Santa Brought A 5.625% Rate And Nobody’s Mad

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Rates ease into the high fives, low 6's as the 10-year Treasury slides, nudging home sales higher after a slow year. We break down why a program like DSCR and using bank statements are surging in regard to financing, and share a focused plan to re-engage declined buyers and tighten daily execution.

We will be on next Monday as well, so watch for that because it will be the last Monday of the year.

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Episode Transcript

SPEAKER_01 (00:37):
Welcome to your Monday market update.
It is December 22nd, wrapping upthe year.
Nikki, how's it going?

SPEAKER_00 (00:44):
Good, good.
Happy holidays, everyone.
Kind of as we get into thisholiday season, this is kind of
what we call the two-week in themortgage industry anyway, that
two-week kind of like dead breakwhere a lot of people are
traveling, obviously,celebrating holidays, things of
that nature.
And it gives us an opportunityto kind of reset for next year
and be able to just kind ofreflect on things that have gone
on in the prior year and what wecan do for next year.

(01:04):
So from an interest ratestandpoint, we are seeing
interest rates continue tolower, which is great news.
Basically, what's happening isthat tenure treasury bond is
dropping due to, you know, justjob reports and things of that
nature that are starting to putpressure on it.
Also, the news that, you know,we all know that Powell is not
going to be the Fed chair uh fornext year.
And so that has started to helpwith the market as well.

(01:27):
So right now we are into thehigh fives, low sixes.
I've actually helped somebodylock in at 5.625 last week.
So though that is all great newsfor things.
It's expected this trend isexpected to continue into the
new year as the Trumpadministration puts downward
pressure on the Fed to droptheir interest rate, i.e.
affecting their 10-year treasurybond, i.e., affecting mortgage

(01:49):
interest rates.
So all good things moving intothe new year.
Wanted to talk a little bitabout home sales.
We talked about this a lot thisyear, kind of the feeling as
realtors and as mortgageoriginators, where what is
happening?
Why is business so slow?
Is everything, you know, gonnabe okay?
You know, things of that nature.
So in November, we did see alittle bit of boost in sales.

(02:11):
They are attributing this to thelowering of the mortgage
interest rates.
We saw a 0.5% increase fromOctober in home sales.
That puts us at 4.13 million,uh, which is the highest we've
been in the last nine months.
So things are looking good fromthat.
However, if we compare that tolast year, we're actually down
1% from last year.

(02:32):
So that's why you've been kindof feeling like this year,
there's just it feels likealmost things are having a
little bit of trouble likegetting moving, or you know,
you're you just didn't feel theeffects of the spring market and
the summer was busy, but notbusy enough.
And so I know for me, severaltimes throughout this year, I've
had this feeling like, am I evergonna do another mortgage loan
again?
You know, because you just kindof start to panic in your
business when you're used toconsistency and used to a market

(02:54):
where things are moving.
It's hard to adjust when thingsare just slow for you know the
sake of being slow.
I also looked up some otherinteresting information.
And so that 1% drop from lastyear in November is the is the
lowest number of home saleswe've had in November in the
last 30 years.
So, yes, we are definitelyfeeling that pinch.

(03:17):
Right now, is from a listingstandpoint, we are at a 4.2
month supply.
Last year at this time, we wereat 3.8 months, so a little bit
increase in the supply that isout there, which is nice to see.
And what is really interestingis as we look at mortgages
coming into 2026 and theinterest rates on traditional
mortgages, obviously thoseinterest rates are going to come

(03:38):
down.
But there's a whole nothercategory that is starting to
become really in demand in theindustry in general.
And that's more of yournon-traditional loans and loans
for investors like DSCR loans,bank statement programs, stated
income, profit and loss loans,things of that nature that are
more on the what we call non-QMside or non-traditional type of
lending, the demand for thosehas gone up exponentially.

(04:01):
The reason for that is because alot of people, for example, have
a diversified portfolio.
And what I mean by that is ifyou have a client who has a lot
of assets and is just retiring,they sometimes on a traditional
mortgage side, they can have alot of issues qualifying for
that.
There are products out there nowthat are actually at more

(04:21):
reasonable interest rates thanthey were before because the
demand is higher, which can helpthem, we can use their assets to
qualify for that loan instead ofhaving to use any retirement
income.
So there's definitely morepeople out there on
non-traditional employment,non-traditional ways of making
money, where we are in themortgage industry accommodating
those clients now.
I have clients, for example, whoown 37 investment properties.

