⏱ THE MORTGAGE MINUTE

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There’s an eerie spookiness in the air, and it’s not all ghouls and goblins—it’s also underwriters around the corner holding the release of your conditions hostage. 

Just when you think your file is safe, you hear it—the revving of a chainsaw echoing from the underwriter’s desk, tearing through that beautiful approval you had in your grasp!

We’re not sure if there’s anything scarier than that!

Election Day is nearly upon us and our long wait of market uncertainty may soon be over. Or it could haunt us for many more weeks to come, depending on next Tuesday’s outcome. 

So, until then, we’ll send the kids out to gather some candy while you call your leads to gather new borrowers. 

Happy Halloween!

Market Sentiment & Economic Calendar

This week we saw 3rd Quarter GDP hold steady, but next week’s election could be the real wildcard. Any drawn-out or contested outcome could lead to short-term rate volatility.

October 30 – Q3 GDP

• Actual: 2.8% (slightly below the 3.0% forecast)
  With Q3 GDP at 2.8%, just under expectations, the Fed now has more room to ease rates slightly next week, as is anticipated. 

November 5 – U.S. Presidential Election

Depending on the outcome (or lack, thereof), rates might react quickly, so staying ready to lock could protect against unexpected swings.

Between potential rate volatility due to unforeseen election outcomes and a projected rate drop from the Fed next week, the interest rate crystal ball is a bit fuzzy. Stay alert!

In Case You Missed It…

Quick reminder: Rocket’s $795 fee waiver on Home Equity Loans expires this upcoming Monday, November 3rd. 

All you need to do is register the loan with Rocket by Monday to get the waiver. 

The only thing scarier than a razor blade in your candy? 

Missing this deadline!

https://www.rocketprotpo.com/promotions/

Pipeline Save of the Week

DSCR Loans for Real Estate Investors

In this week’s Pipeline Save, a real estate investor was in a tight spot but the loan officer found the perfect solution through a Debt-Service Coverage (DSCR) loan. 

With significant rental income but complex personal finances and a high amount of tax write-offs, the borrower didn’t meet the requirements for a conventional income documentation loan. 

That’s where DSCR loans shine. 

Unlike traditional loans, DSCR loans focus on the rental property’s income, allowing the borrower to qualify without standard income verification. The result? A smooth closing and another property added to the client’s portfolio, minus the usual hassle.

For borrowers juggling high tax deductions or multiple properties, DSCR can be a true game-changer, opening doors that conventional loans just can’t. 

Reminder to send in your Pipeline Saves of the Week to [email protected] to be featured in future newsletters!

Election Night Rate Frights

Halloween may be here, but it’s not the things that go bump in the night making loan officers nervous—it’s the hair-raising race between Vice President Kamala Harris and former President Donald Trump. With polls close enough to make anyone shiver, the question looms: what horrors (or treats) could this election bring to mortgage rates?

Let’s take a look at the two possible outcomes:

If Trump pulls off a win, his history of pro-growth policies like deregulation and tax cuts could stimulate the economy, but also lead to a spike in inflation. There’s also a good chance Trump’s approach to global trade and tariffs could scare off some foreign investment, nudging treasury yields up—and mortgage rates with them. If inflation accelerates, look for the Fed to tighten monetary policy to prevent an overheating economy. For loan officers, that could mean higher rates in the short to mid-term. 

TL;DR: The potential for a heated-up economy with a Trump win could mean more money is flowing but also make rates more volatile.

But what if Harris takes the win? Her approach likely leans towards a more steady economy, which could mean less inflationary pressure and, in turn, steadier mortgage rates. The market likes predictability, and an economy (mostly) on the same track as it’s been heading could calm the volatile waters. That said, Harris’s push for housing initiatives could increase demand over time, nudging rates upward as the market heats up.

TL;DR: A Harris win might reduce short-term rate volatility, but long-term outlook is less clear.

No matter who wins, election season always brings a hint of mystery—and this year is no exception. If your borrower is feeling the chills of uncertainty, a well-timed rate lock could be the protection they need. 

But if they discover their new house is haunted after closing, that’s on them. Oh, and don’t tell them about the underwriter in the attic. 

It’s best they don’t know.

p.s. Our lawyers said we needed to tell you we were joking about the underwriters. They are totally not currently in someone’s attic…that we know of.

Stay Connected

See! We told you! Five minutes or less!

Crazy how much we packed in there, right?

Thank you for being a part of The Mortgage Minute community. Stay tuned for next week’s insights and tips!