Mortgage Mom Radio airs weekly focusing on topics that will educate our listeners around mortgage lending. This week Debbie is joined by newcomer to the Mortgage Mom team, Heather Kilpatrick, to continue the Homebuyer Workshop series by explaining the role of the real estate agent and why it is very important to find the best one for you.


A Look Into the Markets

“Oh yeah” – “Oh Yeah” by Yello (“Ferris Bueller’s Day Off”)

In the absence of any meaningful economic report this past week, we watched bond prices rise while rates inched lower. Oh yeah!!!

Let us break down what is going on and look into next week as the boredom ends.

The Path of Least Resistance

Rates have been steadily improving over the past few weeks as consumer inflation fears have waned. With a nice trend in place and no news to knock bonds down, prices continued their path of least resistance: higher. How high? Mortgage-backed securities, which are where home loan rates are derived, closed at their highest level since March 2nd this past week, and the 10-year yield hovered near 1.55%, also the lowest in nearly two months.

FOMC Blackout Period

The Federal Open Market Committee (FOMC), which meets eight times per year to discuss economic conditions and determine whether to hike or lower the Fed Fund Rates, can always move the market when they speak or during interviews.

However, the FOMC has established a blackout period where FOMC members are to limit their public speaking and interviews. The current period is April 17 through 29th. When Fed members are not talking or sharing their views, the markets can’t react to any perceived positive or negative statements. The quiet ends next week when the Fed delivers their Monetary Policy Statement on Wednesday at 2:00 p.m. ET. More on that below.

Bonds Regaining Some Shine 

A couple of interesting trends happened this week which could bode well for rates in the near-to-intermediate term. First, stocks struggled a bit this past week, and when they dropped, rates also declined. This is a typical market reaction, but something we have not seen much of this year during the steady increase in rates. If stocks continue to stumble and we see a seasonal, “Sell in May and go away,” reaction, it could leave room for further rate improvement.

Second, the 20-year bond auction this past week was well received. This means the buying appetite for Treasury securities was very good despite the recent improvement in rates/yields. If this trend continues, it will help keep long-term rates relatively low.

Housing en Fuego

March existing-home sales showed the median price rose by an annual record-breaking pace of 17.2%. This scorching rise is due mainly to an anemic 2.1 months of available inventory for sale.

Homes sold in 18 days on average, another record low.

This is all good news for someone selling a home, but as we know, it is rough for folks purchasing one.

With rates ticking back down, vaccinations administered, and economies reopening, we should expect continued strength in housing and hopefully more inventory available for sale.

Bottom line: This is an amazing moment to take advantage of the current interest rates as the present improvement in rates could be short lived.

Looking Ahead

As mentioned, it’s Fed Week. The FOMC will deliver its Monetary Policy Statement as well as its outlook on the economy on Wednesday. There is zero chance of a rate hike. And there is likely no chance the Fed mentions “tapering” of any bond purchases; let’s hope so. For when the Fed stops buying bonds, rates will move higher in a hurry.

We will also get some high-impact reports like Gross Domestic Product and the Fed’s favored gauge of inflation, the Core Personal Consumption Index (PCE).

Moreover, there will be a ton of corporate earnings, which could impact both stocks and bonds/rates.


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. This week we continue the Homebuyer Workshop series by covering the details of the Bank Statement loan program and more!

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. This week we continue the Homebuyer Workshop series by covering the details of the Bank Statement loan program and more!


In this Issue

“There is nothing I would not do for those who are really my friends. I have no notion of loving people by halves, it is not my nature.” – Jane Austen

As home prices continue to rise, those with their heart set on homeownership might seek non-traditional ways of climbing the property ladder. In this issue, we’ll cover these ideas as well as the following:

What to Watch

Where Are Rates Headed?

After weeks of lower bond prices and higher yields, the cure for higher rates may be higher rates as the uptick in yield could be luring in buyers. Reports now read that Japan may become a net buyer of U.S. Treasury securities after being a net seller for quite some time. One of the continued tailwinds for relatively low rates here in the U.S. is the ridiculously low rates around the globe.

Also on the radar in the weeks and months ahead could be the continued rise in the U.S. stock markets. The possibility of the bullish sentiment for stocks may be fueled by new stimulus on the way as states continue to reopen fully and if rates stabilize. The U.S. economy could be on track for a breakout year. The Atlanta Fed is forecasting a whopping 8.3% gain in Q1 2021 Gross Domestic Product!

