Mortgage Market Update - "Old Amigos" (recap 5/2-7/22)

Happy Cinco De Mayo!?One of my favorite holidays.?It brings me back to growing up in San Diego coming home to the smell of Mexican food and watching the best movie ever made!?In a tradition like no other,?I find a way to tie "3 Amigos" into all the relevant real estate headlines of the day and a personal note reminder to make your offers competitive in a fast moving market!?

• The Fed raised policy rates 0.5% this week.?The move will increase short term rates like car loans, some home equity loans, and credit card rates.??
• The Fed rate increase does not directly increase mortgage rates though. Mortgage rates moved higher already in anticipation of Fed action.
• Concerns that intense labor demand could spark further wage increases has investors worried the Fed won't be able to curb inflation.

• A recent Gallup survey showed just 30% of adults think now is a good time to buy a home, the first time it has been below 50% since 1978.
• Total mortgage applications were up 2.5% last week. Though purchase applications were down 11% from last year, they were up 4% on the week.
• 71% of homeowners with upcoming house projects expect to proceed despite anticipated higher costs, delays and materials shortages.

Like most normal, well-adjusted kids, my go to favorite movie growing-up, the one I watched over 100 times—while acting out every line,?was “3 Amigos”?(the HBO classic).

...which is why this photo made me pause.??This photo is the perfect analogy for your pre-approval letters after a week in this market.??In my head, 3 Amigos is a timeless classic.?In reality, somehow, all of the 3 Amigos have aged a bit since 1986…granted they’ve aged well.?

Keep your pre-approval updated.?Check with your lender prior to each offer to understand market rates and all your finance options.?Customizing your letters and financing plan to the property will help make your offer more competitive.? Use the plethora of tools available to you and it will be your Lucky Day soon!

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