Consumer Education

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.

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.
 

Real estate is a long-term game. Nicole says it time and time again... it's not about money, it's about options. Investing in real estate opens up doors and options down the road that can lead to stability and financial success.
While it may seem like a shot in the dark, real estate always goes up. The sooner you can capitalize on the benefits real estate gives you TODAY, the sooner you can build multi-generational wealth. In this episode Nicole compares her experience when she got started investing in real estate in 2009's market with today's. She'll tell you her story and the logic behind continuing to add doors to her portfolio. 
 
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's Next for the Housing Market? Is it BOOM OR GLOOM?We've experienced an incredibly volatile housing market over the last two years. It was full of huge equity gains, rising home prices, and little inventory. So, what's next for the housing market?!
Is the housing market going to crash? Will we enter into a recession? What happens to housing in a recession? Is now still a good time to buy a home?
I hope this episode answers a lot of your questions and will help show you that the housing market is still strong!
 
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.
 

Another question in this episode is, "What if there's a grow house in the garage?" The guidelines for appraisals vary depending on who the lender is, whether it's Fannie, Freddie, VA, FHA, or Conventional. Nicole's guest is Paul Cress, AVP of Staff Appraisal Operations for Frisco Lender Services (FLS).
Nicole asked him, "So what brings that volatility, and what eases it overall?"
Paul told her, "Lately the reason it's eased is that interest rates have dropped, demand. It's simple supply and demand. Realistically, over the past three years, property values have risen more than they have at any other time in history. That's due to increased demand and decreased supply. It's caused quite a market stir where realistically, the purchase demand can't be caught up with, and appraisals are done in retrospect, they're a flash in time. And when you're looking back even weeks or days, and trying to keep up with this market, that's increasing day over day. That's what really caused the stir in the market and values to become undervalued or, become under what the contract price was. 
Nicole pressed, "If I have a buyer willing to pay an amount of money for a house, even if it's over asking price, isn't that the market value?"
You'll have to tune in to hear his answer, the issue of ADUs, grow rooms, and how much adding a rental unit can add to your home value.
 
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/theruethteamYouTube 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.