So what does this mean for mortgage rates? If we continue to see some stabilization in yields, we may see some modest improvement in rates. At the same time, we should expect a continued rise in rates as the economy improves. The Federal Reserve has said as much in the past few weeks.

Sam Khater, Freddie Mac’s Chief Economist, said, “While purchase activity remains high, it has cooled off over the last few weeks and is currently on par with early March 2020, prior to the pandemic. However, the rise in mortgage rates over the next couple of months is likely to be more muted in comparison to the last few weeks, and we expect a strong spring sales season.”

Bottom line: Home borrowing costs remain historically low, and now is a good time to get off the fence and jump into home ownership.

Source: Mortgage Market Guide

Housing News

Rent-to-Own Properties on the Rise

The demand for these types of properties has increased recently. While opting for a rent-to-own property looks good on paper, since you don’t need to plunk down a huge down payment, it comes with its own risks. One major risk is that unlike the typical buying or rental process, the rent-to-own doesn’t have a standard contract as the terms are completely negotiable. This is known as the lease option, and both sides must agree to certain terms.

With a rent-to-own home, you agree to rent a home for a specific time with the understanding that you gain ownership of the home. The timeframe can last from several months to several years.

Another downside is that you will probably pay higher prices than if you were to rent. But if you think about it, a portion of your monthly payment is going toward the down payment on the home. You can use the accrued money to purchase the home at the end of your agreement. The money is typically non-refundable, so if you decide not to purchase the property, you lose that money.

If the thought of a rent-to-own property gives you pause, you have other options. You might qualify for a low-down-payment mortgage of only 3% to 5% or you might consider owner financing. Reach out to a loan officer for more assistance in securing your dream home.

Sources: Rocketmortgage.com, Daveramsey.com, Thebalance.com, Bankrate.com

Home Improvement

Ways to Hang Plants Outdoors

Your plants don’t need to be planted in the ground to flourish. Even if you don’t consider yourself handy, you can easily hang your plants outdoors as long as you have a few tools.

Hang glass bottles. Wrap some twine or string around the bottle, and hang it from a branch or tree limb. Place a few cut flowers inside.

Attach pots to a pallet. Prop a pallet against the side of your house, and attach small pots to it. You can grow flowers or herbs in these pots.

Install a ceiling hook. If your home has a porch with an overhang, consider adding a few ceiling hooks to hold hanging planters. Cascading ivy would look sharp in this type of hanger.

Mount an old tire. Repurpose an old tire and mount it on your siding so it resembles a wreath. Place your plants inside this hanging planter.

You likely have many of these items lying around your house. Even if you don’t, a quick stop at a home-improvement store can get you started with hanging some of your favorite plants outside.

Sources: Homedit.com, Familyhandyman.com

Q&A

What Type of Market Is It?

QUESTION: How do you tell if it’s a buyer’s or seller’s market?

ANSWER: Real estate markets fluctuate through cycles, and knowing what type of stage the market is at can help you decide if it’s a good time to buy, sell, or wait.

In a seller’s market, more buyers are available compared to the property for sale. When this happens, home prices tend to increase, and bidding wars often occur. Sellers also might receive their full asking price of the home or even more. A few signs that it’s a seller’s market include:

On the other hand, a buyer’s market occurs when there are more homes for sale than prospective buyers. When this happens, prices are more negotiable because buyers believe they can easily move on to the next deal if the current one falls through due to expanded inventory. A few signs that it’s a buyer’s market include:

It might seem easy to determine what type of housing market it is just by following those guidelines, but sometimes it’s not so easy. Depending on the neighborhood, one area could be a seller’s market, while on the other side of town, it could be a buyer’s market.

By monitoring trends in sales prices and determining the amount of available inventory, you can have a better understanding of the market. Homes that sell above the asking price indicate that it’s a seller’s market. The larger the inventory of homes for sale, the more likely it’s a buyer’s market. Take the number of homes for sale and divide it by the number of homes that have sold in the past month. If the number is above seven, it’s a buyer’s market. If it’s below five, it’s a seller’s market. Anything in the middle is considered neutral.

If you’re looking to buy or sell, it’s important to know what type of market you’re dealing with. For help figuring out which one affects you, reach out to your real estate contact to determine how you can take advantage of the current housing market.

Sources: Learn.roofstock.com, Rocketmortgage.com


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