March 14, 2025 • 28 mins
Tired of hearing that the sky is falling on the housing market? Mortgage expert Brendon Bland cuts through the noise to deliver clarity about what's really happening with mortgage rates amid tariffs and economic changes. Contrary to alarming headlines, we're actually experiencing a four-month low in mortgage rates, with gradual improvements expected throughout 2024.
Brendon explains that inflation remains the primary driver of mortgage rates, not just policy announcements. Financial markets have already factored in anticipated changes like tariffs, which is why today's news doesn't necessarily impact tomorrow's rates. This perspective provides much-needed reassurance for those feeling anxious about recent economic developments.
The conversation shifts to practical advice for today's home buyers and sellers. Despite rates being higher than historical lows, home prices have continued to rise steadily over the past two years – proving that waiting rarely saves money. Rather than attempting to time the market perfectly (which is impossible), Brendon recommends focusing on your personal financial readiness. The perfect time to buy isn't determined by external economic conditions but by when you can comfortably afford the home you desire.
As we approach the spring market, competition will increase, but opportunities remain. For first-time buyers, Brendon suggests exploring down payment assistance programs and considering creative financing options like buying down interest rates. For those with existing homes, he explains how the equity built through ownership remains one of the most efficient paths to eventually affording your dream home.
Listen now for clear, straightforward mortgage guidance that will help you navigate today's real estate landscape with confidence rather than fear. Follow Brendon on social media for more valuable insights, and don't forget to leave a review and share this episode with others who might benefit from this practical financial wisdom.
To connect with Brendon:
Brendon Bland
614-747-3530
bbland@neighborhoodloans.com
https://www.instagram.com/mortgagemademodern/
https://www.facebook.com/brendon.bland
Sarah Thress
614-893-5885
First Time Home Buyer course: https://sarahthress.graphy.com/
Instagram https://www.instagram.com/sarah_thress_realtor/
Facebook https://www.facebook.com/SarahThressRealtor/
https://www.youtube.com/@LIFEINCOLUMBUS
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Sarah (00:00):
Hi and welcome to this week's episode of Come to Find
Out.
This week we have Brendon Blandwith Neighborhood Loans and if
you've been a long-time listeneror maybe even just caught a few
episodes, you will recognizehis voice, because I love having
him on just all of theknowledge that he has.
I mean, he has such greatnuggets and he just has a way of
(00:23):
explaining what's going on inthe world in a way that it makes
sense to you.
Know, us commoners that aren'tin this world all the time.
Brendon (00:34):
I don't know about the whole world, but we can talk
about mortgages for sure.
Sarah (00:38):
Well, that's true.
We'll just stick to that fortoday.
Brendon (00:41):
Okay.
Sarah (00:41):
Sounds good, we'll solve all the world's problems another
day.
Brendon (00:43):
Yeah, I can talk about mortgages and we can talk a
little bit about Star Wars ifyou want to.
I got that going for you.
Sarah (00:49):
Oh, okay, perfect, yeah, yeah.
So we can make this a mortgageand Star Wars podcast.
I mean I love it.
Okay, perfect, let's do it.
Um, so you know, anytime thatyou make time for me, it means
the world to me.
So, thank you, appreciate youhaving me?
Yeah, of course.
So I'm certain that, unless youlive, uh, underneath a rock, uh
(01:12):
, you have heard all thecraziness that's going on in the
world.
Um, you know all the you knowchicken littles out there
telling you the sky is fallingand you know all the tariffs are
hitting and you know how thehousing market is.
It's all going to crash and allof that stuff.
So, like we always say, we donot have crystal balls.
We cannot predict exactly whatwill happen in the future.
(01:35):
But I would love to hear, kindof your take on what's going on
with all of these tariffs, witheverything that we're hearing in
the news.
How is that impacting, or is itimpacting, the housing market?
Brendon (01:50):
Yeah, it's a great question.
I think, like most of thesethings, you can think around it
and over, explain it and try tocome up with the most
sophisticated answer in theworld, but sometimes the
simplest explanation is the bestand the easiest.
One of the biggest drivers forwhat's been pushing mortgage
(02:14):
rates up or down the last fewyears at this point really comes
down to inflation.
So inflation the phrase Ialways use that I stole from
someone else who probably stolefrom someone else is that high
inflation is the enemy of lowermortgage interest rates.
So high inflation bad formortgage rates.
That's, as an average everydayperson walking around, that's
(02:37):
really what we need to know ifwe're trying to figure out
what's going on and why mortgagerates are doing what they're
doing.
And I guess if you're listeningto this podcast, you're
probably more engaged in thatconversation than those thoughts
in the average person.
So I hope most people aren'tjust sitting around wondering
while they're drinking coffee inthe morning I wonder what's
going on with inflation andmortgage rates today.
(02:59):
That's not a good mental placeto be.
It's only you and me, right.
Sarah (03:02):
That's just you and me.
Brendon (03:03):
But if you are someone who's a little bit more tuned
into the market, because you'reeither someone who's interested
in buying a home maybe you'reinterested in selling your home
and looking to buy the next oneor you're just someone who this
is your hobby then that's reallythe biggest thing that most
people are focusing on is what'sgoing on with inflation,
(03:28):
because that really driveswhat's happening with mortgage
rates.
There's a couple things thatcan impact inflation.
Heading into the first part ofthis year, with the election
having taken place, there was alot of concern about
inflationary comments andpolicies being put into place,
ie the tariffs.
So I'm not going to make thispolitical, but that just is what
(03:51):
it is.
A lot of times, perception isreality, especially when it
comes to financial markets.
A tweet can send stockspiraling.
So perception about inflationgoing up because of certain
policies certainly had an impacton mortgage rates, especially
at the beginning part of theyear where we saw rates kind of
ticking up a little bit.
(04:14):
As we've kind of, you know,tracked along through the first
part of this year, we try, atleast in our industry, to rely
on actual data, not just oncomments or proposed activities,
because a lot of times I think,for instance, today, as of this
podcast being recorded, thecurrent administration went
(04:36):
ahead and moved forward withtariffs on both Mexico, canada,
china.
So a lot of folks are asking mehey, is that impacting mortgage
rates today?
