The Double Comma Club

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Homeownership - Getting Creative in This Time of Disruption.

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How do you maintain business as usual as much as possible is the question I am asking myself every day. We all can agree.. the last seven days were surreal. The next 7, 14, 21 will be as well. Making sure I have the most up to date information during this time has become even more important, and how I am staying grounded. Last night a member of the Federal Reserve Board, stated that the biggest lesson learned from 2008 was that the Federal Reserve did not act fast enough. We have seen them in action already. They threw everything they had at the problem last weekend dropping the Fed rate to zero and adding another $700B in purchases after committing to $1.5T the week before.

This morning they announced they are going limitless. YEP .. you heard that right. Spending as much as it takes to keep businesses and governments afloat through purchasing treasuries, mortgage-backed securities, commercial securities (ie. multifamily), corporate bonds, and muni bonds. Let's deal with inflation later... game on!

Colorado Governor Polis came out last night saying Colorado was going to do business as usual as much as possible as well. Not putting us into a Shelter in Place, but mandate all essential businesses thin their workforce by half. I agree and had already sent my team to work from home last week. ​We are also seeing FHFA stand up where needed. They announced last week that they had rolled out mortgage forbearance. Today they announced workaround for appraisals through desk appraisals and drive-bys.

Workaround for Verification of Employment has opened up to personal cell phones for HR department contacts, emails from company domains, most recent paychecks and/or bank statements to show income. ​Title companies are also getting creative with buyers bringing their own laptops and signing in their car. ​We are all getting creative in this time of disruption... to maintain the dream of homeownership!

Stay tuned as I send out more regular updates. And give us a call if you want to know what this means to you! Our team is ready to not only keep you informed but support you!

Nicole Rueth
The Rueth Team of Fairway Independent Mortgage Corporation
750 W Hampden Avenue, Suite 500
Englewood, CO 80110
303-214-6393
theruethteam.com

The Market Will RECOVER Quickly

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This week has been turbulent at best! During these times, we have to maintain perspective, staying positive! The S&P lost 12 percent on Monday but rebounded Tuesday, up 6 percent. Today futures were down more than 5 percent when they were halted. One word - turbulent. Also, you might just want to stop looking at your stock account,. just sayin'.

​Interest rates have not dropped significantly with the drop of the Fed Rate. I discussed this at length on Sunday and nothing has changed yet except for small movements. Let's look at the bigger picture, the Director of the Cleveland Clinic was quoted as saying he expects this to turn in May. The GDP for 1st Quarter is expected to land at a net zero. 2nd Quarter will be negative given business closures and lack of consumer spending. However, 3rd Quarter is expected to be up 3 percent; 4th Quarter up 4 percent. Think about that for a moment. This is not a long standing economic shift but one that is expected to strike hot and fast.

On the demand side, we are supported by continued growth. Millennial birth rates 33 years ago is benefiting us with an estimated 8.8 to 9.2 Million first time home buyers.

As overwhelming as this feels; it's about maintaining perspective! And as a side note, take this time at home to practice making babies.. the world needs more buyers 33 years from now.

Stay tuned as I send out more regular updates. And give us a call if you want to know what this means to you! Our team is ready to not only keep you informed but get you the best rates.

Nicole Rueth
The Rueth Team of Fairway Independent Mortgage Corporation
750 W Hampden Avenue, Suite 500 Englewood, CO 80110
303-214-6393
www.TheRuethTeam.com

Las Vegas is CLOSED, The Dow Drips and Drops, Rates Creep

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Yesterday we talked about the Federal Reserve and why they did what they did. They held an emergency meeting only 48 hours before their scheduled meeting. That set the futures market into a panic yesterday, halting futures trading. Again this morning the Dow was down 1800 points before they stopped trading again.

Rates Monday opened up slightly better than Friday by approximately .25 percent. But this is a long game, not an overnight drop.

After recording the video yesterday, a friend told me that Las Vegas closed at 6 pm last night for 14 days. Denver just announced that starting on Tuesday, all restaurants will be closed to dine-in options through May 11th Manufacturing came out Monday morning down 21 percent and this is only the beginning. These are changing times, but we will recover like we do everything else. We have to maintain our calm knowing it is the housing market that will pull us through this.

Did you know that three out of the last five recessions saw an increase in home appreciation due to a low-interest-rate environment? That will be the case this time. Homeowners will benefit from the low supply and high demand pushing home prices higher. Buyers will benefit from low-interest rates and improved affordability. ​Now is not the time to panic or be stressed. Low-interest rates will be around for a while. Stay tuned as I send out more regular updates. And give us a call if you want to know what this means to you! Our team is ready to not only keep you informed but get you the best rates.

Nicole Rueth
The Rueth Team of Fairway Independent Mortgage Corporation
750 W Hampden Avenue, Suite 500
Englewood, CO 80110
303-214-6393
www.TheRuethTeam.com

Fed Drops to 0 - What Will Rates Do Now?

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The Federal Reserve just had an emergency meeting and made three big moves that will affect our markets.

1. They dropped the Fed Rate to 0 percent after dropping the rate by .5 percent last week.

2. They are purchasing an additional $500 Billion in treasury bills and $200 Billion in mortgage-backed securities after opening up $1.5 Trillion to purchase treasury bills just last week.

3. They removed the 10 percent reserve requirement on banks set in 2008 after the recession.

Why? Business revenue is down dramatically and drastically. Businesses are closing their doors, laying off employees or putting employees on unpaid leave. This move is to support business survival with short term loans and allow them to make payroll. The yield on the 10-year Treasury was also up last week with the disruptions in the Treasury market, the Fed's are hoping this move will keep rates low. But how low?

Flashback to December 2008 to December 2015 when the Fed Rate was 0 percent.. what were our 30-year interest rates? 3.3 percent to 5.5 percent.. not in the 2's. But could they get there? and how soon? Stay tuned as I send out more regular updates. And give us a call if you want to know what this means to you! Our team is ready to not only keep you informed but get you the best rates. ​Want to look at your opportunity to lower your rate? Start building wealth through real estate (and get OUT of the stock market) ... or simply buy your first home? Call me today!

Nicole Rueth
The Rueth Team of Fairway Independent Mortgage Corporation
750 W Hampden Avenue, Suite 500
Englewood, CO 80110
303-214-6393
www.TheRuethTeam.com

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