Weekly Update

March 14, 2025 - #494

Good evening,



We’re excited to bring you the PI DAY (3.14) Update, so anyone who answers the Trivia Question correctly before our next edition of the Weekly Mortgage Update will be eligible for a drawing for a gift card for their choice of a BRUSTER'S ICE CREAM PIE or an EDGAR'S CAKE (which is technically not a pie). Either of which would sure taste better inside your brand-new house! Gang, whether that’s your first purchase, a second home, getting your first rental property, reach out and let’s find a time to have a conversation about your goals and timeline. We appreciate those referrals and OF COURSE we also appreciate you reading this update. Before we move on to the update, if you had any house related questions that you don’t readily know the answer for or who to talk to, give us a call. Talked with several past clients about house maintenance items, some roof repairs, and learned more foundation issues and repairs. Whether you have questions, or small repairs like a fence, a big repair, or small renovation, like redoing a closet or bathroom, or need more square footage etc. feel free to reach out – we’ve got some GREAT folks for you to talk to! Now, back to the update… this week, rates bounced around but are still near the LOWEST levels of 2025 – the results of which you can see just above the trivia question. Before you scroll down to the rates and trivia, as usual, there is LOTS GOING ON, SO LET’S GET STARTED!

MARCH MADNESS

The countdown is on. Mark your calendar for SUNDAY to start our March Madness Bracket Challenge (even if the Wake Forest Demon Deacons aren’t in the big dance) and the mark your calendar AGAIN to come by our office next Thursday for food, fun, and to watch some basketball games. RSVP below and who knows, if your luck on picking games is anything like my luck/ability, your bracket could very well be in shambles by the end of the watch party!

CRAZY STORY

Our editors looked near and far for the PERFECT CRAZY story to kick off March Madness… BOUNCING BALLS! Imagine the absolute CHAOS that 250,000 bouncy balls would cause ricocheting down your street. That’s EXACTLY what people found during the 2005 filming of a Sony Commercial in the streets of San Francisco, which was filmed using multicolored bouncy balls to show off the color contrast and color quality of their new Bravia TV (I remember ooooo-ing and aaaaah-ing over one of those in a BestBuy around that time, .)

The production team had to first FIND and BUY a quarter-million bouncy balls, which I don’t think you can swing into the local toy store and buy – having to scour suppliers nationwide and temporarily depleting the ENTIRE country's stock. To create the perfect cinematic cascade, they had to engineer custom cannons to launch the balls, achieving the desired effect.

Filming spanned several days across various San Francisco neighborhoods, with streets closed and residents witnessing the bouncy spectacle/debacle firsthand. Despite all the producers meticulous planning, the balls' unpredictable bounces led to minor property damage, including dented cars and broken windows. The crew promptly addressed these issues, repairing damages and ensuring thorough cleanup.

The commercial, set to José González's soulful track "Heartbeats," became an instant classic, earning accolades and leaving a lasting impression on both the advertising world and San Francisco's residents. Gang, for a trip down memory lane, check out the original commercial by clicking below:

REAL ESTATE TO BEHOLD

Wake Forest may need some help from the Obi-Wan Kenobi of March Madness, because Joe Lunardi is acting the part of Darth Vader, saying the force is not strong enough with the Demon Deacons but that they should be a shoo-in for the NIT. Speaking of "Darth Vader," this property at 3201 University Blvd in Houston, TX, lives up to its nickname with a striking dark slate and aluminum exterior. Listed for $3.35M, this 7,000 sqft property sits on an 18,000 sqft corner lot in the prestigious West University neighborhood.



Featuring 4 bedrooms, 5 bathrooms, and luxury amenities like a 4-car garage, LED-lit wine wall, two ice makers, and a 72” Sub-Zero fridge, the home is designed for modern living and entertainment. With its grand floating glass staircases, soaring ceiling windows, and natural light flooding the interior, this property is a true showstopper. A pool, hot tub, and proximity to Rice Village, Rice University, and the Texas Medical Center make it the ultimate place to call home. USE THE FORCE and click on the pictures below to see the full listing on Zillow.

