Rates are on the way up again…

“Mortgage rates continued their upward trajectory again this week, rising to the highest rate this year so far,” said Sam Khater, Freddie Mac’s chief economist. “This upward trend is being driven by a resilient economy, persistent inflation, and a more hawkish tone from the Federal Reserve.”

Strength in employment?

ADP released their employment report for June, showing that there were 497,000 job creations, which was more than double the estimates of 225,000. This contributed heavily to increasing rates this week as it shows continued strength in employment and the economy.

The Bureau of Labor Statistics (BLS) reported that were only 209,000 jobs created in June, which was weaker than expectations of 240,000 (and far below the ADP report).

But…Multiple job holders increased by 233,000, while “Part time for economic reasons” increased 452,000.

The two reports are somewhat contradictory, but we can point to an increase in part time workers and those picking up multiple jobs as the trend. This shows underlying weakness and leads us to believe future employment reports may not be quite as strong (which should be good for interest rates!).

Rising rates stressing your buyers out? Give us a shot!

We’re so confident that we can do better that we’ll pay your buyer $250 if we can’t!!

Loan product of the week!

Did you know that we can use bank statements (personal or business) to calculate an income total?

• Bank statement loans allow self-employed borrowers to apply for a home loan without having to provide tax returns or pay stubs and W-2's.

• Either 12 or 24 months of bank statements, from either personal or business accounts are used to calculate an average amount of income.

Reach out for more information to help your self-employed buyers!

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