Blog | Lonnie Glessner

Does This Help Increase My Credit Scores?

I see more and more clients adding utility accounts to their credit reports to help improve their credit scores. But I just learned that adding utility accounts will only help a consumer raise their consumer credit scores for car loans, credit cards, student loans, etc as those lenders use newer FICO score models. Adding utility…

A Large Lender Closes Its Doors

One of the largest Non-QM mortgage lenders, Sprout Mortgage, closed abruptly last Wednesday with NO WARNING and all of their borrowers’ loans will NOT close. As loan volumes shrink I expect this will happen more often especially in the Non-QM world of lending. What is Non-QM lending? Non-QM loans are bank statement loans, DSCR loans…

Want a Rate in the 3’s?

A great sales tool for your listings is now the 2/1 Interest Rate Buydown in which the buyer’s interest rate for the first year is 2% lower than the long-term rate and their rate for the second year is 1% lower than the long-term rate. For example, the long-term rate from year 3 through year…

Now is the Best Time to Buy a Home

I am starting to hear from some buyers that they are going to wait on buying a home because of “market conditions”. I am telling them these are the “market conditions” you need to buy a home and have been waiting for. Here’s why- · Bidding wars are much rarer and smaller. For example, on…

Inflation Today is Nearly as Bad as in 1980

One of my favorite people to read weekly is John Mauldin as his newsletters have over 1 million subscribers. He compared inflation from 1980 to today and I will highlight 2 quotes from him. · “Consumer inflation that households have little ability to control costs (utilities, gas, food, and electricity) is now at 25.5% annually,…

Mortgage Rates Have Really Dropped

Since the day before the Fed’s announcement of a 75 bp rate increase mortgage bonds and Treasuries have been in a RALLY that has surprised people including me. On June 14th the 4.50% mortgage bond closed at $98.25 and it closed July 1st at $100.76, an increase of a remarkable 250 bps. And the 10-Year…

A Sign that Lower Mortgage Rates Are Coming

Here is a sign that mortgage rates will be lower in the next year or two as it’s been nearly impossible the last 3 weeks to offer a mortgage with zero discount points. Why? To do so, higher rate mortgage bonds have to be bought and sold and there is very little demand for higher…

Should Homebuyers Follow Chairman Powell’s Advice?

Two weeks ago Fed Chairman Powell finally addresses the impact on housing by the huge increase in mortgage rates. He did say the Fed is not sure how higher mortgage rates will impact housing construction or how much higher rates will impact housing prices. But, they are watching this carefully. I find it intriguing that…

Home Payments Are Soaring

Aldo Svaldi wrote a story last for The Denver Post citing a Zillow study completed in May that showed the monthly payment on a typical metro Denver home was 55% higher than it was 12 months earlier. The “typical” payment is now $3394 a month according to Zillow. Is Zillow’s percentage correct? I reviewed median…

Chairman Powell is Changing His “Tune”

Last week Fed Chairman Powell spoke to the Senate on Wednesday and said the Fed needs to get inflation back down to 2%. He stressed that our economy is well positioned to withstand rate hikes, although he acknowledged that the war in Ukraine and supply-chain issues increase the risk of an economic slowdown. He also…

In Denver Housing Will Become More Unaffordable

The Denver City Council recently approved their latest affordable housing policy that goes into effect on July 1st. The new rules require that 8% to 12% of all units in a development with 10 or more units be designated affordable housing for the next 99 years and this applies to both for-sale and rental development.…

Are Home Prices Really Dropping?

Stories about home prices dropping locally and nationally. The media headlines are misinforming and I believe scaring consumers. Home prices are not dropping. First, home price appreciation is SLOWING DOWN not dropping. This is great news! For much of the last 2 years we have median home sold prices increasing by over 20% year over…

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