Find us on...


Log in using...

Tagged : Interest Rates

Found 30 blog entries tagged as "Interest Rates".

 Chances are good your buyers are not approved at all…they’ve only been pre-qualified

Shocking headline, isn’t it?  Hard to hear the truth sometimes, but I am going to tell you that in my experience, the bulk of Pre-Approval letters being given to Real Estate agents by Loan Originators are just plain worthless.  They are being written to get the buyers a house, but the protection/reassurance the seller is looking for that tells them the buyers really are qualified does not exist.  Welcome to Fantasy Island.

My intention in writing this is two-fold: first, to let you know about this situation, and second, to give you some suggestions for getting a comfort letter that is worth the paper it is printed on.

Frequently a Realtor will refer me one of

7,765 Views, 0 Comments

Written by Robert H. Ruth

Every year since 2013 the National Association of Realtors (NAR) has published a report looking at trends among buyers and sellers in the Real Estate Industry from the previous year. I’ve always eagerly anticipated this report because it provides excellent insights into the composition of the Real Estate marketplace. This year I thought I’d share some of the more significant findings that are pertinent to home buyers since that is the focus of my blog posts here. If you want to see the report for yourself, I have provided a link for you to download a pdf version here: CLICK HERE

The introduction of the report has much useful information about the composition of buyers in the Real Estate marketplace .  Here are what I

654 Views, 0 Comments

Written by Robert H. Ruth

This is a topic I discuss with borrowers most every day, so I thought you’d like to know the components of your credit score.  According to Fair Issac Corporation (FICO), “the score is calculated from many different pieces of data in your credit report, and the data is grouped into the 5 categories below.” Here they are with the approximate weighting assigned to each category:


  • Payment History : 35%
  • Amounts Owed :  30%
  • Length of Credit History:15%
  • New accounts Opened :10%
  • Mix of Credit :10%
  • Total: 100%

Let’s see what each category represents:

Payment history: 35%

This tells whether you have paid your credit card accounts on time in the past.  If you make all your payments on time each

296 Views, 0 Comments

Written by Robert H. Ruth

“OK, Mr. Peabody…but what happened in 2007, and why is it important that we go back there now?”

“Well Sherman, 2007 was a pivotal year for the United States Housing Economy, a year in which all hell broke loose due to the impact of grossly overvalued Real Estate which had been driven to unsustainable levels by Subprime Mortgage Loans.”

“What are Subprime Mortgage Loans Mr. Peabody?”

“Not so fast Sherman…first let’s talk about how values in Real Estate have changed on a historical basis.

You see, historically, US home values have increased by an average of 2 ½-3 % yearly, but during the period from 2003-2006 values went up by 20-30% per year.”

“That sounds like a lot of appreciation, Mr. Peabody.”


347 Views, 0 Comments

Written by Robert H. Ruth

Over the past 2 weeks I have reported on the current state of the housing market in the United States, and compared today’s market in 2017 to the market in 2007. My comparison showed some striking similarities between the 2 time periods, and in the media there is concern about the possibility that another housing bubble might be in the works. Whether the market is overheated and may experience a correction is not my concern right now.  My objective in this space is to report on what is happening in the market, and what is driving the current housing economy.


In order to do that I thought it might be a good exercise to develop a picture of the market based upon 5 pillars that are holding up the current marketplace.

347 Views, 0 Comments

Written by Robert H. Ruth

Last week I reported on 4 of the 5 components that I believe are key drivers of  the Housing Economy in the United States, and I compared these components from 2007-2010. My analysis determined that there have been some interesting developments in these components over 10 years.  Specifically,

  • The Dow Jones Industrial Average has increased dramatically, which has restored the wealth effect for our economy, a phenomenon that makes more Americans believe they are financially more secure and willing to invest, either in the stock market, or in Real Estate.
  • The Employment Rate in the US has improved to pre-financial crisis levels, and our country is once again near what is statistically known as full employment.
325 Views, 0 Comments

Written by Robert H. Ruth

The last 10 years has seen a profound swing in our economy and the Housing Market.  Recently, ( last week of June, 2017) I looked at 5 components of the Housing Market and the US Economy to see what changes have occurred in the last 10 years.  Specifically, I looked at

  • The Dow Jones Industrial Average,
  • the U.S.  Unemployment Rate,
  • the Median Sales Price of Single Family Homes in the US,
  • the Average Rate on a 30 Year Fixed Rate Mortgage,
  • the Income needed to qualify for  a home at the Median Sales Price

Here are the changes in each category, and my comments on each.  I think you’ll agree that the numbers are very interesting.

Dow Jones Industrial Average

-DJIA on 6/21/2007: 13,545
-DJIA on

291 Views, 0 Comments

Written by Robert H. Ruth

What is the State of the Market?

The market is experiencing increasing sales volume fueled by a shortage of inventory. 

  • Current inventory is less than 4 months, 2 months in some metro areas
  • Home price appreciation is up over 6% YTD, and could increase by 10% this year
  • Demand is at the strongest levels since 2012

Factors Influencing Growth

Interest rates are not dramatically increasing as had been expected, but rather, have moderated as has the 10 Yr. Treasury Yield: 


30 Yr. Fixed Rate

10 Yr. Treasury Yield

11/8 election








245 Views, 0 Comments

Written by Robert H. Ruth

Here we are at the height of the Spring home buying season and the media is abuzz with news about the Real Estate market surging.  In many locations across the country, a shortage of inventory has fueled a seller’s market with the presence of bidding wars for properties and pricing rising rapidly.  

Much of the focus in the media has been on trying to decipher the intentions of the millennial generation and whether they will buy homes or continue to rent. And quite frankly, the idea of figuring out what an entire generation will do is complete nonsense. Millennials will buy when it makes sense for them to do so, not before.  

Regardless of whether they buy now, or in the future, there are 5 things about home

254 Views, 0 Comments

Written by Robert H. Ruth

This is a BIG Deal for Homebuyers in General, Millennial Buyers in Particular

Last week I provided an overview of the scope of the student loan debt situation in America and nowhere is the situation as impactful as when someone with student debt tries to purchase a home. This issue alone has held the housing market back from a truly significant rebound, and is putting the millennial generation behind their parent’s generation in creating wealth for their futures.  

In a recent announcement, Fannie Mae has publicly stated that they intend to be part of the solution by “implementing new policies to help borrowers qualify for a home loan and reduce student debt.”

Here is a link to the official press release by

325 Views, 0 Comments