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Friday Market Update for the Week of June 18th 2021

Happy Friday, Brian Manning here with the weekly update. Let’s see, Monday this week was pretty quiet news day, not much to talk about there. Tuesday this week, we got what’s called the producer price index, it’s another gauge of inflation, producer price index was up 7/10% on a month over month basis, which again, is another hot number for inflation. And really, it’s primarily just due to labor shortages. So we’re still seeing some high inflation numbers there. Wednesday this week, we got some new construction info housing starts for single family residence were up 4.2% permits were slightly lower, and probably because most builders are just experiencing some labor shortages right now. So still seeing really strong housing demand for new construction and that’s going to propel that market for quite a while now.

We also got some information on rents on a year over year basis, rents are up 5.4%. So I think we’re just starting to see rents now catch up with this bump that we’ve seen in the housing prices, I wouldn’t be surprised if we see kind of rents continually rise for quite a while because if you’re an investor buying a rental property right now you’re buying at today’s prices, you have to come in a slightly higher rent to cash flow based on today’s prices. So we’ve seen some rent rises, and we’re probably going to continue to see them.

Wednesday this week, at the end of the day, we got Federal Reserve announcements. So Federal Reserve is wrapping up the end of a two day meeting at the end of every two day meeting, you have Jerome Powell do kind of a press conference. First, they have a formal press release, and then they take questions and answers. They just get drilled there based on what’s going on in the economy, what they’re seeing with our inflation, but really, they also put out what’s called this dot plot. So the dot plot takes 18 fed members and it anonymously posts where they think fed rates are going to go and what they’re going to do here in the future. So now you had seven opposed to four fed members that think there’s going to be a rate hike in 2022. Not necessarily meaning is a mortgage rate hike. That’s completely different. So don’t confuse the two. But certainly the Fed is gonna have to do something here to combat home inflation the near future.

Also, we got some information from the National Association of Realtors that vacation home sales are up 16% I know us being in Colorado here, looking at all of the mountain towns – Crested Butte, Steamboat, Ville, Breckenridge, Telluride, everywhere, has just seen a significant decrease in home sales, but across the country and markets that never saw it before see an increase of vacation home sales. So still just continuing to propel strong housing market.

And today we get fed President James Bullar talking and you know, a couple of really interesting comments which really actually moved the markets today. First, he said that the Federal Reserve was kind of caught off guard and surprised that inflation is coming in as hot as it is. I mean, I’m no rocket scientist and we’ve been talking about inflation for months now leading into what’s going to happen here. So it’s kind of shocking that they’re caught off guard. He also says that they should stop buying mortgage backed securities immediately. So the Federal Reserve right now we’ve talked about this, has this kind of form of what’s called quantitative easing taking place right now. So the Federal Reserve, every single month is purchasing US Treasuries and mortgage backed securities. And essentially, they have right now what’s called the yield curve control. So they’re buying so many treasuries and mortgage backed securities that they are forcing keeping rates low right now. And James Bullard is saying, hey, inflation is running hot, we need to stop buying mortgage backed securities immediately, which is interesting.

This is the first time there’s really been talk of tapering out of their bond buying program. So certainly moved the markets a little bit today, we’ll have to keep an eye on it. He really thinks that if they stopped buying mortgage backed securities, which would cause mortgage rates to rise a little then it would potentially calmed down our frothy housing market, maybe a little bit but you know, they definitely seem relatively disconnected. Because right now, the other thing is that there’s just an imbalance of inventory versus demand. And if you look at the housing market, and you watch what’s been going on over the last year or so, inventory has just been at a record low. So yes, if rates go up a little bit,it might take a couple of people on the market, but it still does not do anything to really cure this lack of inventory that we have right now. Although I would say at the end of August, the Federal Reserve has their two day meeting in Jackson Hole. This is really notoriously just, you know, a meeting where a lot of information comes out, I wouldn’t be surprised based on the data that we’re going to get between now and then especially inflation data that’s still going to continue coming out hot that we see more announcements from Jerome Powell at the end of that in regards to tapering on our bond buying programs which could have some impact on interest rates, so we’re going to have to wait and see but end of August I think there’s going to be some movement there.

