Kevin O'Connor

Mortgage Rates For January 16, 2019

Mortgage Rates At The Open:

Mortgage rates will start the day under pressure as both the Mortgage Backed Securities market and Treasuries are selling off to start the day. That being said; bonds are in their recent range to start the day which is a positive for mortgage rates. As mentioned yesterday, bonds and mortgage rates have been in a range since January 8th. After the sharp move down it’s good to see some stability return and ultimately this is good for mortgage rates. Are there still risks for mortgage rates moving back up? Absolutely, things could change drastically without notice (it’s happened in the past) however the overall outlook for mortgage rates is more positive than negative.

Economic Data:

Today we were supposed to have Retail Sales for December, Export prices and Import prices for December however due to the government shutdown those reports will not be issued today. Yesterday we had the Producer Prices Index for December, Core Producer Prices Index, and the NY Fed Manufacturing Index for Jan. All three report came in below expectations however the weaker reports had little to no affect on Mortgage Backed Securities. Thursday it’s the Building Permits report along with Housing Starts and Philly Fed Index for January. To finish out the week we have Industrial Production, Consumer Sentiment and the 1yr and 5yr inflation outlook.

Currently We Are Seeing:20 Year Fixed Rate

30 year fixed mortgage rates below 4.25%, 20 year fixed mortgage rates below 4.125% and 15 year fixed rates below 3.625%. Please keep in mind that mortgage rates adjust daily; sometimes they adjust multiple times in a day when the bond market is volatile. Also things like obtaining cash out, lower credit scores, higher Loan-To-Value ratios, rental properties and the subordination of a second mortgage will cause in an increase in your mortgage rate. To get the most up-to-date quote specific to your loan scenario be sure to contact Loan Officer Kevin O’Connor at 1-800-550-5538 or you can submit a “Contact Us” request on the our website.

The Best Mortgage Lenders For Refinancing:

Finding the best mortgage companies in California is not as hard as you think. It starts with locating companies and Loan Officers that have a solid and verifiable reputation. Working with a Loan Officer that has at least 5 years experience is also key. Where do you start to look to find the best mortgage lenders for refinancing? We always suggest to got to the longest most respected consumer advocacy group first; the Better Business Bureau. If a company has less than an A rating I highly suggest you dig a little further into their history. If a company has less than a B rating I personally would look elsewhere. Additional options might be Zillow, Yelp and Mortgage101. And you can verify a Loan Officers 30 Year Fixed Mortgage Rateexperience easily; just go to the National Multi-state Licensing System’s website (NMLS) and you can see the Loan Officer’s job history.  Then you can go to the California Department Of Real Estate’s website to check the status of both the company and the Loan Officer. All this takes less than 5 minutes and literally could save you thousands of dollars on your next refinance transaction.

JB Mortgage Capital, Inc.:

We offer industry low mortgage rates, personal one-on-one service and we have an A+ rating with the Better Business Bureau. We also have the top rating with the Business Consumers Alliance (AAA). We utilize the latest technology to ensure a fast closing and Loan Officer Kevin O’Connor has over 14 years of experience as a Loan Officer. You can contact him directly at 1-800-550-5538.

Mortgage Rates For January 15, 2019

Mortgage Rates At The Open:

Mortgage rates will start the day at similar levels too yesterday as the bond market opens in positive territory. Mortgage Backed Securities have been holding their own lately and appear to be trading in a range since January 8th. Moving forward mortgage rates will respond positively to continued 15 Year Fixed Mortgage Ratestability in the Mortgage Backed Securities market. While we all want bonds to rally and mortgage rates to move lower however for the long term health of the market its good to have periods of leveling out. The 10y Treasury opened the day at the 2.70% level and has since moved lower to 2.90%. Later in the week we have the Phill Fed Index which might have some impact on Mortgage Backed Securities and mortgage rates before we head into the weekend.

Economic Data:

Today we have the Producer Prices Index for December, Core Producer Prices Index, and the NY Fed Manufacturing Index for Jan. All three report came in below expectations however they’re not “major” economic reports so they probably won’t affect mortgage rates. On Wednesday we have Retail Sales for December, Export prices and Import prices for December. Thursday it’s the Building Permits report along with Housing Starts and Philly Fed Index for January. To finish out the week we have Industrial Production, Consumer Sentiment and the 1yr and 5yr inflation outlook.

