Happy Monday! Mortgage rates continue to be near their lowest levels in almost a year as we head into Christmas. The bond market will close early today; 2:00pm EST and most lenders will also close early as well. There are no major economic reports being released today. On Wednesday 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. The 10y yield opened the day at the 2.77% level, slightly lower than Friday. Mortgage Backed Securities also look to open in positive territory as well.
Perhaps the biggest news of the day is the Government shut down. Previous shutdowns have led to some pressure of treasury yields to move up however as of this morning we are not seeing that on day three of this current shutdown. How long will it last? Know one really knows as both sides of the political aisle are stating they are unwilling to budge when it comes to funding a wall on the southern border. For now it appears the bond market will weather a shutdown however that’s not the case for the stock market. An extended shut down will have a negative impact on the economy and that will cause further pressure on corporate profits and stock prices.
In a surprise move, Secretary Steve Mnuchin put out a somewhat odd statement saying that he checked with the six largest banks are there is “ample liquidity is available for lending to consumer and business markets”. The reason this was a bit odd was that no one was saying there is a major issue with liquidity. Now investors are asking; is there?
Markets will be closed on Tuesday and so will lenders. Some positive things are instore for 2019 when it comes to the mortgage industry; higher loan amounts for both conforming and FHA loans, lenders should be able to continue to grant more Property Inspection Waivers (PIW) and overall the efficiency of loan processing has improved. And lets not forget; mortgage rates are starting to improve as the industry moves from a 5.00% 30 year fixed mortgage to a low 4% 30 year fixed mortgage. Will mortgage rates move below 4.00%? The economy would have to take a more pronounced turn for the worse for that to occur.
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30 year fixed mortgage rates below 4.375%, 20 year fixed mortgage rates below 4.25% 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.
Previous Koloan’s Article:
This is one of the most important questions you can ask; What mortgage is right for me? 15 year fixed mortgage or a 30 year fixed mortgage or maybe an Adjustable Rate Mortgage (ARM)? And the questions about “what mortgage is right for me” can go on and on and on. Unfortunately there are no easy answers; just because one type of mortgage was good for let stay your neighbors or even your parents doesn’t mean that is the right mortgage for you. Each borrower is different with a different set of needs when it comes to discovering the answer to “What mortgage is right for me?”. That being said; there are some basic steps you can take to help you decide what mortgage is right for you. The first question you should ask is this:How long do I plan on living in the house and/or how long do I plan on keeping the loan?