Mortgage Mom Radio airs weekly focusing on topics that will educate our listeners around mortgage lending. This week is the last show of 2020 and we bring on Heidi, Carrie, Matthew, and Manny to take a look back at the ups and downs of the 2020 mortgage roller coaster.  We share some memories and stories of the difficulties of life in these unprecedented times all while answering your questions in the comments throughout the show.

Thank you for being a listener and enjoy the holidays over the next couple weeks!  Stay safe and we’ll see you in 2021!


This Week’s Look Into the Markets:

“The ongoing public health crisis will continue to weigh on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over the medium term,” … December 16, 2020, from the Fed’s Monetary Policy Statement.

This past week Stocks climbed to all-time highs, and rates were able to hold steady near all-time lows. The big news of the week was the Fed Meeting.

It is important to follow Fed activities as they are the most powerful central bank on the planet, and what they say and do can cause seismic shifts in the financial markets. The dual mandate of the Fed is to promote maximum employment and price stability (inflation). At the moment, unemployment is too high and inflation is too low, so the Fed said they are “committed to using its full range of tools to support the U.S. economy in this challenging time.” What the Fed didn’t say limited the improvement in both Stocks and rates.

When it came to the Federal Reserve’s Bond-buying program, the financial markets were hoping the Fed would “up” their Bond purchases to help further pin down long-term rates like mortgages, but this didn’t happen. Instead, the Fed said it will “continue to increase its holdings of Treasury securities by at least $80 billion per month and agency mortgage-backed securities by at least $40 billion per month. The Fed will continue this program until substantial further progress has been made toward the current pace to sustain the Committee’s maximum employment and price stability goals”.

The takeaway — the Fed will continue to purchase at least $120 billion worth of Bonds until we see unemployment sharply lower and inflation solidly higher. This means home loan rates should remain relatively low for a long time.

Bottom line: Even with the Fed Bond-buying, rates have ticked up slightly from the recent all-time lows. With vaccine distribution and more stimulus on the way, it may be difficult to see rates improve much, if at all. If you or someone you know would like to talk about the incredible opportunity, please contact me.

Looking Ahead

The financial markets may continue to bask in the glow of the Fed’s seemingly never-ending monetary support. As of this writing, we still do not have a fiscal stimulus bill out of Congress, but we expect and hope to see a plan before Christmas. There is an enormous amount of political pressure to get a stimulus bill passed. The Bond market has a holiday-shortened 1:00 p.m. ET close on Thursday, Dec. 24 and full market closure on Christmas, Friday.


We are LIVE on YouTube every Wednesday at 5 PM. Watch us record our show! Ask us your questions right in the feed, we’ll read those and answer them for you. Make sure to subscribe to our channel and turn on your notifications to know when we get started.

Mortgage Mom Radio equips you with all of the mortgage education that you could ask for right at your fingertips! Listen to our Podcast with hours of shows and topics, download our PHONE APP loaded with every mortgage tool that you could need, and last but not least, watch our weekly Homebuyer Workshop Series on YouTube! Mortgage Mom Radio

How do you schedule a phone appointment with mom? Call our office, 844-935-3634. Get your free consultation today! Do you want our phone app to have the tools you need at your fingertips? Click the link: PHONE APP

Debbie Marcoux is licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, NMLS ID 237926, also licensed in AZ-0941504, FL-LO76508, GA-69178, IL-031.0058339, NV-57237, OR, TN-184373, TX, WA-MLO-237926 | Heidi Slagle-Points CA NMLS ID 1666881

Mortgage Mom Radio airs weekly focusing on topics that will educate our listeners around mortgage lending. Crista Hermance from Hermance Law joins us this week to educate us on wills vs trusts, power of attorney, community property vs joint tenants, taking property out of a trust for a refinance, and more. Plus we answer listener questions throughout the show.

In This Issue

“Never hope for it more than you work for it.” — Sonya Teclai

Despite the pandemic hitting the country during the summer, low mortgage rates and evolving housing needs caused the housing market to thrive. We’ll dive into these factors and more, including:

Please feel free to forward this newsletter to friends, family or co-workers who may find it helpful.


2020 is Coming to an End

As 2020 comes to an end, with many saying bring on 2021, it’s all about stimulus and vaccine hopes right now. The U.S. financial markets continue to await any headlines from D.C. and there is political pressure on both sides of Congress to get something done.

Mortgage rates were unchanged last week at 2.92% and remain near record lows, but what could the near-term future hold as we head into the new year where rates are concerned? Even with the recent rise in the U.S.10-year yield, home loan rates have continued to improve thanks to the Federal Reserve’s (the Fed) asset purchase program.