Currently We Are Seeing:20 Year Fixed Rate

30 year fixed mortgage rates below 4.25%, 20 year fixed mortgage rates below 4.125% and 15 year fixed rates below 3.625%. Please keep in mind that mortgage rates adjust daily; sometimes they adjust multiple times in a day when the bond market is volatile. To get the most up-to-date quote specific to your loan scenario be sure to contact Loan Officer Kevin O’Connor at 1-800-550-5538 or you can submit a “Contact Us” request on the our website.

Credit, Capacity And Collateral:

It’s the three C’s of underwriting a mortgage loan application. Most borrowers have probably never heard about the three C’s (in fact most Loan Officers too) despite it being the backbone of underwriting. Credit, Capacity and Collateral determine the mortgage rate you’ll qualify for so it’s important you have 30 Year Fixed Mortgage Rateall the information there is about understanding the three C’s. When I get asked “What are the current mortgage rates?” I always try to communicate to people that it’s not as simple as they’re expecting it to be. On a previous page Koloans.com we go into this and how to best understand the three C’s. Credit – what’s your credit score and your payment history listed on your credit report. Capacity – this has to do with your ability to repay the loan (income/debt) and Collateral – this has to do with the current value of your home.

JB Mortgage Capital, Inc.:

We offer industry low mortgage rates, personal one-on-one service and we have an A+ rating with theA+ Rating Better Business Bureau. We also have the top rating with the Business Consumers Alliance (AAA). We utilize the latest technology to ensure a fast closing and Loan Officer Kevin O’Connor has over 14 years of experience as a Loan Officer. You can contact him directly at 1-800-550-5538.

Mortgage News January 14, 2019

National Association Of Realtors Survey:

According to a recent survey from the National Association of Realtors; 75% of non-homeowners said owning a home was still an important part of the “American Dream”. 90% of current homeowners said owning a home was still apart of the “American Dream”. This is good to hear as other recent survey’s have suggested that homeownership was not a priority for many non-owners. However if you dig National Association of Realtorsdeeper into these survey’s and the the Realtor survey you’ll see that the main issue non-homeowners are having is “affordability” and that is a serious issue. Home values have gone up significantly since 2008 however incomes have not. With the rise in interest rates in 2017 and 2018 it made owning a home even more difficult. And that is why you’ve see a significant decline in homes sales; especially among new home builders.

Shutdown Increases Risks For Lenders:

With each passing day the risk that homeowners affected by the government shutdown will miss their next mortgage payment increases. There are hundreds of thousands of homeowners that are not receiving their paycheck as expected and that could start to become an issue when February comes if the shutdown has not been resolved. According to report by Moody’s; if the shutdown continues there are some risks to balance sheets especially non-bank lenders.

Will The Fed Hike In 2019?:Mortgage Pre-qualify

News outlets are starting to pose this question as some economic data is coming in softer than expected. The next meeting is January 29th-30th and I don’t many investors and analyst think the Fed will raise at this meeting. And unless economic data starts to improve it’s unlikely they’ll raise at the following meeting March. As for the rest of 2019; it’s way to early to tell however it is something we’ll keep an eye on.

Buying Down The Interest Rate:

Have you heard this before “buying down the interest rate?” are was wondering what it actually means? Previously on Koloans.com we discussed this very topic in detail; what it means to buy down the interest rate. The very basic answer to this question is this; when you refinance your current mortgage or you purchase a home; you’ll have the opportunity to obtain a no point interest rate or an interest rate that’s lower but comes with a cost. That cost you’re paying to obtain a lower mortgage rate is called “buying down the interest rate”. So for example; the Loan Officer may quote you a 4.50% 30 year fixed interest rate with no origination/no points. He/she may then also offer a 4.25% with 1 origination cost/point. 1 origination cost/point is 1% of the loan Family Homeamount; and to be clear: paying 1 point does not always equate to receiving a .25% discount on your interest rate. Sometimes is less and in a few cases it may be more.

