Better’s Post

Kevin Leibowitz and Grayton Mortgage, Inc. where quoted by Aly J. Yale in a recent CBS MoneyWatch article regarding the potential impact on a Fed rate cut and HELOCs. The Fed Discount Rate is an administered rate as is the Prime Rate. When the Federal Reserve Board starts lowering rates, HELOCs (indexed to the Prime Rate) will see a drop in rate that is pari passu with the drop in the Fed Discount Rate. Typically this takes a billing cycle (or two) to go into effect. #mortgage #mortgagerates #interestrates #heloc #fedcut

"In some extreme instances, defaulting on a home equity loan can mean that you’ll lose your house". Whilst HELOC origination has significantly increased, it doesn't provide protection from realizing the dream of aging in place. What options do people have when a mortgage or HELOC is not suitable for them to tap into their $30 trillion home equity? Soon very Graceful options ✨ https://lnkd.in/gGcJ8WzE

Commercial mortgage borrowing is set to skyrocket 29%, but a slugging 2023 raises eyebrows - let’s break it down! Great ready for a roller coaster in commercial mortgage borrowing! The Mortgage Bankers Association predicts a 29% surge in 2024, hitting around $576 billion. But hold on - 2024 just clicked in as the slowest year in a decade. Blame it on the uncertainty around the US monetary policy, with everyone guessing when the Fed might cut interest rates. The hitch? Higher borrowing costs are causing worries, especially when it comes to refinancing loans which could potentially lead to forced selling. Brace for impact as $2.2 trillion in debt matures by 2027. Can the market weather the storm? Write your thoughts in the comments below! 🚀 Read the full article here: https://lnkd.in/ep4Vxvd3

Very interesting outlook on interest rates from HousingWire. A&D CEO Max Slyusarchuk discusses how savvy non-QM lenders are navigating the market: Max Slyusarchuk, CEO of A&D Mortgage, said that according to the non-QM lender’s internal analytics, rates over 6.25% are “cost prohibitive” for the general population and not a normal situation. However, with rates “from 6.25% to 8.5%, there will still be people who will bite.”  https://lnkd.in/eUugkZ4G

ATTENTION: Noses & Faces!! 👃👀 Great spotlight on this new-ish product! If you're not familar with the space, this is a good snapshot and worth the read! Kudos to those that are blazing this trail. #HEI .... the vertical. It is forming! Right in front of the #mortgageindustry's eyes. In plain sight. While #realtors struggle to find solid ground... #sellers ratchet-up net price, fueled by constrained #supply. #Buyers are becoming acclimated to higher #mortgagerates but still can't afford the larger #downpayment or #monthlypayment....let alone buyer's fees. This modern #housing #finance #innovation will become a more widely adopted solution to #housingaffordability than pulling prior levers of pushing the credit and risk envelope.... systemically safer than a massively accomodative federal monetary policy. The #capitalmarkets are just now beginning to figure this product out. But, they are figuring it out. While the #GSE are still bound by the limitations of #dutytoserve the private markets are finding thier opportunity to lead the way. #Consumers are ready. #homepriceappreciation #equitycontracts #homepurchase

From July 2020 to July 2023, average balances for home equity loans and lines surged by 36%. The backdrop: Rising home values have left Americans wealthier on paper, but most are locked into mortgages with historically low interest rates that make cash-out refinances inadvisable for tapping into that equity. The prospect of a higher interest rate on a new mortgage also makes it unattractive to move, so those who need additional space or an update to their living situation may find remodeling and renovating more attractive than buying a new home ᴡʜᴀᴛ ᴅᴏᴇs ᴛʜɪs ᴍᴇᴀɴ ꜰᴏʀ #ʙᴀɴᴋs ᴀɴᴅ #ᴄʀᴇᴅɪᴛᴜɴɪᴏɴs... Financial institutions have a two-pronged opportunity with #homeequity lines of credit and home equity loans in the current environment. Account holders with loan products tend to be “sticky,” making the transition to another institution inconvenient. Target mortgage #accountholders for a line or loan that may be a solution for them, as well as current line holders to increase utilization. Interested in learning how customer insights can empower your financial institution to grow your business? Request a demo: https://bit.ly/3KMrI0l

While reports from the Federal Reserve show a rise in home equity throughout 2023, the National Association of Realtors (NAR) expects the annual median house price to remain largely unchanged in 2024. Still, many Americans are sitting on a large amount of fairly new equity and rising interest rates aren't stopping them from tapping into it. "With home values soaring over the last few years, home equity has been a key source of cash for clients needing money to battle inflationary prices, pay off debt, renovate homes, and pay for schooling," says Mason Whitehead, the branch manager at Churchill Mortgage. If you're thinking about borrowing against your home this year, a home equity line of credit (HELOC) may be a good way to do so. But is it the best loan type for your situation? Below I evaluate it against six popular alternatives! https://lnkd.in/g8vC2NRP

This week, all eyes are back on the Federal Reserve as they gather to determine what's next for interest rates and the economy. The big question? Whether they'll bump rates or hold steady after a bunch of less-than-stellar inflation reports at the start of 2024. So far, cuts might be off the table for the rest of the year. While the Fed doesn't directly dictate rates for loans like mortgages, personal loans, and other borrowing products, what they ultimately decide will significantly affect the rates offered. What does this mean for you, the potential homebuyer? Getting the best possible mortgage rate becomes even more crucial in this environment. Click below for my article on a few strategies to secure a lower rate: . . . #gallomortgageteam #realestate #mortgage #mortgagebroker #loanofficer #firsttimehomebuyer

Diana Olick, CNBC. In July, qualifying for a mortgage became even harder as credit availability dropped to its lowest level since 2013, per the Mortgage Bankers Association. Lending standards are tightening, impacting all loan types, especially jumbo loans, which fell the most due to banks facing liquidity challenges. Higher mortgage rates have led to a decline in demand for home loans, with purchase applications down by 26%, and refinance demand down by 32% year-over-year. Cash-out refinance programs saw a significant decrease, contributing to the overall drop in credit availability. Homeowners are turning to home equity lines of credit instead. EPOC Real Estate EPOC Property Management #mortgagerates #creditavailability #lendingstandards #jumboloans #homebuying #refinancing #originationvolumes #cashoutrefinance #homeloans #equitylinesofcredit LinkedIn News

What’s next for interest rates and the resulting impact on our industry? Several experts weighed in recently on the topic. Great article in PROGRESS in Lending Association! #realestate #mortgage #titleindustry #closings #FedInterestRate https://lnkd.in/gEF4X5F7