đź’¸ Pressure Building

Mortgage Rates Lower Than Last Week ⬇️ — Turntime expectations. Fantasy Football Season. VA is allowing 2nds on assumables. Inflation is coming down. The appraisal class is SOLD OUT.

Author

Glenn Groves
August 20, 2024

In partnership with

Issue 86 - Good Morning and Happy Tuesday.

As we enter this later phase of the buying season, with good rates, many lenders (wholesale, retail, everyone) are under pressure.

Expect slightly expanded turn times from all of your lending partners as operations teams feel the crunch and DO NOT want to staff up for a short run like this.

If rates tumble AND HOLD, expect further delays, with refinances piling onto underwriter’s workloads. They prioritize purchases and usually triage by the closing date, but it still takes a toll.

We might be seeing the end of 14-18-day closes… which is probably good for most of us because it means we are busy!! lol

The Office - NBC via Tenor

What you need to know in 30 seconds:

NAR Settlement went into effect on Saturday. Surprise, the world didn’t end.
 
Most of you and your brokerages have been VERY proactive in getting in front of your buyers!

Personal note: Laidback weekend. Let the kids recharge after the first week of school. We ran some errands and went to fish and chips out at the coast. No pics, just quality time this week ;)

Also, guess what is right around the corner… football—specifically, fantasy football for those who care. I am putting this out here now and will hit it next week, too, but there will be no newsletter on Tuesday, September 3rd. I will be returning from my annual draft (this year in Southern CA), and I know I won’t have the mental capacity to give you anything worthwhile, lol.

For those nerds like me out there:

  • 12 Team

  • PPR

  • Live Auction Draft

  • QB, RB, RB, WR,WR, FLEX (WR, RB, TE), TE, DST, K

    🛦 See you in the trenches.

INTEREST RATES
Rates 📢 August 20th, 2024

10-Year-Treasury 1-Month Snapshot

Product

Rate / APR

Weekly Change

↔️ Conv.

6.500% / 6.514%

-.000%

⬇️ Conv. HB

6.625% / 6.634%

-.250%

⬇️ JUMBO

6.875% / 6.885%

-.125%

⬇️ FHA 3.5% DP

5.625% / 6.545%

-.125%

⬇️ VA 0% DP

5.625% / 5.832%

-.125%

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: Light news is expected today. Nothing major that could affect rates. Assume these numbers will hold at least through midweek!

  • Bottom Line: After the rollercoaster of the early month, it has been pretty smooth for the last few weeks, making buyers more comfortable with predictable numbers.

INDUSTRY
VA To Allow 2nd Loans for Assumptions

Major Payne 1995 - Universal Pictures via Tenor

Understanding Secondary Borrowing When Assuming a VA Loan

Assuming a mortgage can be a great way to take over an existing home loan, especially if it has a lower interest rate than what's currently available. But what happens if you need additional funds to make the purchase?

That’s where secondary borrowing comes in, and if you’re considering assuming a VA-guaranteed loan, it’s important to understand how this works.

TECHNICALS
Inflation Readings Lead The Way

đź›’ Consumer Inflation Falls Below Key Milestone

  • What happened? Consumer prices rose 2.9% over the past year, marking a slowdown from June's 3% gain and the first time inflation has dropped below 3% since March 2021.

  • Key contributors: Shelter costs were the main driver, accounting for 90% of the increase. However, prices for energy, cars, and airfare remained flat or even decreased.

  • Bottom line: Cooling inflation, alongside signs of a slowing economy and job market, is increasing the likelihood of the Fed cutting interest rates in their September meeting.

The Daily Newsletter for Intellectually Curious Readers

  • We scour 100+ sources daily

  • Read by CEOs, scientists, business owners and more

  • 3.5 million subscribers

Share GTG Weekly with colleagues and earn access to exclusive Monday morning rate updates directly to your inbox. Stay ahead of the curve!

EVENT
SOLD OUT!

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.

Reply

or to participate.