I’m around all weekend. If you have any questions, let me know. I would love to help you any way I can. If you have questions about the home buying process, want to go through strategic buying consultation, figure out how we can do 21 day close for you, make it competitive in today’s market, call me, text me. I’d love to help you any way we can. Happy Friday. Hope you have a great day.

Friday Market Update for Week of June 11th 2021

Happy Friday, Brian Manning here with this wonderful spring weekly update. Let’s get right to it. Monday this week, pretty quiet newsday. Tuesday this week, we got some information from the NFIB, so 48% of small businesses right now have employment positions that they can’t fill, certainly the labor shortage is real, it’s being felt all around the country but 48%, that’s a pretty high number. 40% of businesses say that they now have to pay more for their labor costs and in return, they’re going to pass these increased cost down to consumers. So that’s just going to continue to put some additional pressure on inflation.

Thursday this week, we got CPI. You know, we’ve been talking about inflation and the consumer price index for quite a while and talking about the numbers that were replacing the year of 2020 with where we are in 2021 and here we go, exactly what we’ve been talking about. So inflation was the hottest number since 1992. The headline rate for inflation was up 5%, which is an extremely hot number, the core rate which strips out volatile items such as food and energy was up 3.8%. So, you know, normally this would have caused just turmoil in the bond markets because really, inflation is just the enemy of interest rates, usually you get a report like this, and then it just crushes interest rates and they go up but we had the Federal Reserve with their version right now of quantitative easing and even though they will not admit it, still on a monthly basis, they’re buying an enormous amount of US treasuries and mortgage-backed securities.

So they’re essentially putting into place what’s called yield curve control, meaning, we’re getting hot inflationary numbers, but mortgage rates and interest rates are really staying at really historic lows and it’s all because the Federal Reserve is very much buying a tremendous amount of mortgage-backed securities and US treasuries. There hasn’t been much talk about tapering, although in the markets, there’s a lot of talk about when is the Federal Reserve going to start tapering but the Federal Reserve itself hasn’t really made much in the form of announcements as far as tapering is concerned. But relatively soon, we have a two day upcoming meeting at Jackson Hole, Jackson Hole is really kind of a spot where a lot of announcements take place for the Federal Reserve. So all eyes are going to be on Jackson Hole. Let’s see what happens there. Because it’s crazy, you look at like used car sales. On a month over month basis used cars are up 7%. And on a year over year basis, they’re up 30%. I mean, used cars are normally a depreciating asset and right now, potentially you could trade in your car and make money which is just unbelievable.

Friday, today, we get some information from CoreLogic. So CoreLogic tells us that on homes that have mortgages across the nation, home appreciation is up 20%. That’s just a staggering number. And I wouldn’t say right now yet that there’s really a home affordability crisis, the challenge that we have is just limited inventory anywhere you go in the United States. Everybody that we talked to around the US are just seeing just extremely tight supply of inventory. So up 20% what do you do with your equity? Well, potentially someone that bought a house a year ago could refinance now and remove PMI.

We also do a lot of debt consolidation because there’s a tremendous amount of equity in homes as well. I’m around all weekend. If you have any questions let me know. If you want to get pre approved for a new mortgage, talk about refinancing, removing PMI, debt consolidation, etc. call me on my cell phone, text me. Happy Friday. Have a great day.

Friday Market Update for the Week of June 4th 2021

Happy Friday, Brian Manning here with the weekly update. Let’s get right to it. So, Monday this week everything is closed for Memorial Day.

Tuesday this week was a relatively quiet news day, Wednesday of this week and every single Wednesday we get information on mortgage applications from the Mortgage Bankers Association. And on a year over year basis purchase mortgage applications are up 2%. This is pretty remarkable to see because right now we have inventories down 21%, home appreciation is up 13%. So we’re still seeing a very strong housing market as far as purchase mortgage applications are concerned. Also, we got some info on cash buyers, you know, a year ago, cash buyers were making up 17% of all purchase transactions, and now they’re at 25%. So we’re seeing more and more cash comes into the game, certainly makes it difficult for first time homebuyers when they’re competing against so many cash buyers. Definitely one of the reasons why we’re seeing 13% appreciation right now, Thursday this week, we get the ADP report.

