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Love! Tattoos! Rates & ARMs!

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Possible Game Show Answer: Ronald McDonald is called Donald McDonald in Japan.

Today in History: It was on this date in 1936 when the first social security checks were put in the mail. Ida May Fuller of Ludlow, Vermont was the first person to cash this check which totaled $22.54. (*reportedly she blew it on a couple Starbucks Venti mocha Frappuccinos with extra whip).

Wuss’up This Week: Last week should’ve been great for interest rates. It wasn’t. The Employment numbers from January came in way lower than expected which should have driven rates down, but… revised numbers from November and December evened things out. Imagine if in school you got a C on a test and then a month later told the teacher, “Here’s my revised answers, you can now give me an A.” That’s what happens with these reports. So dumb. I don’t know why with all the technology and data available that they can’t get it right the first time. Anyway… I digress. This week is just as important as last week as we have a slew of inflation reports being released today (four CPI reports), tomorrow (four PPI reports), and then Retail Sales on Friday. Also this week a lot of stuff with the Fed starting with Fed Chair Jerome Powell testifying to Congress today along with a bunch of Fed Presidents and Governors speaking today and Friday. Buckle up, Mortgage Fans – it should be an interesting few days.

Interest Rate Update: Do you guys remember Adjustable Rate Mortgages (ARMs)? For the majority of my career (1999-2019) they were probably 40% of the loans I wrote. ARMs carry more risk to the borrower because the interest rate isn’t locked in for 30-years, but the rate is lower. I used to get them on my investment properties and even the first few homes I lived in. When Covid hit it changed everything; Fannie Mae/Freddie Mac tightened up their guidelines and the government added more regulations which the banks didn’t like because it cost them more to service the loan. As a result ARMs died quicker than my houseplant in college. They still exist for jumbo loans (*over $806k) – as of today you can find them around the mid-6s. Shifting to fixed rate loans, we are looking at high-6s for Jumbo loans, and for conforming loans a 30yr fixed at $250k or less for first time homebuyers is around 6.625%, between $250k - $806k you’re looking at the upper-6s/lower-7s. As usual rates will vary based on type of home, equity in the home, your credit score, and if you know 50 things about tattoos.

Don’t Forget to Remember: Any purchase closing with me I will waive $450 in lender fees (and a lot more on refinances)! Grab yourself a cup of instant karma and pass my info along to any friends, family, coworkers, and people that like 40 bits of pop-culture that can use this gift.



Love Quote of the Day 2: “All you need is love. But a little chocolate now and then doesn’t hurt.” – Charles M. Schulz

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Timeout for Trivia: Congrats to those who guessed David Spade last week! Want to be entered into a drawing to win Freudian Slippers? Simply email me the answer to this weeks’ Who Am I? question. Good luck: “It’s my birthday today, and many moons ago when I was just ten years old I made my film debut with an actress who was recently voted into the Rock and Roll Hall of Fame. (*that movie was not Splash). A year later I had my breakout role in a movie based on a spooky 1964 television series. An anagram for my name is ‘A rich sin critic’ and you wanna talk about sin? Well, I played a prostitute in a 2003 film and my co-star won the Oscar for Best Actress, and then there was my limited series on Lifetime (2015) where I played an ax murderer – you’ve heard the poem (character initials LB) I’m not just about sin, I’m a survivor too! Remember my 2021 role as a socially awkward equipment manager on Showtime’s series that despite the title is not about bees.”

The Adieu Mortgage Haiku:

I like fixed rate loans

But why did ARMs disappear?

I loved ARMs better!

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