Brett Snortland - Network Funding, LP

02/04/2021

Looking to buy but don't have the traditional 20% down payment? Depending on your situation, you may be able to get a mortgage with a lower down payment!* Contact us to learn more about your options and get a free evaluation of your qualifications!
*This is not a promise to make a loan. Borrowers must qualify. Contact your lender for information on low down payment options. Equal Housing Opportunity Lender. NMLS # 2297.

02/03/2021

Another 5-Star Review! Thanks to all our amazing customers. If you're looking for a lender for a purchase or refi, call us. One of our core values is family, and we treat all our borrowers like they are a part of ours!*⠀⠀⠀⠀
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* Actual borrower review is public on our corporate Facebook profile. Some edits may be made to review posts for clarity or to correct errors.

01/25/2021

Canadian blogger Kyle McDonald started with a paper clip and made fourteen trades over the course of one year — first a paper for a pen and then a doorknob and, eventually, a whole house in Saskatchewan. McDonald’s keen bargaining abilities earned him fame around the world.

01/18/2021

01/16/2021

Stimulus, Fed, Retail Sales

A wide range of major economic news caused some volatility for mortgage rates this week. However, the net effects of a proposed new stimulus package, Fed speeches, and disappointing consumer spending data were roughly offsetting.

Rates had their ups and downs this week but ended just slightly higher than last.

On Thursday, President-elect Biden released the details of a $1.9 trillion coronavirus rescue package intended to assist households and businesses during the pandemic. Some elements of the proposal include additional direct payments of $1,400 to most Americans, increasing unemployment benefits and the minimum wage, and extending eviction and foreclosure moratoriums until the end of September. If passed, additional bonds will need to be issued to fund the spending, so news of this stimulus plan was negative for mortgage rates.

Following sharp declines in the spring due to the pandemic, consumer spending bounced back remarkably quickly to reach record levels. However, rising Covid case counts have since caused three straight months of declines. In December, retail sales dropped a much worse than expected 0.7% from November, and the November results were revised lower.

The reduced economic activity resulting from the pandemic has caused a decline in inflation, and the latest report confirmed that current levels remain low. The Consumer Price Index (CPI) is a widely followed monthly inflation report that looks at the price change for goods and services. In December, core CPI was just 1.6% higher than a year ago, the same annual rate of increase as last month.

Several Fed officials gave speeches this week, and their basic message was consistent. As was stated in the most recent policy statement, officials plan to keep an accommodative stance until there is "substantial further progress" toward their employment and inflation goals. According to Chair Powell on Thursday, raising the federal funds rate will not take place any time soon. Essentially, there will be no reason to tighten monetary policy unless inflation rises substantially "in ways that are unwelcome."

Looking ahead, investors will continue watching Covid case counts and vaccine distribution. Beyond that, it will be a light week for economic data which will feature the housing sector. Housing Starts will be released on Thursday and Existing Home Sales on Friday. Mortgage markets will be closed on Monday in observance of MLK Day.

01/08/2021

Weekly Market Update: Georgia Election and Strong Data
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The Democratic sweep in the Georgia Senate runoff election was viewed as unfavorable for mortgage rates. While Friday's labor market report was mixed, this week's other major economic data was very strong, which also was negative for rates.

As a result, rates rose a little, but remain near record low levels and are roughly a full point lower than a year ago.

The Democrats won both Senate seats in Tuesday's runoff election in Georgia, giving them control of both the Senate and the House. Investors expect that this will lead to increased government spending and that additional bonds will need to be issued to fund the spending, which will push bond yields higher.

Friday's key Employment report from the Bureau of Labor Statistics contained mixed results. In December, the economy lost 140,000 jobs, below the consensus forecast for an increase of 75,000, and the first monthly decline since the unprecedented job losses in March and April caused by the partial shutdown of the economy. By far the hardest hit sector was hospitality, which was hurt by the spread of the coronavirus.

The other major areas of the report contained more optimistic news. Expected to rise to 6.8%, the unemployment rate stayed flat at 6.7%. Average hourly earnings, an indicator of wage growth, rose 0.8% from November, far above the consensus for an increase of just 0.2%, and were an impressive 5.1% higher than a year ago.

A couple of other significant economic reports released this week from the Institute of Supply Management (ISM) displayed unexpected strength. The ISM national manufacturing index jumped to 60.7 in December, well above the consensus forecast of 56.5, and the highest level since August 2018. Since many consumers are spending less money on travel and leisure activities due to the pandemic, they are buying more goods, which has boosted the manufacturing sector. Similarly, the ISM national services index rose to 57.2, well above the consensus forecast of 54.5, and near the levels seen early in the year prior to the pandemic. Readings above 50 indicate that the sector is expanding.

Looking ahead, investors will continue watching Covid case counts and vaccine distribution. The Consumer Price Index (CPI) will come out on Wednesday. CPI is a widely followed monthly inflation report that looks at the price change for goods and services. Retail Sales will be released on Friday. Since consumer spending accounts for over two-thirds of all economic activity in the US, the retail sales data is a key indicator of growth.

01/01/2021

Here's to 2021!

12/31/2020

HOUSING MOMENTUM CONTINUES

The last couple of weeks of December typically exhibit very light trading volume and limited investor reaction to economic news. This year was no exception, and mortgage rates remained near record low levels.

While rising case counts of the coronavirus have slowed economic activity in some areas of the economy such as consumer spending near the end of the year, one sector which has remained red hot is housing. In November, existing home sales were 26% higher than a year ago, near the best levels since 2006. The median existing-home price was 15% higher than a year ago, also close to record levels.

Inventory levels were down 22% from a year ago and remained the primary obstacle to even stronger sales activity. The number of homes for sale was at just a 2.3-month supply nationally, a record low and well below the 6.0-month supply which is considered a healthy balance between buyers and sellers.

The reduced economic activity resulting from the pandemic has caused a decline in inflation, which has been one of the factors responsible for record low mortgage rates. In November, the core PCE price index was just 1.4% higher than a year ago, the same annual rate of increase as last month. Core PCE is the inflation indicator favored by Fed officials, and their stated goal is to reach a level of 2.0%.

Last week, Congress passed a $900 billion Covid relief bill which will provide additional assistance to households, small businesses, and healthcare providers. The bill includes an extension of supplemental unemployment benefits of $300 per month and direct payments of $600 to qualifying individuals. Lawmakers continue to discuss whether to increase the amount of these payments.

Looking ahead, investors will continue watching Covid case counts and vaccine distribution, and the Georgia Senate election will take place on January 5. The ISM national manufacturing index will be released on January 5 and the ISM national services index on January 7. The monthly Employment report will be released on January 8, and these figures on the number of jobs, the unemployment rate, and wage inflation will be the most highly anticipated economic data of the month. Mortgage markets will close early on Thursday and will be closed on Friday for the New Year's holiday.

Weekly Change:

10yr Treasury rose 0.01
DOW rose 300
NASDAQ rose 100

12/25/2020

MERRY CHRISTMAS TO ALL!

12/24/2020

We wish you all a happy and healthy holiday break this year!

12/22/2020

Have you heard of a bridge loan? It may be the answer to help you buy the home you want before you sell the home you have!*

* This is not a promise to make a loan. Consult a loan professional for more details about bridge loan products. Not all borrowers will qualify. This post is intended for entertainment purposes only.