So the first week of every month we get the employment data. Usually we get ADP in a Wednesday, but since Monday was a holiday, it gets pushed out one day. So Thursday of this week we got employment data from ADP, they’re the largest provider of payroll United States for private companies. And ADP had employment gains of 978,000 new jobs for the month of May, which is a really strong report and exceeded analysts expectations by about 300,000 jobs. We also have initial jobless claims as we get every week. So this is new people filing for unemployment for the first time. And this is that 385,000 people. So the lowest numbers since the pandemic started. So really good to see those numbers changing as well. Today we get the BLS.

So the first Friday of every month we had the Bureau of Labor Statistics, it’s their feedback on jobs created for the month of May. And BLS had 559,000 new jobs created, there was a slight miss, but pretty close to being in line with expectations. I think analysts expectations were right around 600,000 jobs for the month of May. So we were pretty close there. We also had prior months revised in a positive fashion as well. So normally you see this news, and you probably think you’d probably see more of a negative impact on the bond market, which would have an impact on interest rates, but we have John Williams, who’s the federal president… Federal Reserve president in New York, so he’s second in line in the Federal Reserve. And John Williams is really saying that, you know, we’re pretty far away from doing anything meaning tapering. So right now the Federal Reserve is still very actively involved in buying US treasuries and mortgage backed securities and in this bond buying program, they’re really forcing keeping rates down and when they have no talk of tapering anytime soon, because they’re still waiting to see what’s going to happen with inflation. There’s no way to see what’s going to happen with US economy, bond markets like this and this really worked in our favor today for interest rates because bond traders and what’s going to really translate to us in mortgage interest rate markets, saying that the Federal Reserve is going to keep our rates low for quite a long time. So that’s pretty good to see.

I’m around all weekend. If you have any questions let me know. I’d love to help you in any way I can. If you need a pre approval, you want to go through a strategic buying consultation, call me on my cell phone, text me. Happy Friday. Hope you have a great day!

-Brian

303-500-3839

Friday Market Update for the Week of May 28th 2021

Happy Friday, Brian Manning here at the weekly update. Let’s get right to it. Monday this week. pretty quiet news day, not much to talk there. Tuesday this week we got Case Shiller. Case Shiller gives us a report every month on housing appreciation across the nation. And on a year over year basis, home appreciation is up 13.2% which is a crazy number. The question is really, is this number too much, right? We kind of feel like the Goldilocks number for appreciation is like 5%, 13.2% is not sustainable. It has to come down sometime. I don’t really know when but 13.2% is just a ridiculous number.

Wednesday of this week, quiet newsday, Thursday of this week, we get pending home sales. Pending home sales on a month over month basis were down 4.4%. National Association of Realtors says it’s primarily due to a lack of inventory. I actually very much agree with this, because looking at our market here, and just across the nation, inventory is still at an all time low. And then also today, we get the personal consumption expenditure. This is the PCE, the Federal Reserve’s favorite gauge for measuring inflation. And if we look at the headline number on a month over month basis, the PCE was up 6/10%, which is a hot number. And on a year over year basis, up 3.6%. If we look at what’s called the core rate, so the core rate of inflation strips out volatile items, such as food and energy, on a month over month basis, this was up 7/10%, on a year over year basis up 3.1%. So certainly we’re seeing inflation run hot right now, you know, if we looked at just the month over month number and ignored the year over year, right? I say ignore the year over year only for right now, because we compare it to this time last year, and we have 2020’s numbers into this equation, we were in lock down, so there wasn’t really a lot of spending taking place. But month over month, 7/10% is a hot number. So we have to wait and see what happens here. Is a transitory? Is only going to last through the fall? And then taper off, I’m really not sure, we’ll have to wait and see.

One thing I want to look at real quick is just the charts here and get a feel for what’s happening in the market. So what I always look at here is the yield on the 10 year Treasury because mortgage rates typically go kind of in suit with what the yield is doing. What’s interesting to see is, you know, we slowly saw mortgage rates rise from January through middle of March, and then from mid-March to today, we’ve kind of just traded in this tight range. What’s interesting to see though, is if you look at today, you know, we don’t really see a negative impact.

