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 (and the bond market) so most likely mortgage rates December 17th, 2018 will most likely 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. 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.
Previous Article On Koloans:
Here is what you need to know about the 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).