local news and happenings

  July 2022 Fort Worth Statistics At-A-Glance

• 1,023 - Homes sold in July 2022, 21.3 percent less than July 2021
• $355,000 - Median price in July 2022, 17.9 percent more than July 2021
• 1.9 - Monthly housing inventory in July 2022, 0.6 months more than July 2021
• 18 - Average number of days homes spent on the market in July 2022, 5 days less than July 2021
• 48 - Average number of days to close in July 2022

For full details on the May Housing Report and the Johnson, Parker, and Tarrant County reports, click the link below. ‍

The economy in the second quarter was unsettled but consumers showed some resiliency. This was the first full quarter to absorb all the jolts from earlier in the year. In addition, people dealt with a falling stock market, traumatic headlines and a brutal reminder of supply chain issues with the scarcity of baby formula. On top of these concerns was unrelenting inflation. The Consumer Price Index (CPI) rose at an 8.6 percent annualized rate in May, higher than many Americans can remember. Propelled by fuel costs, inflation also crept into every category of economic activity. It was difficult to avoid.

Consequently, consumer sentiment deteriorated along with economic expectations. Projections issued in early June showed Gross Domestic Product (GDP) expansion of 2.5 percent, but by the end of the quarter, some estimates saw indications of a downturn.

People did not completely give up their spending plans, however. Personal Consumption Expenditures growth was expected to be significant. Retail sales for the three months ending in May showed that the travel industry, restaurants and clothing retailers were some of the biggest beneficiaries of a supportive employment situation and the enduring pent-up demand from the pandemic. With wage improvements not keeping pace with prices, determined consumers had to look in other places to find spending money. Credit card (revolving debt) usage increased, saving rates were below pre-pandemic levels and the excess savings from pre-COVID levels were spent down.

RESIDENTIAL

Housing is one of the first markets to feel the pain in the war against inflation. The Federal Reserve (The Fed) battled mounting inflation with escalating rate rises of 0.50 percent in May and 0.75 percent in June. These pushed the monthly average 30-year fixed mortgage rates to 5.52 percent, after reaching a weekly high of 5.81 percent in late June. The housing market reacted as expected. Fannie Mae forecasted that single family home sales and starts would be down over 10 percent for the quarter. Building permits also dropped for the third month in a row in May.

The momentum of demand was still evident. Supports for the market included a strong job situation, the cohort of millennials house hunting, and historically healthy consumer and bank balance sheets. Furthermore, mortgage interest rates are still relatively low by historical standards. http://www.freddiemac.com/

Purchase originations were projected to grow by 25 percent in terms of value and volume according to the Mortgage Bankers Association. Thus, home prices (as measured by Fannie Mae’s Home Price Index) remained relatively high, advancing almost 16 percent year to year.

As with consumer goods, home buyers found ways to make purchases. More borrowers chose adjustable-rate mortgages to lower their initial interest rate. According to the National Association of REALTORS®, many dipped into their savings and leveraged home equity to make hefty down payments, reducing their loan size and payments. Some buyers bypassed the higher interest rates all together; earlier this year, all cash sales made up the highest percentage of transactions since 2014.  

While most economists foresee a slowdown, one question is when it will start. It is unclear when individuals will feel too economically insecure to spend down their savings or take on debt further. The third quarter may be the end of pandemic-deprivation demand. Or summer plans, back to school spending and further declines in unemployment may bolster GDP. Projections done by Fannie Mae in early June forecast it to be over a respectable 2 percent.

Elevated mortgage rates may temper housing market sales and starts further. Home price growth is also expected to soften, but there is not a consensus to the degree.

The biggest determinant of the economic mood is tenacious inflation. The current forces behind climbing costs may persist, possibly exacerbated by the first infrastructure bill monies hitting local coffers. Some forecasters anticipate that the CPI could rise almost 9 percent in the third quarter. To respond, the government expanded its tools to tame inflation. The Fed signaled more rate increases, potentially as high as another 0.75 percent. It also began Quantitative Tightening (QT), the process of reducing the size of the Federal Reserve’s balance sheet. In 2020, The Fed grew its holdings of government bonds and mortgage-backed securities to make money available for the faltering economy. In June, the reversal of this process started, removing liquidity from the economy, which will put upward pressure on mortgage rates. U.S. administration moves included the use of the Strategic Petroleum Reserve and Defense Production Act to address some short-term supply-side issues. It also announced initiatives to alleviate longer-term price pressures.  

Many of the propellants of inflation are happening abroad and are thus minimally impacted by U.S. policy. However, Federal Reserve Chair Jerome Powell is confident these tools will bear fruit. “Our job is making sure that the public does have confidence that we have the tools and will use them and they do work, to bring inflation back down over time. It will take some time we think to get inflation back down, but we will do that.”

