Rate Cuts, Market Changes, & Reverse Mortgages

Unknown Speaker

Alright, welcome back to the Reliant Mortgage Solutions podcast! I’m Sean—hanging out here as usual with James. James, folks are getting jittery again about where the Federal Reserve might go next, and honestly, for good reason. Every indicator out there right now, from the jobs and data to what’s happening with inflation, it’s all pointing toward the Fed making some kind of move as early as September. And if you believe the analysts—they're pretty much calling for a few different cuts by the end of the year.

James Eveld

Yeah, and I think this is where people get a little confused, right? The Fed controls the federal funds rate, not mortgage rates directly. But those long-term mortgage rates, like your classic 30-year fixed, they generally move in the same direction as long-term Treasury yields. So if the Fed lowers its rates—even though it’s not a direct one-to-one— you will usually see mortgage rates start inching down, too.

Unknown Speaker

Exactly. Look, we’ve seen this happen so many times. I almost feel like a broken record. Do you remember what happened just a few years ago, twenty twenty, It was lightning fast. As soon as rates went down, refinance applications just exploded. It’s like the floodgates were opened and everybody wants to refinance, but this results in lenders getting overwhelmed. Rates start to bounce around, and borrowers can get frustrated. Then before you know it, the window is closing again.

James Eveld

Sean, I remember you talking about a client back from that period who missed out—

Unknown Speaker

Yeah, that still stings! I had this client in Roswell, good guy, stayed in touch for years. We’d been talking about a refinance, but he kept holding out for just one more drop. Rates fell hard, then in the chaos he waited too long, got caught behind delays, and then the market shifted. Missed it by a quarter point, which doesn’t sound like a lot, but—over 30 years, it’s real money. It got me to thinking, "How can we get out ahead of this?" Since then, I tell everyone: Set your “strike rate” That’s the rate where you say, "Sean, Lock me in" No hesitation- just a plan. It’s so much less stressful that way, we just need to get prepared.

James Eveld

Man, that’s such a good point. And to anyone out there listening, this is the moment—you gotta be proactive. If you wait until everybody’s scrambling, you risk missing the boat. Even if you’re not sure if it’s worth it and you need help crunching the numbers, don’t wait until after the news hits, right?

Unknown Speaker

Exactly. Review your options now. Put a strategy in place. You’ll feel a lot better when the headlines start rolling and you’re already ready. That’s really the key.

James Eveld

Alright, let’s keep rolling here because there’s another big conversation making waves: President Trump—well, his administration is apparently weighing a national housing emergency declaration. Honestly, this could be huge. I mean, we saw what happened during other emergencies, like the whole COVID period—there were forbearance programs, foreclosure freezes, aid for homeowners. This time, if something gets announced, it seems like it’s more about fixing affordability for buyers, not just helping people stay in their homes. What’d you make of all this, Sean?

Unknown Speaker

It’s wild, honestly. Affordability is at a breaking point. I think the stat I saw was that median US home prices just hit over four hundered and forty thousand dollars. That’s a 1% jump from last year, but you add it to the 40% surge from a few years earlier? It’s crushing buyers, especially first-timers. And, get this, almost half of renters right now are cost burdened—they’re spending more than 30% of their income on rent and still not buying.

James Eveld

And that’s with the markets at a 40-year low in affordability! So if Trump were to actually pull the trigger and declare an emergency, it gives the White House, uh, pretty considerable powers. Like, from what I understand, they could waive regulations, shift money around, and tell the agencies—like Fannie and Freddie—to loosen up underwriting standards, or streamline loan guidelines. Maybe even some builder incentives or emergency grants for construction, right?

Unknown Speaker

Yeah, and look, as much as people might roll their eyes at federal action, during emergencies sometimes it can really open up new opportunities. I don’t want to get too far ahead of ourselves, because administration changes or Congress still play a role, but if they take action it could make it easier for lenders to move quickly or speed up construction, or help buyers with new mortgage programs—that could mean more qualifying, more homes, lower prices, and a lot more movement for everyone.

James Eveld

Yeah, and I mean, you look at what happened with mortgage relief programs last time—they weren’t perfect, but they gave a lot of people breathing room. If buyers get more support and builders get incentives, we might actually see some pressure come off prices. Who knows—maybe this lays the groundwork for some longer-term fixes, too.

Unknown Speaker

Alright, before we wrap, let me just say—we’re pretty excited at Reliant to officially announce that we now offer reverse mortgages. We have been working on this in the background for a bit and, honestly, it’s a product that really deserves more attention right now, especially as we see more and more older homeowners wanting to age in place, keep their homes, but maybe get a little more cash flow month to month.

James Eveld

Yeah, so the short version for anyone wondering—a reverse mortgage is available to folks who are 62 and older. And I always like to break this down as simply as possible: your home’s equity becomes a cash resource. That means you get to stay in your house—you don’t have to sell, you don’t take on a new monthly payment—and you draw from your equity as either a lump sum, or monthly payments, or even just a line of credit.

Unknown Speaker

I’ve already had a couple of early calls, people wanting to know: is this for covering medical bills, is it for supplementing Social Security, helping with home improvements? Yes, yes, and yes. It’s flexible. For a lot of people, it just bridges that gap later in life so you’re not forced out of your home or stressing about bills. And of course, fees and eligibility can be a little involved, so the key is—just like with everything—get the details up front, ask us all your questions, and don’t be shy. We’re here for that.

James Eveld

Honestly, after the last few episodes where we kept talking about financial flexibility—like in our home equity episode or the one about asset depletion loans—it all ties back to giving people more choice. Reverse mortgages aren’t for everyone, but they are one of those things that, if it fits your situation, it can be a total game changer, especially for managing retirement income or healthcare costs. Just something to consider, right?

Unknown Speaker

Exactly. Alright, James—gonna wrap it there for today. If you’ve got questions about any rate changes, the housing market shifts, or you just wanna talk through a reverse mortgage, please reach out. We’re always happy to help.

James Eveld

Absolutely, and don’t forget—we’ll be back with more insights soon. Thanks for tuning in, Sean, and talk to you again next time!

Unknown Speaker

Thanks, James. Always good talking. Thanks everyone for listening, and we’ll catch you on the next one!