been refurbished in 30 years. If that house is surrounded by homes that have been remodeled and updated, then the chances are good they can buy it at a lower price and remodel gradually over time to get the home looking like they like it.

Then there are people like Charlie and his wife who were budget-conscious.  Charlie was in his 30’s with a wife and a young child and another baby on the way.  “The house we are in is a little cramped now, but when the baby is born, this house won’t work for us at all.”  He talked about a neighborhood where he and his wife were looking at houses.  

When I asked him questions about the price ranges of the homes in the neighborhood he was describing, his voice sort of trailed off. He didn’t finish his sentence. Then, without any warning, he just blurted out, “I don’t really want to buy an existing home anywhere.  What I really  want to do is build the house the way we want to live in it.”

When he asked which financing program would be best for him, my answer was the one he already knew to be true before he ever asked. The real question was, “Where will you be happiest—in an already built home or the new construction home you design yourself?”

So many times, the best deal ever is the one where you follow your heart and figure out for yourself how to make it work.   Charlie and I started working on the money down and the payments per month if a builder built the house he wanted out in the country.  Unfortunately, the home they wanted was just too pricey for their current budget. 

After looking at a few ideas, he finally decided that he could afford to build the house they wanted if he didn’t finish the attic and left the bonus room unfinished.  Charlie and his wife could finish that part later 

“With small children, I wouldn’t want them trying to navigate stairs anyway. Then, when the children are a little older, and I have a little more saved back, we can finish out the upstairs, and it will be like having a brand new house.” He planned to consult with a realtor who knew the values in the area. He was going to get with a builder and then come back to me with some prices and terms we could compare on putting together his mortgage terms. 

As real estate and financing professionals, we have to open up the box and encourage customers to find ways to get the home they want with the financing they can afford. To help remember the most clever ideas, consider keeping a digital notebook of methods former clients and other pros have used to break through affordability barriers.  


Jo Garner, Mortgage Loan Officer  NMLS#757309 Sierra Pacific Mortgage Cordova, TN NMLS #1788 (an equal housing lender.)  Host of iHeart radio show Real Estate Mortgage Shoppe. Author of “Choosing the Best Mortgage-The Quickest Way to the Life You Want” available on Amazon, Barnes & Noble, and on www.JoGarner.com 

Posted On Monday, 11 October 2021 00:00 Written by

Now is an important time in our industry to pay attention to the numbers, the charts, and especially the political rhetoric on all sides. I don’t remember a series of potential market movers and known events all happening in the next week, but any or all of these could dramatically move the markets.

First, lets look at where we are to see where the mortgage markets sit as of 6am 10-7-21 when I am writing this: UMBS 30yr 2.5% is 103.05 – 10yr T is 1.52. In the past year the High was 105.63 on 1/4/21 and a low of 102.20 on 3/19/21 and the 10yr T was 1.71 on 3/31/21 and .709 on 10/14/20 Just a point of reference and charts you can have available to share with your clients. We also saw refinances drop 10% week over week and down 16% year over year with rates only being about .125% higher this year. Market certainly volatile and the trend is for rates to go higher. Case-Schiller nails home values up over 19% year over year.

Events that can move the markets. 

  • Today 10-7-21 initial jobless claims
  • Friday 10-8-21 September 2021 Jobs Report
  • Next week – 10-13-21 – CPI report & 10-14-21 PPI

Ongoing movers can include:

  • New conforming loan limits for 1-1-22 $625,000
  • Debt Ceiling
  • Is $3.5 TRILLION DOLLARS really ZERO?
  • Will “Infrastructure” Bill ever get passed?
  • Supply chain getting better or worse?
  • Southern Boarder/COVID/Vaccines/Boosters/CRT/FBI targeting parents…

 

There is a lot to talk about. Questions or comments: Mike@IMTcoaching

Posted On Monday, 11 October 2021 00:00 Written by
Posted On Friday, 08 October 2021 00:00 Written by
Posted On Friday, 08 October 2021 00:00 Written by


Lenor headshotAward winning author Lenor Madruga Chappell was a beautiful young woman - model, radio personality, wife of a rancher, mother of two, and active citizen in her California hometown. On the morning of her thirty-second birthday, she discovered a hard lump in her groin and subsequently underwent a hemipelvectomy: removal of her left leg and hip.  

