💸 Rates Did What?

Issue 90 - Good Morning and Happy Tuesday.

We’re fielding the expected “I heard rates when down by 1/2% percent.” phone calls and emails. Great. The phone is ringing, and emails and texts are coming in. But as most of you already know, no, mortgage rates did not go down 1/2%.

We are getting to show and explain that rates are definitely down for the year, though! As predicted, the headlines are leading people to realize what is already happening.

Personal note: My weekend was wildly uneventful. The state of Texas is actively auditing our loan activity from 2021 through 2024. This is standard stuff but labor-intensive due to the amount of paperwork involved. Needless to say, my weekend was chewed up with those tasks.

This is also a huge reason why you have not seen more in-depth articles in the past weeks. Time is getting crunched!

We did manage to get in a “movie night” with the boys on Saturday. I exposed them to the best Star Wars movie (outside of Rogue One, of course). Episode III - Revenge of the Sith. I was pleased to see both of them engage and understand some more subtle plotlines.

Jamie fell asleep and then said, “I like Star Trek better anyway.” Hey, I can’t complain too much, right? lol

INDUSTRY
Join GTG Financial Today

We’re actively searching for a new team member.

Who do you know that would work well at GTG Financial?
I am looking to hire a loan officer assistant for my personal team.

Experience is encouraged but not required.

• Roadmap to becoming an originating loan officer if you are interested. We’re wholesale brokers primarily dealing with A paper clients. Cross-training in processing is available.

  

• Full-time, health care, 401k match, in-office position in Santa Rosa. Team bonus structure.

• You must be able to speak “gif” via team chats and endure movie quotes and endless sports references. You cannot be allergic to technology.

• Do you have a college-age kid who might be interested in mortgage finance?

• Do you know someone working at a boring lender looking for a fun work environment where they can learn and thrive?

• Are you thinking of moving to the “Dark side” yourself?
  
  Reply, and let’s have a conversation!

INTEREST RATES
Rates 📢 September 24th, 2024

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: I tried to tell you guys there was a chance that mortgage rates could go UP when the Fed said their Fed Funds Rate was going DOWN.

  

  Katt Williams - “Tried to tell you”

  PCE numbers will be released on Friday. Now that the Fed has made its opening move with this rate cut cycle, it will be interesting to see how the market reacts.

• 🔮 Markets seemed to have slightly overplayed their hand in anticipation of the Fed announcement. So, those of you who locked in before the Wednesday announcement timed the market perfectly.

• Bottom Line: People are all sorts of confused, and we cannot blame them. The goal right now is to re-install the fact that we are sitting at close to the lowest rates of the year, and people should not slip back into the “we’re gonna wait until the rates come back down again” mentality.

  

  Via Tim Soldati’s Weekly Newsletter

EVENT
LAST CALL FOR OKTOBERFEST

GTG Financial is proud to present the 11th annual OKTOBERFEST!!

When: Saturday, September 28th, 2024.

Where: 1919 Creekside Road, Santa Rosa, CA 95405

What: 11th Annual Oktoberfest Party

What to bring: Appetizer to share and 1 unwrapped, new toy for Toys for Tots.

No, you do not need to dress up; these are just some great pictures from last year. Free giveaways for kids, great food and drinks, and the weather is always beautiful in late September, Bennett Valley evenings!

TECHNICALS
Builders Get Boost

Fed Cuts Rates, Home Sales Dip, and Builder Confidence Rises: Key Takeaways

• 🏦 Fed Cuts Rates by 50 Basis Points
  The Federal Funds Rate is now in the range of 4.75% to 5%. This doesn't directly affect mortgage rates, but it signals that interest rates may continue to trend lower, benefiting homebuyers.

• 🏘️ Existing Home Sales Dip in August
  Sales dropped 2.5% from July and 4.2% year-over-year. Homes sold quickly though, with 24% going above the listing price, and average days on market were 26.

• 🏡 Builder Confidence Improves
  Homebuilder sentiment rose in September after a 4-month slump, driven by falling mortgage rates. The builder confidence index moved up 2 points, and future sales expectations are looking positive.

• 🚧 Single-family Home Construction Surges
  August saw a 15.8% increase in new single-family homes being built, a strong rebound from July, indicating builders are responding to rising demand.

• 📉 Inventory is Slowly Improving
  Available homes for sale were up 22.7% year-over-year, though inventory remains below pre-pandemic levels.

• 🔮 What to Expect
  Further rate cuts may continue to ease borrowing costs, potentially driving more activity in both home sales and new construction in the coming months.