Well, a lot of times thoseactivities are already kind of
factored into the sauce.
We've known that's going tohappen.
We've known that's going tohappen for the better part of
(04:57):
the last month, so thatofficially happening today
doesn't necessarily change rates.
What we're really looking at atthis point is actual data.
What's happening with inflation?
What's happening with the costof goods?
What's happening?
Is it more expensive forproducers of goods to make those
goods and sell those goods?
Is it more expensive for us asconsumers to buy those goods?
(05:19):
That's really the data thatfolks who invest in the bond
market which impacts mortgagerates.
That's what they look at.
So there's multiple reports,that kind of drive that the most
recent reports that came outfor January early on didn't look
great, and so we saw mortgagerates respond to that.
(05:41):
In the past week or so we'veseen some revisions to that.
We've seen other reports thatcome out that actually shows
inflation maybe isn't as kind ofout of hand as initially
thought, and so we've actuallyseen mortgage rates really
improving here the last handfulof weeks.
Actually, right now we're atabout a four-month low for
(06:03):
mortgage rates.
We've gained a lot of ground.
Actually, right now we're atabout a four-month low for
mortgage rates.
We've gained a lot of ground,so I think that's a really
positive thing as we kind ofcontinue to move forward through
the year.
I do think at this point, if Ihad to have a crystal ball, if
you said, hey, brandon, what isyour crystal ball prediction?
I do think rates will graduallycontinue to head down
(06:26):
throughout the rest of this year.
Do I think there'll be a hugedrop all of a sudden?
You know, no, but you know, andI think that's a good thing.
Right, we don't necessarily want, you know, to see rates drop by
1% or 2% because while thatmight be good for a few
individuals who happen to kindof, you know, make it happen
with their home purchase at thattime, we know what that can do
(06:48):
to demand.
It can make demand untenable.
It can cause prices to risevery quickly.
It can put a lot of stress onespecially first-time homebuyers
who are trying to navigate howthey're going to cover closing
costs down payment now,appraisal gap Now maybe they're
not going to do an inspectionbecause you know the other guy's
(07:09):
not doing an inspection and oh,now there's a $10,000 repair
you've got to do.
So we don't want to seemortgage rates go down too
quickly.
So if that's something you'rekind of hoping for, rooting for,
you know, I would justreconsider.
There's always a joke.
There can be too much of a goodthing right.
(07:31):
Yeah, there can be too much of agood thing, right?
So gradual improvements inrates, I think, is a good thing.
It's healthy for the market,it's healthy for homebuyers and
sellers, and that's what I amlooking at for this year is
continuous, gradual improvement,as inflation hopefully
(07:53):
continues to do that as well.
Sarah (07:54):
Yeah, well, and I agree, and I think it's something that,
again, if somebody has listenedto us before, we've said
previously that, yes, everybodyis hoping for them to drop down,
ok, cool, they drop down, andthen everyone that was over here
waiting on the sidelines forthem to drop down, they all jump
back in the market, which thendrives the price up of the house
(08:17):
.
So, waiting for that hugenumber to go down into the fours
and the fives and all of thatso they get the better interest
rate, it then is just going toultimately drive the price up of
their house and likely they'llend up spending more even though
they've got the better interestrate.
Brendon (08:38):
Yeah, you know it's from the perspective of, like,
looking at the price of a homeand deciding, you know, should I
wait, you know, for eitherrates or for just kind of some
arbitrary, I guess, milestonethat you're trying to reach Home
(08:58):
prices, regardless of what'sgoing on with rates, are going
to continue to go up.
Regardless of what's going onin the economy, they're going to
continue to go up.
We've seen rates at or above 6%for last two, two and a half
years now and that didn't causeprices to go down.
Sarah (09:21):
Right, right.
Brendon (09:24):
You know, last year here in Central Ohio, you know,
I think we actually saw, we sawdemand go down you know from you
, know from previous years, butthat didn't cause prices to go
down.
Prices still went up.
Appreciation is still a veryreal thing, which is great.
If you're a homeowner, it'sgood news.
That means that the value ofyour home is going to weather
(09:46):
multiple different kinds ofeconomic scenarios multiple
different kinds of economicscenarios.
But once again, as aprospective home buyer who's
trying to time things out, timeis not on your side as it
relates to saving money on thepurchase price of your home.
(10:07):
So I think we've talked aboutit before.
Really, I think it comes downto your own personal economy,
your own personal set ofcircumstances.
What's going on at work?
Do we feel comfortable withwhere we are from a savings
perspective?
What's going on with our credit?
Are we ready, regardless ofwhat's going on in the economy?
(10:28):
If yes, then moving soonerrather than later is certainly
going to be to your benefit.
Waiting usually isn't going tobe the answer if we're just
looking at arbitrary numbers.
Sarah (10:43):
Yeah, Well, and I'd like to hear, because I'm sure many
other people also woke up thismorning and heard about it.
It's March 4th, by the way, andyou know we're thinking, holy
goodness, like these tariffs,what's going to happen?
You know, I had a little bit ofa panic.
Brendon (11:03):
Sure.
Sarah (11:03):
And then I was like, okay , I can't control this.
This is not something I cancontrol.
I meditated and you know mademe come back down to reality,
but it made me feel much betterthan contacting you because
you're, you know by my mainresource.
Sure, because I know.
Yeah, because I also know thisabout you.
You are very good at findingmultiple places to look at to
(11:26):
get your knowledge.
You're not just a I'm going tolook at one website and that's
what I'm going to use.
You know, you do your duediligence.
Brendon (11:32):
Yeah.
Sarah (11:39):
But I really liked the fact that you said that it was
all kind of built in.
You know that that banks andyou know the bond market and all
of that stuff kind of saw thiscoming Um, and they they helped
protect that.
So I don't know if there isthere anything that you can kind
of say about that.
Like you know, what did you atneighborhood loans?
like you know, or you know whatdid you at Neighborhood Loans,
like you know, or you know themortgage industry as a whole,
like was there anything thatthey did to kind of help this?
Because you know, like you said, that interest rates have been
(12:01):
going down a little bit, whichis awesome.
