Archives for December 2018

Mortgage Rates December 18, 2018

Mortgage rates should start off the day at slightly improved levels as the 10y yield opens in positive territory (2.83% level) along with Mortgage Backed Securities. Lenders will continue to be conservative with their pricing until Wednesday afternoon. Stocks continue to sell off on worries of global economic slow down and oil is trading below $49 per barrel. High profile investor Jeff Gundlach along with other top investors think stocks are in Bear Market which some believe will help push yields/mortgage rates dramatically lower. However a Bear Market in stocks doesn’t always mean mortgage rates go lower but generally speaking lower stock buying usually brings investors to the bond market. Today we have Housing Starts and Housing Permits. Wednesday is the big day with the Fed decision and we also have existing home sales. To finish off the week we have the Philly Fed Index, Durable Goods and Core PCE. 

Currently we are seeing 30 year fixed mortgage rates below 4.50%. 20 year fixed mortgage rates below 4.375% and 15 year fixed rates below 3.75%. Mortgage rates adjust daily; sometimes they adjust multiple times in a day when the bond market is volatile. At JB Mortgage Capital, Inc. we offer residential mortgage loans on 1-4 unit properties for both purchase and the refinance of a current mortgage. We have fixed rate mortgage loan programs and adjustable rate mortgage loan programs. Next week is the Christmas holiday. Most lenders and the bond market will close early on Monday and close on Tuesday. Things will start back up again on Wednesday when we have the CaseSchiller reports, then on Thursday we have the New Home Sales reports and to finish the week we have the Chicago PMI report.

Don’t forget to connect with us on Twitter: @Rates01

FHA Loan Limits For California For 2019: The Federal Housing Administration (FHA) issued their 2019 loan limits and the good news for homeowners in California is that they’ve increased their loan limits for most areas. The FHA increase in loan limit size is a big win for homeowners in California as it will open the door to additional opportunities for many current and potential homeowners. The most popular FHA loan program is the 30 year fixed rate loan program and the 15 year fixed rate loan program and those will continue to be offered in 2019. A FHA loan is not for everyone however it does provide an opportunity for thousands of Californian’s every year to either refinance their current mortgage or purchase a new home. FHA loan programs typically come with lower rates (compared to conforming loan programs) however they do come with Mortgage Insurance (MI).

Mortgage Rates December 17th, 2018

Mortgage rates are starting off the week at similar levels seen on Friday, as the 10y yield opened the day at the 2.88% level and Mortgage Backed Securities (MBS) also opened in positive territory. For the most part lenders are waiting on the all important Fed decision on Wednesday which means lenders Fixed Rate Mortgage(and the bond market) will take a wait and see approach until they hear from the Fed. Mortgage rates should remain stable until then, unless of course there is a significant unforeseen event that affects the bond market. And keep in mind that it’s not just about if they raise or if they don’t raise; it’s what they say about current economic conditions and more importantly future economic conditions. Most analyst believe they will raise and more are starting to believe that they will take more of a “dovish” tone with their future outlook due to the weakening of the US economy. Last week we had some fairly important economic reports including the CPI report, Export Prices, Import Prices and Retail Sales. Along with that we had a 10y and a 30y Auction. If you haven’t had the chance be sure to check out our recent post on the updated Fannie Mae Guidelines (see below). These recent changes may apply to you; especially if you’re doing a cash-out refinance. Many people want to know what is a good mortgage rate for 2019?  A good mortgage rate in 2019 is going to really depend on how the economy is doing and how aggressive mortgage lenders will be with pricing. It’s something we’ll keep an eye on!

Today we have the NAHB Housing Market Index, and on Tuesday we have Housing Starts and Housing Permits. Wednesday is the big day with the Fed decision and we also have existing home sales. To finish off the week we have the Philly Fed Index, Durable Goods and Core PCE. 

