November 2020 mortgage rates in California – refinance and purchase transactions.

Opportunities for lower mortgage rates in November are limited since mortgage rates are near their all-time lows. The biggest event during the month is the election and the second biggest event (potentially) is the passing of another stimulus bill. There are so many potential ways this could play out that it’s pointless to even try to figure out what mortgage rates will do in November.

The best thing to do is take advantage of the current market if it makes sense. That means for refinances, don’t hesitate to lock in a rate if you are seeing enough of an improvement. And for purchases; your main focus should be the home not if you can get an extra 0.125% lower in rate.

Here is one consistent fact for mortgage rates, they move up much faster than they move down. There are many examples of this over the years but the most recent super spike was November 2016. The first few weeks after the election mortgage rates skyrocketed and then mortgage rates did not return to previous levels for three years later.

I have no idea if that will happen again, no one does, but what I do know is that if there is a super spike it most likely will be years before we return to current levels (if ever).

If you are looking to purchase a home in California or refinance a current mortgage please be sure to contact me directly (you can use the contact form below or call my direct number: 1-800-550-5538) for a no-cost/no-obligation quote.

California Conforming Loan Amount 2021

Later this month Fannie Mae and Freddie Mac will announce an update to conforming loan limits. The California conforming loan amount 2021 is set to increase (as it did last year) and once we have that updated information we’ll pass it along to our clients. There is a decent chance we may see the 2021 conforming loan limit increase above $525,000.

California Mortgage Calculator

Using a mortgage calculator to figure out your monthly payment is an essential part of buying a home in California or refinancing a current mortgage. Use our free mortgage calculator to help you determine what you can afford. With our online mortgage calculator, you can also factor in your property tax amount along with your annual homeowner’s insurance amount with your monthly mortgage payment.

Our California mortgage calculator is free and easy to use.

And our mortgage calculator is especially helpful for those who want to impound their property taxes and property insurance into their monthly mortgage payment. If you have any questions about or California mortgage calculator please don’t hesitate to ask.

November 2020 Mortgage Rate Forecast For California

Here are our latest November 2020 mortgage rate forecasts for California:

30-year fixed rates below 3.25%
20-year fixed rates below 3.125%
15-year fixed rates below 2.875%

This is based on properties in California, a loan amount of $325,000, a primary home, excellent credit (740 or higher credit score), and a Loan-To-Value ratio below 60% (purchase transactions). We may see days in which mortgage rates spike higher however overall we believe there will be opportunities to lock a mortgage rate at or below these levels throughout the month of November.

November 2020 Mortgage Rate Chart:

Here is a quick reference guide to November 2020 mortgage rate possibilities in California (these are not quotes; just examples) and the payments associated with each level based on various conforming loan amounts. See our important disclosure below.

30-Year Fixed Rate Mortgage:

Term	Loan Amount	Mortgage Rate	Payment
30-year fixed	$170,000	2.75%	$694.01
30-year fixed	$270,000	2.75%	$1,102.25
30-year fixed	$370,000	2.75%	$1,510.49
30-year fixed	$470,000	2.75%	$1,918.73

20-Year Fixed Rate Mortgage:

Term	Loan Amount	Mortgage Rate	Payment
20-year fixed	$170,000	2.625%	$911.22
20-year fixed	$270,000	2.625%	$1,447.24
20-year fixed	$370,000	2.625%	$1,983.25
20-year fixed	$470,000	2.625%	$2,519.26

15-Year Fixed Rate Mortgage:

Term	Loan Amount	Mortgage Rate	Payment
15-year fixed	$170,000	2.50%	$1,131.54
15-year fixed	$270,000	2.50%	$1,800.33
15-year fixed	$370,000	2.50%	$2,467.12
15-year fixed	$470,000	2.50%	$3,133.91

Important Disclosure For November 2020 mortgage rates: The above is not a mortgage rate quote; nor is it an offer to lend. It’s only a generic example of various mortgage rates, loan amounts, and payments. Our mortgage rate chart is meant to educate and inform our readers. The current market may be higher or lower than the examples listed in these mortgage rate charts. Also; mortgage rates can and often do adjust multiple times a day.

