Shelter Six:  Jobs Way Up in February

March 12, 2018 by · Leave a Comment

1. The economy gained an enormous 313K jobs in February, much higher than expected and the largest gain since July 2016. 2. Construction firms added 61K of the jobs, the highest monthly increase in 11 years! 3. As job growth continues to surge, wages continue to remain flat as average hourly earnings did not increase […]

Shelter Six:  New Fed Chairman Paints Rosy Picture for Economy

March 5, 2018 by · Leave a Comment

1. New Federal Reserve Chairman, Jerome Powell, gave his first testimony to Congress last week and painted a rosier picture for the economy than expected. 2. Powell’s forecasts for higher inflation and wage growth as well as comments that the economy had “strengthened since December” caused mortgage rates to rise. 3. Investors now expect another […]

Shelter Six:  Inventory and Home Sales Both Down

February 26, 2018 by · Leave a Comment

1. Existing Home Sales were down 3% in January from December and 5% from last year. 2. The main reason for slower sales is a lack of inventory, which is down 10% from a year ago and now sits at a 3.4 months supply (6 months is considered healthy). 3. Fannie Mae now gives a […]

Shelter Six:  Expect Short-Term Rates to Increase by .25% in March

February 19, 2018 by · Leave a Comment

1. Federal Funds futures contracts imply an 83% chance of a rate-hike at the Fed’s March meeting.  The general consensus is that there will be three rate hikes this year. 2. Interest on second mortgages is still tax deductible if the proceeds from the loan go toward “substantial home improvements” and the combined 1st and […]

Shelter Six:  Government Shutdown Averted

February 12, 2018 by · Leave a Comment

1. Last week another government shutdown was averted as the Senate passed a two-year budget deal. 2. Economic data is the number one reason mortgage interest rates move daily.  Rates move in relation to the deviation from expectations. 3. Last week, the ISM National Services Index came in much higher than expected with one of […]

Shelter Six:  Mortgage Rates Continue to Surge Higher

February 5, 2018 by · Leave a Comment

1. Mortgage rates continue to surge in 2018 out of concerns over inflation pushing above targeted levels due to a growing economy fueled by recent tax cuts. 2. Another reason rates are trending higher is simply less potential demand for bonds if the U.S. budget deficit grows and both China and Europe buy less. 3. […]

Shelter Six:  Consolidation Refinance Can Keep Interest Deductible

January 29, 2018 by · Leave a Comment

1. Interest on 2nd Mortgages is no longer tax deductible, however, when consolidating 1st and 2nd mortgages together through a refinance, the interest would be deductible up to $750K. 2. MGIC will now insure loans with debt-to-income ratios over 45% only with a credit score of 700+.  Expect other mortgage insurance companies to tighten guidelines […]

Shelter Six:  Government Shutdown Could Delay Closings

January 22, 2018 by · Leave a Comment

1. Fortunately, the government shutdown is not going to impact the mortgage business too severely, but expect potential delays getting loans funded if it drags out. 2. Fannie Mae, Freddie Mac, FHA, and VA will all have continued normal operations.  USDA will honor existing conditional commitments but will not be able to issue new ones. […]

Shelter Six:  Stock Market Surge Pushes Mortgage Rates Higher

January 15, 2018 by · Leave a Comment

1. A key inflation report was a little higher than expected on Friday.  Hopefully, this is not a trend as higher inflation always leads to higher mortgage rates. 2. The U.S. population is up to 327M, an increase of 2.3M (.71%) over where we started last year. 3. NAR reports single women account for 17% […]

Shelter Six:  Housing Market Remains Very Strong

January 8, 2018 by · Leave a Comment

1. Housing remains strong as November home sales were up 6% from October to the highest level since 2006. 2. Single-family housing starts and building permits also reached the best levels in over a decade, which will eventually help with inventory issues. 3. First-time home buyer demand surged to its highest level in 17 years […]

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