Credit: Sente Mortgage - Mary Heerwald

 With rising interest rates, low inventory, and changing markets, more creative loan solutions can help make your homeownership goals more attainable. A homebuyer’s unique situation might mean that a conventional 30-year, fixed-rate mortgage may no longer be as beneficial to them in the short or long-term. Other homeowners are also opting to stay in their current house rather than move, so are more inclined to do house renovations — and are looking to leverage the home equity to fund those projects.

Here are four products Sente offers that are particularly helpful and compelling in the current housing market conditions, depending on your objectives and personal circumstances:

Sente’s Adjustable-Rate Mortgages (ARMs)

There are many reasons why we don’t keep our current mortgage as long as we stay in our homes. In fact, most Americans keep their current mortgage for around seven years, despite having a 30-year, fixed-rate loan. Any number of events can lead to this, such a refinancing your current mortgage or selling your house. If you plan to stay in your new house or keep your mortgage for ten years or less, an adjustable-rate mortgage (ARM) could give you better options than a fixed-rate loan in the current market.

The Basics: ARMs have 30-year terms, but a fixed rate only for a set number of years before the interest rate starts adjusting. The number of years the rate is fixed depends on the specific ARM product. Rate adjustments used to happen annually, but because of market changes, ARM rate adjustments now happen every 6 months. An ARM has two parts: the margin and the index. The margin is a specific number of percentage points that never changes, while the index is an interest rate that may move up or down, depending on market conditions. The index plus the margin is the interest rate you pay.

With ARMs, time is on your side. If you plan to remodel, refinance, relocate, or sell within their initial fixed-term period, you will have a lower rate for the time you own the house. You also have the option of selecting the ARM term that meets your needs: 5-year, 7-year or 10-year fixed periods. By the end of the fixed-rate term, your income may have changed significantly compared to when you qualified for the ARM loan, thanks to personal events like moving up in your career, finishing an advanced degree, or having children graduate. ARMs can therefore be a great way to get the house and payment you want upfront, with various options for how to handle the adjustable-rate period.

Lock & Shop Program

A major concern for homebuyers has been the pressure to find a house before interest rates rise to the point that they no longer qualify for a mortgage and can’t afford a home in their price range.

Here’s where Sente’s Lock-and-Shop program comes into play. You can get locked into your interest rate with 90 days to find a home and 30 days to close. Our 120-day Lock-and-Shop product gives homebuyers the opportunity to determine your interest rate first and have the time to continue shopping for your home. You’ll have far more flexibility to find a home, negotiate the price, get inspections and appraisals done, and close the loan without worrying about how rising interest rates might impact you during that time.

Extended Rate Lock Program (for borrowers building a home)

Homebuyers building their own home have faced a unique set of challenges in the current environment. From rising interest rates to supply chain issues, the home construction process can feel daunting now. But that’s where Sente’s Extended Lock Program can help.

For qualified loans, we’re offering a 110-day interest rate lock, with the option to go up to 350 days. With interest rates rising, we can help eliminate one worry during the construction phase by securing your interest rate today, which will allow you to be comfortable with your future rate and monthly payment. There is an upfront fee, but this is credited back at closing. The loan must also be for a new construction.

Home Equity Second Mortgage (for Texas residents)

With price appreciation, many Americans have far more equity in their homes than they realize. Limited housing inventory also means people are staying in their current homes instead of moving — which makes many homeowners eager to remodel and make upgrades. But many people don’t want to give up their previous interest rates to do a refinance and access funds.

Sente’s Home Equity 2nd Mortgage enables you to take out a lump sum of money with a fixed term and rate. This helps borrowers with large financial needs, such as home remodeling, consolidating or paying off debt, or funding college tuition.

The loan amounts range from $100,000 to $750,000. The cashout maximum — i.e., your take home amount — is $500,000. We offer 15-year or 20-year terms on this type of loan.

Bondic - Throw Your Super Glue Away And Fix Virtually Anything!

Think it’s unrepairable? Think again. Bondic® allows you to re-attach broken eyeglasses, refill holes in leaky plumbing, and rebuild just about anything – even fine china! Just apply the unique liquid formula to the damaged area, shine the special UV light on it for only 4 seconds, and voila! The liquid freezes into a rock-solid layer of clear plastic on your command!

Bondic is extremely strong and once it cures, its designed to last forever. Bondic also works with any surfaces and makes no messes when applied cause its only cures when exposed to UV light. Bondic has helped to save countless items from ending up in the trash and the best thing is its non toxic.

                          31 - One Pot Recipes

Watch the Video for the entire delicious recipe!

THE BISCUIT BAR- NOW OPEN!

128 E. Exchange Ave., #640

Ft. Worth, TX 76164

The Biscuit Bar is an approachable, fast casual restaurant serving up Southern goodness on a biscuit! Open for breakfast, lunch, dinner and late nights offering biscuits, tots and taps. The Menu features an assortment of savory and sweet biscuit sandwiches made from scratch, in house, daily. Guests can also accompany their biscuit sandwich with tots styled to personal taste and tipple on a craft cocktail, locally sourced brew, cold brew coffee or kombucha, all offered on tap! 

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FOR INFORMATION CLICK LINK BELOW