JB Mortgage Capital, Inc.:

If you are looking to refinance your current mortgage or purchase a new home please be sure to contact us for a no-cost/no-obligation quote. We offer industry low mortgage rates, the latest technology to ensure a fast closing and every one receives one-on-one personal service from application to closing. This means you’ll work with one person from beginning to end which is much different then other mortgage companies that pass you from department to department during the loan process. You can contact us through our website or call Loan Officer Kevin O’Connor directly: 1-800-550-5538.

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Mortgage Rates January 14, 2019

At The Open:

Mortgage rates will start the day improved from Friday as Mortgage Backed Securities (MBS) market starts the day in positive territory. The 10y Treasury yield opened the day at the 2.67% level after finishing Friday at 2.70%. Seeing bonds move lower in recent days is a positive sign for mortgage rates and it possibly indicates some stability is entering the market after the sharp move down. It appears two 30 Year Fixed Ratethings are contributing to the strength in bonds; global economic slowdown and a week open to the stock market led by a much weaker than expected earnings report from Citigroup. Today is the start of earnings season for companies so we may see some “fireworks” if companies come out with stronger or weaker than expected earnings. That can influence the bond market if the move in stocks is strong enough.

Economic Data:

There are no major economic reports on Monday. On Tuesday we have the Producer Prices Index for December, Core Producer Prices Index, and the NY Fed Manufacturing Index for Jan. On Wednesday we have Retail Sales for December, Export prices and Import prices for December. Thursday it’s the Building Permits report along with Housing Starts and Philly Fed Index for January. To finish out the week we have Industrial Production, Consumer Sentiment and the 1yr and 5yr inflation outlook. One thing to keep in mind is that certain reports will not be released this week (ie Retail Sales) due to the government shutdown. As for bonds and mortgage rates; the big report for the week will be the Philly Fed Index. Also something to keep an eye on his how the stock market reacts to the start of earnings season. While not a specific economic report; the bond market might react to potential swings in stocks if earning reports is dramatically different than what investors are expecting. As mentioned above; we’re already starting off with a much weaker report from Citigroup which is pushing stocks down at the open.

Currently We Are Seeing:20 Year Fixed Rate

30 year fixed mortgage rates below 4.25%, 20 year fixed mortgage rates below 4.125% and 15 year fixed rates below 3.625%. Please keep in mind that mortgage rates adjust daily; sometimes they adjust multiple times in a day when the bond market is volatile. To get the most up-to-date quote specific to your loan scenario be sure to contact Loan Officer Kevin O’Connor at 1-800-550-5538 or you can submit a “Contact Us” request on the our website.

Government Shutdown:

It’s official this is the longest government shutdown on record (24 days). Bond markets continue to ignore the shutdown as we move further into January with no end in site. Breaking with the President, several Republican Senators have said the government needs to reopen with or without the border wall. And the House Freedom Caucus has advised the President not to declare a “National Emergency” as it would set a dangerous precedent going forward.

15 Year Fixed RateConventional Vs. FHA Mortgage:

Understanding the difference between a Conventional mortgage and a FHA Mortgage is important. A Conventional vs. FHA mortgage comparison is something we’ve covered previously on Koloans and we also include information on “conforming” mortgage loans.

JB Mortgage Capital, Inc.:

We offer industry low mortgage rates, personal one-on-one service and we have an A+ rating with the Better Business Bureau. We also have the top rating with the Business Consumers Alliance (AAA). We utilize the latest technology to ensure a fast closing and Loan Officer Kevin O’Connor has over 14 years of experience as a Loan Officer. You can contact him directly at 1-800-550-5538. You can also connect with Mr. O’Connor on Twitter: @Rates01 If you are considering a refinance of your current mortgage or the purchase of a new home your timing could not be better. Mortgage rates are near their one year low.

Mortgage News January 11th, 2019

Consumer Price Index Report:

The CPI report was issued earlier this morning and the numbers came in as expected. This report showed that inflation is not higher than what the market had already anticipated and Mortgage Backed Securities/mortgage rates prefer CPI reports that come in within expectations. Months ago many had feared inflation was only going to move higher as we finished 2018 and that simply was not the case. If any thing this report might be the first of many that shows inflation reversing corse  and cooling off a bit.

