Blog - Michael Inkman

What’s Ahead For Mortgage Rates This Week – November 18th, 2024

November 18, 2024 by Michael Inkman

With the release of the latest CPI and PPI data, inflation has increased month-to-month for the first time since March, marking the first rise in over seven months. The Federal Reserve has reiterated its goal of reducing inflation to a 2% target within a year. While this development doesn’t necessarily indicate an imminent interest rate hike, it suggests that current rates may remain unchanged for an extended period. Earlier optimism about a potential rate cut by the end of the year has significantly diminished in light of recent inflation figures and economic data. However, Retail Sales data presents a more positive outlook, showing continued economic growth ahead of the holiday shopping season.

Consumer Price Index

The consumer price index climbed 0.2% for the fourth month in a row, the government said Wednesday, matching the Wall Street forecast. The yearly rate of inflation crept up to 2.6% from 2.4%, marking the first upturn in seven months.

Producer Price Index

The PPI data met expectations overall but revealed that U.S. wholesale prices rose slightly faster in October. This suggests the Federal Reserve’s efforts to bring inflation back to low pre-pandemic levels may take longer than anticipated. Federal Reserve officials have described the recent uptick in inflation as a ‘bump,’ which could hinder the central bank from reducing high interest rates as quickly as Wall Street had hoped just a few months ago.

Retail Sales

Sales at retailers rose solidly in October and suggested the economy still has plenty of momentum heading into the holiday shopping season. Sales increased 0.4% last month, the government said Friday, and receipts in September were twice as strong as previously reported.

Primary Mortgage Market Survey Index

• 15-Yr FRM rates saw a decrease of -0.01% with the current rate at 5.99%
• 30-Yr FRM rates saw a decrease of -0.01% with the current rate at 6.78%

MND Rate Index

• 30-Yr FHA rates saw a 0.09% increase for this week. Current rates at 6.39%
• 30-Yr VA rates saw a 0.07% increase for this week. Current rates at 6.39%

Jobless Claims

Initial Claims were reported to be 217,000 compared to the expected claims of 220,000. The prior week landed at 221,000.

What’s Ahead

Preliminary S&P Global US Manufacturing PMI will be early on the release schedule marking the first large end-of-the-year preliminary report. Following that immediately is the University of Michigan Consumer Sentiment Report.

Understanding the Difference Between Mortgage Brokers and Mortgage Lenders

November 15, 2024 by Michael Inkman

When you’re ready to buy a home, one of the first steps is securing a mortgage. While many people simply turn to their current bank for a loan, there are other options to consider that might provide better rates and terms for your situation.

This is where understanding the difference between a mortgage broker and a mortgage lender can help. Both play essential roles in the home loan process, but they function in very different ways. Let’s break it down so you can determine which path might work best for you when seeking mortgage financing.

What is a Mortgage Lender?

A mortgage lender is a financial institution — like a bank, credit union, or online lender — that provides loans directly to borrowers. Lenders are the ones who have the capital to lend, and they are responsible for underwriting the mortgage, setting loan terms, and making the final decision about who is approved for a loan.

The key characteristics of a mortgage lender include:

Direct Loaning: The lender is the one who provides the funds for your mortgage. If you apply with a specific bank or credit union, they will assess your financial situation and decide whether you meet their loan requirements.
In-House Terms: Lenders typically offer a range of loan products but are limited to the types of loans they offer based on their guidelines. While they may offer several different loan options (such as FHA, VA, or conventional loans), you are limited to the loans they offer within their portfolio.
Interest Rates and Fees: Lenders set the interest rates and other fees associated with the loan. These rates can vary depending on your credit score, loan type, and the lender’s pricing.
Efficiency: Working with a lender can be more streamlined if you already have an existing relationship with them (for example, if you have a checking or savings account with the bank). In such cases, the process can be faster and more convenient since your financial information is already on file.

However, the main limitation of working directly with a lender is that you may not have access to a wide range of loan products. You might miss out on more favorable rates or terms that could be available elsewhere.

What is a Mortgage Broker?

