February Market and Company News!

Jobs report gives Fed green light for more rate hikes

The Federal Reserve is almost certainly raising interest rates in March. The only question now is by how much.

The strong January jobs report is the last piece of evidence the Fed needs to show that inflation pressures are not going away anytime soon. With that in mind, traders are now pricing in a 100% chance of a rate hike next month.  “If the Fed is inclined to do a 50-basis-point rate hike in March, this jobs data doesn’t stand in their way,” said Tom Graff, head of fixed income for Brown Advisory. “And there is more space for the Fed to keep hiking over the long term.”

The Fed does have to tread cautiously, though. If it acts too quickly or raises rates too aggressively, it could choke the economic recovery. But sitting by while prices keep rising isn’t a great option either.  Read more here.

Feb 6

U.S. home sellers made a pretty penny in 2021, with the nationwide realized profit growing by 45% year-over-year, according to a new analysis published by real estate data vendor ATTOM this week.  Per ATTOM’s year-end home sales report, on average home sellers raked in a profit of $94,092 on a typical home sale last year, up from $64,931 in 2020.  For comparison sake, in 2019 a home seller’s realized profit averaged out to about $55,000, the report said.

ATTOM noted that rising home prices and profits were driven primarily by a combination of historically low interest rates and a desire by many households to trade congested virus-prone areas for the perceived safety and wider spaces of a single-family home.  (The national median home price also grew by 16.9% in 2021 to $301,000—an annual record, the report added.)  “As [home buyers] chased a tight supply of homes for sale, prices spiked and so did seller profits,” ATTOM said.

States with the highest return on investments were Boise, ID (121.8 % return on investment); Spokane, WA (86.5 %); Bremerton, WA (82.7%); Prescott, AZ (81.2%) and Salem, OR (81.2%).  Meanwhile, states with the biggest year-over-year increases in median home prices were Worcester, MA (up 39.6%); Barnstable, MA (up 39.2%); Boston, MA (up 28.8%); Boise, ID (up 27.2%) and Phoenix, AZ (up 26%), the report said.

Read the full article here!

If you are haven’t already taken advantage of the equity in your home and would like to consider a cash out refinance, don’t hesitate to contact us today!

Neighborhoods_subdivision-2GET YOUR REAL ESTATE REPORT CARD

With this powerful tool you can see important information regarding the health of a specific address’s real estate market.  Some of the amazing features of this report are:

Affordability Index, Median Home Price, Historical Appreciation, Forecasted Appreciation, and Much more!

Request your Real Estate Report Card today!

Did you know Griffin Funding Offers DSCR Investment Property Loans?

Qualify for a home loan without using your tax returns. As a new or experienced real estate investor, you can avoid high rates and high points of private loans, lengthy approval processes, and strict lending criteria with a debt service coverage ratio loan, which is a type of no-income loan. Qualify for a loan based on your property’s cash flow, not your income.

Securing a debt service coverage ratio loan can help you expand your investment portfolio easier than ever before.DSCR Email Header (2)

 

 


Recent Posts

HELOANs for Self-Employed Homeowners

Home equity loans, also known as HELOANs or second mortgages, can be a great way for self-employed borrowers to pull cash out of their property and use it for a variety of purposes, such as consolidating debt, making home improvements, or funding a business venture. However, for self-employed borrowers, the process of qualifying for a Read More…

DSCR Loans in New York

A debt service coverage ratio (DSCR) loan is a type of commercial loan that is typically used for investment properties. For lending purposes, the DSCR is a financial ratio that compares a property’s gross rental income to its debt service (i.e. mortgage payments). The higher the DSCR, the more income the property generates relative to Read More…

Conventional Loans for First-Time Home Buyers

A conventional loan for first-time home buyers is a traditional mortgage loan that meets the parameters set by Freddie Mac or Fannie Mae. Conventional loans require some percentage of down payment, depending on the mortgage you choose, and your credit score typically must be 620 or higher. In addition to credit score, conventional loans for Read More…