The Double Comma Club

Just because you want a different house doesn't mean you have to wait for the perfect deal in the perfect area to become available. You can, instead, create the home of your dreams, even if it's your first home, a starter home that you will sell later. You can build a home instead of waiting. With home prices climbing and very limited inventory on the market, it may be more difficult to find your perfect home. So, why not just build it? The Rueth Team has new Land and Construction Loans so you can skip the house hunting and build your dream home. Land and construction loans are not only a great option for Primary homes, but for Second Home and Investment Properties as well. There are several loan product options that grant you stability in your rate, while giving you the opportunity to create a home for your family you know you'll enjoy for years to come.

So while we were sleeping, we were seeing the European bonds were selling off, which we opened up Monday morning to this bond selloff here in the United States, dropping the bond prices and raising our interest rates. Powell was just in Switzerland trying to speak to the Switzerland bank and convince them that he's got everything under control. I'm gonna debate that right now. I think they were a little late to the party. It's starting to become habitual that he's not really forecasting what's happening because he's looking at metrics that are passed. He's primarily looking at unemployment, which isn't a leading indicator. It's a lagging indicator. He's looking at inflation, which is also looking backward. If you also look at the CPI numbers, the inflation numbers that we're comparing year-over-year inflation to, we're going to start seeing inflation slow down again second quarter next year. And that's because of comparison inflation rates right now we're very low last year, so we're replacing them with high numbers. We're replacing really low numbers and that's keeping inflation high. As those numbers increased last year, that comparison rate is now becoming more in line. We'll start to see that happening in October. So if rates are at seven or above seven depending on, we are seeing a little bit of the bond market revert back from its extreme yesterday. It's like, oh wait a minute, that was the European market that set our markets on fire. It wasn't even anything in the United States. It was a sell-off of bonds in Europe that caused our bond market sell-off the next morning Monday morning. So Powell goes through all of these conversations to say during the last Fed meeting, "I'm going to define what I want to see in a housing correction." A housing correction includes two things from his perspective, those two things are increased housing supply and decreased housing demand. Come on, that was a given. Listen to this complete episode, "How Does the Global Market Movement Influence the US Real Estate Market."

Are we in a recession?Can the recession just get here?! We have been talking about the looming recession long enough, and I'm ready for it to happen so we can just move on!  It seems like the more we continue talking about a recession, the scarier it gets for consumers! Unfortunately, we still aren't there yet. We know that it's coming as the FED continues to take big action to control inflation and stop consumer spending. BUT HOW MUCH LONGER? BONUS #SHORTS What's My Interest Rate? The question Nicole is asked more than just about any other. The answer usually starts out the same, "It depends..."   Nicole RuethThe Rueth Team Powered by OneTrust Home Loans750 W Hampden Avenue, Suite 500 Englewood, CO 80110303-214-6393www.TheRuethTeam.com Connect on social media: Follow me on FB: https://www.facebook.com/theruethteam/ Twitter: https://twitter.com/nicolerueth LinkedIn: https://www.linkedin.com/company/theruethteam YouTube Channel: https://www.youtube.com/channel/UCPMdb94tUNMMsUTgdWRMDKw  CalCon Mutual Mortgage LLC, dba OneTrust Home Loans is an Equal Housing Lender NMLS #46375; 3131 Camino Del Rio North Suite 1680, San Diego, CA 92108. Corporate phone (888) 488-3807. For more licensing information visit https://onetrusthomeloans.com/licensing-information/. This information is to inform the real estate industry only and is not to be provided to consumers. All products are not available in all states. All options are not available on all programs.All programs are subject to borrower and property qualifications. Rates, terms, and conditions are subject to change without notice.  