Mortgage Rates And The November Election

It’s that time; election time! Who remembers 2016? Mortgage rates were trending lower than on November 4th they exploded higher and it took three years for mortgage rates to revisit those previous levels.

So what’s going to happen this time around? Nearly impossible to say. Not only is the Presidential election important to mortgage rates but also the Senate and House races as well. Making a prediction on how mortgage rates will react post-election is not something anyone can do with any sort of accuracy.

What we can do is be prepared for volatility and hope we don’t have any. Mortgage lenders are preparing for a volatile period post-election and so should potential borrowers.

November 2020 Mortgage Rate FAQ’s

Here we answer some popular questions about mortgage rates in California.

How Will The Election Impact Mortgage Rates?

If you were following mortgage rates back in 2016 then you’ll remember that the day after the election mortgage rates (and bond yields) skyrocketed. Trump was not expected to win and when he won the market quickly believed inflation would kick in, more treasury supply would hit the markets and deficits would increase. That trend continued for years.

So it is natural to think there will be a big move post-election however things are a bit different this time around.

First, bond investors are entering the election with more information and are most likely not taking anything for granted.
We have a pandemic and that is the biggest influencer on how our economy and bond markets move forward.
A mixed turnout (Democrat/Republican as President while the other party holds the Senate and/or House would help keep bond markets stable and mortgage rates low (the reason; it would lead to gridlock).

UPDATE:

Post-November 3rd bond yields tanked as it looks like Republicans will hold on to the Senate and Joe Biden will win the Presidency. At this point, it’s still up in the air but that’s what the Mortgage-Backed Securities market is anticipating. It does not mean there is a 100% certainty that mortgage rates will go lower however it does help with keeping mortgage rates low as we move into the winter.

How Long Does A Refinance Take?

Most refinances take between 30-45 days to process from when we have a completed file. The extended processing times are due to the number of people trying to refinance. A completed file is defined as having a completed application and the requested documentation in the file.

If you are subordinating a 2nd mortgage it’s more like 45-60 days to process a refinance mortgage.

Can You Have A Co-Borrower That Doesn’t Live With You?

Absolutely!

When it comes to mortgages we call that a “non-occupying co-borrower”. So you and the person who is the co-borrower are on the loan application however the non-occupying co-borrower does not need to be included in the vesting and can live at a different address.

Will A Chapter 13 Bankruptcy Prevent Me From Obtaining A Mortgage?

Usually not.

Under most scenarios, in which there is a Chapter 13 Bankruptcy, we can still provide a mortgage to purchase a home or offer a new mortgage to refinance the current mortgage in place.

Are Refinance Rates Higher Than Purchase Rates?

Unfortunately yes and that is with every single lender in the country. The reason is Fannie Mae and Freddie Mac imposed a new fee for refinance applications which have been passed along to the consumer.

Update Mortgage Guidelines November 2020

Mortgage guidelines remain more restrictive than pre-COVID. Especially for those that are self-employed. Will we see guidelines tighten as we move into winter Possibly. Especially if the spread of COVID continues to increase and more people lose their jobs as a result.

Economic Calendar For November 2020

Here we cover the daily economic events that might impact mortgage rates. After the report comes out we’ll update the post with that information and comment on if there is a potential impact on the Mortgage-Backed Securities market and consumer mortgage rates.

To start things off we have:

ISM Manufacturing report
ADP Employment (sometimes comes out the day before the 1st of the month)
ISM Non-Manufacturing PMI
BLS Employment report

Monday – November 30th:

Chicago PMI: The Chicago PMI report came in at 58.2; last month it was 59.0.
Pending Home Sales: The Pending Home Sales Index declined this month (130.0 vs 128.9).