Usually when you get hot inflationary reports like we got today they have more of an impact on the bond markets, but today the markets are kind of taking a stride and just digesting it. So it’s interesting to see right now that we’re not seeing any kind of movement in mortgage rates based off the inflationary data.I’m not complaining it’s actually really good to see. Rates are still at amazing all time lows, and we’re certainly helping people buy homes and refinance ridiculous interest rates.

Also, I can’t believe it’s the kick off of summer, Memorial Day weekend, unbelievable. Everyone that has served for our country, thank you so much for your service. We just can’t thank you enough. I’m around all weekend. If you have any questions, call me on my cell phone, text me. I’m available every single day this weekend, I’ll be around for Memorial Day as well. Hope you have a wonderful holiday weekend. Have a great day.

-Brian

303-500-3839

Friday Market Update for the Week of May 21st 2021

Happy Friday, Brian Manning here with the weekly update. Let’s get right to it. Monday this week we had Atlanta Fed president Raphael Bostic on CNBC, and they were interviewing him and he was just saying he’s not really worried about anything. Kind of seemingly out of touch, but it’s kind of interesting to see of a Fed voting member that’s not really too concerned about what’s going on the US economy. I don’t really know. Not many comments there.

Tuesday this week, we got housing starts. So this is measuring new construction homes being started, housing starts were down 10%. Expectation was that housing starts would be down 2%. And with looking at builder feedback, housing starts are down because they’re having significant problems with finding labor. And also 15% of homes across the country have had cement poured, but builders have had to stop there because they cannot find labor to continue in the construction process. So this is definitely curtailing supply.

Wednesday this week, and every Wednesday we get new unemployment claim filings. So we get to learn about how many new people file for unemployment for the first time and we had a number of 444,000, which is kind of a crazy number, because pre-pandemic we were averaging about 200,000 people per week. Right now, we have 8 million jobs available in the United States. So with 8 million jobs available in the US, why do we have 444,000 people filing for unemployment for the first time? I’m not really sure. You know, one of my guesses would be that the additional unemployment that people are receiving is maybe incentivizing people to stay at home and not go back to work, we certainly are seeing more and more states opting out of this additional kicker in unemployment and taking away the additional $300 per week, so kind of remains to be seen what the impact is going to be there from the states that are opting out, but something we definitely want to watch closely.

Also, Thursday this week, we got the Fed minutes. So anytime the Federal Reserve wraps up a two day meeting, they release their minutes, and we’re able to kind of dissect and see what the Federal Reserve talked about what’s shocking to see right now is that the Federal Reserve is just kind of confused, you know, one of their primary jobs and focus is to maintain and keep inflation under control. We’re starting to see inflation go up, we’ve talked about this in a lot of our videos in the past, but the Fed’s kind of been a pickle because, you know, the Fed raises rates, which they very clearly said they’re not going to do for quite a while, which I don’t think we’re going to do as well, that probably would positively impact mortgage rates as counter intuitive as it sounds. The other thing though, is the Federal Reserve is in the process of buying, every single weekend of every month, US treasuries and mortgage-backed securities. So they’re artificially keeping rates low. So when they’re the largest supplier of bonds going into the market, they’re now also the largest buyer of bonds flooding into the market as well. So at some point in time, and they are very much avoiding this conversation right now, the Federal Reserve starts to taper and that’s going to have an impact on rates as well. So we’ll have to wait and see what happens.

Today, we get existing home sales. Existing home sales were down 2.5%, this is really because inventory is so low. But what’s interesting is when we look at existing home sales in the year of 2021 to the year 2020 that’s really a very tough comparison because at this time in 2020, you know, there’s some serious lockdown taking place but if we did a comparison of existing home sales in the year of 2019 to the year 2021, existing home sales are actually up 11%. So we’re still seeing really positive movement in the housing market.

I’m around all weekend, if you have any questions let me know. I’d love to help you any way I can, call me on my cell phone, text me, 7 days a week, I’m available to help you out. Happy Friday, have a great day.