What is happening with interest rates? Realtors' businesses are picking up steam, even though we know rates are ticking up. The 10-yr Treasury just hit a high since 2011 (3.51%), and Sweden just raised their bank rate by 100BPS last night! As the FED gears up to meet again and controlling inflation remains top of mind, they've got a .75-1% FED rate increase on the table. We know the recession is coming, and the FED is trying to fast-track it so that consumers will finally stop spending! But if realtors are seeing a pick-up and are anticipating a solid October, WHY?  Employers calling employees back to work Employees finding another job (getting an average 10% raise) First-time home buyers seeing the opportunity Investors The text number is 855-930-0377. Text UPDATE to be added to the list  Some of what you'll learn in this 18-minute episode includes: "If I purchase a median home last month in August, the median DMAR 11-county area home price was $579,900. I buy a $579,900 home with 5% down, I'm putting down $28,995. If I get a 6% interest rate and I get a 3.8% appreciation because that's what Core Logic is expecting that we're going to see for the next year forward, 3.8%, not the crazy double digits that we've seen. Historically before the pandemic, the United States appreciated 3.6%. So we're returning back to normal. So if I have a 3.8% appreciation in five years, I have a gain. If that stays consistent with principal reduction every single year, knocking down my loan amount and a little bit an increase in value of 3.8% because I only put a limited number amount down and the power of leverage. I have the opportunity of that entire home value going up at the purchase price, not my down payment. That's going to give me a net worth of $161,000. I can't make that in the stock market in the next five years, unless your chooser is spot on because mine's broken. I can't make $161,000 in the next five years. And even if we see a dip and a slowdown, which again, because we have so limited supply, but even if the whole secret is don't sell, don't sell. Hold on through the dip and for the next five years. And that's where you're going to regain this opportunity. In fact, year one with a 3.8% appreciation and the principal reduction based on a 6% interest rate, I actually make a 102% on my down payment. I put down $28,995. I'm going to net out in equity gain $29,588. That's just math, right? That's not a motion. That's just math."  

Co-Signing can be an excellent option for increasing borrower qualifications and eligibility. But, it's also a big commitment that shouldn't be entered into without full knowledge of the responsibilities. Here's a breakdown of the responsibilities a co-signer carries and how a co-signer can later be removed from a loan.

There's good news for homebuyers! I understand that affordability is being put to the test. We just saw a 44% increase in prices and a 3% increase in interest rates. We also just saw the new conforming loan limit increase to $715,000! This is HUGE! The current conforming loan limit is $647,200, meaning those homebuyers that might not qualify for a jumbo loan or need a quicker close now have the means to make it happen! Much more of the market now falls within this conforming loan limit.Along with the good news, there is some bad news. Inventory is decreasing. But let's not panic. This is seasonal. It typically starts to turn the corner in October, but we saw that much earlier with the rise in interest rates. The opportunity for homebuyers is less demand and a higher conforming loan limit.   

Historically the best forecasters have been able to consistently recognize that we are in a recession. Once we are actually in one to preemptively determine its onset has riddled economists for decades. Yet, an AR is Lawrence soon called a recession in August when he said, "In terms of economic impact, we are surely in a housing recession." A recession is defined by Oxford is a period of temporary economic decline during which trade and industrial activity are reduced. This is generally defined by a fall in GDP for two consecutive quarters. This definition has then been further clarified by the National Bureau of Economic Research to a significant decline in economic activity.  Active listings while almost double last year, they've started their seasonal downward slope towards December by dropping 5.7% month over month, new listings peak a few months early this year dropping another 18.5%. This month, median and average home prices have also seen a steady slowdown from well over 20% earlier this year to 6.8% average and 8.5% median year-over-year increase in August. Days in the MLS grew from six median days to 11 and close to list dropped to 99.41%. Year-to-date new listings and home sales are behind 2018 and 2019 by approximately 8%, showing that both sellers and buyers are moving slower, not just than the pandemic frenzy but also the pre-pandemic seasonality. The slowing has come primarily from the rapid rise of mortgage interest rates increasing the monthly cost to purchase August saw more than its share of volatility. Think of a child you've been giving Tootsie Rolls to for over an hour to keep him quiet during your very important meeting. How justified is the pain that child ensues as he works his way off the sugar rush? Justified or not, inflation must be tamed, and it will cause pain, but that pain is relative. It's relative to the specific household and the specific industry. ADP's August employment report also showed pay increases nationwide for those who stayed on their job by 7.6%, and up for 16.1%; for those who got new jobs, consumer sentiment even increased this month by 13% due to a 59% surge in the year ahead. Outlook for the economy? Consumers are feeling good about inflation, getting tamed jobs secured and a quick economic recovery. All of this comes back to defining a housing recession. Lawrence said it best, "It is a difficult market for those selling homes and for home builders. But homeowners continue to accumulate housing wealth from rising home prices." I will concede through the definition of a housing recession by slowing the sales cycle, but with builders, not building, homeowners locked into rates not likely to be seen again, and baby boomers aging in place, inventory will not right size for a very long time. If ever this lack of inventory will keep home prices increasing over 27 trillion in homeowner, equity will keep homeowners from having to sell at a loss wage increases will keep buyers able to purchase. This is Nicole Ruth with The Rueth Team, now the proud and excited newest member of the OneTrust Home Loans, family. It's my pleasure to keep you updated. Listen to the full 9-minute episode to get more detailed comparisons and statistics.  