Wednesday – November 25th:

Mortgage Market Index: Both Refinance and Purchase applications increased in the most recent survey. The Refinance Index went from 3901 to 4077 and the purchase index went from 303 to 314.
Weekly Jobless Claims: Heading into the long holiday weekend, Weekly Jobless Claims increased from 742,000 claims to 778,000 claims. Continued claims dropped from 6,372,000 to 6,071,000 claims.
New Homes Sales: The New Home Sales report came in at 999,000 units (annual rate) which is higher than last month’s report of 959,000 (annual rate).

Tuesday – November 24th:

Consumer Confidence: The market was expecting the report to come in at 98.0 and the final number came in at 96.1. There was no impact on mortgage rates post report.
Monthly Home Prices: The Monthly Home Prices report showed an increase of 1.7%.
2021 Conforming Loan Limits For California: FHFA released an update to conforming loan limits in California for 2021. The baseline conforming loan limit in California is $548,250 and in high-cost counties, it’s $822,375. This is good news for the mortgage industry, homebuyers, and homeowners.

Monday – November 23rd:

PMI Composite (Markit): Last month the report came in at 56.3 and this month the report came in at 57.9.

Thursday – November 19th:

Philly Fed Business Index: Back in October the Philly Fed Business Index came in at 32.3 and this month it came in at 26.3.
Weekly Jobless Claims: Jobless claims increased this week from 707,000 to 742,000 claims. Continued jobless claims came in at 6,372,000. Bond markets responded positively to the report and mortgage rates remained stable.
Existing Home Sales: Existing Home Sales increased by 4.3%.

Wednesday – November 18th:

Mortgage Market Index: Last week the Mortgage Market Index came in at 833.9 and this week it came in at 831.5. The Purchase component increased while the Refinance component slightly decreased. Generally speaking, mortgage rates remain near all-time lows.

Tuesday – November 17th:

Retail Sales: The Retail Sales report came in at 0.3% after last month’s 1.9% gain. The market was expecting the report to show a 0.5% increase.
NAHB Housing Market Index: This month’s report came in at 90 after last month’s report came in at 85. Housing has been a bright spot during the pandemic.

Friday – November 13th:

Producer Prices: The most recent report came in at a 0.3% increase.
Consumer Sentiment: Last month the Consumer Sentiment report came in at 81.8 and this month it came in at 77.0

Thursday – November 12th:

Core CPI: Core CPI decreased from a 1.7% increase in the last report to a 1.6% increase. There was no impact to mortgage rates post report.
Weekly Jobless Claims: The weekly Jobless Claims report came in at 6,786,000 claims (compared to last month’s report of 7,285,000). For weeks now the report shows fewer and fewer Americans filing for unemployment claims.

Wednesday – November 11th:

Mortgage Market Index: The Mortgage Market Index (MMI) decreased from 838.2 to 833.9. Purchase applications declined while refinance applications increased.

Friday – November 6th:

Employment Report: 638,000 jobs were created in October and the unemployment rate dropped from 7.9% to 6.9%. Wages were flat (0.1%). Bonds sold off on the news and mortgage rates were under pressure.
Consumer Credit: The Consumer Credit report showed an increase of $16.2 billion during the month of October.

Thursday – November 5th:

Weekly Jobless Claims: Last week the report showed 751,000 Americans filed unemployment claims and this week it was exactly the same, 751,000. Continued claims came in at 7,285,000. There was no impact on consumer mortgage rates post report.

Wednesday – November 4th:

Mortgage Market Index: The weekly Mortgage Market Index came in at 838.2 (last week it was 807.8). Purchase applications declined whole refinance applications significantly increased.
ADP Employment Report: The market was expecting job growth of 650,000 jobs however the report showed only 365,000 jobs created last month. The report had little to no impact on both purchase and refinance mortgage rates.
ISM Non-Manufacturing: The ISM Non-Manufacturing report came in slightly weaker than expected (56.6 vs. 57.5).

