Archives for July 2017

Mortgage Rates July 31, 2017

Mortgage rates for July 31, 2017 will be similar to levels seen on Friday.  It will be a busy week for the bond markets as we have a number of important economic data points hitting the market.  At the end of the week we have the most important economic report this week; the BLS jobs report.  And it wouldn’t be surprising to see bonds influenced by mortgage interest rateWashington DC this week as the federal government tries to move forward without passing a health care bill.

Generally speaking 30 year fixed mortgage interest rates are below 4.00%, 15 year fixed rates are below 3.25% and 7/1 ARM rates are below 3.50% (conforming, zero points). Mortgage rates remain just above their 2017 levels to start off the week but that could change depending on the various reports that come out this week.  The 10y yield opened the day at the 2.29% level and the 30 year FNMA 3.5 coupon started the day at the 102.30 level.

Later today we have the Chicago PMI, Pending Home Sales and the 52 week auction.  Tomorrow we have the Personal Consumption, Core PCE, Personal Income, ISM and Construction.  Wednesday it’s the ADP report along with the weekly MBA purchase and refinance index.  Thursday it’s the Factory orders and ISM N-Mfg and on Friday we have the BLS employment report.  We’ll be keeping an eye on the wages earned and the hours in the BLS report (weak wages and lower hours work).  Are 2017 mortgage rates good?  Comparing the current rates to earlier this year and the answer is yes.  Mortgage rates are much lower and the market during the summer has been generally stable.

If you are looking to refinance your current mortgage or looking to buy a new home please be sure to give us a call for a no cost – no obligation quote.  We offer industry low rates and top notch customer service.  Our direct number is 1-800-550-5538.

Mortgage Rates July 28, 2017

Mortgage rates for July 28, 2017 will start the day at the same levels seen on Thursday as the health care repeal died in the Senate late last night.  The market had little reaction to the news out of Washington as the bond market opened the day with yields only slightly higher than yesterday.  The 10y yield opened the day at the 2.33% level, mortgage interest ratehowever it quickly fell to the 2.30% level.  The 30 year FNMA 3.5 coupon started the day at the 102.24 level.

For the most part 30 year fixed mortgage interest rates are below 4.00%, 15 year fixed rates are below 3.25% and 7/1 ARM rates are below 3.50% (conforming, zero points).  Mortgage rates remain just above their 2017 levels heading into the weekend.  Loan volumes remain below average levels mostly due to the low number of refinance applications.

Earlier this morning we had Employment Wages which came in lower than the previous month and adavance GDP which came in as expected.  Later today we have the University of Michigan Sentiment survey before heading into the weekend.  On Monday we have Chicago PMI, Pending Home Sales and a 52 week Auction.  Next week we also have ISM, ADP and the BLS employment report.  A key metric of the BLS employment report is wages and hours worked (important to inflation).

If you are looking to refinance your current mortgage or purchase new home please contact us directly at 1-800-550-5538 for a no cost – no obligation quote.  Our direct number is 1-800-550-5538.

Have a great weekend!

Mortgage Rates July 27, 2017

Mortgage rates for July 27, 2017 will be similar to rates seen yesterday afternoon.  Bonds rallied late afternoon yesterday after the FOMC decision not to raise short term interest rates.  Mortgage bonds rallied back to levels seen late last week, a day after selling.  The 10y yield opened the day at the 2.28% level and the 30 year FNMA 3.5 coupon mortgage interest ratewas at the 102.25 level. For the most part 30 year fixed mortgage interest rates are below 4.00%, 15 year fixed rates are below 3.25% and 7/1 ARM rates are below 3.50% (conforming, zero points).

Overall mortgage rates are just above their 2017 lows just before entering the last full month of summer.  Some of the best mortgage rates from lenders right now are at the 15 year loan program and the 30 year fixed rate loan program is also priced aggressively.  Both refinance and purchase loan volume has been low in 2017 so lenders are doing what they can to attract new business.  Fannie Mae will be raising Debt To Income ratios to 50% to assist lenders in obtaining new business.  

This morning we had the Durable Goods reading and that came in stronger than expected.  Later today we have the 7 year auction and tomorrow we have Employment Wages, Employment Costs and Advance GDP.  Next week is packed with important data including Chicago PMI, Core PCE, Consumption, ISM, ADP employment report and the all important BLS employment report (keep an eye on hours worked and wages).

If you are looking for a mortgage rate quote please contact us directly at 1-800-550-5538.  We offer a no cost – no obligation quote and will take the time to answer any questions you may have.  With over 13 years of experience, millions of dollars of closed loans and industry low rates we’re confident we can provide a positive experience with a great mortgage rate to each and every client.

Debt To Income Ratio Limits Raised to 50%

On July 29th, 2017 the door to a new mortgage will be opened for thousands of potential homeowners and current homeowners that have a Debt-To-Income (DTI) ratio above 45%.  The mortgage giant Fannie Mae will be making an adjustment to its Automated Underwriting System (AUS) so that those with a 45%-50% DTI will be approved for a Fannie Mae mortgage solutionsnew mortgage. By some estimates this will open the door to nearly 100,000 new loans for lenders to process which is good news since the industry has had a slow start to 2017.

Additional good news is that it applies to loan applications with Loan To Value ratios above 80% which will really help those trying to purchase a home that only have a small down payment (such as 5% – 10%).  Mortgage rates are not directly addressed in this DTI change and it appears someone with a 45% DTI potentially have the same rate as someone with a 50% DTI.

The good news is not absent of concerns as a higher DTI means the loan applicant is devoting a high percentage of their income towards their home.  According to Fannie Mae they believe the risk of default does not increase that much between a DTI of 45% and one with a DTI of 50%.  Obviously the increase will be closely monitored and if proves to be too risky then it wouldn’t be surprising to see Fannie Mae revers course in 2018-2019.

However if the default risk remains low it might open the door for Fannie Mae to try additional actions and expand opportunities for lenders even further.

Fed Meeting July 26, 2017

As expected the FOMC (the Fed) left short term interest rates alone and expressed some concern over the lack of inflation which is generally good news for the bond market.  However the market reaction was muted; the 10y yield moved from a 2.31% level down to 2.30% as many investors and analyst anticipated the outcome of today’s meeting.  To start the day the 10y yield was at the 2.33% level however after the 5 year auction, and before the Fed meeting, Janet Yellenthe yield moved down to 2.31%

There was a mention about the balance sheet reduction plan and that they plan to implement that “relatively soon”.  According to statements published by Reuturs; the Fed has noticed that inflation is pulling away from their 2.00% target however they claim over the “medium term” it will reach that target however in the “short term” inflation will continue to run below target (are they trying to say they’re not concerned or are they saying they are concerned???).  

If there is any additional information that comes out this afternoon we will certainly keep you posted.  It appears for now the bond market is viewing today’s events in a positive light and hopefully that will continue into the next few days.