Welcome to the 573^rd Weekly Mortgage Update back out on track on a Friday afternoon to start your weekend.

It’s the state of Florida vs. your favorite football magnet as Wake, Alabama, and Auburn take on Miami, Florida State, and Florida this week. BUT, before we go watch those BIG football games this weekend (starting tonight – GO DEACS!!), wanted to put our reminder in here again about our network of AWESOME trusted, locally owned, and operated companies to connect you to in order to help. Whether you need help with pressure washing, a home inspection, plumbing, a handy man project, HVAC help (I thought we were entering Fall when it’s COOLER), or you need a dumpster for your junk/empty nester clean out (sorry kids), reach out to us so that you don't have to worry... just give us a call! If you call a random provider, you may end up with something that doesn’t work the way you want.

Now, back to the update. This week, rates improved slightly after the Federal Reserve raised their rates… yup… reread that sentence, again, then keep reading below… let’s hope this trend continues in the coming days and weeks. The rates are shown just above the trivia question. If you have questions about how these rates apply to your situation, let's talk. But gang as usual, there is LOTS GOING ON, SO LET'S GET STARTED!

CRAZY STORIES

Talked with a client that flew to South Carolina on a small plane, and rather than the 5-6 5-6 hours in the car it only took them, 2 hours… must be the perks of skipping Atlanta Traffic! Gang, flying to work might sound like science fiction from JJ Abrams, but a Mobile airport leader says it is closer than you think. J. Adam Hays, acting head of the Mobile Airport Authority, told reporters this week that electric air taxis are coming to Alabama skies. "This indeed is the future of low range aviation, and it's just a matter of when it's coming," Hays said. These battery powered aircraft take off and land like helicopters but run much quieter, making them a good fit for short hops between cities or out to the airport. There are several companies across our great country that are currently testing similar options and aircraft, and our friends in the FAA recently laid out rules for pilot training and certification. No word yet on an exact timeline for Alabama, but it looks like the days of beating traffic and potentially grabbing an AIR – UBER could be closer than some of us want… don’t forget to tip your driver, give them five stars as they fly away and read more by clicking below.

I would assume, Lionel is also fired up that it is officially the best week of the year. It’s not another season of the Voice or a cover of ‘All Night Long,’ gang, Fat Bear Week is back with a vengeance!

Each fall bears in Alaska's Katmai National Park spend months at the all you can eat salmon buffet along the Brooks River to bulk up for hibernation. The internet is here to vote on who did it best to get the biggest. The bracket drops later today, with voting running September 22 through 29 at fatbearweek.org. Defending champ Bear 32, known as Chunk, took the crown last year despite starting the competition with a broken jaw, because gang, fat bears are still tough bears. Period. Keep an eye out for past legends like Grazer, the first female to win back-to-back titles, and of course, shout out for past champ, Otis, who won four times and whose memory lives on through the Katmai Conservancy's Otis Fund. There is no fat bear shaming here, our editors are ready to celebrate these bears for bulking up to survive AND thrive in the Alaskan wild. Read more here and get your bracket ready and pick your favorite to win starting next week by clicking below.

REAL ESTATE TO BEHOLD



This next listing has “a story about how a got flipped, turned upside down, so I’d like to take a minute, just sit right there and tell you…” about this listing from the "The Fresh Prince of Bel-Air." That’s right gang, the Banks family mansion from the show's opening credits is a real-life home in Brentwood that has relisted for $22.95 million. BUT that’s a $7 million drop from its original asking price of $30 million earlier this year, when it was originally featured in the Real Estate to Behold section. This house was originally built in 1937, and has stayed in the same family since 1978, LONG before producers came calling and long before anyone moved “in with your auntie and uncle in Bel-Air,” to use it as the Banks family home. The sellers say they simply want a buyer who appreciates its unique piece of television history. Despite the title, the house was never actually IN Bel-Air. It sits a few minutes away in Brentwood. Regardless of location, for six seasons it convinced America that this was where Will Smith's Uncle Phil and Aunt Vivian lived, and it remains one of the most recognizable homes on television and if you buy it, you’d truly be able to say, “look at my kingdom, I was finally there, To sig on my throne as the Prince of Bel-Air.” Click below to read more. 

Long before there was Uncle Phil, or a Fresh Prince, there was Alphonzo Bell, the oil tycoon who created the entire neighborhood of Bel-Air back in 1923. Five years later, Bell built himself a Spanish-style mansion designed by the same architect who laid out Bel-Air's streets and famous underground horse tunnels (although they’re not THAT famous as our entire editor staff was UNAWARE of them). That 10,600 square foot estate has since been home to Queen Noor of Jordan and a Hollywood film producer. After a five-year restoration, the historic property just hit the market for $32.5 million. Its current owner bought it back in 2010 for only $5.5 million, so the value has grown nearly six times over. It just goes to show that in Bel-Air, everything appreciates over time, even the founder's own house.

Most of the homes we feature here belong to a celebrity or stay a little mysterious. This week is different. The seller is Stanley Middleman, founder and CEO of one of the largest mortgage lenders in the country, and he just made news for something much bigger than real estate. Middleman recently gave $50 million to Penn Medicine, creating the Middleman Fund and renaming a research building the Middleman Center, all in hopes of speeding up breakthroughs in cancer and auto-immune disease treatment.