Yeah, you know, but and again,I just really, I just really
wanted to point out, I mean,even if you don't have anything
additional, to add to that Ijust really liked the fact that
you made me feel much better andhopefully it makes other people
feel much better.
That this was.
We saw this coming.
This wasn't a big surprise,even though we woke up to the
news.
You guys behind the scenes havebeen kind of prepping for it.
Brendon (12:24):
Yeah, I think you know, and with the with, as it
relates to mortgage rates, um,the costs of getting a mortgage,
you know, once, once again,once again, there's a whole kind
of behind-the-curtainmarketplace where mortgages are
bought and sold and that'sreally what drives what happens
(12:45):
with mortgage rates over time.
Mortgage rates over time.
And so, as it relates to, youknow, predicting or, I guess you
know, feeling comfortable with,like you know, hey, news came
out today about something,whether it's tariffs or
(13:06):
something else, and how is thatgoing to impact mortgage rates?
I think you know, once again,it really comes down to just
understanding.
Like you know, has somethingbeen on the horizon?
And you know the market, youknow the people who are
investing in this marketplace,like, have they been able to see
this coming?
You know, it's like, you know,or has this been a conversation
(13:38):
for the last month, right?
And if it has, then it's like,okay, well, this thing that
people have been talking about,that's been kind of in the
atmosphere.
It just officially happenedtoday, but really it's been
under consideration for a whilenow.
So that's what I was hoping.
Just because something isofficially happening today
doesn't necessarily mean thatit's having an impact on what
(14:01):
you're going to see in themortgage market today Like right
, the effects of this were feltweeks ago.
Yeah, now if something out ofleft field happens that no one
you know.
Maybe that's worth having aconversation about, but you know
, and sometimes too you know notto be cynical here, but
sometimes you know weird thingsthat happen in the world can
(14:23):
actually have a positive impacton mortgage rates.
There's an expression in themortgage industry that says
don't let any disaster go towaste.
Good disaster go to waste.
So go to waste.
Good disaster go to waste.
So I always think back toBrexit.
That's a long time ago.
That happened right when I wasgetting into the mortgage
industry and that had an impacton mortgage rates.
(14:44):
It was a weird thing that washappening that had an impact.
Anyway, we're here in 2025, notin 2016.
So all that to say is you know,I guess, what is the mortgage
industry doing to help preparefor those things?
It's really just you know.
It's just more about you know,people who are investing in the
marketplace and using the datathey have and just understanding
(15:07):
.
You know, hey, what'spredictable, what's not
predictable.
I think you know, once again,as a consumer, yeah, you know
being stressed about or beingconcerned with some of these big
things that are happening, notto say that you know those
aren't things you should beeducated about.
But as it relates to yougetting your mortgage, you know,
(15:28):
once again, I would reallyreally just focus on your own
personal set of circumstances,lean on your team of you know
real estate professionals whocan keep you in the loop and if
there is a really big shiftthat's going to happen all of a
sudden, which those don't happenall that often, right, like
(15:49):
we're usually seeing gradualincreases or gradual decreases,
right.
But if there is some kind of outof left field situation that's
going to occur, lean on yourteam.
They'll, to the best of theirability, help you navigate that
situation.
But yeah, I would just focus onyourself kind of build yourself
up, build up your own kind ofbuild your ship and ride that.
Sarah (16:15):
Yeah, well, because there is no perfect time to buy a
house, like you can't time themarket and you can't time when
is the perfect time?
So I always say the perfecttime is when you can afford the
house that you're looking atcomfortably.
That's whenever it's the righttime to buy, or that's the right
time to sell when you knowthere's something that happened
that you know is something inyour life happened, you know, or
(16:40):
and you're like, okay, I'mtired of paying rent.
Or you know hey, I'm gettingready to have a baby, I'd really
like to have a house, like,okay, great, those are things
that are going to, you know,kind of push you more towards
purchasing it.
And then that's whenever yourteam comes in and they're like,
okay, hey, like what, would yoube comfortable with a monthly
payment?
And okay, great, so then youcan qualify for this house.
(17:01):
Great, so then that makes themost sense.
So, instead of waiting to timethe market to find the best
interest, rate when can youafford it?
Okay, great, If you can affordit now, do it now.
And maybe it's not your dreamhouse, especially for first-time
homebuyers.
It's not going to be your dreamhouse 100%.
I mean, if you're going to saveup for your dream house, I
promise you your first homepurchase isn't going to be until
(17:23):
your 60s or 70s and that'sgoing to suck.
Brendon (17:26):
Yeah, I mean, I think the best way to save up for your
dream house is to buy yourfirst house, absolutely, because
the compound interest, equity,these are all like basic
principles that you can use toyour advantage.
Right, and you know, lettingappreciation do its thing on
that first or even second house,especially in a really strong
(17:47):
market like Columbus, is goingto be one of the most efficient
ways to allow you to get to thatdream home.
Quote, unquote.
Whatever that dream home is foryou, but you know, as you were
saying that, I was just thinkingabout like you and my wife and
I.
You know we bought dream homeis for you, but, as you were
saying that, I was just thinkingabout you, my wife and I we
bought our first house in 2021.
And it was not our dream home.
During that time, rates weresuper low, which, once again,
(18:11):
everyone thinks that's great,but it was a really competitive
time, really challenging time,but we built up a lot of equity
in that time and that's thereality of that particular
market.
Things are different now, butevery market's going to have
different opportunities,different challenges, but you
kind of just have to roll withthe punches in whatever the
(18:31):
market is and just kind of knowthat time in the market is going
to be a much better way versustrying to time the market.
Sarah (18:42):
Correct.
Brendon (18:43):
So yeah.
Sarah (18:43):
Yeah, so outside of tariffs or anything else, what
are you seeing right now in themortgage industry?
And then again without having acrystal ball what are kind of
your predictions that we'regoing to see over, like the next
few months.
Brendon (19:02):
It's a really good question.
Mortgage specific you know, Ithink as we enter spring market
it's going to get a little morecompetitive and so you know
we're going to be havingconversations.
Depending on who the folks are.
We're going to be havingdifferent conversations with
different people.
You know, first time homebuyers.
I think we're going to behaving different conversations
(19:23):
with different people.
First-time homebuyers I thinkwe're going to be really
focusing hard on pulling all theresources together that we can
to help you look as competitiveas possible.
