Federal Reserve Chairman Jerome Powell's semi-annual monetary policy report to Congress on Tuesday morning noted participants expressed frustration over the impact of monetary tightening on the housing market, but, as expected, did not offer a timeline for interest rate cuts. Powell signaled a better balance between inflation and employment in the U.S. economy, though he said Fed officials aren't there yet. A majority of monetary policy watchers, about 70%, expect a rate cut at the September Fed meeting, according to the CME FedWatch tool. Powell told a congressional hearing that it would be appropriate to lower the target range for…
Author: Private Lending Agent
In our May 2024 Reverse Mortgage Rates Report, we discussed how reverse mortgage borrowers may benefit from higher interest rates over the life of the loan. This is counterintuitive, but reverse mortgages need to be thought of in reverse. The reason, of course, is that the unused principal on an adjustable rate Home Equity Conversion Mortgage (HECM) increases at the same rate that is applied to the loan balance. So, people who get their HECM out early and carefully draw down their HECM Line of Credit (LOC) over time will have greater borrowing power later. This power is strengthened by…
More than a quarter (26%) of retired investors are still paying off their mortgage, and just a quarter of that same group are still paying off their credit card debt, according to a new survey from the National Association of Retired Persons. America's retired population is aging at a rapid rate and facing crippling inflation, with the survey finding that 22% of older investors are worried about being able to afford a typical monthly payment. “As financial stressors continue to weigh on retirement investors, the picture of retirement is shifting for many,” said Mike Morrone, vice president of annuities business…
A Durham man stole $2.9 million in funds intended for businesses struggling during the pandemic.Reynold Mullen, 48, faces seven years in prison, the Department of Justice announced Tuesday.Mullen pleaded guilty in April 2023 to charges related to mortgage and COVID-19 relief fund fraud.The U.S. Attorney's Office said Mullen fraudulently obtained more than $1.3 million in mortgage loans. Mullen also obtained more than $1.6 million in Economic Injury Disaster Loan and Paycheck Protection proceeds.According to the U.S. Attorney's Office, Mullen used fake credit reports and fake bank statements to buy multiple properties and pay for plastic surgery.According to the U.S. Attorney's…
Silverton Mortgage was named to the 2024 Top Workplaces list as part of the fourth annual survey co-hosted by Energage and USA Today. The company also earned a Cultural Excellence Certification in five areas: Compensation and Benefits, Innovation, Leadership, Purpose and Values and Work-Life Flexibility. The company was recognized in the organization category of 150-499 employees. ATLANTA , July 9, 2024 /PRNewswire-PRWeb/ — Silverton Mortgage, a leading direct mortgage lender, has been named to the 2024 Top Workplaces list as part of the fourth annual survey co-hosted by Energage and USA Today. The company also earned a Cultural Excellence Certification…
Median Price The big problem with prices is that they aren't coming down in the way people would hope. Economists say interest rates are likely to remain high, creating a “lock-in effect” that keeps homeowners from selling because they don't want to lose their 2% or 3% mortgage rates. The downside to the lock-in effect is that needed inventory isn't coming onto the market, which is what's driving up prices. Holly Springs had the highest year-over-year price increase at 20%. Cary had the highest percentage of homes with the most intense bidding wars, with 34% of homes sold receiving multiple…
A Fannie Mae survey showed a shift in attitudes among mortgage lenders, with people management and leadership replacing cost cutting as a top business priority.Twenty-two percent of respondents to the government-sponsored company's second-quarter mortgage lender sentiment survey cited talent management as their top priority, while a total of 31% considered talent management their top or second most important priority.”Some lenders commented on employees departing and the difficulty of recruiting and retaining talented staff,” Fannie Mae Chief Economist Doug Duncan said in an accompanying blog post. “Many noted the importance of strong leadership in weathering the market downturn.”Cost reduction was the…
Industry experts told 10TV sister station CBS 8 that the increase is part of a national trend. COLUMBUS, Ohio — Macy's has joined the growing list of retailers offering store credit cards with interest rates above 30%. Macy's sent a letter to cardholders in April announcing that annual interest rates on Macy's cards would jump to 34.49 percent. Industry experts told 10TV sister station CBS 8 that the rate hike is part of a nationwide trend. “These are very high rates,” said Ted Rothman, senior industry analyst at Bankrate. Rothman said retail interest rates are already among the highest, and…
There are a lot of mistakes (and costly mistakes) being made regarding mortgage rates this July. Getty Images/iStockphoto Mortgage interest rates have remained high in recent years, reaching their highest level since 2000 in August 2023. The combination of the pandemic, inflation, and the Federal Reserve's spending restraint measures has caused interest rates on all borrowing products to skyrocket. Mortgage rates were no exception. However, as inflation has steadily declined from its multi-decade high in June 2022, expectations are growing around a cut in the federal funds rate. While the Fed does not directly dictate the interest rates that lenders…
Will interest rates fall? Yes, they will. The question is, when will it start and how can we prepare? According to a Fortune article, analysts at Citi Research believe the Fed “could cut interest rates by 200 percentage points over eight consecutive meetings,” which would amount to eight 25 basis point cuts between September this year and July next year. Is that possible? Absolutely. Anything is possible, but it really depends on the economics. And we should always take these official reports with a pinch of salt. If they're wrong and the Fed doesn't cut rates, or cuts them only…