Seasons Savings

Well it seems the weather went from shorts to winter jackets in a flash.  A few weeks ago it was beach weather, and now snowflakes could be in the air by week’s end.  This time of year is all about family, holidays, and bills!

You probably heard last week that the Fed reduced the benchmark lending rate by .25%.  This is something that we expected and I had prepared my clients to be ready to jump when rates dropped.  Why did I want them to jump?  Thirty year mortgage rates are not tied to the Fed benchmark rates, but more to the 10 year treasuries.  The 10 year moves in line with the stock market, and that has been at record highs recently.  When the stock market goes up, generally the yield on 10 year treasuries generally go up.  That means mortgage rates go up.  However, when the Fed reduces rates, the yields generally go down and you get better rates.  Today we have both lower yields and a record stock market.  That’s why we have to jump on low rates when we have them.  These rates will move on both fronts, which makes rates volatile.  My clients, who took my advice, got great deals last week and this week.

When setting up these refinances and talking to clients about how it works, one thing kept jumping out at me.  It’s that all of these refinances are closing between Thanksgiving and Christmas.  Because of that, my clients who are refinancing are going to skip a December or January mortgage, or both!  That is a great side benefit of refinancing this time of year.  You can get a little bit of cash flow for the holiday shopping season. Furthermore, I am having my clients get their year-end financials in place so when February 2020 comes, they are ready to do their taxes since their paperwork is altogether.

If you are interested in saving money, generating cash flow during the holidays, and getting your financial affairs in order, please contact me today.  Talking to me is always free.  Preapprovals and credit reports are free too.  Contact me today in person at my office at 180 Main Street in Gloucester, email at, phone or text at 617.688.6891 or online at

Here’s to a great holiday savings season!

Pratt Sign

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