 

Friday Market Update for the Week of May 7th 2021

Happy Friday, Brian Manning here with the weekly update. You know, I just had to come warm up for a second. It’s been a long winter. And oh boy, I needed a break in the tropics for sure. First vacation since December 2019. And, man, it’s nice to be away.

Anyway, so let’s talk about what’s going on in the market. So the big news for today is really going to be the jobs report. So job expectations was that there was going to be about a million jobs created in the month of April and it was a big miss so we ended up with 266,000 new jobs created in the month of April, which is not what the expectation was. And in addition to that, we also had prior month change and there was a reduction in the prior month of about 100,000. So total over two months now we’re probably at about 100,000 jobs greater, which is a pretty weak number. Markets are mixed right now. Certainly mortgage rates have liked this. Part of the reason why mortgage rates have liked this is because the Federal Reserve has been on the fence and they haven’t been very clear on when they’re going to start their tapering process, but this is really giving the Federal Reserve the green light to continue not tapering and purchasing mortgage-backed securities and US treasuries. So the Federal Reserve certainly has the green light to assist in keeping rates low right now.

Also looking at the unemployment, unfortunately, we saw the unemployment rate rise. And you know, the question right now is why? What’s going on? We’ve talked about this in the past, you know, there’s 7+ million jobs available in the United States but a lot of people don’t want to go back to work, a lot of people don’t have to go back to work because they make more money on unemployment through the month of September of this year than if they were to go back to work right now. So the job market, unfortunately not faring so well and you know, so many people thought this is going to be a blockbuster report, and the economy is roaring back and you know, it’s not what people were hoping for. So stocks mixed, mortgage bonds doing okay, through this whole thing, mortgage rates looking amazing, rates are phenomenal.

Still, I mean, they’re just unbelievable the rates we’re seeing. So if you have any questions, I have 8 people covering for me while I’m away you can call me my cell phone, text me, I’ll definitely get back to you. I can connect you with the right person. If you send me an email, you get an auto reply with the right person on my team to talk to. We have you fully covered. We’re still pre-approving people, still helping people buy houses even though I’m getting a little break. I’m going to come back strong and ready to go. Happy Friday Oh, and for everyone out there, hope you have a wonderful Mother’s Day weekend. Have a good one.

Friday Market Update for the Week of April 30th 2021

Happy Friday, Brian Manning here with the weekly update. My gosh it is so beautiful outside today. I will tell, you a nice spring day like today is when it’s tough to sit in an office but here we are, I hope someone is outside enjoying it.  Let’s see… Monday this week, pretty quiet news day, not much to talk about there.

Tuesday this week, we have some feedback from Case Shiller. So Case Shiller provides us info every month on home appreciation, just the housing market. And on a year to year basis, Case Shiller says our home appreciation is up 12%, which is a really high number, pretty unbelievable. You know, a lot of people asked, is this something that will continue? And I would have to say that, you know, potentially, if we see rates rise coming into the summer then it may slow appreciation down a little bit. I do think maybe 12% is slightly unobtainable, or unsustainable to hold forever, really wouldn’t be so bad to see it come down to like 5% or 6%, but it’s all coming down to inventory, there’s just lack of inventory right now so that’s really driving home appreciation.

 

Wednesday this week, we had Federal Reserve. So, the Federal Reserve is wrapping up their two day meeting and at the end of their two day meeting, every time the Fed president right now, Jerome Powell does a press conference. And he was talking about not raising rates, which you all expected and also not scaling back on their bond buying program. So right now, the Federal Reserve is buying a tremendous amount of mortgage backed securities and US treasuries and part of what they’re doing there is definitely keeping rates low right now. At some point in time, and I don’t know when, they will scale back, and it will have an impact on the markets, but right now, they are not stopping anytime soon.

Thursday this week, we got pending home sales. On a month-over-month basis, pending home sales are up 2%. You know, some analysts thought it was kind of a weak number, but the reality and exactly what we just talked about a second ago is that inventory is at an all time low. So I’m willing to bet that if there was more inventory out there, based on the demand we’re seeing with buyers that pending home sales, as in signed contracts would have increased, but 2% was the month-over-month basis.

