September 2020 mortgage rates in California – refinance and purchase transactions.
The opportunity for mortgage rates to improve from these levels is fairly small since mortgage rates are already near their all-time lows. The biggest risk for mortgage rates is if things dramatically improve and/or if inflation increase significantly.
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 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.
September 2020 Mortgage Rate Forecast For California
Here are our September 2020 mortgage rate forecasts for California:
- 30-year fixed rates below 3.00%
- 20-year fixed rates below 2.875%
- 15-year fixed rates below 2.625%
This is based on properties in California, a loan amount of $375,000, 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 September.
September 2020 Mortgage Rate Chart
Here is a quick reference guide to September 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|
20 Year Fixed Rate Mortgage:
|Term||Loan Amount||Mortgage Rate||Payment|
15 Year Fixed Rate Mortgage:
|Term||Loan Amount||Mortgage Rate||Payment|
Important Disclosure For September 2020 California 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 rate charts. Also; mortgage rates can and often do adjust multiple times a day.
Coronavirus and California Mortgage Rates – September 2020
Entering September there were over 180,000 deaths in the United States related to the Coronavirus. Schools are opening up for the Fall semester so we’ll have to wait and see if things get worse over the next four to eight weeks.
If things do not get worse that might become a risk factor for mortgage rates as investors will shift money out of the bond market and into riskier assets.
September 2020 Mortgage Rate FAQ’s
Here we answer some popular questions about mortgage rates in California. For additional mortgage information visit our Scoop.it! page.
Will Mortgage Rates Go Lower In September?
Towards the end of August 2020 mortgage rates moved off of their all-time lows. Heading into September mortgage rates are showing improvement however I would not expect a dramatic move lower during the month. If you have the opportunity to lock in a low rate mortgage in September I would not hesitate to do so as mortgage rates are very attractive right now.
Do I Need An Appraisal To Refinance My Mortgage?
Sometimes not. In fact, many refinance transactions do not need an appraisal. If you have refinanced in the last 1-3 years or you have significant equity in the property odds are you will not need an appraisal to complete your refinance. Both Fannie Mae and Freddie Mac offer appraisal waivers and we work with both loan programs.
If I Have a 680 Credit Score Will I pay A High Mortgage Rate?
No. In fact, if your Loan-To-Value (LTV) ratio is below 60% you’ll pay the same rate as someone with a 740 or higher credit score on a 30 year fixed rate mortgage (primary or secondary non-cash out transactions). And if you secure a 15 year fixed rate mortgage then the LTV ratio doesn’t matter and your rate would be the same for someone with a 740 credit score.
Update Mortgage Guidelines September 2020
There are currently no major mortgage guideline updates for September. We’ll keep you posted if anything changes during the month. One important guideline to keep in mind is that if you are doing a cash-out refinance and your debt-to-income ratio is above 45% you will need to provide liquid asset reserves. If you have any questions please be sure to ask.
September 2020 Fed Meeting And Mortgage Rates
On Wednesday, September 16th, 2:00 pm EST, we’ll hear from the Fed (aka FOMC). This is the last Fed decision before the election. Most analysts and investors do not expect anything significant to come out of the meeting however there is always the possibility that the Fed may announce a move that the market was not anticipating and/or they have an updated view of the economy that does not match what the current market reflects.
If the Fed makes a “surprise” announcement we could see an impact on mortgage rates. We’ll update the post after the announcement and discuss any potential impact on mortgage rates.
UPDATE – FED MEETING AND MORTGAGE RATES
There were no real surprises to the Fed announcement yesterday and mortgage rates did not budge post announcement. Here are the Reuters updates:
U.S. FEDERAL RESERVE’S MEDIAN VIEW OF APPROPRIATE FED FUNDS RATE AT END-2020 0.1% (PREV 0.1%)
FED’S MEDIAN VIEW OF FED FUNDS RATE AT END-2021 0.1% (PREV 0.1%)
FED SEES GDP DECLINING IN 2020 LESS THAN PREVIOUS FORECAST BUT GROWING MORE SLOWLY IN 2021 AND 2022 THAN PREVIOUSLY FORECAST
FED EXPECTS TO MAINTAIN CURRENT FED FUNDS RATE UNTIL LABOR MARKET HAS REACHED LEVELS CONSISTENT WITH ASSESSMENTS OF MAXIMUM EMPLOYMENT, AND INFLATION HAS RISEN TO 2% AND ON TRACK TO EXCEED THAT FOR SOME TIME
FED SAYS IT WILL AIM TO ACHIEVE INFLATION MODERATELY ABOVE 2% FOR SOME TIME SO IT AVERAGES 2%
Economic Calendar For September 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
- ISM Non-Manufacturing PMI
- BLS Employment report
Wednesday – September 30th:
- Mortgage Market Index: This week’s Mortgage Market Index came in at 769.6 (last week the report came in at 808.5). The biggest decrease in application volume came from refinance applications. Overall mortgage rates remained steady.