We just experienced a HOT real estate market that left homebuyers who couldn't afford to pay $50,000 - $100,000 over the asking price with little chance of getting into a home. While home prices and interest rates seemed to skyrocket, home affordability was challenged, pushing many prospective buyers out of the market. But does that still hold true today? Is home affordability gone? Can you save money and try to purchase a home? Nicole Rueth, SVPThe Rueth Team Powered by OneTrust Home Loans750 W Hampden Avenue, Suite 500 Englewood, CO 80110303-214-6393www.TheRuethTeam.comConnect on social media: Follow me on FB: https://www.facebook.com/theruethteam/Twitter: https://twitter.com/nicoleruethLinkedin: https://www.linkedin.com/company/theruethteam YouTube Channel: https://www.youtube.com/channel/UCPMdb94tUNMMsUTgdWRMDKwNicole Rueth (NMLS 239840) is licensed to practice on behalf of OneTrust Home Loans (NMLS 46375) in the states listed below. For full compliance verbiage, visit theruethteam.com/compliance/.AZ, CA, CO, FL, ID, IL, IN, KS, MI, MN, MS, MO, MT, NE, NM, NC, OK, OR, TN, TX, UT, VA, WA, WI, WY.  

What is the difference between Pre Qualified and Pre Approved? #shorts Foreclosures are up 150%! Okay, they are but let’s take a step back. They’re up 150% from 1 year ago when there was a FORECLOSURE MORATORIUM you couldn’t even do one! They are shooting up from extremely low lows, and many are still working their way through the system from pre-pandemic! This IS NOT a cause for panic nor a sign of a housing crisis. All hope is not lost if your appraisal comes in low! You or your realtor can do a Reconsideration of Value. This allows you to present other comparables to your appraiser to see if the value can be increased, and 15%-20% of the time, IT IS! Headlines say that Mortgage Demand has dipped to an "all-time low." But let's tear this apart for a minute. Mortgage Applications include both Refinance AND Purchase Apps! Furthermore, the Refinance Apps are the big chunk of this, as they’re down 82% YOY, while Purchase Applications are only down 18% YOY.  I understand buyers are dealing with affordability, but they’re still out there! Sellers, if your home is staged right and priced right, there is a buyer for your home.   Nicole Rueth, SVPThe Rueth Team Powered by OneTrust Home Loans750 W Hampden Avenue, Suite 500 Englewood, CO 80110303-214-6393www.TheRuethTeam.comConnect on social media: Follow me on FB: https://www.facebook.com/theruethteam/Twitter: https://twitter.com/nicoleruethLinkedin: https://www.linkedin.com/company/theruethteam YouTube Channel: https://www.youtube.com/channel/UCPMdb94tUNMMsUTgdWRMDKwNicole Rueth (NMLS 239840) is licensed to practice on behalf of OneTrust Home Loans (NMLS 46375) in the states listed below. For full compliance verbiage, visit theruethteam.com/compliance/.AZ, CA, CO, FL, ID, IL, IN, KS, MI, MN, MS, MO, MT, NE, NM, NC, OK, OR, TN, TX, UT, VA, WA, WI, WY.  

Investing in the Denver Real Estate Market TODAY. Nicole chatted with realtor, friend and fellow investor Christie Metoyer of Live.Laugh.Denver Real Estate and Rent today about purchasing her 3rd investment property and how real estate investing has changed her life! She says what blows most first time homebuyers away is the fact you do not need 20% down to buy a home in this market. Listen to more reveals in this episode. You can also catch the video version here - while you're there, subscribe to The Rueth Team's YouTube channel. https://www.youtube.com/watch?v=ityXriu79BI   Nicole Rueth, SVPThe Rueth Team Powered by OneTrust Home Loans750 W Hampden Avenue, Suite 500 Englewood, CO 80110303-214-6393www.TheRuethTeam.comConnect on social media: Follow me on FB: https://www.facebook.com/theruethteam/Twitter: https://twitter.com/nicoleruethLinkedin: https://www.linkedin.com/company/theruethteam YouTube Channel: https://www.youtube.com/channel/UCPMdb94tUNMMsUTgdWRMDKwNicole Rueth (NMLS 239840) is licensed to practice on behalf of OneTrust Home Loans (NMLS 46375) in the states listed below. For full compliance verbiage, visit theruethteam.com/compliance/.AZ, CA, CO, FL, ID, IL, IN, KS, MI, MN, MS, MO, MT, NE, NM, NC, OK, OR, TN, TX, UT, VA, WA, WI, WY.