The Mortgage Reports Blog

The Mainstream Media Is Building Mortgage Market Awareness (And That's A Good Thing)

First Business anchor Tom Hudson asked for commentary on the recent mortgage market volatility.  The four-minute spot above is the result. 

We did keep our eyes open wide for most of the conversation despite the screenshot above.

Tom and I covered a handful of important mortgage lending topics, many of which won't be new to regular readers of The Mortgage Reports:

Foreign National Buyers Could Provide Support To Housing Market

The combination of a weak U.S. dollar and growing supply of real estate is attracting international buyers to the U.S. market.  Today, the Associated Press ran a story on it. 

Not surprisingly, the International Herald Tribune was first to print.

Regular readers know this is a topic I cover fairly regularly, but if you're a first-time visitor and you have an interest in Foreign National mortgages, consider subscribing to this blog via email. 

Every day, I use this blog to discuss real estate, the U.S. economy, and mortgage markets.  Over time, you'll come to understand how there's no such thing as an isolated world economic event and how it all fits together for your world and your personal economics.

The article author called me when he was writing the piece because he knows I count a good amount of Foreign Nationals in my client list.  I talked about how international real estate buyers can provide a floor of support to the U.S. housing market.

The author also highlights Irish real estate firm Castleroc Estates and its growing presence in the Chicago market. 

Aside from Ireland, there are other countries whose citizens are buying U.S. real estate, too.  The British, for example.  Suddenly, a buyer from England has a 2-to-1 rate on their currency exchange against the dollar -- property here can be very cheap.

And, pretty soon, expect Canadians to get into the action, trading in time shares in Orlando for full-fledged property purchases.

Speaking of Orlando, it's a small world.  Wharton professor Susan Wachter is quoted by the author as saying, "The dollar is on sale."  Aside from giving a terrific soundbite, I think Professor Wachter is the actually the mother of Rick Wachter, a guy who I grew up playing baseball with in Philadelphia.

How strange that we're both quoted in this story.

Interview with First Business: Will the Fed Cut Rates?

I interviewed with First Business anchor Anchor Beejal Patel this week.  First Business produces news "shorts" that are syndicated nationwide. 

The story: "How would a Fed rate cut impact mortgage rates?"  You all know my answer -- it's well-documented around these parts.

I am a little embarrassed about having to use somebody else's office for the spot, though; you'll notice the photo of his three kids and one of their rainbow drawings over my left shoulder.

The rainbow does complement my tie nicely, though...

Coverage In The Chicago Tribune: Rates Move Higher For Homebuyers

Monday, the Chicago Tribune sourced me in a story about the recent run-up in mortgage rates titled "Mortgage rates back near year-ago level".

Some of my quotes from the article:

"I don't think consumers are aware of what's happening," said Dan Green, a loan officer for Mobium Mortgage in Chicago. "It's just starting to become front-page news. Forty-five days ago, I was quoting 5.8 percent to people, and now I'm saying 6.6 percent."

It's a difference of about $156 a month on a $300,000 loan.

And why aren't consumers aware...?  Because they're not subscribers to The Mortgage Reports, of course.  <chuckle>

Because of rising rates, I also had this to say:

"If you pre-qualified for a loan in March or April or May, it's time to call your loan officer and get pre-qualified again.  You might find that suddenly your purchasing power has decreased."

Unfortunately, the article reports that "the rising interest rates are tied to yields on the 10-year Treasury note" and that is not completely true. 

Yes, mortgage rates tend to move in the same direction as the 10-year treasury note, but rates are determined by the prices of mortgage-backed securities, not U.S. treasuries.  That's okay -- a lot of reporters make that mistake.

And lastly -- as is usually the case!  -- since the article about rising interest rates ran in the Trib, mortgage rates have been improving across the board.  Funny how that happens.