- ADP National Employment Report: Last month’s report showed 428,000 jobs were created which was seen as a disappointment for the economy. The most recent report came in at 749,000 jobs created in September. Mortgage rates were unfazed by the report.
- Final Q2 GDP: This was a brutal report but not surprising. Final Q2 GDP showed a decline of 31.4%.
Tuesday – September 29th:
- Consumer Confidence: Today’s Consumer Confidence report came in at 101.8 (significantly higher than expected. Last month’s report came in at 84.8
Friday – September 25th:
- Durable Goods: Analysts were expecting the report to come in at 1.5% after last month’s surge of 11.4%. However, today’s report came in at 0.4%.
Thursday – September 24th:
- Jobless Claims: The Jobless Claims report came in below expectations (870,000 claims vs 850,000 claims). Continued Jobless Claims came in at 12,580,000 (vs 12,300,000 – expectations). Overall the report was positive for mortgage rates.
- New Home Sales: August New Home Sales came in significantly higher than expected and are currently running at an annual rate of 1,011,000 units.
Wednesday – September 23rd:
- Mortgage Market Index: The Mortgage Market Index came in at 808.5 which is an increase from last week’s reading of 757.2. The refinance index jumped from 3289.4 to 3579.8 and the average 30 year fixed rate mortgage came in at 3.1% (at JBMC, Inc. we are offering mortgage rates below that).
- PMI Composite (Markit): The most recent PMI Composite report came in at 54.4 (last month it was 54.6). Mortgage rates remained flat post report.
Tuesday – September 22nd:
- Existing Home Sales: Last month the Existing Home Sales came in at 5.86 and this month at 6.00.
Thursday – September 17th:
- Housing Starts: The monthly Housing Starts report decreased from 1,496,000 units (annual rate) to 1,416,000 (annual rate).
- Philly Fed Index: The Philly Fed Index decreased from 17.2 to 15.0.
- Weekly Jobless Claims: Weekly Jobless claims decreased from 884,000 to 860,000. The impact to mortgage rates was muted.
Wednesday – September 16th:
- Mortgage Market Index: This week’s Mortgage Market Index came in at 757.2 compared to last week’s reading of 776.7. Purchase applications slightly declined and Refinance applications declined more significantly.
- Retail Sales: Retail sales came in lower when compared to last month (o.6 vs 1.2).
- NAHB Housing Market: Another blockbuster NAHB Housing Market report – 83.
Tuesday – September 15th:
- Industrial Production: Last month the Industrial Production report came in at 3.0 and this month the report came in at 0.4. Mortgage rates were not impacted by the report.
Friday – September 11th:
- Core CPI: Last month the Core CPI report came in at 0.6% and this month the reading came in at 0.4% (m/m). There was no immediate impact on mortgage rates.
Thursday – September 10th:
- Weekly Jobless Claims: Last week the jobless claims report came in at 881,000 new claims and this week it came in at 884,000 new claims. Continued claims came increased from 13,254,000 to 13,385,000.
- Core Producer Prices: Last month the report came in at 0.5% and this month it came in at 0.4% (m/m).
Wednesday – September 9th:
- Mortgage Market Index: This week’s Mortgage Market Index came in at 776.7. Both refinance and purchase applications increased.
Friday – September 4th:
- Monthly Jobs Report: The monthly jobs report is set to be reported on the 4th and the market is expecting the report to show 1,400,000 jobs created, an unemployment rate of 9.80% and no wage increases. UPDATE – The report was a mixed bag. The unemployment rate came in at 8.40% (lower than expected – good news for the economy) but the number of jobs created also came in lower than expected (bad for the economy). Earnings came in much higher than expected (0.4%) and average hours worked also came in higher. Mortgage rates were slightly impacted by the report but also because it was a three-day holiday weekend.
