Why don’t mortgage rates drop when the Fed cuts interest rates?
In this episode of The Den, hosts Paul and Ben welcome Sr. Loan Officer Pete Marthaler, the go-to mortgage pro for The Lyons Group. Pete breaks down how mortgage rates really work, what buyers should understand before jumping in, and why now might still be a smart time to purchase, despite higher rates.
This is a must-listen for homebuyers, sellers, and agents looking to make informed moves in today's unpredictable market. If you're wondering about the difference between conforming and non-conforming loans, how job reports impact rates, or why sticker shock derails deals, Pete delivers the insights with clarity.
🎧 Tune in to get behind the numbers and learn how to strategize like a pro in real estate finance.
KEY TAKEAWAYS
• Mortgage rates don’t directly follow Fed rate cuts
• Conforming vs. non-conforming loans explained
• Why long-term mortgage rates are based on 10-year Treasuries and MBS
• Fed rate affects credit cards and HELOCs, not mortgages
• Recession fears often lower mortgage rates
• The job market plays a critical role in rate movement
• “Date the rate, marry the house” strategy explained
• Pre-approval should be your first step, not home tours
• Sticker shock is real, how to avoid it
• USDA and VA loans still offer major advantages
BEST MOMENTS
00:01:52. “You do fantastic customer service, a true professional. You’ve been in mortgages now, gosh, 12 years.”
00:03:11. “Conforming loan is traditional lending. Most people are familiar with Fannie Mae, Freddie Mac, FHA, VA.”
00:05:35. “True or false? Fed rate cuts directly impact mortgage rates. Pete, I’m going to give you this one.”
00:06:14. “Mortgage rates today are forecasted for what’s going to happen in six months.”
00:10:00. “Even though the fed funds rate went down, Powell’s hawkish comments scared that six-month forecast.”
00:12:11. “In my industry, a recession benefits my industry because recessions drive mortgage rates down.”
00:17:02. “Your safest investment is always real estate. That chart goes from bottom left to top right.”
00:21:02. “Now there's a federal law. It's called the Dodd-Frank Act and the TRID.”
00:24:28. “It’s not my job to tell you yes or no. It’s to tell you yes, here’s how, or if not now, then how and when.”
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