If you DO happen to think of Joe Lunardi as an evil overlord, perhaps he could be the purchaser of this California house with an in-home shark tank – the perfect HALLMARK of any evil mastermind.

This $59 million Palm Desert mansion comes complete with not one, but THREE pools and a custom shark tank built right into the home’s design. The 32,000-square-foot estate, set on 7.7 acres in the exclusive Bighorn Golf Club, was created by the renowned architect Guy Dreier and features curved copper roofs and asymmetrical walls that give it an otherworldly vibe. Inside, you'll find an aquarium full of exotic fish and, above it, an overhead tank where the sharks swim. Yes, sharks.

This contemporary masterpiece, previously owned by hospitality magnate, is a true one-of-a-kind property, with retractable glass walls, a mountainside office, and plenty of space for entertaining (or plotting evil world domination). Though Seattle real estate developer Len Evans bought it for $42 million in 2022, he's now looking to sell for a cool $59 million after spending a few years enjoying the ultimate in lavish desert living. Click below to read more.

Finally, a house with an underground basketball court seemed perfect leading into Selection Sunday. This Scottsdale estate, listed at $19.5 million, takes basketball fandom to next level status with its NBA-quality subterranean court, a private gym, locker rooms, and even a spectator loft. And let’s not forget the Jordan Room, a mini museum showcasing 290 pairs of rare Jordans worth over $400,000!

But this isn’t just for hoops lovers. The 21,410-square-foot mansion, built on nearly 4.5 acres, also features a state-of-the-art kitchen, a movie theater, a golf simulator, two pools, a hot tub, and a jogging track. And yes, you’ll find 18 bathrooms, because why not?

Designed by Brett and Susie Hardt, this custom estate, known as Hardt Seasons, was inspired by Brett’s love for basketball and his UBER-fandom for Michael Jordan. With a guest house, smart-home tech, and sprawling outdoor spaces, this home offers resort-style living. It’s one-of-a-kind in Scottsdale, and for the right buyer, A SLAM DUNK (see what we did there?) Click below to see more.

THE ECONOMY AND REAL ESTATE

Wanted to give a heads up to our borrowers and friends about student loans. Remember the phrase, “two weeks to stop the spread?” Well, gang, that was 5 years ago and times they are a’ changing.

The Saving on a Valuable Education (SAVE) Plan, introduced to help student loan borrowers with affordable repayment options, has been permanently halted following a court ruling. This decision means the plan will not be reinstated.

This development directly affects our borrowers with student loans, and it could have an immediate impact on American homeowners or the real estate market. Individuals who anticipated reduced student loan payments under the SAVE Plan may need to adjust their budget some as this could influence monthly debts or their ability to save for down payments. If you or someone you know falls in the student loan category, we encourage you to explore alternative repayment options, such as Income-Based Repayment (IBR) or Pay As You Earn (PAYE), to manage their student loan obligations effectively. Read more by clicking below.

We got TWO readings on inflation this week and both were good news. Thursday, the reading on producer price index came out and overall it was good news with the February 2025 wholesale prices across the US remaining unchanged. While one month doesn’t make a TREND, this could indicate a potential easing of inflationary pressures.

This stabilization was influenced by a 4.7% decrease in gas prices, BUT that was offset by a non-Humpty Dumpty approved 53.6% surge in egg prices.



Midweek the Consumer Price Index was released and overall IT TOO was good news. The U.S. CPI increased more slowly than expected in February. That release showed that, overall prices rose by 0.2% (compared to the 0.3% forecast), with lower car insurance and airfare costs contributing to the slowdown. While some economists anticipate tariffs could push prices higher in the coming months, February’s data showed minimal impact. For now, inflation appears to be TRENDING towards the Fed’s 2% target. Read more below.

Rocket Companies, the parent company for Rocket Mortgage, is buying Redfin, a popular real estate website, for $1.75 billion in stock. Rocket paid a 115% premium for Redfin, based on their Friday close before the deal was announced, which means like Stuart Smalley’s SNL character, they really, really liked them. When the deal closes in the next 6 months, Rocket will own Redfin, combining their services to integrate their businesses. Redfin has about 50 million visitors each month and over 2,200 real estate agents. By joining forces, they aim to let users search for homes and get mortgages all in one place. Obviously, this is a big story within the mortgage and real estate community, and gang, our editors will be watching it closely. Click below to read more. 

