The Mortgage Files

Nationally syndicated mortgage news and advice from Senior Loan Officer Scott Sheldon.

Should You Lock or Float Your Mortgage Rate? Here’s What to Consider

By Scott Sheldon / December 11, 2024

When you apply for a mortgage, one of the key decisions you’ll need to make is whether to lock in your interest rate or let it “float.” This choice can impact your monthly payment and your overall financial comfort, so let’s explore both options to help you decide. What Does It Mean to Lock Your…

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A vibrant depiction of the Sonoma County real estate market, showcasing modern single-family homes surrounded by vineyards and rolling hills under a clear blue sky, symbolizing opportunities with the 2025 conforming loan limits increase.

2025 Conforming Loan Limits Rise: Boosting Opportunities for Sonoma County Homebuyers and Sellers

By Scott Sheldon / November 26, 2024

2025 Conforming Loan Limits: What It Means for Sonoma County Buyers and Sellers The Federal Housing Finance Agency (FHFA) has announced an increase in the baseline conforming loan limit for single-family homes to $806,500 in 2025, a 5.2% rise from the 2024 limit of $766,550. In high-cost areas like Sonoma County, California, the conforming loan…

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Chart showing mortgage rates with points and the impact on pricing in high-interest rate environments.

How mortgage rate pricing works when rates decline

By Scott Sheldon / October 9, 2024

When interest rates are high, here’s how mortgage pricing works. Mortgage companies make money in two ways: the origination of the loan and the servicing of the loan, which involves collecting your monthly mortgage payments. When interest rates are higher, say around 7%, mortgage aggregators assess the value of that mortgage. They think, “If rates…

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"Illustration of a human figure representing the Federal Reserve, holding large scissors and cutting a red percentage sign symbolizing an interest rate. Surrounding the figure are individuals representing homeowners, business people, and families reacting in various ways to the rate cut, with a city skyline in the background, featuring banks, homes, and businesses."

“Why Federal Reserve Rate Cuts Don’t Directly Lower Mortgage Rates”

By Scott Sheldon / September 30, 2024

Why Federal Reserve Rate Cuts Don’t Directly Lower Mortgage Rates When the Federal Reserve announces a cut in interest rates, many people immediately assume that mortgage rates will drop as well. Unfortunately, this is a common misconception. When the Fed adjusts its rates—specifically the Federal Funds Rate—it doesn’t directly impact long-term mortgage rates. Instead, these…

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Sold suburban home with a 6% mortgage interest rate sign, reflecting current real estate market conditions.

Why Housing Prices Will Rise: Understanding Interest Rates and Market Timing

By Scott Sheldon / September 18, 2024

If you’ve been sitting on the sidelines, waiting for the “perfect” time to buy a house because of high interest rates, now is the moment to pay close attention. Over the past few years, mortgage rates surged to 7%, creating a challenging environment for homebuyers. However, with the recent dip into the 6% range for…

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accurate mortgage rates

Why the Media is Not Your Friend When It Comes to Mortgage Rates

By Scott Sheldon / August 7, 2024

When it comes to understanding mortgage rates, relying solely on media sources can be misleading. The best barometer for where mortgage rates truly stand is the actual source: FreddieMac.com. This is the entity that buys the loans made and sold by mortgage aggregators. When you see headlines claiming that interest rates are lower or have…

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How to position your mortgage pre-approval against rising rates

Position your pre-approval against rising rates

By Scott Sheldon / March 27, 2022

The inflationary environment that we are in, coupled with the supply chain, and rising prices of food and energy, all have contributed to higher costs for about every economic resource. Interest rates are no exception. Interest rates are up one day down the next based on worldly and historic events. If you’re pre-approved for a…

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Does the Federal Reserve make mortgage rates go up or down?

Does the Federal Reserve make mortgage rates go up or down?

By Scott Sheldon / March 20, 2022

It’s no secret unless you’ve been living under a rock, that the Federal Reserve almost for certain is going to raise interest rates in March of 2022. The question then becomes if the Fed raises rates, what happens with mortgage rates? Well, the answer just might surprise you. Most people think when the Federal Reserve…

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