Not to mention, I am too cheap to fly, and the train is not as inexpensive as it once was, so the eight-hour drive was not ideal either.
Then comes the kicker. The real kick in the pants. There is a Ruth’s Chris right across the street from his hotel, and he wanted steak for dinner last night. It was fractionally more than a trip to Chick-fil-A, but it was really, really good. I mean really good.
Product and Lending Notes*
I have been having more conversations with clients about adjustable-rate mortgages in this market.
One thing I pride myself on, and encourage my team to do, is to have quality conversations so clients truly understand their options and have all the information they need to make the best decision for themselves and their families. Many in our business do not even provide transparent numbers and details, much less take the time to have a meaningful conversation.
There is still a bit of a stigma attached to ARMs given the credit crisis of 2007 and 2008. However, today’s products are very different. On a $600,000 mortgage, the typical interest savings over seven years can be around $21,000. That is a meaningful number.
Market Notes
Much of the same this week.
Mortgage rates continue to move with the broader bond market, reacting to news in real time. Positive news around de-escalation tends to settle the market, while negative developments push rates higher.
For the week, mortgage rates ended at or about the same levels as last week.
Paying points to buy down a rate is currently providing a solid benefit for many clients, and it is something we are discussing regularly in our consultations.
The market has effectively removed expectations for a short-term rate cut this year, and there is even a small probability of a rate increase being priced in.
As of now, much of the market is revolving around oil prices. Higher oil prices can lead to higher inflation, so until we see those prices come down or gain more clarity on their impact, it will be difficult to see mortgage rates move meaningfully lower.
Looking Ahead*
Enjoy a great week, and as always, feel free to reach out with any mortgage related questions or needs. My team and I are readily available and happy to help. Best wishes.
-Steve-
*All loans are subject to credit approval and program guidelines.