If we don't have a lot of moneydown, okay, how can we stretch
the dollars that you do have inorder to just make your offer
stand out?
Can we leverage a down paymentassistance program to maybe help
(19:44):
you qualify for something?
Can we, you know, can we findan opportunity where maybe you
qualify for a grant program or alower interest rate program to
help you kind of get into thatprice point you need to be in to
be more competitive?
For other folks it might looklike, hey, can we get an
(20:07):
appraisal waiver which is goingto help your offer stand out
with a seller?
It's going to be just a littlebit more on the mortgage side, I
think, working with clients tohelp them understand their
specific set of circumstances,what their competitive edge is,
(20:27):
where their areas of concernmight be, and helping try to
mitigate that as best we can onthe mortgage side.
And then also setting plans forthe future, because even if
rates come down, let's say youget a mortgage somewhere in the
6% range what does that planlook like for you down the line?
Should we be talking aboutbuying down the rate right now?
(20:49):
Should we maybe hold off onthat because we think rates are
going to continue to come downOnce again?
Everyone's situation is goingto be a little bit different.
So I think overall in themortgage space, as we kind of
get into selling season the morecompetitive season of the year
it's just going to be reallyabout dialing in our plan and
helping our clients becompetitive, helping our clients
(21:11):
win the homes that they wantand leveraging their financing
the best way possible to do it.
Sarah (21:17):
Yeah, I totally agree, and I mean we've been seeing in
the market, you know, like forall intents and purposes we're
still a seller's market becausewe still don't have enough
inventory out there for all thepeople that want to purchase.
So that's how you know supplyand demand, as we've talked
about previously.
That's how you know we kind offigure out whether we're in a
(21:38):
buyer's market or a seller'smarket.
But I think that right now,because of the way interest
rates are, even though it's aseller's market, buyers still
have kind of an upper hand in alot of situations, not every
situation.
There are some houses that, ifthey are completely upgraded,
complete turnkey in a verydesirable area.
(22:02):
We are seeing multiple offersand we've been seeing that all
winter, which is so unheard ofand you know, historically you
don't see that.
So you know.
So there are still bidding wars, there are still people having
to, you know, go over asking,offer, appraisal gap, you know
all of those things.
But buyers also are able to goin and say, hey, your house
(22:26):
isn't fully updated, so I'mgoing to negotiate, I'm going to
ask you for a credit at closingthat's going to help buy down
my rate, so that then I'm goingto get a better interest rate
and I get the house at the priceI wanted.
Or, hey, I want you to bringdown the price, which, again, I
would definitely highlyrecommend.
Talk to your lender, especially.
(22:49):
You know, like I know, if youtalk to Brendan, he's going to
walk you through this.
I can't speak for every lenderout there, but I can speak for
Brendan.
He's going to look at it andhe's going to show you okay, if
you ask for $10,000 off, that'sgoing to lower your rate by like
$75 a month, Like, okay, cool,Like or not your rate, I'm sorry
, your monthly payment by like$75, whatever, but if you ask
(23:10):
for $10,000 in a credit to buydown your rate, that could save
you hundreds of dollars a month.
So, again, it's just havingthose conversations with your
you know your real estate team,with your mortgage lender,
finding out what's going to bethe best.
But right now we're stillseeing plenty of those
concessions happen.
And that's what we call whenyou ask that if right now you're
(23:40):
looking and you can afford therate on the house, let's look at
finding a competitive way toget you in there that's going to
give you the best options.
But we're able to likenegotiate that and you know,
come spring market it's going tobe much more difficult.
You know, even with the ratesthat they are, even though
(24:01):
they're not as low as we thoughtspring market is historically
the time when people are like,hey, I want to get my house on
the market so I can get moved atthe end of the school year so
that I can, you know, getsituated wherever I'm going and
my kids can start at their newschool or whatever.
I think people just have cabinfever.
Brendon (24:18):
Too right They've been cooped up inside since November,
december, especially here inthe Midwest or in the Northeast
or the Northwest.
Even the people are just like,hey, like all right, I've been
in this apartment or I've beenin this house and I've been
looking at this, looking at thesame crack in the ceiling for
the last three months and it'sdriving me nuts and I gotta go.
(24:39):
So, yeah, you're, you'redefinitely going to have the you
know the natural, like, yeah,like cycle of hey, new school
district, you know, moving up,moving down, whatever.
But there's just got people whoare just like, hey, I just I've
been, I've been thinking aboutmoving, I've been stuck inside
of three months.
Now I'm really ready, let'sjust get out of here.
So, yeah, it's definitely abusier time.
(25:00):
So I think, yeah, just beingprepared and just once again
understanding your specific setof circumstances.
Like, if maybe you're not ascompetitive, yeah, maybe it is
looking at homes that have beensitting a little bit longer for
whatever reason, and seeing ifthat's a good opportunity
because you'll have a little bitmore bargaining power in those
situations.
Opportunity because you'll havea little bit more bargaining
(25:22):
power in those situations.
And one thing I was eventhinking about as rates do come
down, especially for first-timehomebuyers maybe are a little
bit more cash limited.
One thing we'll even look atpotentially is because
everyone's heard at least a lotof people have heard about
buying down your rate to get alower rate, to lower your
monthly payment.
For a lot of first-timehomebuyers I'm talking to,
they're actually okay with themonthly payment.
For some homebuyers I'm talkingto, they're actually OK with
the monthly payment, it's justlike, hey, where am I coming up
(25:43):
with the closing costs and thedown payment and XYZ moving
costs and everything.
So one thing we'll actually lookat for some people as rates
continue to come down is hey,what if I took a slightly higher
rate than above what the marketis offering?
Because then you can get creditto help offset some of those
closing costs.
So there's a lot ofopportunities depending on
(26:04):
what's going on in the market.
But, yeah, I think those arereally good points that you
brought up and those are that's.
That's kind of what we'relooking for here the next few
months.
Yeah, yeah, yeah, I love it.
Sarah (26:15):
I love it well.
Thank you so much for takingtime out and you know just kind
of eas our minds.
I hope you all feel uh thatthis eased your mind, cause it
definitely um eased mine talkingto you.
