It seems that the questions are neverending when wading through the mortgage market – Can I afford a mortgage? Will there be anything I can buy when I can afford a mortgage? Why are property values going up? How come I have to continue to give documentation to my loan officer when I already gave him what he asked for? Why is inflation happening and what does it have to do with my loan? How come the funds available for my loan cost me more money today than they did yesterday? And the foremost question on everyone’s mind: why do rates keep going up?

Some questions are universal and happen in every market (government debt), and some are specific to individual markets (environmental issues or regulatory issues at the local or state level). The level of lender risk is determined by large banks, who set the rates and are affected by the smallest movement in the economy – if they get nervous, rates will be going up. The 10-year bond (US debt) is tied directly to mortgages and determines what a particular rate might be. The idea of even the possibility of the government defaulting on debt or not raising the debt ceiling (to be able to issue more debt), causes rates to rise. If the US does not entice people to buy their debt, i.e., make it worthwhile to purchase that debt, it then becomes worthless. The yield offered by the government is the enticement to debt buyers, which means loan seekers end up paying for it with, you guessed it, higher rates. Jeff’s guests this week include:

– Gino Payne, a cinematographer and Las Vegas entrepreneur, discusses business in Nevada.

– Maria Schroeder of Quontic Bank talks about the impact of the pandemic on the self-employed and small business owners.

– Jessica Hearns, Cinematographer, shines a light on the Las Vegas real estate market – more inventory is starting to become available, rates are inching up, and now is the time to sell before the seller’s market eases.