Thursday – September 3rd:
- Weekly Jobless Claims: Weekly jobless claims came in at 881,000 however the drop in claims was due to how they calculate the claims number. If they were using the previous method claims would have increased this week. This should end up being a positive for mortgage rates.
Wednesday – September 2nd:
- Mortgage Market Index: The Mortgage Market Index (MMI) decreased from 770.6 to 755.1. The biggest decline came from refinance applications (3423.0 last month vs 3316.2 this month). The mortgage industry needs things to slow down so this is welcomed news. For months now most mortgage lenders have been swamped with loan applications and because of that, some mortgage lenders increased mortgage rates to slow the number of applications they receive.
- ADP National Employment Report: Last month the ADP National Employment report came in at 167,000 jobs created and this month the expectation was for 950,000 jobs created. However the report came in significantly below that, 428,000 jobs created. Mortgage rates were not impacted by the weak report.
Tuesday – September 1st:
- ISM Manufacturing PMI: The market was expecting a reading of 54.5 however the actual report came in higher than expected (56.0). There was no major impact on California mortgage rates.
Mortgage Rates And The Monthly Jobs Report
On September 4th, 2020 the government will release the August 2020 jobs report.
Last month the government reported 1,763,000 jobs created, a 10.20% unemployment rate, and a wage increase of 0.2% (for the month of July). For the month of August, the market is expecting 1,400,000 jobs created, an unemployment rate of 9.80%, and a 0.0% wage increase.
Unless there is a significant deviation from these numbers it is unlikely that the report will have a major impact on the direction of mortgage rates. The reason is everyone already knows it’s bad and any huge upside will be looked at with skepticism until other reports confirm.
September 2020 Mortgage Rate Average In California:
We’ll update this section as we move further into September however to the start off the month we’re seeing the following averages.
- The average 30-year fixed mortgage rate in California is 2.75%.
- The average 20-year fixed mortgage rate is 2.625%%.
- The average 15-year fixed rate in California is 2.50%.
This is an average of everyone we’re seeing; from less than perfect credit to excellent credit. Please keep in mind that September 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:
September 28th – September 30th:
Mortgage-Backed Security UMBS 2.0 started the week at the 103.28 level and the UMBS 2.5 coupon started at the 104.83 level. The 10y Treasury yield was at the .66% level to start the week.
At the end of the week, Mortgage-Backed Security UMBS 2.0 was at the 103.40 level and the UMBS 2.5 coupon was nearing the 104.90 level. The 10y Treasury yield was at .70.
September 21st – September 25th:
Mortgage-Backed Security UMBS 2.0 started the week at the 102.98 level and the UMBS 2.5 coupon started at the 104.75 level. The 10y Treasury yield was at the .65% level to start the week.
At the end of the week, Mortgage-Backed Security UMBS 2.0 was at the 103.30 level and the UMBS 2.5 coupon was nearing the 104.81 level. The 10y Treasury yield was at .65.
September 14th – September 18th:
Mortgage-Backed Security UMBS 2.0 started the week at the 103.20 level and the UMBS 2.5 coupon started at the 105.09 level. The 10y Treasury yield was at the .66% level to start the week.
At the end of the week, Mortgage-Backed Security UMBS 2.0 was at the 102.88 level and the UMBS 2.5 coupon was nearing the 104.67 level. The 10y Treasury yield was at .69.
September 8th – September 11th:
Mortgage-Backed Security UMBS 2.0 started the week at the 103.28 level and the UMBS 2.5 coupon started at the 105.22 level. The 10y Treasury yield was at the .67% level to start the week.
At the end of the week, Mortgage-Backed Security UMBS 2.0 was at the 103.17 level and the UMBS 2.5 coupon was nearing the 105.06 level. The 10y Treasury yield was at .66.
September 1st – September 4th:
Mortgage-Backed Security UMBS 2.0 started the week at the 103.16 level and the UMBS 2.5 coupon started at the 105.31 level. The 10y Treasury yield was at the .71% level to start the week.
At the end of the week, Mortgage-Backed Security UMBS 2.0 was at the 103.11 level and the UMBS 2.5 coupon was nearing the 105.11 level. The 10y Treasury yield was at .71.
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