California Homes To RefinanceNew Home Sales Fall Significantly:

According to John Burns Real Estate Consulting, new home sales feel a whopping 18% in December (compared to December 2017). In addition to that November sales were down 19% (compared to November 2017). Due to the government shutdown we don’t have the “official” numbers from the government however John Burns Real Estate Consulting firm is well respected in the industry and many people rely the company for detailed and specific real estate market data. If we move into the state specific data we see Northern California dropped 40%, and in Southern California sales dropped 49%. These areLowest Refinance Rates massive reversals and they’re being attributed to interest rates moving higher during the early fall and the high cost of housing. The nation’s largest luxury home builder (Toll Brothers) warned of a slowdown recently; per their press release “We saw similar consumer behavior beginning in late 2013, when a rapid rise in interest rates temporarily tempered buyer demand before the market regained momentum.” With rates moving from the low 5’s to low 4’s that should inspire buyers to return. If the market returns to the lowest mortgage rates we’ve seen in two years then I think you’ll really see a boost in new home sales.

Bond Market Rally – Is It Over?:

For anyone who follows the Mortgage Backed Securities market and the Treasury market you already know that the recent rally in which the 10y yield moved from 3.25% to 2.54% has stalled over the last 5-6 days. And if you’ve been following bonds the last 2 years you’re Home Greenprobably feeling like yields and mortgage rates are going to shoot back up any day now. That may happen however there is no firm indication the recent rally is over and mortgage rates are going back to the levels we had early fall. What appears to be happening is a “wait and see” attitude with respect to the direction the economy is going. More of a sideways movement until we see further clarification with how the economy us doing. If the economy picks up then yes it might mean the rally is over however we’re not there yet and today’s CPI report was bond and mortgage rate friendly.

Conventional Vs. Non-Conventional:Personal Service

One mortgage term that is easily miss-understood is the term “conventional” and “non-conventional”. A conventional mortgage loan is any mortgage loan not guaranteed by the Federal Government. Under the umbrella of conventional there are conforming mortgage loans and non-conforming loans. Conforming loans adhere to the underwriting guidelines of Fannie Mae and Freddie Mac; conventional mortgage loans that don’t are called conventional non-conforming mortgage loans. What is a non-conventional loan? Those are loans guaranteed by the Federal Government: FHA mortgage loans or VA mortgage loans.

JB Mortgage Capital, Inc.:

If you are looking to refinance your current mortgage or purchase a new home please be sure to contact us for a no-cost/no-obligation quote. We offer industry low mortgage rates, the A+ Ratinglatest technology to ensure a fast closing and every one receives one-on-one personal service from application to closing. This means you’ll work with one person from beginning to end which is much different then other mortgage companies that pass you from department to department during the loan process. You can contact us through our website or call Loan Officer Kevin O’Connor directly: 1-800-550-5538.

Mortgage Rates For January 11, 2019

At The Open:

Mortgage rates will start the day near their recent lows as the Mortgage Backed Securities (MBS) market starts the day in positive territory. Both 30 year fixed and 15 year fixed rates remain near their recent lows. The 10y Treasury yield opened the day at the 2.71% level after hitting 2.74% yesterday. For now it appears the 2.70% – 2.75% is a short term range for the 10y yield however that could change as we’re seeing the 10y yield move down post CPI report. The CPI report Lowest Refinance Ratesmeasures inflation in the economy and bond traders and the Fed watch it closely.

Economic Data:

Today we had the very important Consumer Price Index (CPI) report which came in at expectations. After the report the 10y yield moved down to 2.70% so the initial reaction to the report is positive which is good for mortgage rates. As for next week; there are no major economic reports on Monday. On Tuesday we have the Producer Prices Index for December, Core Producer Prices Index, and the NY Fed Manufacturing Index for Jan. On Wednesday we have retail sales for December, Export prices and Import prices for December. Thursday it’s the Building Permits report along with Housing Starts and Philly Fed Index for January. To finish out the week we have Industrial Production, Consumer Sentiment and the 1yr and 5yr inflation outlook.