A mortgage broker, on the other hand, does not lend money directly to you. Instead, they act as an intermediary between you and multiple lenders. Think of them as personal shoppers for mortgages. Their role is to find the best loan option for your financial situation by shopping around with different banks, credit unions, and other financial institutions.

Key characteristics of a mortgage broker include:

Access to Multiple Lenders: Unlike lenders, brokers are not tied to any specific financial institution. This means they can shop around and work with multiple lenders to find the best loan options for you, which could potentially lead to better rates, terms, and overall savings.
Expert Guidance: Brokers have experience navigating the complexities of the mortgage market and can help you make sense of your options. They can provide advice on which lenders might be the best fit for your situation and even suggest ways to improve your financial profile to help you qualify for a better loan.
Convenience: A broker does the legwork of gathering your financial information, comparing loan options, and submitting applications to multiple lenders on your behalf. This can save you a lot of time and effort, especially if you’re unsure of which lenders to approach.
Tailored Service: Brokers may also have access to niche loan products or lenders that you wouldn’t typically find on your own. If you have unique financial circumstances or need a more specialized loan, a broker might be able to find a more customized solution.

However, one thing to be aware of is that brokers may be compensated in different ways. Some may charge you a fee directly, while others are compensated by the lenders. This means it’s important to clarify how a broker is paid upfront to avoid any surprises.

The Pros and Cons of Brokers and Lenders

Ultimately, the decision between working with a mortgage lender or a broker comes down to your specific needs and preferences. If you prefer working directly with one institution and want a more streamlined process, a lender might be a good choice. But if you’re looking for more loan options, personalized advice, and assistance shopping around, a mortgage broker might offer better value.

Which One is Right for You?

Both mortgage brokers and lenders have their benefits depending on your unique situation. If you’re someone who values convenience and has an established relationship with a bank or credit union, working directly with a lender might be a more straightforward route. On the other hand, if you want more variety in loan products and value having an expert help you navigate the process, a mortgage broker could be a great fit.

Both professionals are focused on helping you secure the best financing for your home. The right choice depends on your preferences for customer service, loan flexibility, and whether you’re willing to work with one institution or multiple lenders.

How Women Can Navigate the Path to Ownership with Confidence

November 14, 2024 by Michael Inkman

In recent years, single women have emerged as a powerful force in the real estate market, breaking barriers and taking control of their financial futures. According to recent data, single women now own more homes than single men, with nearly 20 million women homeowners in the U.S., representing a growing trend of resilience and empowerment. This surge in homeownership among women has come even in the face of economic challenges, including the financial fallout of the pandemic.

Whether you’re already envisioning your dream home or just starting your search, navigating the homeownership journey as a single woman comes with unique considerations.

1. Assess Your Financial Health

The first step toward homeownership is a thorough assessment of your financial situation. Start by reviewing your credit score, savings for a down payment, and monthly budget. This will give you a clear picture of what you can comfortably afford. Understanding your finances also empowers you to make realistic homeownership goals that align with your current and future needs.

2. Explore Your Financing Options

The mortgage market can feel overwhelming, especially if you’re a first-time homebuyer. Fortunately, there are several programs available that can help make homeownership more accessible. These include:

FHA Loans: Known for lower down payment requirements and more flexible credit standards, making them ideal for solo buyers.
Conventional Loans: Best for those with strong credit and a larger down payment.
Down Payment Assistance Programs: Many states and local governments offer grants or loans that can help reduce your upfront costs.
First-Time Homebuyer Programs: These programs provide reduced interest rates, lower fees, or other forms of financial assistance for those purchasing their first home.

By exploring these options, you can find the program that best fits your financial situation, making the homeownership dream a reality.

3. Define Your Homebuying Vision

Homeownership is a personal decision, and your priorities might look different from those of other buyers. As a single woman, you’re in a unique position to design your homebuying journey around your specific needs, lifestyle, and goals.

Do you want a peaceful retreat in the suburbs, where you can unwind after a busy day? Or does the convenience and excitement of urban living, with proximity to work and social activities, better align with your goals?

By clearly defining your “must-haves” early in the process, you can focus your search on homes that reflect your vision for the future, making it easier to narrow down options and stay on track.