There is some concern that upward pressure in rates exists, and in addition to the market looking forward at vaccines and more stimulus, there is real asset inflation everywhere: materials, commodities, Stocks, and housing. With the Fed and incoming president looking to add even more stimulus, there could be more asset inflation and potentially some upward pressure on mortgage rates.

The good news is that should rates creep higher, the Fed will likely do even more to pin down long-term rates like measures such as QE and some sort of yield curve control.

Source: Mortgage Market Guide


Summer 2020 Was a Selling Frenzy

Traditionally, September is a slow month for sales as families are already settled into the school year. However, the U.S. housing market saw a tremendous rally this September as low mortgage rates and buyers’ demand for additional space during COVID-19 created the need for a change.

The U.S. Census Bureau/HUD announced in October that new single-family home sales in September 2020 were at a seasonally adjusted annual rate of 959,000, which is 3.5% below the revised August rate of 994,000 but 32.1% higher than September 2019’s estimate of 726,000. Of these new homes sold in September 2020, the median sales price was $326,800, while the average sale price was $405,400.

Some of the shifts in the real state industry are due to low interest rates and changes in demographics. Demand for new housing in some parts of the country has overwhelmed home builders, making supplies an ongoing challenge. Analysts report that the high demand is due to the lack of existing home inventory available for purchase.

Sources: Mansionglobal.com, Housing Wire, deseret.com


Painting Over Textured Materials

When you move into a new-to-you home, the previous homeowners might have had different decorating tastes than you. If you just plunked down a bunch of money for your new home, you might not have room in your budget for a complete remodel. Luckily, with a little elbow grease and a few tools, you can paint over certain materials yourself. Use these tips to prepare these textured surfaces:

Brick: Take a look at the brick surface to determine if you need to repair any small cracks with acrylic caulk. Thoroughly clean the brick with a wire brush and soapy water. Avoid using acidic cleaners, as they will affect the final paint job. Let it dry. Use a roller or paintbrush to apply a latex primer to the brick. Push the paint into any tiny crevices or cracks, and apply a second coat if needed.

Stone: Wash the stone surface with vinegar and a soft-bristled brush. Rinse with fresh water and allow it to dry. Use a spray bottle to spray a light mist of water over the area you want to paint. Stone is porous, and the water will seep into the pores and prevent the paint from soaking in too deeply. Prime the surface with a thick roller, making sure to paint over the mortar lines. After the primer dries, paint the finish coat. You should only need one or two coats, but make sure to get into the nooks and crannies.

Wood: With wood paneling, use 120-grit sandpaper to sand the walls thoroughly and remove any gloss. Take a wet cloth and wipe away any dust. Allow the wall to dry. Use a putty knife and apply a thin layer of drywall joint compound to any grooves. After the compound dries, sand the area, wipe with a cloth, and allow it to dry. Paint the oil-based primer over the wall. Once dry, use a roller or brush to paint the wall with latex paint. Let it dry, and apply another coat if needed.

Sources: Homeguides.sfgate.com, Architectual Digest


Why Is the Market Thriving During a Pandemic?

QUESTION: With the country dealing with the deadly COVID-19 pandemic, why is the housing market thriving?

ANSWER: Even with the deadliest pandemic to hit the country in more than a century, the housing market has thrived due to the lowest mortgage rates ever recorded combined with a shift in how people are using their homes.

The number one reason people sought to purchase homes was due to the low interest rates, but as people are working from home more, they seek bigger homes and care less about commuting times. They see their homes not only as a place to live but an office and, for those with children, a part-time school. People are also seeking homes with pools and home gyms since they’re spending so much time at home.

In a recent interview with HousingWire, Lawrence Yun, chief economist of the National Association of Realtors (NAR), said that during the first few months of the pandemic, he projected home sales in 2020 would experience a 15% decline. Once the Federal Reserve announced it would buy Mortgage Bonds to keep the credit afloat during the pandemic, the average U.S. rate for a 30-year fixed mortgage has fallen below 3% in the latest survey from Freddie Mac.

As a result, the NAR announced that existing-home sales jumped nearly 27% annually in October to a seasonally adjusted annual pace of 6.85 million units. This was the highest sales pace in 16 years. “The surge in sales in recent months has now offset the spring market losses,” he said. “With news that a COVID-19 vaccine will soon be available, and with mortgage rates projected to hover around 3% in 2021, I expect the market’s growth to continue into 2021.” Yun forecasts existing-home sales to rise by 10% to 6 million in 2021.