Currently We Are Seeing:30 Year Fixed Rate

30 year fixed mortgage rates below 4.25%, 20 year fixed mortgage rates below 4.125% and 15 year fixed rates below 3.625%. Please keep in mind that mortgage rates adjust daily; sometimes they adjust multiple times in a day when the bond market is volatile. To get the most up-to-date quote specific to your loan scenario be sure to contact Loan Officer Kevin O’Connor at 1-800-550-5538 or you can submit a “Contact Us” request on the our website. 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.

20 Year Fixed RateConforming Loan Limits:

Last November conforming loan limits were raised nationwide. This is especially good news for California. Having higher conforming loan limits allows more borrowers to access lower mortgage rates thus potentially saving them thousands of dollars in interest. The new conforming loan limit for a one unit property is now $484, 350.00, a two unit property is $620,200, a three unit property its $749,650 and a four unit property it’s $931,600.00.

30 Year Fixed Rate Vs. A 15 Year Fixed Rate:

When a homeowner or a homebuyer is deciding between a 30 year fixed rate or a 15 year fixed rate it’s important to remember your goals with the mortgage you’re taking on and what kind of lifestyle you lead. It’s great to have a low payment (30 year) however what are you doing with the money you’re saving by not having a 15 year? Paying off your house early is fantastic (15 year). However it’s no fun being stressed every month while you scrape by paying a larger payment on the home.

Government Shutdown:15 Year Fixed Rate

As everyone knows the government is still shutdown. There is lots of talk and blaming the other side but no real solutions. Thankful it’s not negatively affected mortgage rates however hundreds of thousands of government workers continue to go without a paycheck. According to some news reports the President is considering using emergency storm funds to pay for building a wall at the southern border. Also some Republican politicians are urging him to invoke “emergency” powers to pay for the wall despite the President admitting there really is no emergency.

A+ RatingJB Mortgage Capital, Inc.:

We offer industry low mortgage rates, personal one-on-one service and we have an A+ rating with the Better Business Bureau. We also have the top rating with the Business Consumers Alliance (AAA). We utilize the latest technology to ensure a fast closing and Loan Officer Kevin O’Connor has over 14 years of experience as a Loan Officer. You can contact him directly at 1-800-550-5538.

Mortgage News For January 10, 2019

Low Mortgage Rates At JBMCMortgage Rates Have Moved Down:

Per Freddie Mac the average mortgage rate fell to 4.45% with an average of 0.50 a point. It’s a big move down from last weeks 4.51% level.  It’s the first time it’s been below 4.50% since the Spring. A year ago the average 30 year fixed rate was 3.99%. The average 15 year fixed rate fell to 3.89% with an average of 0.40 in cost. That’s down from last weeks 3.99% average but still higher than the 3.46% average we saw a year ago at this time. The move towards the lowest mortgage rates in California (over the last 9 months) happened mostly last week. In the last few days we’ve seen mortgage rates stall as the bond market rally has come to end (for now). The good news is even though mortgage rates and bond yields have moved down significantly over the last 2 months were not seeing a significant snap back like some were expecting. That still may happen but for now the bond markets and mortgage rates remain somewhat stable. That’s good for mortgage rates as we move further into 2019.

Decembers Job Report Was Good And Bad:

The most recent jobs report had blockbuster numbers; over 300k jobs created good earnings and low unemployment. Add to it the November numbers were revised upwards. While the jobs report was good news for the economy; it was somewhat bad news for mortgage rates and bonds. Albert Edwards, a Societe Generale investment bank strategist mentioned in a recent research report that there is a history of accelerated hiring just before a recession develops.

Serious Mortgage Delinquency Declines:Spanish home in California

Mortgage giant Fannie Mae report that Single Family Serious Delinquency rate declined in November from 0.79% to 0.76%. That is well below the 1.12% that was reported back in November 2017. Serious Delinquent mortgages are mortgages that are three monthly payments or more behind or in foreclosure proceeding. The highest it’s ever been was about nine years ago when it was over 5.50%.