4. Build Your Support Network

Navigating the homebuying process on your own can feel overwhelming, but you don’t have to do it alone. Surround yourself with a reliable team of professionals who can guide and support you throughout your journey:

A real estate agent who understands your goals and the local market.
A loan officer who can help you evaluate financing options and walk you through the mortgage process.
Friends and family who can offer emotional support, share advice, and encourage you along the way.

This team of professionals, combined with the support of your loved ones, will provide the expertise and encouragement you need to make confident decisions throughout the home-buying process.

5. Stay Patient and Stay Informed

The real estate market is constantly evolving, with interest rates, inventory levels, and home prices fluctuating regularly. Staying informed about current market trends will help you make well-timed decisions and avoid the temptation to rush into a purchase.

Patience is key. Don’t feel pressured to settle for a property that doesn’t meet your needs, financial goals, or vision for the future. Trust that the right opportunity will come along if you remain proactive and informed.

Empowerment Through Homeownership

The rise of single women homeowners is a powerful reminder of the increasing financial independence and strength of women across the country. Homeownership represents more than just owning property; it’s about securing a stable future, building equity, and creating a space that truly reflects your unique lifestyle and aspirations.

With careful planning, the right support, and a clear vision, more women are leaping into homeownership, setting themselves up for long-term success. If you’re ready to begin your journey, know that the tools and resources are available to help you achieve your dream of homeownership.

Lee Vanvolkenburg

15:43 23 Nov 23

Michael and his team were wonderful to deal with. They were excellent with communication and always available to answer questions. Thank you all!

williams lovos

22:54 16 Nov 23

We close on the house tomorrow! Thank you David and Michael for making my first home buying a smooth process. I had several out of the ordinary situations that would had easily not been possible to get the loan in the time that they were able to approve it. My wife and I are forever grateful for the work the team did. Thank you again!

Mario Silvestri III

16:45 16 Nov 23

Rex Perkins

16:56 15 Nov 23

Everything had been going well over the past two years since refinancing an existing mortgage. The application process, approval, servicing website, everything had been very smooth, nothing but the best service. I then had a minor issue arise. We had a wind loss claim on our home and, unfortunately, I had put off getting the check cosigned until the last minute. An issue arose as part of a minor miscommunication in terms of where the check was to be forwarded for endorsement.

To make a long story short, I feared that this miscommunication and misdirected check coupled with my procrastination were going to result in the check expiring and a huge hassle on my part to go through the process again. Mr. Inkman nor his branch were in any way involved with my account or account management, yet, the check inadvertently ended up in their draft loss department and I feared this would further delay things. I was a bit frantic.

One of those that I emailed was Mr. Inkman. In an era when customer service is not as valued as in the past, I was very skeptical I would meet the deadline. But, to my surprise, Mr. Inkman took it on his own to personally get things done and get the issue resolved. It appears that he tracked down the overnighted check personally, directed it for signature, packaged and overnighted the check back to me. All the while remaining professional and pleasant and providing consistent email updates on the status. It doesn't even look like he delegated, rather taking the initiative and seeing it through on his own.

To me, that's not just doing a job, that's going above and beyond in terms of leadership, professionalism, and customer service. We could not be more happy. And, as a further sign of good will, the Fairway CEO actually emailed me personally to follow-up and assure resolution. Been very happy with Fairway since my refinance, Mr. Inkman's efforts only further reinforce that opinion.

Samer Fallouh

15:01 15 Nov 23

Debbie Salas

21:47 03 Oct 23

This transaction probably would not have happened without Michael. Whenever we hit a stumbling block, he found a way around it! He kept us informed and was a positive light all the way through to the end and beyond.
Thanks

Eric Kieffer

22:46 16 Aug 23

Did business with Michael about 20 years ago and he was happy to help us again. He and his team did a great job. See you in another 20.

What’s Ahead For Mortgage Rates This Week – November 18th, 2024

Understanding the Difference Between Mortgage Brokers and Mortgage Lenders

How Women Can Navigate the Path to Ownership with Confidence

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