I was much less anxious afterour conversation, so that's
really good.
Brendon (26:30):
Awesome, uh, anything I can do, I love it.
Sarah (26:33):
Well, um, as always, I will have all of Brendan's
information in the show notes,so definitely make sure that you
look there.
Uh, if you, uh, I'll have linksto his, uh, social media as
well.
If you're not following him,you should.
He, uh, you know, post somereally funny, clever videos, but
they always have really goodnuggets of information.
So, um, you know, definitelyfollow that.
(26:54):
So, thank you so much forjoining us today and, uh, make
sure that you leave a review.
That is feedback, which is thegreatest gift.
Yes, five star review, um, butyou know, any of that is
feedback.
It's the greatest gift that youcan give us.
Make sure you're sharing thiswith others, because that is the
greatest compliment that youcan give us, um is by saying you
(27:14):
know, hey, listen to this, Ilearned something, um.
And also make sure that you'refollowing along so you never
miss another episode.
So, thanks so much, and we'llsee you next time.
Hi and welcome to this week's episode of Come to Find
Out.
This week we have Brendon Blandwith Neighborhood Loans and if
you've been a long-time listeneror maybe even just caught a few
episodes, you will recognizehis voice, because I love having
him on just all of theknowledge that he has.
I mean, he has such greatnuggets and he just has a way of
(00:23):
explaining what's going on inthe world in a way that it makes
sense to you.
Know, us commoners that aren'tin this world all the time.
Brendon (00:34):
I don't know about the whole world, but we can talk
about mortgages for sure.
Sarah (00:38):
Well, that's true.
We'll just stick to that fortoday.
Brendon (00:41):
Okay.
Sarah (00:41):
Sounds good, we'll solve all the world's problems another
day.
Brendon (00:43):
Yeah, I can talk about mortgages and we can talk a
little bit about Star Wars ifyou want to.
I got that going for you.
Sarah (00:49):
Oh, okay, perfect, yeah, yeah.
So we can make this a mortgageand Star Wars podcast.
I mean I love it.
Okay, perfect, let's do it.
Um, so you know, anytime thatyou make time for me, it means
the world to me.
So, thank you, appreciate youhaving me?
Yeah, of course.
So I'm certain that, unless youlive, uh, underneath a rock, uh
(01:12):
, you have heard all thecraziness that's going on in the
world.
Um, you know all the you knowchicken littles out there
telling you the sky is fallingand you know all the tariffs are
hitting and you know how thehousing market is.
It's all going to crash and allof that stuff.
So, like we always say, we donot have crystal balls.
We cannot predict exactly whatwill happen in the future.
(01:35):
But I would love to hear, kindof your take on what's going on
with all of these tariffs, witheverything that we're hearing in
the news.
How is that impacting, or is itimpacting, the housing market?
Brendon (01:50):
Yeah, it's a great question.
I think, like most of thesethings, you can think around it
and over, explain it and try tocome up with the most
sophisticated answer in theworld, but sometimes the
simplest explanation is the bestand the easiest.
One of the biggest drivers forwhat's been pushing mortgage
(02:14):
rates up or down the last fewyears at this point really comes
down to inflation.
So inflation the phrase Ialways use that I stole from
someone else who probably stolefrom someone else is that high
inflation is the enemy of lowermortgage interest rates.
So high inflation bad formortgage rates.
That's, as an average everydayperson walking around, that's
(02:37):
really what we need to know ifwe're trying to figure out
what's going on and why mortgagerates are doing what they're
doing.
And I guess if you're listeningto this podcast, you're
probably more engaged in thatconversation than those thoughts
in the average person.
So I hope most people aren'tjust sitting around wondering
while they're drinking coffee inthe morning I wonder what's
going on with inflation andmortgage rates today.
(02:59):
That's not a good mental placeto be.
It's only you and me, right.
Sarah (03:02):
That's just you and me.
Brendon (03:03):
But if you are someone who's a little bit more tuned
into the market, because you'reeither someone who's interested
in buying a home maybe you'reinterested in selling your home
and looking to buy the next oneor you're just someone who this
is your hobby then that's reallythe biggest thing that most
people are focusing on is what'sgoing on with inflation,
(03:28):
because that really driveswhat's happening with mortgage
rates.
There's a couple things thatcan impact inflation.
Heading into the first part ofthis year, with the election
having taken place, there was alot of concern about
inflationary comments andpolicies being put into place,
ie the tariffs.
So I'm not going to make thispolitical, but that just is what
(03:51):
it is.
A lot of times, perception isreality, especially when it
comes to financial markets.
A tweet can send stockspiraling.
So perception about inflationgoing up because of certain
policies certainly had an impacton mortgage rates, especially
at the beginning part of theyear where we saw rates kind of
ticking up a little bit.
(04:14):
As we've kind of, you know,tracked along through the first
part of this year, we try, atleast in our industry, to rely
on actual data, not just oncomments or proposed activities,
because a lot of times I think,for instance, today, as of this
podcast being recorded, thecurrent administration went
(04:36):
ahead and moved forward withtariffs on both Mexico, canada,
china.
So a lot of folks are asking mehey, is that impacting mortgage
rates today?
Well, a lot of times thoseactivities are already kind of
factored into the sauce.
We've known that's going tohappen.
We've known that's going tohappen for the better part of
(04:57):
the last month, so thatofficially happening today
doesn't necessarily change rates.
What we're really looking at atthis point is actual data.
What's happening with inflation?
What's happening with the costof goods?
What's happening?
Is it more expensive forproducers of goods to make those
goods and sell those goods?
Is it more expensive for us asconsumers to buy those goods?
(05:19):
That's really the data thatfolks who invest in the bond
market which impacts mortgagerates.
That's what they look at.
So there's multiple reports,that kind of drive that the most
recent reports that came outfor January early on didn't look
great, and so we saw mortgagerates respond to that.
(05:41):
In the past week or so we'veseen some revisions to that.
We've seen other reports thatcome out that actually shows
inflation maybe isn't as kind ofout of hand as initially
thought, and so we've actuallyseen mortgage rates really
improving here the last handfulof weeks.
Actually, right now we're atabout a four-month low for
(06:03):
mortgage rates.
