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A Mortgage Update With Dale Vermillion

MoneyWise | Sep 9, 2022

Show Notes

The Federal Reserve’s ongoing effort to curb inflation by raising interest rates is having a ripple effect throughout the economy, especially in the housing market. We’ll talk with Dale Vermillion about that today on MoneyWise.

Dale Vermillion is the author of Navigating The Mortgage Maze: The Simple Truth About Financing Your Home.

  • Dale Vermillion notes that interest rates are on the rise.
  • They’ve risen 2 points from just six months ago, now above 5% for a conventional 30-year fixed.
  • A Freddie Mac mortgage is also above 5%. A year ago they were at about 2.8%.
  • Rates continue to fluctuate, and of course, those rates don’t include fees and other costs
  • Vermillion says we may have seen the worst of inflation this year with regard to mortgages. Many analysts say we can expect 30-year, fixed-mortgage rates to stay between 5 and 6% for the rest of the year.
  • The average home’s value is up 16% from last year and 45% since July 2019. But the housing market explosion is cooling off. The average home value dropped just a tick in July, down .1%. That doesn’t seem like a lot, it was the first monthly decline in a decade.
  • Mortgage applications are down too, by about 2%.
  • Home prices haven’t declined much yet, but sales are down. Bidding wars aren’t as common as they were earlier this year, and sellers may soon have to back away from demanding top dollar.
  • Several factors influence home values and sales, not just mortgage rates. They include:
  • The economy: Some parts of the US economy remain quite strong.
  • Plenty of jobs are still being produced.
  • The demand for housing remains fairly high.
  • The US housing market still faces an inventory shortage.
  • Now may be a better time than just a couple of months ago. However, you still have to make sure that a higher mortgage rate is within your budget.
  • Always follow biblical principles concerning debt, and make sure you have a 20% downpayment to avoid paying private mortgage insurance.
  • Learn more about Dale Vermillion at DaleVermillion.com.

On this program, Rob also answers listener questions:

  • Is it necessary to pay tithe on Social Security?
  • What should prioritize: IRS debt or credit card debt?
  • How should you determine financial priorities?
  • Is it wise to put money in something that isn’t FDIC insured?


Remember, you can call in to ask your questions most days at (800) 525-7000 or email them to Questions@MoneyWise.org. Also, visit our website at MoneyWise.org where you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app.

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