Sources: Vanity Fair, Housing Wire


We are LIVE on YouTube every Wednesday at 5 PM. Watch us record our show! Ask us your questions right in the feed, we’ll read those and answer them for you. Make sure to subscribe to our channel and turn on your notifications to know when we get started.

Mortgage Mom Radio equips you with all of the mortgage education that you could ask for right at your fingertips! Listen to our Podcast with hours of shows and topics, download our PHONE APP loaded with every mortgage tool that you could need, and last but not least, watch our weekly Homebuyer Workshop Series on YouTube! Mortgage Mom Radio

How do you schedule a phone appointment with mom? Call our office, 844-935-3634. Get your free consultation today! Do you want our phone app to have the tools you need at your fingertips? Click the link: PHONE APP

Debbie Marcoux is licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, NMLS ID 237926, also licensed in AZ-0941504, FL-LO76508, GA-69178, IL-031.0058339, NV-57237, OR, TN-184373, TX, WA-MLO-237926 | Heidi Slagle-Points CA NMLS ID 1666881

Mortgage Mom Radio airs weekly focusing on topics that will educate our listeners around mortgage lending. Larry Ehrlich joins us this week to discuss upcoming changes to loan limits coming in 2021 and what that means for you and your purchasing options. We also answer your questions submitted in the comments during the live broadcast.

We are LIVE on YouTube every Wednesday at 5 PM. Watch us record our show! Ask us your questions right in the feed, we’ll read those and answer them for you. Make sure to subscribe to our channel and turn on your notifications to know when we get started.

Your weekly Mortgage Market Guide:

1) Stimulus Talks Are Back

The big news this past week was the renewed stimulus talks and the “chance” that we may see a $900 billion stimulus bill included in the government funding package this month.

Up until now, both political parties have been unable to agree on a stimulus package. In addition to the political pressure on both sides to come to an agreement, there are two deadlines Congress has “chances” to get this deal done.

By December 11, Congress must come to an agreement on a funding bill to avoid a government shutdown. As mentioned, we may see a stimulus package included in this funding measure.

If Congress misses this window, they have until December 21 before Congress goes on recess until year-end.

Stocks and rates have been behaving like a deal will get done with both moving higher.

2) Vaccines on the Way

Markets are forward-looking and both Stocks and rates have been rising on hopes and optimism that mass vaccine distribution is just around the corner.

In addition to several vaccines already showing high efficacy rates, there are many more vaccines and therapeutics in the pipeline. Continued good news from vaccines and therapeutics will be a tailwind for Stocks and rates, pushing them higher. The opposite is also true.

3) COVID-19 Cases on the Rise

The rise in COVID-19 cases, hospitalizations, and deaths is a major concern. Even though markets are forward-looking, the uncertainty and threat of more shutdowns is limiting the rise in Stocks and rates. The tug-of-war between vaccine hopes, rising cases, and uncertainty will continue to be a major driver for the next few months. Remember what Fed Chair Powell said back in July, “The path of the economy will depend significantly on the course of the virus.” This statement has aged well several months later.

Bottom line: Rates remain right at historic lows, per Freddie Mac this week. With a vaccine and more stimulus on the way, it may be difficult to see rates improve much — if at all. If you or someone you know would like to talk about the incredible opportunity, please contact me.

Looking Ahead

The main market drivers we mentioned above will drive the activity this week and beyond. In addition to tracking these headlines, the markets will have to deal with another round of Treasury supply as a boatload of 3- and 10-year Notes, and 30-year Bonds are sold. With yields increasing to the highest levels in months, it will be interesting to see the “buying appetite” at these auctions. There are also some important inflation readings this week. Tame consumer inflation is a major reason why home loan rates remain low. If inflation rises, rates rise. If disinflation or outright deflation emerges, rates decline.

Mortgage Mom Radio equips you with all of the mortgage education that you could ask for right at your fingertips! Listen to our Podcast with hours of shows and topics, download our PHONE APP loaded with every mortgage tool that you could need, and last but not least, watch our weekly Homebuyer Workshop Series on YouTube! Mortgage Mom Radio

How do you schedule a phone appointment with mom? Call our office, 844-935-3634. Get your free consultation today! Do you want our phone app to have the tools you need at your fingertips? Click the link: PHONE APP

Debbie Marcoux is licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, NMLS ID 237926, also licensed in AZ-0941504, FL-LO76508, GA-69178, IL-031.0058339, NV-57237, OR, TN-184373, TX, WA-MLO-237926 | Heidi Slagle-Points CA NMLS ID 1666881