So if you're just waking up from a five day bender, yes, mortgage
rates actually are below 7%.
What in the world is going on?
And that's what we're here to answer for you guys today.
So my goal on the channel is to educate and inform you guys everything
in real estate, especially the financing piece of the puzzle.
But what I really want to do is explain to you guys what's going on And the why
everybody keeps telling you, here's what's going on, here's what's gonna happen.
And they give you some back loaded context and everything.
But I wanna educate you guys on the why and today's why is
wire mortgage rates dropping and that's what we're gonna discuss.
So we know the Federal Reserve is out there in their really one job right now.
The one job outta the two mandates that they have is they
wanna put a crush on inflation.
So what are they doing?
They're raising rates to astronomical levels that we haven't
seen in decades and decades.
We haven't seen mortgage rates in the sevens since probably the nineties.
Okay, so we got there pretty fast this year.
So this today's video, what I wanna explain to you is how the
inflation numbers are playing a huge role in all of this.
So to put this in the context, what we got last week was the
CPI number, the inflation.
At the consumer side of the equation, it came in a light, thus the markets rallied.
Okay?
We saw the stock market go up about 1200 points, and we saw mortgage rates
plummet over a half a percent downward.
Okay?
But I'm not real excited.
I'm happy that this happened, but this could go away in a snap.
Okay, so how do I get validation?
We wanna go over to the economic calendar because we're gonna get
validation on this number tomorrow maybe.
Okay.
So what we have tomorrow coming out is the Producer Price Index.
So let's look at what's going on with what the federal service is actually studying.
They're studying what's going on with inflation.
Okay?
So we have inflation on the consumer side of the equation, and we have inflation
on the producer side of the equation.
Consumer prices went down.
Okay, So they didn't go down a ton, but they went down a little bit.
It's finally a reprieve from them going up and up.
What happened last week when that number came out?
Mortgage rates plummeted.
Okay?
They went from we were at 7.375, not too long ago.
It might have been a couple weeks ago.
Now we're at 6.625.
Mortgage rates have dropped three quarters of a.
Okay, that was based off of the p CPI number that came in, right?
So what if, just what if tomorrow if we have this number right here, the PPI
number coming down, it would validate that inflation is possibly under control.
So then could we see a repeat of this?
Pushing rates in the high fives?
I don't know.
Okay.
I'm just being honest with you.
But let's give the scenarios that could happen.
So I just said if this goes down you're gonna see maybe a repeat
of what happened last week.
Could we get in the rates, in the fives again?
Or could the number come in stagnant?
What the economists are expecting?
They said the previous number was up 0.4 we're expecting 0.4.
If it comes in at 0.4, what would happen?
The bond market for more for mortgages will probably not do
so well, and we'll probably give up some of the gains that we got.
So mortgage rates will probably go back up and we might teeter
right about 7% right in that range.
Okay, so that's if it comes in just basically blah.
Now let's say this number comes in robust, real high, or just say higher.
Let's say this number comes in at 0.6, 0.7, 0.8.
What's gonna happen?
We're gonna give back all this and maybe more.
So we might see rates go from 6.625 to seven and a quarter on
their way up to seven and a half.
8%.
So that's how important this number is for this week.
So I'm not gonna go over anything else.
That's why I just wanted to do a report to let you guys know the
PPI number is coming out tomorrow.
But in the meantime, if you're locked in on a rate, okay, If you're locked in on
a mortgage rate right now, Are you stuck?
No, you're not stuck.
What I need you to do is visit us@therateupdate.com.
Here's one of the biggest questions I get is Dan, I locked in with a lender
last week when this mortgage rates went down and I thought they were gonna be
as good as I can get, but I'm noticing that you guys can get me a better rate.
Can I switch to you guys?
Absolutely.
Yes you can.
Okay.
There's no cost.
There's no obligation.
You're not obligated to that lender until you close, or you might be saying, Dan,
I got an estimate I didn't lock in yet.
How can I find out that there's nothing out there better for me?
Or did I get the best deal in town?
That's what I wanna really discuss right now briefly.
We were creating a free service for you guys to help you guys
scan the country to figure out are there any better rates out there.
People use systems called Lending Tree and Bank Rates and things like that where
you go on, you subscribe to a system, they'll take your data, they'll sell it
to mortgage brokers all over the country and banks and everything else, and
they'll get, make a lot of money on you.
And then what's gonna happen is you're gonna start getting calls from all these.
And it's tedious and everybody's gonna promise you the better
deal than the next person.
All I ask you to do is, please don't do that.
All right?
Get a quote if you want, or get two quotes if you want, and then go to our website,
TheRateUpdate.com, and then click here.
It's a free service that we just start offering.
You're gonna click the loan estimate, You're gonna fill out this information,
and what you're gonna do is you're gonna drag and drop your loan estimate in here,
your one or two or three maybe if you.
What's gonna happen?
It's gonna be predicated on what you tell us you'd want to do.
So it's gonna be, we're gonna get back with you with what we can scan and find
for you with over 80 of the country's largest mortgage lenders and banks.
And I'm gonna explain to you what we do actually here in a second, we're gonna get
back with you on how you tell us you want to get us to get back with you, to let
you know, did we get you a better rate?
Did we get you lower fees?
What's happening?
In most cases, we're actually getting you a lower.
And lower fees.
So again, all you need to do is go to TheRateUpdate.com and here it is.
So if you want to find out where mortgage rates are today, you can check
out this site Mortgage News Daily.
I have a link to it down below.
You can also subscribe to it down below and or you can subscribe to
my newsletter down below where you get this and much, much, much more.
So please visit us at TheRateUpdate.com.
Don't forget, we also podcast all our videos to any podcast that you're using.
If you're using Apple Cast and all those other places, just search in there, Dan
Frio or The Mortgage Update with Dan Frio.
You'll find me truly with all my radio shows as well as all my YouTube videos.
So thanks for watching, guys.
God bless.
See you tomorrow.
Take care.
Bye-bye.