Today, we get the PCE, that’s a personal consumption expenditure. So this is the Federal Reserve’s favorite gauge for measuring inflation. So the first thing we look at is the headline numbers. The headline number for inflation on a month-over-month basis was up 5/10%. On a year-over-year basis moved from 1.5% to 2.3% but we don’t really focus as much on the headline number, we really look more at the core rate. The reason why we look at the core rate is because it strips out volatile items such as food and energy costs. And also the core rate is really what the Federal Reserve has control over when they can move their fiscal policy and raise rates or lower rates, it’s the core rate that they focus on here, so on a month-over-month basis for the core rate, it was up 4/10% and on a year-over-year basis, we saw inflation move from 1.4% to 1.8%.

So the Federal Reserve for a long time, has always said that we want to keep kind of a cap on inflation at 2%. I mean, recently, Jerome Powell said they might let it run a little bit hot, but this reading today did not have a negative impact on the markets. Next month, though, is really going to be really important to see. So at the end of May, we’re going to get the inflationary readings for the month of April and the reading we’re going to get for the month of April is going to force the month of April reading from 2020 to drop off. Well, why that’s important is because the April reading in the month of 2020, due to everything being locked down was a negative 4/10% and if we happen to get a number like we got today, or it’s a positive 4/10th, that’s a change in inflation of 8/10%. And that would move our year-over-year inflation rate from 1.8% to 2.6%. So I’m not really sure what’s going to happen next month but we’ve been talking about this, it’s something we have to keep a close eye on, the inflationary readings right now did not really move the markets, everything’s looking really good, but next month might spook them a little bit. We’ll have to wait and see.

I’m around all weekend. If you have any questions let me know, I’d love to help you any way I can. Call me on my cell phone, text me. If you need a pre-approval done, updated numbers, whatever it is just reach out. Happy Friday. Hope you get to enjoy this beautiful spring weather.

Friday Market Update for the Week of March 23rd 2021

Happy Friday, Brian Manning here with the weekly update. Yet again, so let’s see.

Monday, Tuesday, Wednesday of this week, pretty quiet news days, not much to talk about there.

Thursday of this week, we got existing home sales. So existing home sales on a month-over-month basis for the month of March was down 3.7%. On a year-over-year basis, existing home sales are up 12%. Probably month-over-month is being impacted by a lack of inventory but we’re still seeing strong year-over-year numbers, so that’s great to see. Also, days on market set a record for the shortest days on market report ever which is crazy. First time home buyers moved up from making up 31%-32% of all purchase transactions and cash-buyers increased from 22% to 23% of all purchase transactions as well, so still a tremendous amount of activity there.

We also got initial jobless claims as we do every single Thursday. Initial jobless claims were down 37,000 people which gave us a number of 574,000, the best number since COVID. Unfortunately, we still have 17.5 million people receiving some sort of unemployment benefits, so we still have a long way to go in economic recovery. Today we get new home sales. So new home sales measures signed contracts for new homes and that’s up 21% on a month-over-month basis which is unbelievable.

I’m around all weekend, if you have any questions, let me know. Call me, text me, I’d love to help you in any way I can. Happy Friday, hope you have a great day!

-Brian

303-500-3839

brainm@rate.com

Friday Market Update for the Week of March 16th 2021

Happy Friday, Brian Manning here with your snowy Friday update. My gosh, I’ve never been more ready for bathing suits and flip flops, but spring is relentless in Colorado and here we go.

Let’s see… Monday this week looking at some inflationary news. We got the CPI, that’s the consumer price index. We’ve talked about this a bunch in the past and specifically looking at the core rate. So the core rate strips out volatile items such as food and energy on a month over month basis, which is up 3/10%. And on a year over year basis, it went from 1.3% to 1.6%. So kind of like we talked about in the past, moving into May, June, July, August, we are going to see some inflationary pressures here and the reason why is when we’re looking at a comparison on a year basis, we’re going to start removing data that we had last year, and this time last year was in full COVID lockdown, not a lot of spending taken place, so we’re definitely going to see some inflationary data. It’s going to put some pressure here, but we’ll likely ease towards the end of the year. Usually the CPI report would have really crushed interest rates, but on Monday, we also had Johnson and Johnson, with the CDC and the FDA suggesting a pause, so that definitely very much overshadowed the CPI news because investors were nervous that potentially this pause in this third vaccine would hold… or not hold but really slow down economic recovery as we go forward. So not as impactful as the CPI could have been.