We've gained a lot of ground.
Actually, right now we're atabout a four-month low for
mortgage rates.
We've gained a lot of ground,so I think that's a really
positive thing as we kind ofcontinue to move forward through
the year.
I do think at this point, if Ihad to have a crystal ball, if
you said, hey, brandon, what isyour crystal ball prediction?
I do think rates will graduallycontinue to head down
(06:26):
throughout the rest of this year.
Do I think there'll be a hugedrop all of a sudden?
You know, no, but you know, andI think that's a good thing.
Right, we don't necessarily want, you know, to see rates drop by
1% or 2% because while thatmight be good for a few
individuals who happen to kindof, you know, make it happen
with their home purchase at thattime, we know what that can do
(06:48):
to demand.
It can make demand untenable.
It can cause prices to risevery quickly.
It can put a lot of stress onespecially first-time homebuyers
who are trying to navigate howthey're going to cover closing
costs down payment now,appraisal gap Now maybe they're
not going to do an inspectionbecause you know the other guy's
(07:09):
not doing an inspection and oh,now there's a $10,000 repair
you've got to do.
So we don't want to seemortgage rates go down too
quickly.
So if that's something you'rekind of hoping for, rooting for,
you know, I would justreconsider.
There's always a joke.
There can be too much of a goodthing right.
(07:31):
Yeah, there can be too much of agood thing, right?
So gradual improvements inrates, I think, is a good thing.
It's healthy for the market,it's healthy for homebuyers and
sellers, and that's what I amlooking at for this year is
continuous, gradual improvement,as inflation hopefully
(07:53):
continues to do that as well.
Sarah (07:54):
Yeah, well, and I agree, and I think it's something that,
again, if somebody has listenedto us before, we've said
previously that, yes, everybodyis hoping for them to drop down,
ok, cool, they drop down, andthen everyone that was over here
waiting on the sidelines forthem to drop down, they all jump
back in the market, which thendrives the price up of the house
(08:17):
.
So, waiting for that hugenumber to go down into the fours
and the fives and all of thatso they get the better interest
rate, it then is just going toultimately drive the price up of
their house and likely they'llend up spending more even though
they've got the better interestrate.
Brendon (08:38):
Yeah, you know it's from the perspective of, like,
looking at the price of a homeand deciding, you know, should I
wait, you know, for eitherrates or for just kind of some
arbitrary, I guess, milestonethat you're trying to reach Home
(08:58):
prices, regardless of what'sgoing on with rates, are going
to continue to go up.
Regardless of what's going onin the economy, they're going to
continue to go up.
We've seen rates at or above 6%for last two, two and a half
years now and that didn't causeprices to go down.
Sarah (09:21):
Right, right.
Brendon (09:24):
You know, last year here in Central Ohio, you know,
I think we actually saw, we sawdemand go down you know from you
, know from previous years, butthat didn't cause prices to go
down.
Prices still went up.
Appreciation is still a veryreal thing, which is great.
If you're a homeowner, it'sgood news.
That means that the value ofyour home is going to weather
(09:46):
multiple different kinds ofeconomic scenarios multiple
different kinds of economicscenarios.
But once again, as aprospective home buyer who's
trying to time things out, timeis not on your side as it
relates to saving money on thepurchase price of your home.
(10:07):
So I think we've talked aboutit before.
Really, I think it comes downto your own personal economy,
your own personal set ofcircumstances.
What's going on at work?
Do we feel comfortable withwhere we are from a savings
perspective?
What's going on with our credit?
Are we ready, regardless ofwhat's going on in the economy?
(10:28):
If yes, then moving soonerrather than later is certainly
going to be to your benefit.
Waiting usually isn't going tobe the answer if we're just
looking at arbitrary numbers.
Sarah (10:43):
Yeah, Well, and I'd like to hear, because I'm sure many
other people also woke up thismorning and heard about it.
It's March 4th, by the way, andyou know we're thinking, holy
goodness, like these tariffs,what's going to happen?
You know, I had a little bit ofa panic.
Brendon (11:03):
Sure.
Sarah (11:03):
And then I was like, okay , I can't control this.
This is not something I cancontrol.
I meditated and you know mademe come back down to reality,
but it made me feel much betterthan contacting you because
you're, you know by my mainresource.
Sure, because I know.
Yeah, because I also know thisabout you.
You are very good at findingmultiple places to look at to
(11:26):
get your knowledge.
You're not just a I'm going tolook at one website and that's
what I'm going to use.
You know, you do your duediligence.
Brendon (11:32):
Yeah.
Sarah (11:39):
But I really liked the fact that you said that it was
all kind of built in.
You know that that banks andyou know the bond market and all
of that stuff kind of saw thiscoming Um, and they they helped
protect that.
So I don't know if there isthere anything that you can kind
of say about that.
Like you know, what did you atneighborhood loans?
like you know, or you know whatdid you at Neighborhood Loans,
like you know, or you know themortgage industry as a whole,
like was there anything thatthey did to kind of help this?
Because you know, like you said, that interest rates have been
(12:01):
going down a little bit, whichis awesome.
Yeah, you know, but and again,I just really, I just really
wanted to point out, I mean,even if you don't have anything
additional, to add to that Ijust really liked the fact that
you made me feel much better andhopefully it makes other people
feel much better.
That this was.
We saw this coming.
This wasn't a big surprise,even though we woke up to the
news.
You guys behind the scenes havebeen kind of prepping for it.
Brendon (12:24):
Yeah, I think you know, and with the with, as it
relates to mortgage rates, um,the costs of getting a mortgage,
you know, once, once again,once again, there's a whole kind
of behind-the-curtainmarketplace where mortgages are
bought and sold and that'sreally what drives what happens
(12:45):
with mortgage rates over time.
Mortgage rates over time.
And so, as it relates to, youknow, predicting or, I guess you
know, feeling comfortable with,like you know, hey, news came
out today about something,whether it's tariffs or
(13:06):
something else, and how is thatgoing to impact mortgage rates?
I think you know, once again,it really comes down to just
understanding.
Like you know, has somethingbeen on the horizon?
And you know the market, youknow the people who are
investing in this marketplace,like, have they been able to see
this coming?
