Morning! This is MF Lending - We’re the fool-proof way to serve up mortgage and real estate market knowledge without any of the guesswork. So you’ll look like the smartest agent in the room (and you are!)

Here’s what we’ve got for you today:

1. Negative Market Pressures This Week ☔️

2. A solution for frustrated buyers 😤 - Nuwave Second Look

3. MF Lending | Nuwave Lending Happy Hour 🍺

By the way, this article on Fed Lunch & Learn is the most clicked link in this newsletter, you should check it out if you are interested.

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Nuwave Rates Today 📈

Negative Market Pressures This Week ☔️

This has not been a good week for mortgage rates.

All the economic data that has been released since the Fed meeting last week has pointed to the economy remaining stronger than forecasts.

Since Monday, the bond market has dropped nearly 100 bps.

What does that mean for mortgage rates?

Interest rates for mortgages have jumped .375%-.5%, in a time when estimated mortgage payments are already pricing out potential buyers.

Here are the main drivers of this negative pressure:

• ADP reported private-sector jobs smashed expectations

• US Credit downgraded by a major ratings bureau

• Heavy Truck sales hit record high - normally falling sales indicate a recession (these are the things that make things)

When will the bleeding stop?

The first potential tourniquet is tomorrow’s job numbers.

In July, we saw the ADP private-sector jobs report come in hotter than expected (just like we did yesterday), and the following day saw positive news from the US Jobs Report…so it is not without precedent.

The second data point is the July CPI print a week from today.

Both of these could shift the market back in a positive direction if they indicate unemployment is rising and inflation continues to slow at an accelerated pace.

For preapproved clients, they may see improvements in interest rates on Friday, or next Wednesday 8/10.

One suggestion for realtors - continue to ask sellers to pay concessions for interest-rate buy-downs. Not temporary buydowns like a “2-1 buydown”, but a true interest rate buydown. This can land borrowers in the mid-high 6’s, which can have much more manageable payments.

A solution for frustrated buyers 😤 - Nuwave Second Look

Nuwave Lending - Nashville consistently has some of the lowest rates in the state.

Last week, I had an agent partner bring a loan estimate to me and we were beating the competitor’s interest rate by .5%.

This improved the buyer’s monthly payment by $315 a month and made them more confident to put an offer in, ultimately winning them a deal.

If you have clients who are frustrated - have us take a 2nd look at their approval. No application, no additional credit check, simply send an email to [email protected] with the following information:

• Attach the Loan Estimate / Fee Sheet from the current bank

• Tell me the client’s credit score

• Address of the property they are looking at

I will get you our fee sheet within two hours and put your clients in a better situation.

If we do not have a better rate, you client has the lowest rate possible. 🙂 

There are clients today paying 2-300 more per month than they need to - and you get to be the hero for them, just by being a reader of MF Lending 🪩.

MF Lending | Nuwave Lending Happy Hour 🍺

If you are in Nashville - come stop by, I’d love to meet you!!

The Cul-de-Sac

Thanks for reading - that is all we have for today 😎

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— Michael F DiLucchio