Thursday of this week., we got initial jobless claims. Initial jobless claims down 200,000. So really great to see less people filing for new employment claims. We also got retail sales. On a month-over-month basis, retail sales were up 10%. So just a really strong report. In that, a couple components of it, restaurants were up 13%. So great to see restaurants really starting to come back, God knows we really need it. And we also had clothing. Clothing was up 18%. So people just kind of getting back out and shopping again.

Today we get some news on… let’s see… First time home buyer tax credit. So there’s some info floating around to the Biden administration, that would be a $25,000 first time home buyer tax credit. I can’t say I’m the biggest fan of it, we’ll have to wait and see what happens. Just to clarify, I’m a huge fan of first time home buyers. We’ve helped tons of first time home buyers over my time of being a mortgage lender. Whether it’s FHA loan money down, down payment assistance, etc. The challenge that we have is that inventory is already extremely low. So if you throw another pool of additional first time home buyers on top, it’s just going to create even more of a bidding war, which is going to be more of a struggle in the housing market.

If we look at some of the details of the tax credit, and we would have to wait and see what happens because, of course, nothing is formal right now. The interesting part is that it would be for what’s called a first generation home buyer. So that would mean someone who is a first time home buyer but also their parents didn’t own a home as well. So I’m not really sure how many people would qualify for this, we’ll have to wait and see. We also got some new construction data for housing starts, this was new home starts. That was up 20% on a month-over-month basis. So new construction is on fire. And also home buyer traffic into new construction housing divisions is at the highest level since November. So new construction doing really well and just really looking forward to seeing a strong housing market there. Now, let’s take a look at the charts really quickly because we have a little bit of movement in the 10-year treasury. And what I want to look at is, you know, we kind of had this really strong increase in the yield on the 10-year treasury and like we’ve talked about in the past, you know, this is not exactly what mortgage rates do, mortgage rates kind of go on the same general path at what they’re doing and it was nice to see a little bit of a reprieve in the 10-year treasury. So what’s interesting right now is today, we’re now right kind of in the middle of these two, this ceiling of support and this floor of support. So, you know, we have to wait and see what happens with the 10-year treasury but it has been nice to see a little bit of a reprieve here, which means we’ve seen a little bit of reprieve and interest rates coming back down here as well. So we’ll keep an eye on this and next week, we’ll give you another update here as well.

I’m around all weekend. If you have any questions, let me know. I’d love to help you any way I can. Happy Friday. Have a great day.

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We were pretty excited when our borrower kept coming back to our team for his second, third, and fourth loan….. but at this point….. we just can’t get rid of him!! HA! HA! All jokes aside, we are SO honored that we have been repeatedly trusted for not just 2 or 3 but FIVE loans for our borrower and now good friend.

It has been such a treat getting to know our borrower throughout these loans and being able to financially support his mortgage needs is nothing short of our utmost pleasure. It’s what we love most about what we do – helping others make their dreams a reality!

Take this investment property for example! Being able to afford a second mortgage has allowed our borrower to invest in the Denver Real Estate market and start making rental income of his investment – something that will follow him long into retirement. Banner

This property is located in Lakewood just a few blocks away from the Gary McDonnell Park. A great place to spend the remaining hours of daylight after the work day or for a picnic in the park on a Sunday. The choice is yours!

So…..Are YOU ready to invest in the Denver Real Estate market? Are you looking to make a financial investment that will bring in income for years to come? Than an investment property is exactly what you’re looking for!

Afraid a investment property isn’t in your budget? Don’t make an assumption! Let’s find out for sure. We’ll get you pre-approved and out in the market looking for places in no time.

Reach out at your earliest convenience! We’re available early and late in the day to fit your work needs.

-The Brian Manning Team

303-500-3839

brainm@rate.com

 

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