As for Freddie Mac; their delinquency rate was 0.70% in November which was slightly down from Octobers 0.71%. Back in November 2017 the delinquency rate was just under 1.00%. The highest it’s ever been was just above 4.00% back in 2010.

Overall this is a good sign for the economy and it’s something to keep an eye on. The reason is that if delinquencies creep up it might give us our first clues that the average American is feeling the pinch from the economic slow down that’s being reported.

JB Mortgage Capital, Inc.How Long Does A Refinance Take?:

A great question every homeowner should ask. For most companies the typical time frame is 30-40 days however with JB Mortgage Capital, Inc. we generally can get them done in under 30, sometimes as little as 21 days. I have heard some other companies taking as long as 45-60 days which seems a bit absurd considering all the advancements with technology in the mortgage industry. How long does a refinance take is a question every homeowner should ask prior to moving forward with a loan application. If you’re moving forward this week and your mortgage company is telling you more than 30 days; you might want to consider looking for another mortgage company.

JB Mortgage Capital, Inc.:A+ Rating

If you are looking to refinance your current mortgage or purchase a new home please be sure to contact us for a no-cost/no-obligation quote. We offer industry low mortgage rates, the latest technology to ensure a fast closing and every one receives one-on-one personal service from application to closing. This means you’ll work with one person from beginning to end which is much different then other mortgage companies that pass you from department to department during the loan process. You can contact us through our website or call Loan Officer Kevin O’Connor directly: 1-800-550-5538.

Mortgage Rates For January 10, 2019

30 Year Fixed RateAt The Open:

Mortgage rates will start the day better than yesterday afternoon as both Mortgage Backed Securities and Treasuries are set to rally at the open. In the overnight session of trading the 10y yield pushed below 2.70%. While yields and rates have pushed higher in recent days the overall movement has not been that bad considering the plunge from 3.25% down to 2.54%. We’ll have to see what happens but it appears the market might be stabilizing which is a good thing for mortgage rates. Lenders much prefer a stable market than a volatile market. The 10y auction yesterday was strong which has helped keep a lid on bond yields moving up.

Mortgage Applications Survey:

After a dismal report last week (which was not surprising) the Mortgage Purchase and the Mortgage Refinance Index both  jumped significantly. It appears more and more people are taking advantage of the low mortgage rates that are available. Those looking to refinance their current mortgage, that purchase a home in the last 6-12 months, are especially seeing some benefit with where current rates are at.

Economic Data:20 Year Fixed Rate

Today we have Wholesale Inventories, weekly Unemployment and Wholesale Sales. Tomorrow we have the very important Consumer Price Index (CPI) report which could be a market mover. As for next week; there are no major economic reports on Monday. On Tuesday we have the Producer Prices Index for December, Core Producer Prices Index, and the NY Fed Manufacturing Index for Jan. On Wednesday we have retail sales for December, Export prices and Import prices for December. Thursday it’s the Building Permits report along with Housing Starts and Philly Fed Index for January. To finish out the week we have Industrial Production, Consumer Sentiment and the 1yr and 5yr inflation outlook.

Currently We Are Seeing:

30 year fixed mortgage rates below 4.25%, 20 year fixed mortgage rates below 4.125% and 15 year fixed rates below 3.625%. Please keep in mind that mortgage rates adjust daily; sometimes they adjust multiple 15 Year Fixed Ratetimes in a day when the bond market is volatile. To get the most up-to-date quote specific to your loan scenario be sure to contact Loan Officer Kevin O’Connor at 1-800-550-5538 or you can submit a “Contact Us” request on the our website. 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.

The Lowest Mortgage Rate We Can Offer:

We continue to streamline our business model to ensure we can offer the lowest mortgage rate we possibly can. From utilizing the latest technology to our personal one-on-one service; we believe we have one of the most cost affective and customer focused operations in the mortgage industry. A recent study found that millions of Americans can lower their mortgage rate by over .50% if they take advantage of the current market. Fixed mortgage rates are the most attractive right now.California Homes To Refinance

Home Loan Rates In California:

As we move further into 2019 home loan rates in California are sitting at levels better than what was being offered just a few short months ago. The lowest refinance rates in California can usually be obtained with top rated mortgage companies (see Better Business Bureau). You’ll want to avoid companies with no rating or a bad rating with the Better Business Bureau. If a company has a bad rating with the BBB there probably is a good reason as it takes a lot of complaints from customer to push your BBB rating lower.

