Mark’s Market update – 4/28/2022
A brief pause…
Ever take a brief pause to take a sip of coffee (or tea)? Think about that for a second, because we’re going to come back to that in a bit…
Rates moved up – and fast: A combination of the Federal Reserve bumping up short-term rates to help combat looming inflation, the Federal Reserve scaling back the purchase of mortgage-backed securities (MBSs), and the Federal Reserve committing to sell all the MBSs that they’ve bought since April of 2020 to unwind their balance sheet.
In other words – yes, it’s the Fed’s fault. Rates are trending at the mid-5% range, and they’ll probably hit 6% before too long.
They took a brief pause in their inexorable march up during the last two weeks.
So – let’s talk about rates and the impact they have on payments. Too often I see people tripping over dollars to pick up pennies. Mortgage rates do influence payments – but, I focus, actually, on the financial health of my clients. Is the mortgage rate the be-all-end-all of the payment…or, maybe, is it that $150.00/month coffee addiction that’s really the bigger culprit on cash flow and money in the bank? My PERSONAL coffee addiction of $90.00/month costs as much as a .25% increase in the rate on a $500,000 mortgage loan. And, that’s just coffee. What about eating out/drinking out? Amazon? That new pair of kicks?
I have the tools and training to ensure that the mortgage loan is the RIGHT loan, and how to help people analyze their financial position to get themselves going in the right/perfect direction.
Do it right, with the right mortgage loan officer (Hint – it’s me).