• Banking and Mortgage

    Navigating Loans in Today’s Market

    The spring market is here, and inventory is still lower than we would like to see. So far, we’re seeing similar patterns to what we’ve seen in the past. There are more buyers than sellers, causing multiple offers on a property, often over list price and often waiving all contingencies. So, what are we doing to help our buyers get their offer accepted? At Fairway, we have many programs to help buyers get their offer accepted, but the main tools are the Proof of Funds program and the Fairway Cash Guarantee.  These programs allow our buyers to compete with cash offers in a competitive market. In addition to the Proof…

  • Banking and Mortgage

    2024 Outlook – Inflation Rates

    Inflation Rates Show Significant Improvement in Early 2024, Prompting Speculation on Federal Reserve’s Next Move Things are moving quickly as we start 2024. We were excited to see rates come down in mid- December and are left wondering what will happen this year. While we aren’t expecting to see the lows of 2020 and 2021, it is nice to see them normalize. Inflation has made significant progress lower after peaking in 2022, with the headline reading now at 3.4% (down from 9.1%) and the core reading at 3.9% (down from 6.6%). Remember, the Fed began aggressively hiking the Fed Funds Rate (the overnight borrowing rate for banks) in March 2022…

  • Banking and Mortgage

    Welcome to 2024

    Happy New Year, All! What a year it was in 2023.  In this year’s relay (state) race, 2022 passed the baton to 2023 who showed no signs of slowing down.  The 2023 residential Real Estate sector was equipped with hot appreciation, loads of competition, NAR lawsuits, new legislation, new lending guidelines (as always), a new 23 year high in interest rates, and a plethora of intrigue and interest.  As we move into 2024 there are a few new and common themes that every buyer/seller, homeowner, and real estate professional called to guide these individuals should know; especially those living in Dane and its surrounding counties. Rates expected to go down…

  • Banking and Mortgage

    The Perfect Storm

    I hope this newsletter finds you in good health and high spirits despite the recent challenges that have swept through the real estate and mortgage lending industry. As we navigate the uncharted waters of 2023, it’s evident that the rising interest rates have brought about significant shifts, leaving us all scrambling to figure out the best way to approach this new reality. ** We find ourselves in what can only be described as “The Perfect Storm” ** The surge in interest rates, escalating from a more than comfortable 3.00% range to a daunting rise well north of 7.00%, has posed a considerable challenge for first-time homebuyers. Their buying power has…

  • Banking and Mortgage

    2023 Homeownership and Consumer Outlook

    At UW Credit Union, we’re here to help everyone achieve their homeownership dreams. Here’s a synopsis of market conditions, along with tips to help buyers reach their goals with confidence. Reaction to rising ratesFannie Mae reports that most Americans feel now is a good time to sell a home. Here are highlights from the most-recent Home Purchase Sentiment Index: 18% of Americans say it’s a good time to buy 66% of Americans say it’s a good time to sell 46% of Americans think mortgage rates will increase in the next 12 months 78% of Americans are not concerned about losing their job 22% of Americans say their household income is…

  • Banking and Mortgage

    Mortgage Lending Update

    Greetings Restaino and Associates!  It is my pleasure to be addressing you and your acquaintances regarding the “State of the Mortgage Industry”.   As I write this and reflect on 2023 thus far, I can’t help but think of what we have all accomplished together.  We together have served our clients with grace despite the business demanding more time, effort, and energy.  I am not sure that the United States Housing Market has ever demanded this much of our industry and clients.  Countless offers and showings, creative lending to the brink on many transactions, emotional roller coasters, site unseen offers, you name it. My job as a mortgage professional has changed. …

  • Banking and Mortgage

    Gen-Z Buyers – Home Buyer Readiness Program

    As we all know, this rate environment has created challenges for many buyers. However, there is a pool of potential buyers who are committed to purchasing – Gen-Zers. According to a recent Rocket Mortgage® survey*, 71.5% of Gen-Zers (ages 20 – 26) plan to buy within six years and, of those, half plan to buy in one to three years. A Home Buyer Readiness Program, and the right mortgage lender, can help your buyer determine what they can afford, timeline, and help them develop a specific action plan to achieve their goal of homeownership. Your lending partner will address their fears, assess their home buying readiness, and uncover misconceptions about…

  • Banking and Mortgage

    Thompson Kane Mortgage Update

    A MARKET UPDATE FROM THE DESK OF TOM HOTTER… Is the wild ride we’ve all experienced in recent years over…?!?  2023 is certainly proving to bring its own set of challenges.  Interest rates have risen and fallen since my last market update and the buying frenzy has somewhat subsided… BUT, home values remain strong and multiple competing offers are still common at certain price points. So, what does the future look like for the remainder of 2023 and beyond?  Here are a few things to consider when discussing market affordability and positioning buyers for the best chance of an accepted offer. Buy now… Timing a market for lower interest rates…

  • Banking and Mortgage

    Are You Ready to Buy?

    You’ve thought about it. Every time you pay your rent. Every time you get the urge to paint the walls of your apartment. Every time you attend your friends’ housewarming parties. But are you ready to buy a home? If you’re not sure what to do to determine if you’re ready, read on. We’ll help you think through the various aspects of determining if you’re ready to buy a home! Should You Rent or Buy a Home? First, you’ll want to think through whether you’re better suited to rent or buy a home. There are a lot of pros and cons to each scenario, and each will be dependent on…

  • Banking and Mortgage

    Changes in the Real Estate Industry

    Recently, there have been a lot of changes in the mortgage industry.  Some of these changes came from Fannie Mae and Freddie Mac when they announced new pricing adjustments that were effective on  May 1, 2023.   These changes have a direct impact on the interest rate and closing costs potential buyers would have to pay for a loan.  We used to consider a 740 credit score the gold standard in lending, but now that has increased to 780.  Fannie Mae and Freddie Mac were also considering charging an additional fee if the buyer’s debt-to-income ratio was over 40%.  With today’s purchase prices and higher interest rates, this would have caused…