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Your Guide to the Housing and Mortgage Markets; The Martini Factor (September 26 – October 2, 2022 Economic Update)

September 26, 2022 by Kevin Martini

The Martini Factor is curated by Certified Mortgage Advisor and Raleigh Mortgage Broker Kevin Martini to provide a glimpse of what is likely to impact Raleigh mortgage rates this week.

The top 2 items likely to impact Raleigh mortgage rates this week

RECESSION FEARS

As expected, the Fed increased short-term interest rates last week by 0.75%. Even though the news of an increase in the short term rate was expect, the news that rattled the stock and bond market was Fed Chairman Powell’s firm position to continue hiking rates aggressively until inflation comes down. This certainly shouldn’t have been market-moving news given that this message is being screamed from the rooftops over the past several months. However, investors apparently got spooked that continued aggressive rate hikes are likely to trigger a massive recession, with perhaps unforeseen dire consequences for the economy.

SPECIAL REPORT: The Fed Rate Hike

PCE INFLATION NUMBERS THIS THURSDAY AND FRIDAY

The Fed’s favorite measure of inflation is PCE (Price Consumption Expenditures). The revised Q2 numbers are scheduled for release this Thursday (9/29/2022), and last month’s numbers are scheduled for release this Friday (9/30/2022). Either of these reports could trigger a market reaction that could negatively impact Raleigh mortgage rates.

Oh by the way…

It is never too early to start to explore your homeownership options and you are not too late either. The first part of the homeownership journey is the loan and then after you have the certainty and being armed with price and cost clarity, the second step is to go find your home. The Martini Mortgage Group offers trusted advice with a frictionless digital mortgage process that provides certainty. To contact Mortgage Strategist with the Martini Mortgage Group simply call: (919) 238-4934.

Things to Consider when Buying a Home

If you are a first-time homebuyer or a repeat homebuyer, there are many things to consider when buying a home. Certified Mortgage Advisor Kevin Martini and Senior Mortgage Strategist Logan Martini curated the Fall 2022 Martini Buyer Guide to simply explain the current real estate and mortgage markets plus vital information about buying a home and the process of getting a mortgage. The Fall 2022 edition of the Martini Buyer Guide has a dozen of informative articles that talk about things one needs to know about the current real estate and mortgage markets.

Your Guide to the Housing and Mortgage Markets; The Martini Factor (September 19 – September 25, 2022 Economic Update)

September 19, 2022 by Kevin Martini

The Martini Factor is curated by Certified Mortgage Advisor and Raleigh Mortgage Broker Kevin Martini to provide a glimpse of what is likely to impact Raleigh mortgage rates this week. This week it is all about the Fed, for the people in the back let me say it again, this week it is ALL ABOUT THE FED!

WHAT’S GOING ON IN THE ECONOMY THIS WEEK AND WHY DOES IT MATTER?

Mortgage bond prices opened sharply lower on Monday, and bond yields have spiked across the board as the market places bets on the Federal Reserve’s interest rate decision, scheduled for this Wednesday. Investors are betting that a 0.75% rate hike will take place, although many, to include the Martini Mortgage Group are betting that the Fed may hike rates by a full 1% in response to recent data showing that inflation has not yet peaked.

It is my opinion, if the Fed increases rate by 0.75% on Wednesday, mortgage rates may actually improve. Now if the Fed increases rates by 1%, mortgage rates may deteriorate.
Raleigh Mortgage Lender Kevin Martini

Most investors are betting the Fed will hike short-term rates by that amount, although some are betting on a full 1% rate hike.

IMPORTANT

Trying to time the market in this environment is a bit like trying to catch a falling knife: the odds are such that you’ll likely get cut deeply however you play it. Be prepared for lots of volatility in the market this week. For questions and live up-to-the-minute updates, contact the Martini Mortgage Group buy calling (919) 238-4934.

Oh by the way…

Things to Consider when Buying a Home

2022 Interim Conforming Loan Amounts

September 13, 2022 by Kevin Martini

Raleigh mortgage lender and Certified Mortgage Advisor Kevin Martini announced on September 12, 2022, the Martini Mortgage Group at Gold Star Financial will be offering an interim increased conforming loan limits for the balance of 2022. The new 2022 interim conforming loan limit for one-unit properties (and higher for more units) is going to be $715,000 with the Martini Mortgage Group, an increase of $67,800 from $647,200 from earlier in 2022.

interim 2022 conforming loan limits for raleigh north carolina

What is a Conforming Loan?

A conforming loan, also referred to as a ‘conventional’ or ‘agency’ loan, is any mortgage that meets the Fannie Mae or Freddie Mac guidelines. Fannie Mae and Fredie Mac are government-sponsored entities (a.k.a. GSE). In other words, a conforming loan ‘conforms’ to the asset, credit and income guidelines set forth by Fannie Mae and Freddie Mac. The Federal Housing Finance Agency (FHFA) sets the conforming loan limit based on the FHFA House Price Index (HPI) for the third quarter of the year which covers the last four quarters.

Why the Martini Mortgage Group is offering a 2022 Interim Conforming Loan Amount

The Martini Mortgage Group at Gold Star Financial projects that the 2023 Conforming Loan Limits will increase to $715,000 for one-unit properties (and higher for more units) to adjust for surge in the average U.S. home prices.

I say ‘projected’ because the official number has not been released however we at the Martini Mortgage Group support the projected number ahead of the Federal Housing Finance Agency official announcement that should be released later this fall to help the families we serve today.
Logan Martini

Higher Conforming Loan Limits benefit homebuyers and homeowners

For homebuyers, there is a true cost of waiting to buy a home. During the past year, home prices have risen by approximately 15%+ in many markets. This means it takes $575,000 to purchase a home that you could have purchased a year ago for $500,000. While 15%+ annual increases in home prices are unlikely, a more reasonable scenario is that home prices may rise by 5%+ in the coming year. That’s because supply is likely to remain low and demand is likely to remain high. If home prices only go up by 5%, you may lose another $30,000 – $60,000 if you wait, depending on your price range.

For homeowners, the higher conforming loan limits means a homeowner can access more of their ‘tappable equity’. Tappable equity is defined as how much equity homeowners have available to access while retaining at least 20% equity in their homes. In other words, it’s how much equity you’d have available to tap into if you borrowed up to 80% of your home value.

How can you benefit from the new higher Interim Conforming Loan Limits offered by the Martini Mortgage Group?

Buying a home as a first-time home buyer or as a repeat homebuyer is a process not an event. It is also a process for a current homeowner that wants to access their earned tappable equity. The process start with a conversation with either Logan Martini or Kevin Martini with the Martini Mortgage Group. Let’s chat to discuss the process and allow us to provide you not just with price and cost clarity but also, certainty.

Logan Martini

Kevin Martini