What’s Ahead For Mortgage Rates This Week – February 13, 2023

What's Ahead For Mortgage Rates This Week - February 13, 2023Last week’s economic reporting included coverage of Federal Reserve Chair Jerome Powell’s speech to the Economic Club of Washington and the University of Michigan’s data on consumer sentiment. Weekly readings on mortgage rates and jobless claims were also published.

 

Federal Reserve: Chairman Jerome Powell Says the “Disinflationary Process” is Ongoing


Fed Chair Jerome Powell said in remarks made to the Economic Club of Washington that the “disinflationary process” has started, but he also indicated that January’s unexpectedly strong jobs report indicated that further interest rate hikes are necessary: “We think we need to do further rate increases and we think we’ll need to hold policy at a restrictive level for a period of time.” 

 

Several other senior Fed officials said that further interest rate hikes would be required to keep inflation in check; as 517,000 jobs were added last week after analysts predicted declining job growth as compared to the expected reading of 187,000 jobs added. The national unemployment rate fell to a 54-year low of 3.4 percent.

 

Analysts cautioned that the Fed would likely continue to raise rates to control inflation but Chairman Powell said that the Fed would likely raise rates only “a couple more times.”

 

Mortgage Rates, Jobless Claims Rise


Freddie Mac reported higher mortgage rates last week; the average rate for 30-year fixed-rate mortgages was three basis points higher at 6.12 percent. The average rate for 15-year fixed-rate mortgages rose by 11 basis points to 5.25 percent. 

 

Jobless claims also rose last week with 196,000 new claims filed as compared to the previous week’s reading of 183,000 initial claims filed. 1.69 million continuing jobless claims were filed as compared to the prior week’s reading of 1.65 million ongoing claims.

 

The University of Michigan reported that its initial consumer sentiment reading for February rose to an index reading of 66.4 as compared to the expected reading of 65.1 and last month’s index reading of 64.9. Consumer sentiment readings over 50 indicate most survey respondents were positive about current economic conditions. 

 

The University also released monthly readings on year-over-year inflationary predictions. February’s early reading predicts 4.2 percent year-over-year inflation as compared to January’s reading of 3.9 percent year-over-year inflation.
 


What’s Ahead


This week’s scheduled economic reports include readings on home prices, inflation, retail sales, and data on building permits issued and housing starts. Weekly readings on mortgage rates and jobless claims will also be released.

3 Reasons Why Buying an Investment Property Is the Best Way to Build Your Net Worth

3 Reasons Why Buying an Investment Property Is the Best Way to Build Your Net WorthWhether you have recently graduated from college or are getting close to retirement, it’s likely that you have given some thought as to how you can grow your net worth. You might have invested in stocks, picked up a few bonds or have a 401(k) plan set up to help fund your retirement. But have you considered buying real estate as part of your portfolio?

In today’s blog post we’ll have a look at three reasons why real estate investing is one of the most effective ways to grow your overall net worth.

Reason #1: It Generates Passive Income

One of the best reasons to hold real estate as part of your investment portfolio is that it can generate passive income in the form of rent. Whether you buy a single-family home or an apartment block, you can almost certainly find interested tenants who will live there. Part of the rent you receive each month will cover the costs of owning and operating the property. The rest of it is income which will continue to build over time.

Reason #2: It Increases In Value Over Time

Another great reason to invest in real estate is that in most cases, it increases in value over time. As long as you are maintaining the property and investing in its upkeep you have a decent shot at it being worth more in the coming years, should you decide to sell. Keep in mind that real estate is cyclical and that it’s not always going to be the right time to sell and realize your gains.

Reason #3: You Can Leverage Equity To Buy More Properties

Finally, our third reason that real estate is the best way to build your worth is your ability to use it as leverage to buy more real estate. For example, say you decide to purchase a house valued at $100,000 as an investment property. Once the mortgage on that home is paid off, you have an asset valued at $100,000 that you can then borrow against. So you can go out and acquire another $100,000 home without having to sell the first. As you can see, this can scale quite nicely over time.

If you are interested in learning more about real estate investing, give us a call. We are happy to share our insight and expertise as well as advise you on the best local investment properties currently available.

ITIN Loans: Are These Loans Right For You?

ITIN Loans: Are These Loans Right For You?As you take a look at your mortgage options, you might find that a conventional mortgage presents a few qualification challenges. Fortunately, there are other options available, and you might be able to pursue an ITIN loan. This stands for Individual Tax Identification Number, and Individual Tax Identification Number loans could be beneficial for people cannot get approved for a qualified mortgage. What do you need to know about the process?

What Are The Requirements Of An ITIN Loan?

First, you need to get an Individual Tax Identification Number. While you do not need a Social Security Number, you might need to fill out Form W-7. Then, you need to provide supplemental documents, such as tax returns, that can confirm that you are not a citizen of the United States. They might ask you for other documents, such as your driver’s license or birth certificate.

With your Individual Tax Identification Number, you can apply for a home loan. Like any other mortgage, you should be expected to provide your proof of income, assets, or employment. Then, they will run a credit check before deciding whether to grant you a loan.

What Are The Benefits Of An ITIN Loan?

There are a few benefits of an Individual Tax Identification Number loan. This is a great way to build your credit score, and you can get this type of loan even if you are not a legal resident of the United States. You also do not need to have a Social Security Number to qualify for this type of loan. It opens the door to more flexibility and provides those without citizenship with the opportunity to buy property in the United States.

Consider Getting An ITIN Loan To Help You Buy A House

There are plenty of ways to qualify for homeowners, and an Individual Tax Identification Number loan could be right for you. Remember that there are plenty of loan options out there, and the right option for one buyer might not be the right option for someone else. Consider reaching out to an expert who can help you figure out if an ITIN loan is right for you.