Opposite Quote of the Day: “It takes a touch of genius – and a lot of courage to move in the opposite direction.” – Albert Einstein
Today in History: It was on this day in 1793 when George Washington laid the cornerstone to the United States Capitol building. The Building would take nearly a century to complete, as architects came and went, the British set fire to it, and it was called into used during the Civil War. A century, Mortgage Fans! Now I will stop complaining about the three years its taking to fix up I-90/94. (*actually, I’m not going to stop.)
Possible Game Show Answer: “Jay” used to be slang for “foolish person” so when a pedestrian ignored street signs, he was a “jaywalker.”
Wuss’up This Week: Well, here we are, Mortgage Fans – the long wait is over. But first a history lesson: The Fed Funds Rate is an interest rate at which the depository institutions (i.e. banks, credit unions) lend reserve balances to other depository institutions overnight , on an uncollateralized basis. (*yes, that sentence was copied & pasted – you guys know me better than to use words over three syllables). In June of 1981 the Fed Funds Rate was at 19.83%. When I began my career as a mortgage broker in Feb ’98 it was down to 5.38%, bounced up to 6.50% in early 2000, and then began a nice slow and steady trajectory down (*very similar to if you charted my grades starting my freshman year in high school to my senior year). The Covid years had a low of 0.07% and then in July of 2021 the Fed started raising this rate to the 5.33% it’s at now. The big question is will the Fed cut by a quarter point or half a point. Smart money says a quarter with additional decreases the rest of the year and into 2025.
Interest Rate Update: Today we find a conforming 30yr fixed anywhere from 5.875% to 6.375% for loans at $250k or less for first time homebuyers. From $251k-$766k we’re looking at 5.99% to 6.50%, and jumbo loans (*over $766k) mid-to-upper 6s for ARMs and fixed rates. As usual rates will vary based on type of home, equity in the home, your credit score, and if you’re a first-time homeowner.
Don’t Forget to Remember: Any purchase or refinance loan that closes with me I will waive $450 in lender fees! Grab yourself a cup of instant karma and pass my info along to any friends, family, coworkers, or movie blooper fans that can use this gift.
Opposite Quote of the Day 2: “As a teen I assumed the best thing about being an adult would be going to bed as late as I wanted. Little did I realize it’s the opposite.” – @mutablejoe
Timeout for Trivia: Congrats to those who guessed Steve Harvey last week! Want to be entered into a drawing to win a Flying Monkey Pin?Simply email me the answer to this week’s Who Am I? question. Good luck: “Well gosh, it’s my birthday today, how ‘bout that. An anagram for my name is ‘Aid Sinus Jokes’ but I never wrote anything like that when I was a sketch writer at SNL. When I was part of the cast I never imagined that I would appear in 12 episodes of another series that is named for the place where SNL takes place! I’m not just TV, you’ve seen me in movies too. Do you remember my 2011 movie (and its 2014 sequel) that had three leads – me, a guy who spent some time in Philadelphia for his series, and a guy who spent time in a vacation-destination in Missouri for his series. Barry is a Bears fan, I’m a Chiefs fan, and it’s good to have football back, but when I say that it’s almost like a double meaning for me.”
The Adieu Mortgage Haiku (I’m doing it this week in Earth Wind & Fire style):
Do you remember
The 18th of September
The Fed lowered rates!