Tuesday – November 3rd:

ISM-New York Index: Last month the ISM-New York Index came in at 807.3. This is usually not a market-moving report.
Factory Orders: The market is expecting the Factory Orders report to come in at 1.0% after last month’s 0.7% report.

Monday – November 2nd:

ISM Manufacturing PMI: The market was expecting the ISM Manufacturing report to come in at 55.8 however it came in a bit higher at 59.3. There was no immediate impact on mortgage rates.

November 2020 Fed Meeting:

The November 2020 Fed Meeting was underwhelming (as expected). Post-meeting bonds remained the same and mortgage rates for both purchase and refinance transactions remained stable.

The Fed is taking a wait-and-see attitude to how the economy responds to the Coronavirus pandemic. They expressed some concerns but not enough to take on any new significant initiatives. The FOMC committee would like to see the Trump Administration provide more economic relief to those that have been impacted by the economic downturn.

Overall, not a lot came out of the meeting, and mortgage rates will most likely be unaffected going forward.

Mortgage Rates And The Monthly Jobs Report

On Friday, November 6th we get the monthly jobs report. The market is expecting the report to show 600,000 jobs were created back in October and the unemployment rate is expected to drop from 7.9% to 7.6%. Average earnings per worker is expected to increase by 0.2%.

It’s unlikely the report will have a major impact on the bond market and mortgage rates. The markets and lenders are more focused on the election and if another stimulus bill is going to be passed any time soon.

November 2020 Mortgage Rate Average In California

We’ll update this section as we move further into November however to start off the month we’re seeing the following averages.

The average 30-year fixed mortgage rate in California is 2.875%.
The average 20-year fixed mortgage rate is 2.75%.
The average 15-year fixed rate in California is 2.625%.

This is an average of everyone we’re seeing; from less than perfect credit to excellent credit. Please keep in mind that November 2020 mortgage rates adjust daily; sometimes multiple times during a day. For a mortgage quote specific to your situation please be sure to contact us directly.

Mortgage-Backed Securities & Treasury Snapshot

November 23rd – November 30th:

Mortgage-Backed Security UMBS 2.0 started the week at the 103.53 level and the UMBS 2.5 coupon started at the 104.72 level. The 10y Treasury yield was at the .84% level to start the week.

At the end of the month, Mortgage-Backed Security UMBS 2.0 was at the 103.81 level and the UMBS 2.5 coupon was nearing the 104.80 level. The 10y Treasury yield was at .84.

November 16th – November 20th:

Mortgage-Backed Security UMBS 2.0 started the week at the 103.36 level and the UMBS 2.5 coupon started at the 104.41 level. The 10y Treasury yield was at the .90% level to start the week.

At the end of the week, Mortgage-Backed Security UMBS 2.0 was at the 104.73 level and the UMBS 2.5 coupon was nearing the 104.69 level. The 10y Treasury yield was at .83.

November 9th – November 13th:

Mortgage-Backed Security UMBS 2.0 started the week at the 103.30 level and the UMBS 2.5 coupon started at the 104.33 level. The 10y Treasury yield was at the .93% level to start the week.

At the end of the week, Mortgage-Backed Security UMBS 2.0 was at the 103.31 level and the UMBS 2.5 coupon was nearing the 104.36 level. The 10y Treasury yield was at .89.

November 2nd – November 6th:

Mortgage-Backed Security UMBS 2.0 started the week at the 103.20 level and the UMBS 2.5 coupon started at the 104.30 level. The 10y Treasury yield was at the .85% level to start the week.

At the end of the week, Mortgage-Backed Security UMBS 2.0 was at the 103.66 level and the UMBS 2.5 coupon was nearing the 104.95 level. The 10y Treasury yield was at .82.