GREENWAY BLOG

23 September 2024

Understanding Mortgage Qualification Ratios

  We're not taking you back to high school. When it comes to your mortgage, qualification ratios may seem like something from your high school calculus class. It's actually not rocket science. The math is simple, and the concept is sound.  What is Income Ratio? Income Ratio is your total monthly housing payment as a percentage of your gross monthly income. Your total housing payment consists of principal, interest, property taxes, hazard insurance, mortgage insurance (if applicable) and any condo/co-op or association fees.  What is Debt Ratio? Debt Ratio is your total monthly housing payment plus any recurring monthly...

READ MORE

20 September 2024

MarketMinute | The Fed finally cuts rates, plus more positive housing news

The Fed cut its policy rate by 0.50% this week. Mortgage rates had already fallen. Guidance suggests further improvement as the data warrants. Retail sales showed a surprise gain in August, a sign of ongoing consumer resilience that suggests the economy remains on solid footing. Jobless claims fell last week to the lowest level since May, indicating a healthy job market despite a slowdown in hiring. Homebuilder confidence edged up in September as mortgage rates fell, breaking 4 months of consecutive...

READ MORE

18 September 2024

Federal Reserve Rate Cut: What It Means for You

  The Federal Reserve recently cut its policy rates by 0.50%, and Fed Chair Jerome Powell hinted at the possibility of further cuts this year. But what does this mean for you? What Did the Fed Say? The Fed's latest statement highlighted a cooling job market and easing inflation. They believe that cutting the policy rate can encourage private sector spending without risking a spike in inflation. While Powell is optimistic about future rate cuts, he emphasized that upcoming decisions will depend on the latest data. Will Mortgage Rates Drop? The Fed doesn’t directly set mortgage rates, but investors often anticipate Fed actions. Mortgage...

READ MORE

13 September 2024

MarketMinute | Rate movement news homebuyers will love

Inflation declined in August, reaching its lowest level since February 2021 and setting the stage for an expected policy rate cut from the Fed. Jobless claims rose marginally last week to 230K. The pace of layoffs remains low even as the labor market shows signs of cooling. Wholesale prices showed a mild increase of 0.2% in August, reinforcing indications the inflation rate is returning to low pre-pandemic levels. August’s shelter inflation rate was down from its 8.2% peak in March 2023, but the...

READ MORE

6 September 2024

MarketMinute | Housing Affordability is Improving

The Labor Department reports July job openings slumped to their lowest level since January 2021. In another sign of a slowing labor market, companies added fewer new jobs in August than any month since the start of 2021, according to ADP. However, the US services sector expanded at a modest pace for a 2nd month in August, though there are signs momentum is fading. Mortgage refinance demand is 94% higher than a year ago. Purchase apps rose only 3% for the week and were 4% lower than a year ago....

READ MORE