By John Aretos, CEO of Police Mortgage
Well, the Fed did cut rates this past week by 50 basis points, and I think for some it surprised them because the Fed was supposed to maybe cut just a quarter point. I was of the opinion that it was going to be a half point, primarily because the Fed was targeting employment and not the rate of inflation.
I think the markets got what they wanted. Rates had already come back to that level. They’ve adjusted and the markets are almost always efficient. So, in the last month, mortgage rates have come down a little bit.
In the last two weeks in particular, the rates moved lower a fair amount. Looking at the rate sheet on a day-to-day basis, it was possible to find 6%, and maybe even below 6%, on a 30-year-fixed mortgage. Obviously, that’s a lot better than it was a year ago.
I think the news is out, which is always good because now it’s going to give the public the impetus to get on the phone or send an email or whatever they need to do to inquire about a mortgage.
From a standpoint of what is it going to do for interest rates moving forward, I think the rates were baked into the market the last few weeks. Those that were paying attention to what mortgage rates were doing in the last two to three weeks, probably noticed that the Fed dropped rates but mortgage rates haven’t come down much. The market was efficient and already had a Fed-rate cut priced in.
It was interesting that in the Fed statement, Powell said after the decision was made that the Fed was looking to lower again prior to the end of the year. That could be as much as another half point. Now that’s getting aggressive.
So, I think what that means for the rest of the year is that the 30-year fixed-rate mortgage is going to be at or below where we’re at today, which is somewhere in that 6% range. Obviously, that’s a huge push for us at Police Mortgage because I think it opens up affordability for purchase transactions when it comes to police home loans.
It also opens the possibilities to more refinance transactions. Somebody who a year and a half ago obtained a mortgage loan for police officers at a rate over 7% may be a good candidate to refinance.
Anytime the Fed acts to lower rates the news is great because we will have the opportunity to have more discussions with first responders concerning mortgages for police. I think that’s going to carry momentum over into the new year.
We went from a period where we had over two years of rate increases. The rate decrease is a big sea change in that we have now flipped the script and we’re in a phase where the rates are dropping. The pace of the decrease is anyone’s best guess, but the Fed has been pretty fair in telegraphing their intent. If the intent is to continue to lower rates, then I think the fourth quarter is going to bode well for the mortgage industry.
Police Mortgage always advocates for homeownership. We do so in all markets, whether they’re up or down. But now there’s some relief for people, especially for those who were in a situation where they had to buy, or they were in a position where they had to make that decision
It’s now turning towards a lower rate environment. And you never look at gift horse in the mouth. So, I’m going to take what the market is giving me and I’m going to run with it. I think our clients should do the same.
Police Mortgage specializes in conventional mortgages, purchase money transactions, FHA loans, and VA loans. Led by founder and CEO John Aretos, Police Mortgage is known and respected for providing clients with exceptional service, customized terms, quick and easy closings, and low money down options. To learn more about Police Mortgage, go to www.policemortgage.com or call 312-499-8878.
Police Mortgage for First Responders Who Are Second To None.
Chicago Office:
100 W. Randolph, 9th Floor, Chicago, IL 60601.
Springfield Office:
320 W. Washington, 3rd Floor, Springfield, IL 62786. | Phone: 888.473.4858
I have my bachelor’s in business administration and have been involved in the banking industry for over 10 years. During this time, I managed two of the Chicago Patrolmen’s Federal Credit Union locations prior to transitioning to Police Mortgage. I have family members who are police officers with the Chicago Police Department. My work has been very rewarding, and I take pride in having assisted countless members and their families with their financial needs and financial wellness. My hobbies include exploring new restaurants in the city and running for marathons that support pediatric cancer foundations and Chicago Police Memorial Foundation’s Run To Remember. I come from a large family primarily from the south side of Chicago and love to share all the diversity and beauty the city has to offer with my two children.
I am honored to grow up in a multi-generational family of Chicago Police Officers. I joined Police Mortgage in the summer of 2020 and love the opportunity to help both first-time buyers and repeat clients alike achieve their dreams of purchasing a home. Having been born and raised in the south suburbs of Chicago, I happily live in the Lakeview neighborhood today. Along with my two younger sisters, I am a graduate of the University of Illinois at Urbana-Champaign and a lifelong Chicago Bears fan. I have a strong passion for food and love exploring the vast array of restaurants throughout our city. Nothing makes me happier than spending a summer afternoon on a golf course with family and friends!
I joined my brother at Police Mortgage as a loan officer in August of 2021 after a 10-year career in sales and marketing. Most recently, I worked as a Senior Account Executive for Ricoh North America, an office electronics company, where my main responsibilities were building new client relationships and maintaining over 400 existing customer accounts. I believe my work experience has transferred over to the mortgage industry well, because I am able to multi-task effectively while working with multiple customers. The skillset I learned in my previous employment allows me to stay organized and to manage my time well for my customers. My number one goal is always to make the loan process as quick and painless as possible for our borrowers. I am excited to further develop the Police Mortgage brand with my brother. It is a unique situation, and I believe working in an office together allows us to help our borrowers even more due to streamlined communication and our ability to help each other with our respective files. I like to spend my free time relaxing, watching sports, exercising, going out to eat with my wife, and trying to keep up with our three daughters – all under five years old!
After graduating from the University of Missouri in 2015, I moved to Chicago where I began a career in marketing at a firm called Ansira. I sought a career change and contacted Police Mortgage, where I was first introduced to the mortgage industry. I have spent the last 5 years training with our CEO, John Aretos, who has taught me all of the intricacies of the mortgage process. I love finding solutions for our clients to help them purchase the home of their dreams. I feel a huge sense of accomplishment when helping homebuyers, especially first-time homebuyers, all the way through the loan process, from pre-approval to closing day. I recently moved back to my hometown of St. Louis, where we opened a new office. I am excited to help start this new chapter for Police Mortgage. My wife, Megan, and I are happy to be back in our hometown. We are always checking out new outdoor events such as music or food festivals – anywhere we can take our dog, Remy!
As the CEO of an organization associated with serving the Police and their loved ones, I am privileged to play a role in helping our clients achieve their life’s financial goals. Our mission is to make the home buying or refinancing process as comfortable as possible, providing our clients with competitive products and excellent service.
I was born and raised in the Chicago metropolitan area, and I have a deep-rooted love and appreciation for the diverse culture which makes our city so special. My two older siblings and I grew up working in our parent’s restaurant, which instilled a work ethic and sense of family that I carry with me to this day.
I am a graduate of Indiana University and have been involved in the mortgage industry for nearly 25 years, helping thousands of clients save money or finance the home of their dreams. My passions are passing down my love of food, music, art, snow skiing, and red wine to my three children, who motivate me to be a better person each and every day!