Now he and his wife Roslyn are asking $59.95 million for their oceanfront estate in Ocean Ridge, Florida, more than three times what they paid back in 2018. The 1.55-acre property includes a five-bedroom home with over 10,500 square feet, complete with wood paneling, a club room with a full bar and fireplace, multiple terraces, and an outdoor kitchen. According to the listing agent, the Middlemans are simply moving to another home nearby, not chasing a sky-high number.

THE ECONOMY AND REAL ESTATE

Well gang, the Federal Reserve met Tuesday and Wednesday this week, and midweek they announced a move that had not happened in three years: an interest rate hike. Fed policymakers voted 12 to 0, meaning everyone agreed, to raise the benchmark rate by a quarter point, bringing the target range to 3.75 to 4 percent. The move comes as inflation has stayed stubbornly above the Fed's 2 percent goal for a while now, and officials wanted to send a clear signal that they are serious about bringing it back down. New Fed Chairman Kevin Warsh did not mince words, saying inflation has been "too high for too long."



Here is the part worth watching: the Fed is not necessarily done. Their own projections show most policymakers expect at least one more quarter point hike before the year wraps up. For anyone shopping for a home or watching mortgage rates, this is a good reminder that rates can move in either direction, and locking in sooner rather than later is worth a conversation with your loan officer.

With the Fed raising rates, it’s past time to look at different ways to save money in the mortgage space, and industry guru, Rich Swerbinsky, Executive Director of the Ohio Mortgage Bankers Association, talked this week about something many folks forgot about, the G-Fee. Built into the pricing that we see, and that we provide to clients and that you see below is this fee that Fannie and Freddie charge.

Back in 2011, Congress needed a way to pay for a two-month payroll tax extension, so they tacked on an extra 10 basis points to every conventional loan and sent that money straight to the U.S. Treasury instead. On a $400,000 loan, it adds roughly $33 to $40 a month, and it has quietly continued ever since 2011, generating over $6 billion a year, with the current rule keeping it in place all the way through 2032.

After several increases over the years, the G Fee now stands at 65 basis points and any amount that cut from it would immediately effect rates in a positive manner, lower them at a time that I think we all wouldn’t mind them dropping some. Cut it in half and let’s get rates down a quarter. That can’t hurt, right? Check out the history of G Fees below.

The Federal Reserve and Inflation topped the headlines this week and in spite of that, our friends at Keeping Current Matters had a POSITIVE piece to report. It turns out that the BEST time to buy a house is coming up later this month and next month. Keep reading below! 

Want to buy a house this year, but not sure if the timing's right? Seasonally, it may actually be a better time to buy than you expect.

Yes, mortgage rates have been ticking up lately, and that's creating some real challenges with affordability. But there are also predictable trends that happen this time every year that can put some wind back in your sails.

According to research from Realtor.com, nationally, the week of September 27 to October 3 will be the best time to buy this year, thanks to a mix of elevated inventory, less competition, and prices that have eased off their seasonal high.

But that's the national best week. Depending on where you live, your local sweet spot may come a little earlier or later (see map below):

More Choices, Better Prices, and Less Competition

There are more homes to choose from right now. Data from the National Association of Realtors shows for-sale inventory recently reached its highest level in more than 10 years. That means a better shot at finding something you love without making as many compromises.

Realtor.com says buyers during this window could see home prices about $14,000 lower than the summer peak, along with 30% less competition from other buyers. Homes are also staying on the market almost two weeks longer, giving you more breathing room to decide.

• More choices.
• Better pricing.
• Less competition.

The Window Doesn't Close After This One Week

This isn't a one-week-only opportunity. Realtor.com says 42 of the 50 largest metros see their best week to buy fall sometime during October. Use the time now to get ready, then jump in when the timing works for you.

“The best time to buy a home depends on your needs. Certain seasons can give you an advantage when starting your homebuying journey.”

Bottom Line

If you want to buy a house this year, there's still a way to make it happen, even with today's rates. This fall gives you the chance to get some of the best seasonal perks the market has to offer.

Want help figuring out when those advantages typically show up in our market? Let's have a quick conversation about how our market works and the steps you'll need to take to get ready

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 September & October drawing/card.

TRIVIA QUESTION

Wake Forest plays Miami tonight, which unfortunately will likely go EXACTLY how everyone thinks. Still, our editors wanted to say, “Bienvenido a Miami!” and close things out with a Miami-adjacent trivia question.

Ernest Hemingway famously lived south of Miami in Key West, where a ship captain gave him a six-toed cat. Today, approximately 40 to 60 polydactyl cats roam the Ernest Hemingway Home and Museum, with many believed to be descendants of that original feline.

What was the name of Hemingway’s first six-toed cat?

A. Papa

B. Snow White

C. Sloppy Joe

D. Santiago

E. Key Limey

Click here to EMAIL ME YOUR ANSWER.

**Email your answer to me to have your name entered in a drawing for a gift card at the beginning of even months and YES you can go back and answer previous weeks’ questions if you have not answered them already AND if we have not unveiled the answer yet***