Government Shutdown:

Yesterday the President met with Nancy Pelosi and Chuck Schumer. The meeting end with Trump leaving in the middle of the meeting and then tweeting the meeting was “a total waste of time”. The government shutdown affecting mortgage rates is not really an issue right now. However the longer this goes on the greater impact it will have on our economy. Hundreds of thousands of Americans are not getting a pay check right now and that means they’ll be spending less.

JB Mortgage Capital, Inc.JB Mortgage Capital, Inc.:

We offer industry low mortgage rates, personal one-on-one service and we have an A+ rating with the Better Business Bureau. We also have the top rating with the Business Consumers Alliance (AAA). We utilize the latest technology to ensure a fast closing and Loan Officer Kevin O’Connor has over 14 years of experience as a Loan Officer. You can contact him directly at 1-800-550-5538.

Mortgage News January 9, 2019

Mortgage Home InformationDebt Problems Return:

Not too long ago we were in the midst of a debt crisis. It was 2008 and according to some we were days away from the ATM’s not working. Lenders were failing, banks were failing even one of the largest insurance companies in the world was failing. The reason; too much bad debt. The housing boom prior to 2008 created a massive debt bubble. What was worse is that this debt was really bad debt – debt based on fraudulent loan applications, fraudulent appraisals and bad underwriting. It was dependent on home prices going up to keep it going. When home prices stalled things went bad, and they went bad fast.

Here we are in 2019 and our debt problem has not gone away; just moved around to other areas. Car loans, credit cards, student loans etc. In total we have more debt now then we did in 2008. However consumer debt is not what’s concerning Steve Eisman according to an article in the Financial Times. Who is Steve Eisman? He was the guy who spotted the housing bubble long before other investors even knew there was a problem and he was the main character in the book “The Big Short”. He’s concerned about the corporate debt market and how it may affect banks and investors. Considering his track record it’s something to keep an eye on moving forward.

New Penn Financial Is Now NewRez:Home Green

A fairly large wholesale mortgage company (familiar with most Loan Officers and less familiar with the average consumer) is changing their name from New Penn Financial to NewRez. This has been in the works since last July when the company was bought by New Residential Investment.

Millions Of Homeowners Can Lower Their Mortgage Rate:

According to Black Knight; 2.4 million homeowners can lower their interest rate by at least 0.75% saving them thousands of dollars in interest. That’s a huge number and for some the savings is even greater than that. The question is; will they take advantage of the lower rates?

Low Mortgage Rates at JBMCRefinance Guidelines For 2019:

Refinance guidelines for 2019 are less restrictive in years past for some yet for others a bit more restrictive. The 2019 refinance guidelines that are a bit more restrictive than in 2018 have to do with borrower’s who are doing a cash-out loan and have a debt-to-income ratio above 45%. If you are doing a cash-out loan and have a high debt-to-income ratio then you’ll be asked to provide six months of cash reserves to be able to get a Fannie Mae AUS approval. For other though we’re seeing things get a bit easier when it comes to obtaining appraisal waivers. Although not a specific “guideline” per se; it is a nice benefit when a client receives an appraisal waiver. Less hassle for the client and it speeds things up.

JB Mortgage Capital, Inc.:

The lowest mortgage rates in California; at JB Mortgage Capital, Inc. we work day in and day out to try and find ways to deliver the lowest mortgage rates in California. We also offer one-on-one personal service; and fast closings. Veteran Loan Officer Kevin O’Connor has over 14 years of experience in the mortgage industry. He has a five star rating on Zillow.com and Mortgage101.com. JB Mortgage Capital, Inc. has an A+ rating with the Better Business Bureau (their top rating) and we are “AAA” rated with the Business Consumers Alliance (their top rating).