Currently we are seeing 30 year fixed mortgage rates below 4.50%. 20 year fixed mortgage rates below 4.375% and 15 year fixed rates below 3.75%. Mortgage rates adjust daily; sometimes they adjust multiple times in a day when the bond market is volatile. At JB Mortgage Capital, Inc. we offer residential mortgage loans on 1-4 unit properties for both purchase and the refinance of a current mortgage. We have fixed rate mortgage loan programs and adjustable rate mortgage loan programs. Next week is the Christmas holiday. Most lenders and the bond market will close early on Monday and close on Tuesday. Things will start back up again on Wednesday when we have the CaseSchiller reports, then on Thursday we have the New Home Sales reports and to finish the week we have the Chicago PMI report.15 year fixed rate

Don’t forget to connect with us on Twitter: @Rates01

Fannie Mae Loan Guidelines Updated December 2018: On December 8th, 2018 the mortgage giant Fannie Mae will be updating its Automated Underwriting System which will adopt some new guidelines for conforming mortgages. Significant changes will come to loan programs that deal with borrower’s that have “debt-to-income” ratios that are looking to take cash out from their property. All conforming loans go through either the Fannie Mae Desktop Underwriter or Freddie Mac’s Loan Prospector before an underwriter approves a loan application. Generally speaking (stress generally); if a lender obtains an approval from either the Fannie Mae or the Freddie Mac Automated Underwriting System your loan will be approved (provided there is not a single change the data inputted upon the approval).

Mortgage Rates December 14, 2018

The 10y yield opened today at the 2.88% level and Mortgage Backed Securities (MBS) also opened in positive territory as we head into the weekend. For most lenders mortgage rates will start the day at the same levels as yesterday. This morning we had the Retail Sales report which came in as expected (last months report was revised higher) and later today we have the 30y Bond auction. As previously mentioned earlier in the week; it appears the bond market and for that matter mortgage lenders are Fixed Rate Mortgagetaking a “wait and see” approach before next week’s Fed meeting. Most investors and analyst believe the Fed will raise again however there is a chance they may soften their stance on future rate hikes. They’re in a difficult situation because if they do “soften’ their tone about future rate hikes then that may send a signal to the markets that the Fed is concerned about future growth and thus the stock market my sell off as we finish out the year. However if they don’t soften their tone then that also might cause some concerns because more and more investors are starting to believe the Fed might be going too far with their rate hikes. Maybe they spend some extra time crafting their statement before it’s release to ensure they don’t disrupt markets.

Earlier in the week the White House announced it’s nominee to head the Federal Housing Finance Agency (FHFA). Anthony Calabria has a long history in the housing and mortgage industry however he has come under some criticism for previous comments he made about the two mortgage giants Fannie Mae and Freddie Mac. It’s unlikely he’ll be confirmed before the current director’s term expiries so FHFA will most likely have to appoint an interim director. The future of Fannie Mae and Freddie Mac is uncertain at best and most law makers avoid the discussion because it’s a complex situation. Many law makers believe the U.S. government should not be involved with Fannie Mae and Freddie Mac however removing the government is easier said than done.

Currently we are seeing 30 year fixed mortgage rates below 4.50%. 20 year fixed mortgage rates below 4.375% and 15 year fixed rates below 3.75%. Mortgage rates adjust daily; sometimes they adjust multiple times in a day when the bond market is volatile. At JB Mortgage Capital, Inc. we offer residential mortgage loans on 1-4 unit properties for both purchase and the refinance of a current mortgage. We have fixed rate mortgage loan programs and adjustable rate mortgage loan programs.

Don’t forget to connect with us on Twitter: @Rates01

JB Mortgage Capital, Inc. Reviews:

“Thanks a lot for your help. I really enjoyed working with you. Thank you for being clear and honest all the way through. It’s a great bonus that the closing costs were so low.”

Best regards,

Rachel M.
Los Angeles, CA

“You did an excellent job!”

Mike D.
Santa Clara, CA

“Thanks Kevin.  Appreciate your services, and have recommended you to others.  If we have any further questions we will give you a call. Wishing the best for you and your family this holiday season, and beyond, as well.”

Mike M.
Eureka, CA

If you are considering obtaining a new mortgage please be sure to call me today for a no cost – no obligation quote at 1-800-550-5538 (my direct number). We offer industry low mortgage rates, the latest technology and have a top rating with the Better Business Bureau. And when you work with us you’ll work with directly with me from application to closing. One person; not 3, 4 or even 5 like most mortgage companies.

Have a great weekend everyone!

Mortgage Rates December 13, 2018

The 10y yield opened today at the 2.90% level and Mortgage Backed Securities (MBS) opened in positive territory which means mortgage rates should start the day at similar levels seen yesterday afternoon. Today we have the Export and Import Prices reports and on Friday we have Retail Sales and a Fixed Rate Mortgage30y Bond auction. Later this morning ECB head Mario Draghi speaks and sometimes he says a few things which end up moving markets. If anything significant comes out and we see a sharp move in bonds and/or mortgage rates I’ll update the post along with our twitter feed.