Her victorious story is an inspiration not only to the millions of amputees throughout the world, but to all who face physical or emotional trauma.  

Lenor has been a keynote speaker (Motivational and Inspirational) at National Cancer Conferences in America, Canada and Europe; a speaker with Celebrities Against Cancer, a speaker at major fund-raising events including the National Easter Seal Telethon, and a speaker at hospitals and universities throughout America and Europe.

A national and international speaker, Lenor captivates audiences with her straight forward approach to life's challenges. In October of 2009 she was guest speaker in Sydney, Australia, at Northwestern University of Sydney and Sydney's Cancer Institute.

In the recent past, she's been published in two major national magazines: MAPA-LOG (an aviation magazine) with her article The Fast-Inating Mooney; and COPING (a magazine distributed to doctors and hospitals throughout the US) with her article Coping With Cancer - One Step At A Time.

Posted On Friday, 08 October 2021 00:00 Written by


 Krisstina WiseKrisstina Wise is a real estate mogul, Millionaire Coach, and creator of several multi-million dollar businesses including Goodlife Luxury, The Paperless Agent and most recently, WealthyWellthy. She is also an international speaker and the award-winning author of the Amazon Best-Seller Falling for Money, a romance novel for your bank account. Named one of the 100 Most Influential Real Estate Leaders in the country, she has been featured in USA TODAY, as well as by Apple, Contactually and Evernote for her creative leadership with emerging technologies.

Posted On Thursday, 07 October 2021 00:00 Written by
Posted On Wednesday, 06 October 2021 00:00 Written by
Posted On Tuesday, 05 October 2021 00:00 Written by
Posted On Tuesday, 05 October 2021 00:00 Written by
Posted On Monday, 04 October 2021 00:00 Written by
Posted On Monday, 04 October 2021 00:00 Written by

There is always an opportunity to be had in each situation. Rising interest rates are no different. It’s ironic that people aren’t as excited about 3.25% or 3.5% or 3.99% on the way higher than they were as they were when rates were falling to those numbers. It wasn’t that long ago when these numbers were very exciting to our clients. 

The solution to finding the opportunity in rising rates is to remind people that rates are just a number, and it’s the PAYMENT that people need to focus on. I get it, people are emotionally attached to rates but rarely tie that to the difference in the payment. It’s your job to tie it together for them. Do the math and run the numbers! It’s also important to share the facts of the market.

Pull up a two-year chart of the UMBS 2.5% coupon show where we are and where we have been. We are still closer to the bottom then the top. In fact, rates were higher as recently as June, before that, April, March, and February. If we go back prior to March of 2020, people would be thrilled with today’s rates! Besides, people need a place to live, and the cost of ALL housing is still going higher! The rental market can even be more challenging and more costly than buying, even given the incredible amount of appreciation in property values lately, a trend that may not slow down any time soon!

Take advantage of the opportunity by calling all your preapprovals and share with them the market realities we are facing and recalculate the payments they would have with the higher rates. Also, reach out to your referral partners and make sure that anyone they are showing property to has an updated preapproval within the last week, so the client is aware of rising rates and aren’t shocked to find out this news after going into contract. Be sure you offer all your agents the opportunity to offer you as a resource to help any of their buyers who haven’t been updated yet or hasn’t heard from their original loan officer!

Rising rates can equal another opportunity to share your expertise, especially when we are facing a potential unpleasant conversation about rising rates!

Questions or comments: This email address is being protected from spambots. You need JavaScript enabled to view it.

Posted On Monday, 04 October 2021 00:00 Written by
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