Mortgage Rates For January 9, 2019

At The Open:

Mortgage rates will start the day on the defensive as both the Mortgage Backed Securities and Treasuries open the day in negative territory. Generally speaking; mortgage terms will be a bit worse (loan costs/fees) to start the day. Yesterday Treasury yields pushed higher however Mortgage Backed Securities were a little reluctant and stayed relatively flat to slightly worse Low 30 year fixed mortgage rateafter the morning hours. At the open we’re seeing the 10y yield at 2.73% and FNMA 4.0 is at 101.82.

Trade Talks With China:

Lots of rumors however not much news. Talks went for three days and nothing significant was announced. Many had hoped the recent discussion would lead to a trade deal or at a minimum a “trade truce”. Currently we’re not seeing a significant affect on Mortgage Backed Securities and mortgage rates. As time goes on it’s becoming more evident that this is an extremely complex issue that will take time to resolve. While both economies are starting to feel the affects of a “trade war”, China’s economy has seen a greater slowdown compared to the United States.

Refinance In California:

Starting off 2019; refinance terms are very attractive compared to the previous 6-12 months. Making the decision to refinance is an important one and at JB Mortgage Capital, Inc. we do our best to answer the questions our clients have about refinancing their current mortgage. The reasons to do a refinance will differ from client to client however everyone has the same objective in terms of the outcome: to be in a better financial position then they were before. Some look to refinance to lower their mortgage rate, others want to move from a 30 year fixed term to a 15 year fixed term, others may want to remodel their home so they’re looking to do a cash out refinance. The current general refinance guidelines are posted on our website.

Economic Data:Low 20 year fixed rate

Today we have an updated Oil report, Mortgage Market Index, Refinance and Purchase and an important 10y auction. Mortgage Refinance Applications and Mortgage Purchase Applications both snapped back significantly last week which is not surprising. Tomorrow we have Wholesale Inventories, weekly Unemployment and Wholesale Sales. To finish off the week we have the very important Consumer Price Index (CPI) report which could be a market mover. The CPI report is expected to only show a moderate increase in inflation and it would be very surprising to see any significant surge in consumer prices. If the inflation report comes in significantly below expectations will that result in a big rally in Mortgage Backed Securities and in the Treasury market? That’s difficult to predict however I think the more likely scenario is a push down in yield below current levels and possibly establishing a “ceiling” at the levels we’ve seen this week.

Currently We Are Seeing:

30 year fixed mortgage rates below 4.25%, 20 year fixed mortgage rates below 4.125% and 15 year fixed rates below 3.625%. Mortgage rates adjust daily; sometimes they adjust multiple times in a day when the bond market is volatile. To get the most up-to-date quote specific to your loan scenario be sure to contact Loan Officer Kevin O’Connor at 1-800-550-5538 or you can submit a “Contact Us” request on the our website. 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. The lowest refinance rates in California are typically for those with excellent credit however those with less than perfect credit are still able to get a low mortgage rate compared to what we were seeing just a few months ago.

Government Shutdown:

Last night the President gave a speech about “border security” and the current government shutdown. Other than that; not much going on as far as progress goes. Mortgage rates and the Mortgage Backed Securities market have not been negatively affected by the shutdown however it’s something we will continue to watch. In our mortgage news update yesterday we mentioned a recent Zillow study that said the collective mortgage payment for all federal workers affected by the government shutdown totals over $250,000,000.00.

Connect With Us On Social Media:

The best place to connect with us, outside of koloans.com, is on Social Media. Multiple times per day Loan Officer Kevin O’Connor updates our twitter feed, @Rates01, with the most up-to-date mortgage rate and news information. You can also find us on Pintrest, Instagram, Reddit, and ScoopIt.

JB Mortgage Capital, Inc.:Mortgage Home Information

We offer industry low mortgage rates, personal one-on-one service and we have an A+ rating with the Better Business Bureau. We also have the top rating with the Business Consumers Alliance (AAA). We utilize the latest technology to ensure a fast closing and Loan Officer Kevin O’Connor has over 14 years of experience as a Loan Officer. You can contact him directly at 1-800-550-5538.