Happy Holidays, Inflation Slows, Rents Steady
Wishing everyone longevity, fortune, good food, and time with the family over the holidays! Mortgage Rates – remained unchanged this week as the price of Mortgaged Backed Securities had a remarkably stable week. Rates are at the best levels we have seen since June and are up about 0.5% from this time last year. Inflation – […]
Fed Rate Inertia, Shipping Slows Inflation Flat
The Physics Behind Interest Rate Cuts – The Fed finished its 8th and final interest rate decision of 2023 this week. As predicted, they left rates unchanged and projected as many as 3 cuts next year. While the Fed did not clue us in to when exactly these cuts will take place, we can infer […]
Loan Limit Increases (old news), Equity Improves, Used Car Prices Decline
Loan Limits – 2 weeks ago conventional loan limit increases were announced for 2024 and increased by 5.5%. This means in the Portland market you can now purchase a $790,000 home with $23,700 down if it is a primary residence and you are a first-time homebuyer. It also means that you could buy a $1,550,000 […]
RE in China, Inflation Slows, MBS Improve
China $60 Trillion Real Estate Engine Slows . In 1994 China underwent a major tax overhaul that caused the central government to take more money at the expense of local governments. In response local governments used their zoning power to sell 70-year leases for residential development, sparking a housing boom. In this story we read […]
Dollarization? Home Values Record High, Sahm Rule Indicator
Argentina’s Inflation – think inflation has gotten out of control in the US? Argentina has experienced double digit inflation for most of the previous 20 years. This year it is close to 140%. Argentinian banks enforce a $200 withdrawal limit. The next presidential election happens in nearly a week and one candidate, a trained economist, […]
NAR Case, Rates Improve, Employment and Manufacturing Slow
NAR and Real Estate franchises HomeServices of America and Keller Williams were found guilty by a federal jury in Kansas City of colluding to inflate Real Estate Commissions. After 2 weeks of testimony the Jury spent 2 hrs deliberating before laying down a guilty verdict which ordered defendants to pay $1,780,000,000 ($1.78B) in damages that […]
Commercial Loan Diet, Inflation Settling, Loans Perform, Rents Moderate
Loan Diets and Drought – from the Fed’s recent Beige Book we learned that many banks are going on a “Loan Diet” meaning they are extending smaller credit lines and are being more selective about who they lend to. In the residential world guidelines and standards have not changed for conventional and government loans but […]
FHA Updates ADU Guides, Home Values and Rents Back to Sustainable Gains, Shipping Moderates
FHA Guidelines – were updated this week to support the use of rental income generated from Accessory Dwelling Units (ADUs) on single-family homes. HUD’s stated goal is to increase the stock of affordable housing and to expand opportunities for wealth building. If a client is purchasing or refinancing a single family with a legal ADU […]
Conventional 5% Down on 2-4 Units, Jobs Mixed, New Rents Moderate
Guideline Updates – some major conventional guideline updates dropped this week, including a significant overhaul on down payment requirements for 2-4 Unit Multifamily primary purchases and limited cash out refinances (or renovation loans!). Starting Nov. 17th folks will be able to purchase a 4plex as a primary residence with 5% down that can come entirely […]
Auto Premiums Increase, Fed Update, SFR Strong
Auto prices have increased rapidly since the pandemic – 45% for used cars and 22% for new cars – but so have auto insurance premiums. Premiums are up 19% year over year (27% since the pandemic) while inflation is closer to 3.7% year over year. Auto Insurance Premiums have increased for 4 main reasons: Drivers […]