Blog – Page 34 of 918 – Fred Gruber - First Rate Financial Group

23

Jun

Financial Reports

What’s Ahead For Mortgage Rates This Week – June 23rd, 2025

With the passing of the FOMC rate decision, it has become clear that the Federal Reserve is taking a wait-and-see approach to the current situation regarding tariff policies. Although the vast majority of economists around the world have made predictions about what lies ahead, the effects have not yet been pronounced. Many of the recent tariff changes have also been revoked or put on pause for the largest industries, leaving many markets uncertain about the future. The key takeaway is that conditions will likely remain steady for now. The only other data release offering insight into what’s to come is the notable decline in U.S. retail sales, reflecting a reduction in consumer activity.

U.S. Retail Sales
Simmering trade wars have created a sort of start-and-stop economy, and the latest snapshot of retail sales in May underscores the threat to U.S. growth. Sales at retailers nationwide fell for the second month in a row, the government reported Tuesday. Receipts tumbled 0.9% in May after a small decline in April, based on seasonally adjusted numbers.

FOMC Rate Decision
The Federal Reserve on Wednesday stuck to its forecast of two interest-rate cuts in 2025 despite seeing a burst of inflation coming in the next few months as a result of higher tariffs. In an updated forecast, Fed officials now expect inflation, as measured by the core personal-consumption expenditures (PCE) index, to jump to 3.1% by the end of the year, up from a rate of 2.5% in April.

Primary Mortgage Market Survey Index
• 15-Yr FRM rates saw a decrease of -0.01% for this week, with the current rates at 5.96%
• 30-Yr FRM rates saw a decrease of of -0.03% for this week, with the current rates at 6.81%

MND Rate Index
• 30-Yr FHA rates saw a decrease of -0.04% for this week, with the current rates at 6.41%
• 30-Yr VA rates saw a decrease of -0.05% for this week, with the current rates at 6.42%

Jobless Claims
Initial Claims were reported to be 245,000 compared to the expected claims of 246,000. The prior week landed at 250,000.

What’s Ahead
Job data is due ahead next week as well as the more recent data from the U.S. trade deficits, which many have had their eyes on.

20

Jun

By Fred Gruber

Homebuyer Tips

The Top 5 Mortgage Myths Debunked for National Homeownership Month

June is National Homeownership Month, a time to shine a spotlight on the opportunities and advantages of owning a home. It is also the perfect moment to clear up some of the most common myths that hold people back from pursuing a mortgage. Many potential buyers delay their homeownership dreams because of outdated beliefs or misinformation. Let’s break down the top five myths and explain what is really true in today’s mortgage world.

Myth 1: You need perfect credit to qualify for a mortgage
This is one of the biggest misconceptions. While credit scores do impact your loan options and interest rate, you do not need a perfect score to qualify. In fact, many loan programs are designed to help those with moderate or even fair credit. FHA loans, for example, are available to borrowers with credit scores as low as 580 in many cases. The key is to work with a mortgage professional who can help you understand your credit profile and identify the right loan product for your situation.

Myth 2: You have to put 20 percent down
The 20 percent rule is outdated. While putting down 20 percent can help you avoid private mortgage insurance (PMI), it is not a requirement for most loans. FHA loans can require as little as 3.5 percent down, and some conventional loans offer 3 percent down payment options for qualified buyers. VA and USDA loans even allow zero down for eligible applicants. There are also down payment assistance programs that help bridge the gap for buyers who are short on upfront cash.

Myth 3: Getting pre-approved is the same as being approved
Pre-approval is a great first step, but it is not the same as final loan approval. A pre-approval means a lender has reviewed your finances and issued a preliminary decision. However, final approval involves a deeper dive during underwriting, where your income, assets, employment, and credit are all verified. Understanding the difference helps you avoid surprises during the homebuying process and keeps you better prepared.

Myth 4: It is cheaper to rent than to buy
While renting can seem more flexible in the short term, homeownership builds equity over time and offers long-term financial benefits. Mortgage payments can be more predictable than rising rents, especially with a fixed-rate loan. Plus, homeowners enjoy tax advantages and the chance to build wealth through property appreciation. Renting may feel more affordable now, but buying is often the smarter move for your future.

Myth 5: You cannot get a mortgage if you have student loan debt
Student loans do not automatically disqualify you from getting a mortgage. Lenders look at your overall debt-to-income ratio to determine affordability. If your income supports your current debts along with a projected mortgage payment, you may still qualify. In many cases, student loans are factored into your approval using adjusted payment methods that reflect your actual monthly obligations.

Why debunking these myths matters during National Homeownership Month
National Homeownership Month is about celebrating the benefits of owning a home and helping more people achieve that goal. Misinformation holds too many qualified buyers back. By separating fact from fiction, we empower more individuals and families to move forward with confidence. Understanding your options is the first step toward getting the keys to your future home.

If you have been on the fence about buying because of something you heard, now is the time to talk to a mortgage professional and learn what is truly possible. The road to homeownership may be closer than you think.

19

Jun

By Fred Gruber

Homeowner Tips

How to Build Credit For a Mortgage Starting This National Homeownership Month

June is National Homeownership Month, a time to celebrate the dream of owning a home and offer guidance to those preparing to take that important step. One of the most impactful things you can do right now is to begin building or improving your credit. If you plan to purchase a home in the next 6 to 12 months, the work you do today could make a major difference in the loan terms you receive later.

Check your credit report first. Before anything else, it is important to know where you stand. You can access your credit reports for free at AnnualCreditReport.com. Review them carefully for any errors or outdated information. Disputing mistakes, like incorrect late payment or a paid-off account still listed as open, can quickly improve your score. Knowing what is on your report also gives you a starting point to track your progress.

Prioritize on-time payments. Your payment history makes up the largest portion of your credit score. Even a single missed payment can significantly lower your score and stay on your report for years. Set reminders or use auto-pay features to ensure you never miss a due date. If you are behind on any bills, getting caught up and staying current will help your credit rebound over time.

Manage your credit utilization. This refers to how much of your available credit you are using at any given time. Keeping your usage under 30 percent of your total credit limit shows lenders that you are using credit responsibly. If you are carrying balances on your credit cards, paying them down can make a quick and measurable impact on your score.

Consider building new credit responsibly. If your credit history is thin, opening a secured credit card or becoming an authorized user on a trusted family member’s account can help. Just be sure any new accounts are used wisely. Keep balances low and make all payments on time. Avoid opening too many new lines of credit at once, as this can temporarily reduce your score due to multiple hard inquiries.

Avoid making big financial changes too close to applying for a mortgage. Taking on a large new loan or suddenly closing older credit cards can shift your credit profile in ways that could be harmful. Lenders like to see consistency. Keeping your financial behavior steady and predictable in the months before applying for a mortgage is a smart move.

Use National Homeownership Month as your motivation to take action. This month is about more than just recognizing current homeowners. It is about helping future buyers like you start the journey with confidence. Whether you are six months or a year away from applying for a mortgage, building credit now puts you in a stronger position.

If you have questions or want help reviewing your credit situation, we are here to support you. Let’s turn this month into the beginning of your path to homeownership.