Shelter Six:  Fed Chairman Confirms Rate Cut Coming

July 12, 2019 by · Leave a Comment

Twice a year, the head of the Federal Reserve provides an update to Congress and then answers questions. During last week’s testimony, Fed Chair Jerome Powell reinforced recent investor outlook that the Fed will cut rates at the next meeting on July 31. The main reasons Powell gave for the eminent rate cut were slowing […]

Shelter Six:  Strong Employment Report Pushes Rates Higher

July 8, 2019 by · Leave a Comment

After a disappointing May where less than 100K new jobs were added, the economy added a powerful 224K jobs in June, well above the consensus forecast of 160K. The Unemployment Rate unexpectedly increased from 3.6% to 3.7%, but this was primarily due to additional people entering the labor force, which is a sign of strength. […]

Shelter Six: Specialty Loan Requires Only 12 Months Since Bankruptcy

July 1, 2019 by · Leave a Comment

The latest data released last week showed that inflation remained well contained in May. After ending 2018 near the Fed’s stated target level of 2%, this is the fourth straight month that inflation registered lower than expected and a huge reason rates have plummeted. This week contains some of the most important economic reports in […]

Shelter Six:  Rates Projected to be Cut in both U.S. and Europe

June 24, 2019 by · Leave a Comment

Last week’s Federal Reserve Meeting brought no surprises.  As expected, the Fed left rates unchanged and its statement was right in line with investor expectations. Nearly half of Fed officials now predict, however, that there will be a rate cut by the end of the year and some investors project a .25% cut on July […]

Shelter Six:  Don’t Count the Mortgage Payment for Home Buyer is Selling

June 17, 2019 by · Leave a Comment

Conventional guidelines now allow Shelter to not count a mortgage payment for a Buyer’s current home if the home is under contract and financing contingencies have been cleared. Shelter’s SmartEdge program allows self-employed borrowers to qualify using only one year of tax returns if the business is two or more years old. Now that proposed […]

Shelter Six:  Deal with Mexico Puts Upward Pressure on Rates

June 10, 2019 by · Leave a Comment

The agreement reached between the U.S. and Mexico to avert higher tariffs has eased some of the tensions in the market causing both stocks and rates to push higher early this week. Last week ended with some bad economic news as only 75K new jobs were added in May, much lower than the forecasted 180K […]

Shelter Six:  Mortgage Rates Drop to Lowest Level in Over a Year

June 3, 2019 by · Leave a Comment

Inflation continues to help keep mortgage rates low.  April’s Core PCE Price Index was just 1.6% higher than a year ago and well below the Fed’s 2% target. Tame inflation, along with uncertainty on the trade front, have contributed to falling rates and inspired the Federal Reserve to now contemplate a rate cut by the […]

Shelter Six:  Mortgage Rates Down to Lowest Level in a Year

May 27, 2019 by · Leave a Comment

Due to trade tensions with China and political upheaval in Britain, money flowed out of the riskier stock market and into the safer bond market last week pushing mortgage rates to the lowest point in over a year. Economic news was mixed over the last week with New Home Sales and Housing Starts coming in […]

Shelter Six:  100% Conventional Loan Now Available

May 20, 2019 by · Leave a Comment

Millennials now represent the largest generational group in the history of the U.S. with a population of nearly 84 Million. The largest segment of Millennials will turn 30 over the next 1-2 years and are expected to dominate home purchases over the next decade. Surprisingly, according to a recent Freddie Mac survey, many potential home […]

Shelter Six:  Trade Tensions with China Actually Good for Rates

May 13, 2019 by · Leave a Comment

Trade tensions with China escalated at the end of last week with the U.S. more than doubling a tariff on Chinese imports. China retaliated this morning by increasing tariffs on U.S. imports, and the result was a huge drop in the stock market. Trade restrictions reduce the outlook for inflation, so any escalation in a […]

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