I received a call today from a customer I had not heard from in 8 months. He had contacted me originally about helping his dad buy a home. The last few times I had called him in February he did not return my calls, so I moved on.
Today he calls me out of the blue. He wants to know if his dad still qualifies for 100% financing and what the rate would be now that the Fed cut rates yesterday. First, I had to explain about the death of 100% financing. Second, I had to explain that even though the Fed cut rates, mortgage rates actually went up.
I'd already had the second part of this conversation several times this morning. Then my curiosity made me ask why he called now. Was it because of the announced Fed rate cut? His answer proved my point to what I have been saying about the media.
The customer said he called because he was driving down the road and saw a Realtor showing a house. Then the thought entered his mind that maybe they could buy a house now. You see, he has been watching the news and the debates. He did not think people could still get a mortgage to buy a home. His perception was that things are so much worse than they actually are.
So, for all those who watch the news and the presidential debates, yes banks are still lending money. In fact, October is shaping up to be my best month of the year. House prices are down. Home inventory is huge. Rates are still near historic lows. Give me a call and stop watching the news.
