Derek Baker

Week in review (9/5/25)
Hello, this is Derek Baker with your weekly market update.

Last week’s inflation report came in right on target, shifting this week’s focus to the job market – and the data shows signs of a slowdown.

The latest report from the Bureau of Labor Statistics showed the U.S. added just 22,000 jobs in August. This followed ADP’s report that private employers added just 54,000 jobs, with both figures well below expectations. Continuing unemployment claims have stayed above 1.9 million for 15 straight weeks, meaning more people are out of work for longer. Job openings also dropped to a 10-month low.

So, why does this matter?

This weaker labor data has helped the Mortgage Bond market improve, which in turn is helping mortgage rates trend lower – welcome news for homebuyers and homeowners. It also matters because the Federal Reserve closely monitors both inflation and employment when making interest rate decisions.

When inflation is high, the Fed typically raises rates to cool spending. But when the economy starts to weaken, rate cuts are often used to stimulate growth.

Fed Chair Jerome Powell recently noted that a rate cut is getting closer, depending on how the data unfolds. Based on what we’ve seen so far, a cut seems to be a lock at the Fed’s next meeting on September 17.

Just a quick reminder: when the Fed adjusts rates, they’re changing the Fed Funds Rate, a short-term rate banks use to lend to each other. It doesn’t directly set mortgage rates, but it does influence them, along with other borrowing costs.

Thinking about buying, refinancing, or just want to better understand what this means for you? Let’s connect. I’m here to help.

The cost of waiting on your home purchase.

Are you hesitant to buy a home today due to higher interest rates? You're not alone.

Many potential homeowners delay their purchase, waiting for rates to drop. But what if this delay costs more than you think?

By delaying a purchase, you risk foregoing significant appreciation gains, potentially exceeding any financial benefits from lower interest rates. Lower rates would also increase competition and put additional upward pressure on home prices.

It’s time to talk strategy.

Just received a "clear-to-close" on a new build purchase down in Florida for one of my self-employed borrowers! It wasn't an easy one but we did it! I can't tell you how happy I am to hear those words "clear-to-close" within 15 days from start! I'm so happy for them and am grateful for the opportunity!
We offer mortgage solutions for entrepeneurs, including bank statement loans when tax returns aren't an option.
Who's next? Who needs a home loan? I'm licensed in several states.
😁 Connect with me to explore your options today!

Spring home maintenance tips:

Spring is officially here! As the weather starts to warm, here are a few seasonal home maintenance items to cross off your list.

Inspect your driveways and pathways for any cracks and use binoculars to see if any shingles have come loose on your roof.

Clear any debris from gutters and make sure downspouts will drain away from your foundation.

Check your outside faucets, hoses and sprinklers for any frost damage.

Make sure window screens and screen doors are free of holes or tears so bugs remain outside.

Inspect your fence or deck for any loose or warped boards to keep your yard safe for friends, family and pets.

Examine your patio furniture for signs of rust or tears and wash outdoor cushions using the manufacturer's recommended method.

Schedule a service for your air conditioner so you know it's in working order before you really need it.

Have a fun and relaxing spring season ahead!

Federal Reserve - Update: .50% Interest Rate Drop.... Another .50% by year end is predicted. Fed slashes interest rates by a half point, an aggressive start to its first easing campaign in four years.

Key Points:
* The Federal Open Market Committee chose to lower its key overnight borrowing rate by a half percentage point, or 50 basis points, amid signs that inflation was moderating and the labor market was weakening.
* It was the first interest rate cut since the early days of the Covid pandemic.
* The Committee has gained greater confidence that inflation is moving sustainably toward 2 percent, and judges that the risks to achieving its employment and inflation goals are roughly in balance,” the Federal Reserve statement said.

Time to Refinance???

Call me for a free quote at 801-842-4848 or visit my website: www.DirectMortgage.com/DerekB for calculators, resources or to get started.

Grateful,

Derek Baker - Mortgage Loan Advisor - NMLS # 1952172
Direct Mortgage, Corp – NMLS # 9612
6955 S. Union Park Center, Ste 540, Midvale UT 84047
C: 801-842-4848
[email protected]

Currently structuring home loans in Utah, Alaska, Arizona, Idaho, Wyoming, Florida, and Georgia.
License #'s: AK-AK1952172, AZ-1034048, FL-LO108748, ID-MLO-2081952172, UT-11838912, WY-102650, GA-1952172

People only think about home financing a few times during their lives - I think about it every single day!

If you or someone you know is looking for home financing to purchase or refinance a home, you know a guy!

Contact me for a free quote at 801-842-4848 or visit my website: www.DirectMortgage.com/DerekB for calculators, resources or to get started to obtain a loan pre-approval.

Grateful,

Derek Baker - Mortgage Loan Advisor - NMLS # 1952172
Direct Mortgage, Corp – NMLS # 9612
6955 S. Union Park Center, Ste 540, Midvale UT 84047
C: 801-842-4848
[email protected]

Currently structuring home loans in Utah, Alaska, Arizona, Idaho, Wyoming, Florida, and Georgia.
License #'s: AK-AK1952172, AZ-1034048, FL-LO108748, ID-MLO-2081952172, UT-11838912, WY-102650, GA-1952172

Mortgage Minute: The Power of Homeownership

Imagine turning your monthly expenses into a growing investment, something that could multiply your net worth exponentially.

Not a lot of people know this, but the average homeowner's net worth is 40 times that of a renter.

