Homes are more expensive than they used to be – we all know that. That doesn’t mean it’s a bad time to buy a house, especially as low inventories have supported prices and the recent Case-Shiller Home Price report showed prices climbing yet again. It’s just more of a challenge to find the right house at the right price since higher interest rates decrease the purchasing power of home buyers. The chart above assumes a 20% downpayment, which some borrowers still believe is required to get into a home. Now, thanks to ONE + by Rocket, you only need to put 1% down! ONE + covers the mortgage insurance that normally comes with a downpayment of less than 20% so the you don’t have to. This enables you to put less down AND maintain a lower monthly payment. Since Rocket is also contributing 2% towards the your equity, you will be…

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Full Faith and Credit    The United States has a unique advantage in the global economic system – the U.S. dollar is considered the global reserve currency.  This means that global debt markets use the dollar as a benchmark for much of the issuance of debt, even in other countries with other currencies.   There are many factors that influence which currency becomes the global reserve currency – financial stability included.  Investors in a country’s debt (treasury bonds) want to know that they’re going to be paid back, and the United States’ track record and economic prowess have given investors confidence.  The debt ceiling was enacted in 1917, because prior to that, congress had to approve each bond issuance that the U.S. treasury made.    If Congress fails to raise the debt limit, the Treasury will be unable to “print more money” to pay existing bondholders, which would surely spook…

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This week will be another short one with the observed New Years Day holiday chewing up the first Monday in 2023. The two biggest things to watch out for this week in the market are the FOMC meeting minutes from December and the Non-Farm Payrolls report this Friday. #JobsFriday   Have a Great Week!

Buying a home is a big step, and it can be especially overwhelming for first-time homebuyers. To make the process as smooth as possible, it’s important to be aware of a few key things. Here are the most important things for first-time homebuyers to watch out for: Budget: It’s important to have a clear idea of your budget before you start looking for a home. This will help you narrow down your options and ensure that you don’t end up overspending. Be sure to factor in not just the purchase price of the home, but also closing costs, moving expenses, and any necessary renovations or repairs. Location: The location of a home is important for a number of reasons. Consider factors like the proximity to work, schools, and amenities, as well as the overall safety and desirability of the neighborhood. Condition of the home: It’s important to carefully assess the…

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The Top 3 Things to Watch in Real Estate in 2023    Consumers  The personal savings rate in America is at its lowest since 2005, and ~¼ of what it was leading up to the pandemic. Consumer confidence is similar to the depths of the ‘08 financial crisis, but the labor market and consumer spending have remained strong through 2022. Will the recession narrative be a self-fulfilling prophecy? or are consumers so driven by “animal spirits” after being stuck at home that the Fed is able to achieve a soft landing? Home Prices Home Prices are expected to continue declining, but with inventory levels remaining scarce, prices could hold higher ground than some think – still, certain markets will drop more than others. The incentive to move to find “more house” has completely flipped, and now many homeowners will be reluctant to sell unless they have good reason to. Interest Rates The Fed probably isn’t…

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The Federal Open Market Committee

The goal of this organization is to create more fulfilling lives.    

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