You know, it's like, you know,or has this been a conversation
(13:38):
for the last month, right?
And if it has, then it's like,okay, well, this thing that
people have been talking about,that's been kind of in the
atmosphere.
It just officially happenedtoday, but really it's been
under consideration for a whilenow.
So that's what I was hoping.
Just because something isofficially happening today
doesn't necessarily mean thatit's having an impact on what
(14:01):
you're going to see in themortgage market today Like right
, the effects of this were feltweeks ago.
Yeah, now if something out ofleft field happens that no one
you know.
Maybe that's worth having aconversation about, but you know
, and sometimes too you know notto be cynical here, but
sometimes you know weird thingsthat happen in the world can
(14:23):
actually have a positive impacton mortgage rates.
There's an expression in themortgage industry that says
don't let any disaster go towaste.
Good disaster go to waste.
So go to waste.
Good disaster go to waste.
So I always think back toBrexit.
That's a long time ago.
That happened right when I wasgetting into the mortgage
industry and that had an impacton mortgage rates.
(14:44):
It was a weird thing that washappening that had an impact.
Anyway, we're here in 2025, notin 2016.
So all that to say is you know,I guess, what is the mortgage
industry doing to help preparefor those things?
It's really just you know.
It's just more about you know,people who are investing in the
marketplace and using the datathey have and just understanding
(15:07):
.
You know, hey, what'spredictable, what's not
predictable.
I think you know, once again,as a consumer, yeah, you know
being stressed about or beingconcerned with some of these big
things that are happening, notto say that you know those
aren't things you should beeducated about.
But as it relates to yougetting your mortgage, you know,
(15:28):
once again, I would reallyreally just focus on your own
personal set of circumstances,lean on your team of you know
real estate professionals whocan keep you in the loop and if
there is a really big shiftthat's going to happen all of a
sudden, which those don't happenall that often, right, like
(15:49):
we're usually seeing gradualincreases or gradual decreases,
right.
But if there is some kind of outof left field situation that's
going to occur, lean on yourteam.
They'll, to the best of theirability, help you navigate that
situation.
But yeah, I would just focus onyourself kind of build yourself
up, build up your own kind ofbuild your ship and ride that.
Sarah (16:15):
Yeah, well, because there is no perfect time to buy a
house, like you can't time themarket and you can't time when
is the perfect time?
So I always say the perfecttime is when you can afford the
house that you're looking atcomfortably.
That's whenever it's the righttime to buy, or that's the right
time to sell when you knowthere's something that happened
that you know is something inyour life happened, you know, or
(16:40):
and you're like, okay, I'mtired of paying rent.
Or you know hey, I'm gettingready to have a baby, I'd really
like to have a house, like,okay, great, those are things
that are going to, you know,kind of push you more towards
purchasing it.
And then that's whenever yourteam comes in and they're like,
okay, hey, like what, would yoube comfortable with a monthly
payment?
And okay, great, so then youcan qualify for this house.
(17:01):
Great, so then that makes themost sense.
So, instead of waiting to timethe market to find the best
interest, rate when can youafford it?
Okay, great, If you can affordit now, do it now.
And maybe it's not your dreamhouse, especially for first-time
homebuyers.
It's not going to be your dreamhouse 100%.
I mean, if you're going to saveup for your dream house, I
promise you your first homepurchase isn't going to be until
(17:23):
your 60s or 70s and that'sgoing to suck.
Brendon (17:26):
Yeah, I mean, I think the best way to save up for your
dream house is to buy yourfirst house, absolutely, because
the compound interest, equity,these are all like basic
principles that you can use toyour advantage.
Right, and you know, lettingappreciation do its thing on
that first or even second house,especially in a really strong
(17:47):
market like Columbus, is goingto be one of the most efficient
ways to allow you to get to thatdream home.
Quote, unquote.
Whatever that dream home is foryou, but you know, as you were
saying that, I was just thinkingabout like you and my wife and
I.
You know we bought dream homeis for you, but, as you were
saying that, I was just thinkingabout you, my wife and I we
bought our first house in 2021.
And it was not our dream home.
During that time, rates weresuper low, which, once again,
(18:11):
everyone thinks that's great,but it was a really competitive
time, really challenging time,but we built up a lot of equity
in that time and that's thereality of that particular
market.
Things are different now, butevery market's going to have
different opportunities,different challenges, but you
kind of just have to roll withthe punches in whatever the
(18:31):
market is and just kind of knowthat time in the market is going
to be a much better way versustrying to time the market.
Sarah (18:42):
Correct.
Brendon (18:43):
So yeah.
Sarah (18:43):
Yeah, so outside of tariffs or anything else, what
are you seeing right now in themortgage industry?
And then again without having acrystal ball what are kind of
your predictions that we'regoing to see over, like the next
few months.
Brendon (19:02):
It's a really good question.
Mortgage specific you know, Ithink as we enter spring market
it's going to get a little morecompetitive and so you know
we're going to be havingconversations.
Depending on who the folks are.
We're going to be havingdifferent conversations with
different people.
You know, first time homebuyers.
I think we're going to behaving different conversations
(19:23):
with different people.
First-time homebuyers I thinkwe're going to be really
focusing hard on pulling all theresources together that we can
to help you look as competitiveas possible.
If we don't have a lot of moneydown, okay, how can we stretch
the dollars that you do have inorder to just make your offer
stand out?
Can we leverage a down paymentassistance program to maybe help
(19:44):
you qualify for something?
Can we, you know, can we findan opportunity where maybe you
qualify for a grant program or alower interest rate program to
help you kind of get into thatprice point you need to be in to
be more competitive?
For other folks it might looklike, hey, can we get an
(20:07):
appraisal waiver which is goingto help your offer stand out
with a seller?
It's going to be just a littlebit more on the mortgage side, I
think, working with clients tohelp them understand their
specific set of circumstances,what their competitive edge is,
(20:27):
where their areas of concernmight be, and helping try to
mitigate that as best we can onthe mortgage side.
And then also setting plans forthe future, because even if
rates come down, let's say youget a mortgage somewhere in the
6% range what does that planlook like for you down the line?
Should we be talking aboutbuying down the rate right now?