Right now, if you’re renting, you're paying someone else’s mortgage, essentially filling their pockets, but getting zero in return for your own financial future.

Enter homeownership. It's not just a roof over your head; it's equity in your pocket. In fact, on average, two-thirds of a person's net worth comes from home equity!

Plus, home values continue to appreciate. Case-Shiller recently reported that national home prices saw an annual gain of 5.4% for June, hitting another all-time high!

Switching from renter to homeowner is simpler than you might think. It's a strategic move towards securing your financial future.

I'm here to guide you. Reach out, and let's explore a personalized buy vs rent scenario tailored just for you.

Grateful,

Derek Baker - Mortgage Loan Advisor - NMLS # 1952172
Direct Mortgage, Corp – NMLS # 9612
6955 S. Union Park Center, Ste 540, Midvale UT 84047
C: 801-842-4848
[email protected]

Currently structuring home loans in Utah, Alaska, Arizona, Idaho, Wyoming, Florida, and Georgia.

License #'s: AK-AK1952172, AZ-1034048, FL-LO108748, ID-MLO-2081952172, UT-11838912, WY-102650, GA-1952172

Mortgage Minute: Smart reasons to refinance

Should you refinance? I’ll tell you what, there are lots of reasons to refinance aside from just rate.

You know, homes have appreciated quite a bit, so if you’re paying mortgage insurance, let’s get rid of that and save you that money. And because we have seen strong appreciation over the past several years, there is likely equity in your home that you could utilize to do home improvements, make an investment, or consolidate debt.

I can take some of your debts, include them in your mortgage, and significantly reduce your overall monthly expenses. We could also reinvest the savings into your mortgage to greatly reduce your term and generate wealth. And guess what? The increase in your net worth through a strategy like this can be hundreds of thousands of dollars…which you can use for things like paying for your kid’s college education or planning for retirement.

Call me for a free quote at 801-842-4848 or visit my website: www.DirectMortgage.com/DerekB for calculators, resources or to get started.

Grateful,

Derek Baker - Mortgage Loan Advisor - NMLS # 1952172
Direct Mortgage, Corp – NMLS # 9612
6955 S. Union Park Center, Ste 540, Midvale UT 84047
C: 801-842-4848
[email protected]

Currently structuring home loans in Utah, Alaska, Arizona, Idaho, Wyoming, Florida, and Georgia.

License #'s: AK-AK1952172, AZ-1034048, FL-LO108748, ID-MLO-2081952172, UT-11838912, WY-102650, GA-1952172

Mortgage Minute: The false barrier to homeownership

It’s been proven that homeownership is a critical factor in wealth creation. Studies show that homeowners have 40-times the net worth of a renter.

One of the main obstacles to homeownership is the down payment requirement, but it’s likely a false barrier.

According to a recent Fannie Mae report, only 10% of potential homebuyers realize that they can purchase a home with only a 5% down payment or even less. Most home shoppers think they need somewhere between 15% and 20% down. This misconception can cause individuals to count themselves out of this wealth creation opportunity before they even get started.

I can help guide you with accurate information on down payment options to help you achieve homeownership.

Contact me for a free quote at 801-842-4848 or visit my website: www.DirectMortgage.com/DerekB for calculators, resources or to get started to obtain a loan pre-approval.

Grateful,

Derek Baker - Mortgage Loan Advisor - NMLS # 1952172
Direct Mortgage, Corp – NMLS # 9612
6955 S. Union Park Center, Ste 540, Midvale UT 84047
C: 801-842-4848
[email protected]

Currently structuring home loans in Utah, Alaska, Arizona, Idaho, Wyoming, Florida, and Georgia.

License #'s: AK-AK1952172, AZ-1034048, FL-LO108748, ID-MLO-2081952172, UT-11838912, WY-102650, GA-1952172

Don’t wait for lower rates to buy.

There’s a good chance rates may be dropping in the not-too-distant future based on a slowing economy, moderating inflation and a weakening job picture. It’s also likely the Fed will be forced to start cutting rates.

So, should you wait for rates to decline before making your home purchase? The answer might surprise you.

As rates move lower, more buyers will become eligible to purchase. In fact, the National Association of Realtors states that for every 1% decline in mortgage rates, 5 million more people can be eligible to buy.

Even if a small fraction of these eligible buyers decides to move forward, it will likely pressure prices higher and shrink the number of available home choices even further.

The advantage of buying ahead of a drop in rates is that you can capture the substantial benefit of appreciation, then refinance to a lower rate once they come down. However, this does come with a cost.

The added temporary interest expense along with the cost to refinance must be considered. When you weigh it against the much greater benefit of appreciation, the choice may become clear to marry the home today, while dating the rate in the interim.

I have the tools to allow you to evaluate what the forecasted appreciation is on the home you’re looking to purchase and weigh it against the temporary interest expense to see if it makes sense for you.

Contact me for a free quote at 801-842-4848 or visit my website: www.DirectMortgage.com/DerekB for calculators, resources or to get started to obtain a loan pre-approval.

Grateful,

Derek Baker - Mortgage Loan Advisor - NMLS # 1952172
Direct Mortgage, Corp – NMLS # 9612
6955 S. Union Park Center, Ste 540, Midvale UT 84047
C: 801-842-4848
[email protected]

Currently structuring home loans in Utah, Alaska, Arizona, Idaho, Wyoming, Florida, and Georgia.

License #'s: AK-AK1952172, AZ-1034048, FL-LO108748, ID-MLO-2081952172, UT-11838912, WY-102650, GA-1952172