(04:45):
Well, the paperwork for me to gothrough 37 investment properties
is crazy and insane.
And the borrower would go crazyas well.
So we have products like a DSCRor a dead service coverage
ratio.
The interest rates on those areactually starting to push down
and be more in line with aconventional mortgage.
And when I say more in line, Isay within a percent, whereas
last year at this time, we'retalking two percentage points

(05:06):
higher, if not more.
So there is a huge demand outthere going into 2026 for those
non-traditional programs andnon-traditional products and for
people to be able to takeadvantage of those.
Me specifically, I have accessto those programs.
Not only that, but we underwritethem all in-house.
That's very important as well,because these non-traditional

(05:26):
programs are tend usually haveto go to a different investor to
get underwritten by them.
We do them all in-house.
We fund them with our own money,you know, those types of things,
which helps us control thatprocess.
So just some information to keepin mind as far as what have you
been feeling in 2025 and what's2026 going to look like from an
industry standpoint.

SPEAKER_01 (05:45):
Yeah, and that's huge.
So be thinking about yourinactive clients, the clients
that were talking about that arepeople in conversation, or as
always, every single week, whatcan you take and do with the
information that Nikki just gaveyou?
Go to social media.
Again, I know I've mentioned itbefore, not in a while, but

(06:07):
Nikki has given us fullpermission as agents to duet,
stitch, rinse, repeat, rip off,do whatever.
But take this information and bethe educator out there that
people go to because they seeyou as a leader and an educator
in the industry.
Yeah.

SPEAKER_00 (06:26):
And any client that you have as a buyer that got
turned down maybe last year orthis past year in the past
couple of years got turned downfor a mortgage, those are
important clients to reach outto as well because things have
changed so dramatically andproducts have become so much
more available in the mortgageindustry.
But that may be something we'dbe able to qualify for them, you
know, qualify them for in 2026or even now.

(06:47):
So it's important to reach outto those clients as well.

SPEAKER_01 (06:49):
Yes, absolutely love it.
Thank you so much, Nikki.
I just have one quick thing togo over.
Absolutely wishing everyone ahappy holidays as well.
We will be on next Monday aswell, so watch for that because
it will be the last Monday ofthe year.
So gotta squeeze that one in.
I've been doing, as I've said,ton of business planning with

(07:10):
residential agents, withcommercial agents, with
investors, and I have threedifferent versions.
I have a one-pager, a 10-pager,and if you want that 40-page
business plan, I have it allavailable.
So if you're still on the fenceabout business planning or
you're just not certain what youwant your goals to look like,

(07:31):
reach out to me.
I would love to help in any way.
It truly is just about takingyour goals.
And I like to match yourcalendar to what that looks
like.
So every day when you get up andyou're working or you're working
on your business, you turn onyour computer or you open your
laptop, you should know exactlywhat you're doing for the day.

(07:52):
I see so many agents get putlike lead gen on the calendar,
and then they get there and theygo, Okay, lead gen, who am I
gonna call?
What am I gonna do?
And they waste half, if notmore, of the time trying to
figure that out.
Let's get rid of those timewasters.
And here's a challenge for youas well.
And every elite coaching clientthat hires me, I help them with

(08:14):
this for a day or for three daysor for a week, really go through
and have an alarm on your phoneevery hour or two for it to go
off and write down exactly whatyou did that past hour or two.
I promise you, you will find somany time wasters or things that
you do throughout the day, likechecking emails 14 times a day.

(08:36):
Let's make that three times aday or once a day, depending on
your business or where you'reat.
It is so powerful.
And when you can take your focusand really bring it in, um, even
for a small spring of 15minutes, 30 minutes, 45 minutes,
it's a game changer across theboard.
So just wanted to put that outthere because I'm still meeting

(08:58):
with agents today and tomorrow.
And I'm happy to do it in thenew year as well.
Awesome.
Yeah, good.
All right.
Well, we'll see you guys nextweek and yeah, happy, happy
holidays.
Yes, see you guys.