Why the Fed Cut may not improve mortgage rates

Don't shoot the messenger

One of the most widely misunderstood dynamics of my business is the belief that a Fed rate cut immediately lowers mortgage rates.  Well, I hate to break it to you, but the Fed doesn't touch mortgage rates; however they make monetary policy changes that shake our world and yes... interest rates.  So allow me to support my "click-bait" headline with some comments and fact. 

The main fact is that the Fed doesn't directly touch mortgage rates.  The Fed sets a target for the "fed funds rate" after reviewing mountains of current economic data. The rate that they tweak is the interest rate banks charge each other for overnight loans. Those loans are called fed funds, which lowers the as the Fed lowers interest rates.  This change, albeit small or great, has great impact on the markets.  But the way it moves mortgage rates is quite the conundrum.  I'll explain... 

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17 Amazing D-Day Quotes

I'm not the only one who is thankful

Today is the 75th anniversary of D-Day, Operation Overlord, the day during World War II on which the Allies (American, British & Canadian) invaded France.  It's hard for me to wrap my mind around the scope and the risk of that day.  One thing I know... I'm so thankful and I'm not the only one. 

4,414 Allied soldiers were killed and more than 9,000 wounded or missing. Since such a small percentage of World War II veterans are still alive, this could be the last time we can really honor any significant number of participants in the invasion.

17 Amazing Quotes on D-Day

I was going to write what this day means to me and perhaps I could do this day some justice, but I thought it best to showcase the thoughts and words of those that experienced this momentum day first hand.  Thanks to our friends at Inc. Magazine for the compiling of these great quotes.

1. "We'll start the war from right here."
--Brigadier General Theodore Roosevelt Jr., son of the former president, who landed with his troops in the wrong place on Utah Beach

2. "If any blame or fault attaches to the attempt, it is mine alone."
--General Dwight Eisenhower, future president, in a draft or remarks he'd made in case the invasion was a failure.

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3. "Hitler made only one big mistake when he built his Atlantic Wall. He forgot to put a roof on it." 
--World War II U.S. paratrooper aphorism

4. "They fight not for the lust of conquest. They fight to end conquest. They fight to liberate." 
-- President Franklin D. Roosevelt's official address announcing the invasion.

5. "So much of the progress that would define the 20th century, on both sides of the Atlantic, came down to the battle for a slice of beach only six miles long and two miles wide." 
--President Barak Obama, 10 years ago, in Normandy to mark the 65th anniversary of D-Day.

6. "The waiting for history to be made was the most difficult. I spent much time in prayer. Being cooped up made it worse. Like everyone else, I was seasick and the stench of vomit permeated our craft." 
--Private Clair Galdonik

7. "They're murdering us here. Let's move inland and get murdered."
--Colonel Charles D. Canham, 116th Infantry Regiment commander, on Omaha Beach 

8. I don't feel that I'm any kind of hero. To me, the work had to be done. I was asked to do it. So I did. When I lecture kids I tell them the same thing."
--Private First Class Joe Lesniewski

9. "You get your ass on the beach. I'll be there waiting for you and I'll tell you what to do. There ain't anything in this plan that is going to go right."
--Colonel Paul R. Goode, in a pre-attack briefing to the 175th Infantry Regiment, 29th Infantry Division

10. "At the core, the American citizen soldiers knew the difference between right and wrong, and they didn't want to live in a world in which wrong prevailed. So they fought, and won, and we all of us, living and yet to be born, must be forever profoundly grateful."
--Author Stephen Ambrose

11. "Today, when people thank me for my service, I figure three years of my time is a cheap price to pay for this country. Nobody owes me a thing."
--Lieutenant Buck Compton

12. "The first time I saw a poster wanting men to sign up to be paratroopers and heard how hard it would be to make it in, I knew that was for me. I wanted an elite group of soldiers around me."
--Staff Sergeant Frank Soboleski 

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13. "There is one great thing that you men will all be able to say after this war is over and you are home once again. ... When you are sitting by the fireplace with your grandson on your knee and he asks you what you did in the great World War II ... you can look him straight in the eye and say, 'Son, your Granddaddy rode with the Great Third Army and a son-of-a-goddamned-bitch named Georgie Patton!' " 
--General George S. Patton

14. "I'm very disappointed, and I hate leaving the world feeling this way."
--Private Jack Port, now 97, on the state of the world currently

15. "It was a different world then. It was a world that requires young men like myself to be prepared to die for a civilization that was worth living in."
--Harry Read, British D-Day veteran who jumped again this week with the British Parachute Regiment's freefall display team.

16. "I cherish the memories of a question my grandson asked me the other day when he said, 'Grandpa, were you a hero in the war?' Grandpa said 'No, but I served in a company of heroes.'"
--Major Richard Winters

17. "All I could see was water, miles and miles of water. But this was D-Day and nobody went back to England and a lot of infantry riding in open barges seasick to the low-tide beaches were depending on us to draw the Germans off the causeways and gun batteries, and so, as Porter hurled himself against me, I grabbed both sides of the door and threw myself at the water."
--Private David Kenyon Webster, who became a writer after the war

Thank You

To anyone that serves, served or knew someone that did... Thank You.  The past and current sacrifices are why we enjoy the freedoms we have today.

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MANUFACTURING, FED, TRADE WAR, AND OTHER FACTORS HANG OVER RATES

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Mortgage Q&A with Rick Episode 1

15 vs 30, tricks with PMI, buying down your interest rate and when to lock in

As I start these episodes, I'm reminded of the encouragement I got from an employee of mine. He told me that I give a lot of great advice and have been blessed with much wisdom in my field... that it's a shame to not have it all written down somewhere for others to learn from. It's for that purpose, I've been intent on including in this blog advice I give to my clients, team and business partners during my time as a loan officer.

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Things to Consider When Buying a Condo Using Your VA Benefits

Condo living can provide a convenient and affordable alternative to renting or purchasing a single-family residence. But before you commit to buying a condo with your VA benefits, here are four key things to do:

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How to Maximize Your VA Loan Benefits

Our active military and veterans have worked hard and sacrificed for their country. One of the small ways we can repay them is to ensure they have access to affordable housing that is also a good investment. That’s why the VA loan is designed to be such an incredible benefit.

However, not all veterans are reaping the full benefits of their VA loan. Here are some of the top ways to make the most of yours:

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How Do You Know If You Should Refinance Your Mortgage?

Many lenders talk about the benefits of refinancing, but how do you determine if refinancing your mortgage is the right decision in the context of your personal and financial situation?

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Should Military Families Rent or Own?

The debate over whether it’s better to rent or own has been around as long as mortgages have existed. Both options offer their own benefits, and the best choice for you will depend on a variety of factors. For most people, we strongly believe it’s best to own when you can. But what about members of the armed services? Should military families rent or own?

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6 Factors that prove buying is better than renting

Making The Right Decision

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What is a VA Renovation Loan and Should You Use It?

You’re ready to take the plunge and purchase a home, but with skyrocketing real estate prices, your move-in-ready dream home might be out of reach.

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