Doug Smaldino’s Market Update for July 21, 2022

Doug Smaldino
July 24, 2022
3 min read

3 Things Heading into the Weekend…………

  1. Stock Market Sharply higher on corporate profits and a higher than expected jobless claims: The Dow Jones Industrial Average is up over 2000 Points in the last month! That is super Bullish for the Real Estate Market. Inflation appears to be coming under control – Stay Tuned!
  2. Mortgage Rates – Dropped and Trending Lower! – Great News for Buyers! Now is the time for them to get their butts off the fence and snag a deal. I think 2023 is going to be a crazy good year for Real Estate. There is a small window between now and the end of the year.
  3. Federal Reserve – Meeting next week – Tuesday and Wednesday: The Feds have made it clear that they will raise the Federal Funds Rate by ¾% (i.e. 75 Basis Points) – Unnecessary in my opinion, but they have such little credibility right now they have to do it. Next week’s rate increase is already “Baked into the Markets” so I expect very little fall out from their coming rate hike announcement.

New Program!

Well, not exactly; more of a Dinosaur: ***The 2/1 Lender Buydown*** – Basically this is a 30 year fixed rate mortgage that starts at 2% below the market rate. It stays at the lower rate for 1 year and then goes up by 1% in year 2. In year 3 it goes to the rate at which the loan was locked in. For example if the 30 year fixed rate loan is 5.00% today, then the loan would start at 3.00% and stay at 3.00% for the first year. It would go to 4% in the 2nd year and then go to 5% in the 3rd year and remain at 5% for the life of the loan. The borrower must qualify for the loan at the highest rate (i.e. 5%). It is a great way to save a lot of $$ in the first 2 years of the loan. There are no prepayment penalties of any kind and the borrower can refinance at any time without penalty.

Hillhurst Mortgage Wow Factors!

  • Available 7 Days a week
  • Lowest Fixed Rates in the Industry
  • Close in 21 Days or Less
  • Best 7/6 A.R.M. Rates in the industry
  • No Mortgage Insurance with 10% Down
  • $600 Appraisal Credit on Select Loan Products
  • Local Appraisers
  • Direct Lender & Broker
  • Full Suite of NonQM Products – Perfect for the Eastside Heavy Gig Economy – Entertainment workers, writers, directors, etc. 
    • Bank Statement Loans
    • Bridge Loans
    • P&L Loans
    • DSCR (Debt Service Coverage Ratio)

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