With all that in mind, our editors thought that the recent article from Keeping Current Matters titled, Mortgage Rates Hit Lowest Point So Far This Year would be the perfect way to close out this update. Keep reading below.

If you’ve been holding off on buying a home because of high mortgage rates, you might want to take another look at the market. That’s because mortgage rates have been trending down lately – and that gives you a chance to jump back in.

Mortgage rates have been declining for seven straight weeks now, according to data from Freddie Mac. And the average weekly rate is now at the lowest level so far this year (see graph below):

While that may not sound like a significant shift, it is noteworthy. Because the meaningful drop from over 7% to the mid-6’s can change your mindset when it comes to buying a home. Especially when the forecasts said we wouldn’t hit this number until roughly Q3 of this year (see graph below):

Why Are Rates Coming Down?

According to Joel Kan, VP and Deputy Chief Economist at the Mortgage Bankers Association (MBA), recent economic uncertainty is playing a role in pushing rates lower:

"Mortgage rates declined last week on souring consumer sentiment regarding the economy and increasing uncertainty over the impact of new tariffs levied on imported goods into the U.S. Those factors resulted in the largest weekly decline in the 30-year fixed rate since November 2024."

And the timing of this recent decline is great because it gives you a little bit of relief going into the spring market. Just remember, mortgage rates can be a quickly moving target, so you should expect some volatility going forward. But the window you have as they’re coming down right now might be the sweet spot for your purchasing power now.

What Lower Rates Mean for Your Buying Power

Even small changes in rates can make a difference to your monthly payment. Here’s how the math shakes out. The chart below shows what a monthly payment (principal and interest) would look like on a $400K home loan if you purchased a house when rates were 7.04% back in mid-January (this year’s mortgage rate high), versus what it could look like if you buy a home now (see below):

In just a matter of weeks, the anticipated payment on a $400K loan has come down by over $100 per month. That’s a significant savings. When you’re making a decision as big as buying a home, every bit counts.

Just remember, shifts in the economy drove rates down faster than expected. But that can change, making rates volatile in the days and months ahead. So, if you’re waiting for rates to fall further before you buy, think hard about the current window of opportunity if you’re ready to act.

Bottom Line

Mortgage rates have dipped, giving buyers a bit more immediate breathing room. If you’ve been waiting for rates to ease before jumping in, this could be your window.

Would a lower monthly payment make buying a home feel more doable for you? Let’s break down the numbers and find out.

RATES:

Pricing and rates remain erratic and volatile. Confirm rates & pricing directly with your loan officer.

Check out the trivia below and remember, there is a drawing to enter to win a gift card. This is your chance to enter for a chance to win the gift card awarded every other month. This trivia question is for the March and April drawing/card.

TRIVIA QUESTION

With Friday being PI(E) DAY, which is an homage to the mathematical figure of pi - which is the ratio of a circle’s circumference to its diameter, out editors had a choice... either had to choose a PI related trivia question or a PIE trivia question. After a strenuous debate, our editors went with a PIE trivia question. (***Remember, correct answers will be entered for a drawing to receive their choice of card for a Bruster’s Ice Cream Pie or an Edgar’s Cake***) Which famous nursery rhyme character was caught putting his thumb in a pie?

A: LITTLE MISS MUFFET

B: HUMPTY DUMPTY

C: LITTLE JACK HORNER

D: LITTLE BO PEEP

E: HUBERT DAVIS

F: GEORGE PORGIE

Click here to EMAIL ME YOUR ANSWER.

Have a great rest of the weekend. Stay safe out there. If you have any questions, please do not hesitate to call. You can contact me by email. Please, follow us on Facebook, Twitter, or LinkedIn. Thanks to many of you, we are continuing to expand our readership, so if you have a friend or client that you think may benefit from this newsletter, please feel free to forward it to them! If you got this from a friend, click here to sign up to receive it.