Don’t forget to connect with us on Twitter: @Rates01.

Moving forward it will not be surprising to see bonds and mortgage rates take a “wait and see” approach going into next weeks Fed meeting (Wednesday they announce their decision). Most analyst still believe the Fed is going to raise their rate next week despite slightly weaker economic data over the last 4-6 weeks. A recent change in expectations among some analyst is what the Fed says in their press release. With the economy potentially slowing down the Fed might be inclined to take a more “Dovish” tone next week when they release their statement after the meeting. Trade war fears, the potential of a government shutdown, ballooning government deficit are all things we’ll be keeping an eye on as we move towards 2019. Generally speaking the last few weeks of December and the first week of January are quiet periods for the bond market and mortgage lenders; but that is not always the case. Considering the constant news cycle one never knows what will happen however we’ll be sure to pass along anything significant.

Home sales have seen a noticeable slow down since the summer and inventory is up which is good news for buyers. What will be interesting moving forward is if that changes now that mortgage rates have moved back below 4.50%. Will sales pick up again with lower mortgage rates? I would not expect to see a huge uptick based on mortgage rates moving down especially since we’re moving into what is usually the slowest time for home sales. We’ll also need to keep an eye on home builders and their expectations for 2019.

Currently we are seeing 30 year fixed mortgage rates below 4.50%. 20 year fixed mortgage rates below 4.375% and 15 year fixed rates below 3.75%. Mortgage rates adjust daily; sometimes they adjust multiple times in a day when the bond market is volatile. At JB Mortgage Capital, Inc. we offer residential mortgage loans on 1-4 unit properties for both purchase and the refinance of a current mortgage. We have fixed rate mortgage loan programs and adjustable rate mortgage loan programs. 

JB Mortgage Capital, Inc. Reviews:

“Thank you Kevin for all your efforts. It’s nice to know there are still people out there that provide a good service. I appreciate you taking the time to explain to me my different loan options, finding me a loan that I could afford and calling back when you said you would!”

Sincerely, Jason B., Los Feliz, CA

If you are considering obtaining a new mortgage please be sure to call me today for a no cost – no obligation quote at 1-800-550-5538 (my direct number). We offer industry low mortgage rates, the latest technology and have a top rating with the Better Business Bureau. And when you work with us you’ll work with directly with me from application to closing. One person; not 3, 4 or even 5 like most mortgage companies.

FHFA Nominates Anthony Calabria As Director

The White House has nominated Anthony Calabria to be the new Director of the Federal Housing Finance Agency (FHFA) to succeed Melvin Whatt who has served as the head of the agency for the last 5 years. Prior to this, Calabria was the Chief Economist to the Vice President. He’ll run an agency in a time of potential transition in which some law makers would like to see the government separate it’s self from the two mortgage giants; Fannie Mae and Freddie Mac. It’s not expected that the Senate will be able to confirm him prior to Mr. Whatt’s term ending so the agency will likely have to appoint a temporary director while Mr. Calabria goes through the nomination process and Senate hearings. The nomination had no significant affect on the Mortgage Backed Securities (MBS) market as they were essentially unchanged just after the announcement. 

The nomination has been somewhat well received so far however it is not absent of those who think he’s the wrong choice. Mr. Calabria has been involved in the housing and finance industries as he was an aide to the Senate Banking Committee and helped draft the Housing and Economic Recovery Act of 2008 (HERA). His qualifications continue beyond that as he’s worked for the National Association of Home Builders, the National Association of Realtors, and Harvard’s Center For Housing Studies. Those that will oppose the nomination point to his previous statements in which he advocates for liquidating the two mortgage giants, the abolishment of the mortgage interest deduction for homeowners and he’s also advocated for lowering the conforming loan limits. This limits were just recently raised by FHFA to $484,350.00.

Robert Broeksmit, President of the Mortgage Bankers Association (MBA) issued the following statement: “He has a deep background in housing finance issues and we have enjoyed a good working relationship with him in his current and past roles. We look forward to working with him on a wide variety of housing finance issues, not the least of which is resolving the now-decade long conservatorship of Fannie Mae and Freddie Mac in a way that best serves borrowers, protects taxpayers and ensures equal access to stable and liquid secondary mortgage markets for a wide variety of single- and multifamily lenders, regardless of size or business model.”