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💸 End of Summer Push
Mortgage Rates Steady ↔️ — Fishing Expedition. How to "Finance" The Buyer Broker Fee. No Crash on Horizon. Appraisal Lunch & Learn
Glenn Groves
August 13, 2024
Issue 85 - Good Morning and Happy Tuesday.
Here we are, mid-August. Honestly, it feels like this business's horrible 2022 and 2023 chapters are behind us.
Kids head back to school this week, and we’re approaching the traditional marker of the “end of Summer” with Labor Day.
That said, there is a concerted PUSH through August with purchases and an uptick in leads. Part of it is Summer time running out, another is that the media is pushing that “rates are down” (which they are not really wrong).
Are you feeling a shift for the better?
What you need to know in 30 seconds: The NAR Settlement is changing how Realtors explain fees upfront to clients. Do you know the repercussions of “financing” the agent fee into a loan?
 JJ, Drew & Grayson  Jerry, Jesse & Gray |  Grandpa’s Hanging Out  JJ Getting Hot Chocolate |
Personal note: I took the boys fishing on Saturday morning with my dad, father-in-law, and brother-in-law. We caught a large magnet attached to a rope, and JJ hooked a kid’s hair next to us with a lure.
You could say we’re kind of a big deal.
🛦 See you in the trenches.
INTEREST RATES
Rates 📢 August 13th, 2024
10-Year-Treasury 1-Month Snapshot
Product | Rate / APR | Weekly Change |
|---|---|---|
↔️ Conv. | 6.500% / 6.514% | -.000% |
⬇️ Conv. HB | 6.875% / 6.884% | -.125% |
⬇️ JUMBO | 7.000% / 7.011% | -.250% |
⬆️ FHA 3.5% DP | 5.750% / 6.672% | +.125% |
↔️ VA 0% DP | 5.750% / 5.959% | -.000% |
Rate data as of morning of publication. Unless noted otherwise, all scenarios are assuming 30 Year-Fixed mortgage, Purchase or R/T Refinance. No origination points charged, 780 FICO score, and 20% down payment. Provided for consumer education only and does not serve as a binding offer to extend lending. Payment period, interest rate, APR, and other terms subject to income, asset, and credit profile qualification. Provided courtesy of GTG Financial, Inc. NMLS 1595076. Equal housing opportunity. www.nmlsconsumeraccess.org
Rate Markets: Here are the weekly changes from last Tuesday. This removes the sharp drop and pop back on Monday. I did not want to shock you guys with a bunch of RED.
Bottom Line: Rates settled mid-last week into a range that we can all deal with. As mentioned before, we are trending in the right direction, but don’t expect smooth sailing the whole time.
INDUSTRY
Financing A Buyer Agent Fee
Glengarry Glen Ross, 1992 New Line Cinema - Via Tenor
💰 Understanding the Concept
In today's Buyer-Broker agreement housing market, many realtors and loan officers are being asked if borrowers can finance the buyer's agent fee into their mortgage. The short answer is: technically, yes, but the details matter, and it might not be as straightforward or advantageous as it seems.
🏦 How It Works
Some loan officers are suggesting that borrowers can effectively "finance" the buyer's agent fee by reallocating a portion of their down payment. Here’s how it works:
TECHNICALS
Prices and Inventory
Your client’s Uncle was wrong. The market will not crash, and yesterday was the best time to buy. I'm just putting those facts out there.
Yes, rates have not been fun for 2+ years.
Yes, this has limited the amount of qualifying or interested buyers.
Yes, this has deterred sellers from listing.
Read the full article here…
📈 Home Price Gains Remain Strong: Despite a slight slowdown, home prices continue to rise, making real estate a solid wealth-building investment.
🏠 Rising Housing Inventory? Not What You Think: Media reports are missing the mark—inventory is still tight, and demand is poised to rise as rates dip.
📉 Labor Market Weakens: Jobless claims are elevated, signaling a slowdown in hiring and an uptick in layoffs. What does this mean for the housing market?
Share GTG Weekly with colleagues and earn access to exclusive Monday morning rate updates directly to your inbox. Stay ahead of the curve!
EVENT
ONLY 6 SEATS LEFT!
Join Us for an Exclusive Training Session!
We are thrilled to host an exclusive event at our office featuring a special guest speaker, Rob Roldan, a VP from Class Valuation, a leading Appraisal Management Company (AMC). This is a must-attend session for Realtors looking to enhance their appraisal knowledge and skills.
Key Topics Covered:
🔹 Challenging Property Value: Dos and Don'ts
Learn effective strategies to contest property appraisals confidently and correctly.
🔹 What Appraisers Want: Insights for Listing and Buyers Agents
Discover what appraisers expect from you to ensure smooth and accurate appraisals.
🔹 Navigating Tax Records vs. Actual Property Details
Gain expertise in handling discrepancies in bed and bath counts between tax records and actual properties.
🔹 Common Misconceptions: Avoiding Pitfalls with AMCs
Uncover the common mistakes that can lead to trouble with AMCs and how to avoid them.
🔹 FHA/VA Appraisals: Key Watchouts
Learn the critical elements to monitor in FHA/VA appraisals to prevent issues.
Why Attend?
Gain Valuable Insights: Directly from a top industry professional.
Network with Peers: Connect with fellow Realtors and expand your professional network.
Enhance Your Skills: Improve your appraisal knowledge to better serve your clients.
Free Food: You read that right.
Event Details:
Date: Thursday, August 29th
Time: 1:00 PM
Location: 1421 Guerneville Road, Suite 100. Santa Rosa, CA 95403
Reserve Your Spot Today!
Spaces are limited, and we expect high demand. Don’t miss out on this opportunity to learn from one of the best in the industry. Sign up now to secure your spot!
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