Issue 129 - Hello and Happy Tuesday.

A little late, but we are back on our feet!!

Thank you to everyone who reached out about us going semi-dark for the last 2 weeks. Been a little hectic, but we’re back and better than ever.

Long and short of it, we are independently owned again. There is a press release below that we issued late last week once the rescission had been finalized. Our time as a subsidiary of a publicly traded company has come to a close. We’re excited for what’s next at GTG!

Personal Note:
We took the kids out to Inverness in Marin County to see the Tule Elk reserve. Then stopped at the French Marin Cheese Company to check it out. Both very cool!

TLDR (Too Long Didn’t Read) Summary

• ↔️ RATES - Holding ahead of Fed meeting tomorrow.

• 🏦 INDUSTRY - PRESS RELEASE - GTG Financial returns to independent ownership.

• 📊 TECHNICALS - Jobs Revision of 911,000 locks in rate cut.

INTEREST RATES
Rates 📢 September 16th, 2025

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

💡 Why This Matters

📉 Rates in a Holding Pattern
Mortgage rates are holding steady ahead of the Fed’s policy meeting this Wednesday. While FHA and VA programs saw a small dip (-0.125%), conventional and jumbo rates remain flat. This is the market essentially waiting on the Fed’s move.

🪙 Fed Expected to Cut 0.25%
Markets have already priced in a quarter-point cut, with only a slim chance of something bigger. That means when the cut is officially announced, don’t expect a dramatic drop in mortgage rates—most of that move has already happened.

📊 Economic Signals
The Congressional Budget Office expects unemployment to tick higher and growth to slow in 2025. That’s generally bond-friendly, which could help mortgage rates ease further over time if the trend continues.

👀 What to Watch
The Fed’s “Dot Plot” and economic projections will be key. If Fed members show expectations for multiple cuts ahead, it could add fuel to the rate rally. On the other hand, if they strike a cautious tone, we could see rates stall around current levels.

💡 Realtor Insight: Buyers sitting on the sidelines should know that while rates have improved recently, the big “rate drop” many are waiting for may not materialize right after the Fed’s cut. Stability in rates could encourage hesitant buyers to re-enter the market before competition picks up.

INDUSTRY
GTG Financial Announces Rescission of Stock Purchase Agreement with ReAlpha Tech Corp, Effective August 21st

Santa Rosa, CA – September 11, 2025 – GTG Financial, Inc. today announced that it has exercised its right under the Stock Purchase Agreement to rescind its acquisition by ReAlpha Tech Corp. Effective August 21, 2025, GTG Financial is once again fully independent. GTG filed the rescission notice on the 181st day of the agreement, as provided for in the SPA, and ReAlpha formally filed the rescission with the U.S. Securities and Exchange Commission (SEC) on September 11, 2025.

GTG Financial was originally acquired by ReAlpha on February 20, 2025. The company’s leadership entered into that agreement with the goal of aligning with a company positioned on the leading edge of the AI revolution, with a vision to accelerate GTG’s adoption of next-generation technology for the benefit of clients, Realtor partners, and brokers.

Looking Ahead
While that alignment did not materialize as intended, GTG’s leadership believes the path forward is stronger as an independent company. “We have proven that we can execute on innovation ourselves, and that independence positions us to do it better,” said Glenn Groves, President and CEO of GTG Financial. “Our commitment is to invest in our brokers and referral partners, embracing AI on our own terms to create tools that increase efficiency and ensure five-star client service.”

GTG emphasized that there will be no disruption in service. Clients and referral partners can expect the same trusted team and the same commitment to excellence that GTG has built its reputation on since its founding.

About GTG Financial, Inc.
Founded in April 2017, GTG Financial has originated more than $1.4 billion in total loan volume, serving thousands of families and investors. The company is licensed and operating in California, Colorado, Texas, Arizona, Washington, Oregon, and Idaho.

GTG Financial’s mission is simple: to deliver The Right Mortgage for Right Now. GTG is built on relationships with clients, Realtors, and brokers, and is committed to combining innovation with personalized service. By embracing AI-driven tools on its own terms, GTG is focused on helping brokers and partners thrive while ensuring clients receive exceptional mortgage solutions.

TECHNICALS

Job Market Slows, Inflation Meets Estimates 

📉 Job Growth Revised Down by 911,000

The Bureau of Labor Statistics found that job growth over the last year was overestimated by 911,000 jobs. That’s about 76,000 fewer jobs per month than we thought – the largest downward revision on record.

➡️ This means the labor market has been weaker than believed, and recent reports already show softer hiring, higher unemployment claims, and fewer job openings.

Realtor Insight: A softer job market can make buyers more cautious. Expect longer decision-making timelines, but also note: weaker employment data often nudges mortgage rates lower, helping affordability.

🏚️ Jobless Claims Jump to 4-Year High

Initial jobless claims rose to 263,000, the highest since 2021. Continuing claims stayed above 1.9 million for the 16th straight week.

Realtor Insight: Rising unemployment usually pressures the Fed toward rate cuts. Lower rates may attract buyers back into the market, especially if they’ve been waiting on the sidelines for affordability to improve.

💡 Consumer Inflation Meets Expectations

Inflation came in mostly as expected:

• Headline CPI: +0.4% in August (2.9% annual)

• Core CPI: +0.3% monthly, steady at 3.1% annual

Shelter (housing costs) remains the biggest driver, along with airfare and used cars.

Realtor Insight: With inflation in line and jobs softening, markets are betting on a Fed rate cut September 17th. Mortgage rates already priced in much of this expectation, so don’t expect a huge drop the day of the cut.

🏡 Home Price Growth Slows, But Outlook Positive

July annual price gains cooled slightly:

• Cotality: +1.4% (down from 1.7%)

• ICE Mortgage Monitor: +1.1%, flat from June

But projections are strong: +4% over the next year.

💡 Example: A $500,000 home appreciating 4% = $20,000 gain in one year.

Realtor Insight: Even with higher rates this summer, home prices are still climbing. Lower rates this fall could spark stronger buyer demand, making now a good time to prepare listings before competition heats up.

🔎 What to Watch This Week

• Fed Meeting: Sept 17 – markets expect a rate cut

• Builder Confidence: Tuesday

• Housing Starts & Permits: Wednesday

• Retail Sales: Tuesday

• Jobless Claims: Thursday