(20:49):
Should we maybe hold off onthat because we think rates are
going to continue to come downOnce again?
Everyone's situation is goingto be a little bit different.
So I think overall in themortgage space, as we kind of
get into selling season the morecompetitive season of the year
it's just going to be reallyabout dialing in our plan and
helping our clients becompetitive, helping our clients
(21:11):
win the homes that they wantand leveraging their financing
the best way possible to do it.
Sarah (21:17):
Yeah, I totally agree, and I mean we've been seeing in
the market, you know, like forall intents and purposes we're
still a seller's market becausewe still don't have enough
inventory out there for all thepeople that want to purchase.
So that's how you know supplyand demand, as we've talked
about previously.
That's how you know we kind offigure out whether we're in a
(21:38):
buyer's market or a seller'smarket.
But I think that right now,because of the way interest
rates are, even though it's aseller's market, buyers still
have kind of an upper hand in alot of situations, not every
situation.
There are some houses that, ifthey are completely upgraded,
complete turnkey in a verydesirable area.
(22:02):
We are seeing multiple offersand we've been seeing that all
winter, which is so unheard ofand you know, historically you
don't see that.
So you know.
So there are still bidding wars, there are still people having
to, you know, go over asking,offer, appraisal gap, you know
all of those things.
But buyers also are able to goin and say, hey, your house
(22:26):
isn't fully updated, so I'mgoing to negotiate, I'm going to
ask you for a credit at closingthat's going to help buy down
my rate, so that then I'm goingto get a better interest rate
and I get the house at the priceI wanted.
Or, hey, I want you to bringdown the price, which, again, I
would definitely highlyrecommend.
Talk to your lender, especially.
(22:49):
You know, like I know, if youtalk to Brendan, he's going to
walk you through this.
I can't speak for every lenderout there, but I can speak for
Brendan.
He's going to look at it andhe's going to show you okay, if
you ask for $10,000 off, that'sgoing to lower your rate by like
$75 a month, Like, okay, cool,Like or not your rate, I'm sorry
, your monthly payment by like$75, whatever, but if you ask
(23:10):
for $10,000 in a credit to buydown your rate, that could save
you hundreds of dollars a month.
So, again, it's just havingthose conversations with your
you know your real estate team,with your mortgage lender,
finding out what's going to bethe best.
But right now we're stillseeing plenty of those
concessions happen.
And that's what we call whenyou ask that if right now you're
(23:40):
looking and you can afford therate on the house, let's look at
finding a competitive way toget you in there that's going to
give you the best options.
But we're able to likenegotiate that and you know,
come spring market it's going tobe much more difficult.
You know, even with the ratesthat they are, even though
(24:01):
they're not as low as we thoughtspring market is historically
the time when people are like,hey, I want to get my house on
the market so I can get moved atthe end of the school year so
that I can, you know, getsituated wherever I'm going and
my kids can start at their newschool or whatever.
I think people just have cabinfever.
Brendon (24:18):
Too right They've been cooped up inside since November,
december, especially here inthe Midwest or in the Northeast
or the Northwest.
Even the people are just like,hey, like all right, I've been
in this apartment or I've beenin this house and I've been
looking at this, looking at thesame crack in the ceiling for
the last three months and it'sdriving me nuts and I gotta go.
(24:39):
So, yeah, you're, you'redefinitely going to have the you
know the natural, like, yeah,like cycle of hey, new school
district, you know, moving up,moving down, whatever.
But there's just got people whoare just like, hey, I just I've
been, I've been thinking aboutmoving, I've been stuck inside
of three months.
Now I'm really ready, let'sjust get out of here.
So, yeah, it's definitely abusier time.
(25:00):
So I think, yeah, just beingprepared and just once again
understanding your specific setof circumstances.
Like, if maybe you're not ascompetitive, yeah, maybe it is
looking at homes that have beensitting a little bit longer for
whatever reason, and seeing ifthat's a good opportunity
because you'll have a little bitmore bargaining power in those
situations.
Opportunity because you'll havea little bit more bargaining
(25:22):
power in those situations.
And one thing I was eventhinking about as rates do come
down, especially for first-timehomebuyers maybe are a little
bit more cash limited.
One thing we'll even look atpotentially is because
everyone's heard at least a lotof people have heard about
buying down your rate to get alower rate, to lower your
monthly payment.
For a lot of first-timehomebuyers I'm talking to,
they're actually okay with themonthly payment.
For some homebuyers I'm talkingto, they're actually OK with
the monthly payment, it's justlike, hey, where am I coming up
(25:43):
with the closing costs and thedown payment and XYZ moving
costs and everything.
So one thing we'll actually lookat for some people as rates
continue to come down is hey,what if I took a slightly higher
rate than above what the marketis offering?
Because then you can get creditto help offset some of those
closing costs.
So there's a lot ofopportunities depending on
(26:04):
what's going on in the market.
But, yeah, I think those arereally good points that you
brought up and those are that's.
That's kind of what we'relooking for here the next few
months.
Yeah, yeah, yeah, I love it.
Sarah (26:15):
I love it well.
Thank you so much for takingtime out and you know just kind
of eas our minds.
I hope you all feel uh thatthis eased your mind, cause it
definitely um eased mine talkingto you.
I was much less anxious afterour conversation, so that's
really good.
Brendon (26:30):
Awesome, uh, anything I can do, I love it.
Sarah (26:33):
Well, um, as always, I will have all of Brendan's
information in the show notes,so definitely make sure that you
look there.
Uh, if you, uh, I'll have linksto his, uh, social media as
well.
If you're not following him,you should.
He, uh, you know, post somereally funny, clever videos, but
they always have really goodnuggets of information.
So, um, you know, definitelyfollow that.
(26:54):
So, thank you so much forjoining us today and, uh, make
sure that you leave a review.
That is feedback, which is thegreatest gift.
Yes, five star review, um, butyou know, any of that is
feedback.
It's the greatest gift that youcan give us.
Make sure you're sharing thiswith others, because that is the
greatest compliment that youcan give us, um is by saying you
(27:14):
know, hey, listen to this, Ilearned something, um.
And also make sure that you'refollowing along so you never
miss another episode.
So, thanks so much, and we'llsee you next time.
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