Mortgage Industry Updates

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 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 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 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 News January 8, 2019

The Government Shutdown And Homeowners:

According to Zillow government employees affected by the shutdown have a combined monthly mortgage bill of $249,000,000.00. The longer the shutdown goes on the more difficult it is for those families to pay their mortgage. Hopefully the shutdown gets resolved asap.

Family HomesOne Day Closings?:

Forbes was out with an article that poses this question; could future homeowners close their mortgage in one day? Most of the article was based on the evolution of technology in the mortgage industry and how it has enabled borrower’s to close much faster than before. It goes on to guess that at some point in the near feature you’ll be able to buy a house and move in a few days later (just ignore that pesky thing called government regulation). So closing in one day – that might happen 50-100 years from now but it certainly is not in the near future.

Understanding Who Is Involved When Closing A Mortgage Transaction:

What the author fails to cover in the article is the number of other people and entities involved when buying a house. No matter how efficient the mortgage industry becomes; we still have to work many different people to be able to close a loan. For one there is the seller, then we have title and escrow, there also is an appraiser, the property inspector, and if the property is a condo then we have to work with the HOA. And then there is thisHome For Sale little thing called verification of employment (and income). I can assure you, based on my 14+ years of experience, when one of those important pieces to the transaction fails to deliver it can push everything out further than expected.

The More Likely Scenario:

The major slowdown with closing on a mortgage is not a mortgage company. Over the last 5 years the industry has been rapidly adopting technology to make the process smoother. For awhile now we’ve had the technology the author of the article claims is new and currently for a few type of transactions you might be able to get a purchase closed in as little as 2 weeks – that’s if everyone involved is on board with moving extremely fast.  The more likely scenario is that a refinance transaction becomes more efficient and overall the time to close improves to a couple of weeks. Due to current regulations in terms of waiting periods you’re not going to get much shorter than a few weeks on a refinance transaction.

JB Mortgage Capital, Inc.Here’s What The Mortgage Industry Should Focus On Moving Forward:

Making the transaction easier for the borrower. One area could be rather than asking the borrower to provide income documentation a lender could simply verify the income reported to the IRS and then do a verification of employment to ensure the borrower is employed by the same company. Another area is to continue to reduce the number of full appraisals for borrower’s that have more than 40% equity, a low debt to income ratio, excellent credit, long term mortgage history and long term job history.

What Is A Good Mortgage Rate For 2019:

As mortgage rates continue to be near one year lows; many homeowners are asking: What is a good mortgage rate for 2019? For starters we’re starting off the year below 4.25% on a 30 year fixed (best base scenario – no cash out, paying 1 point). Not too long ago it was 4.875% and with some lenders it was  well above 5.00%. When trying to determine what is a good mortgage rate you first must start with what you currently have (if you’re looking to refinance). If you’re at 5.50% you’ll be looking at things differently then for people at 4.50% and those at 4.00% or below. As for those buying a home; as long as you’re below 5.00% you’re still at a historically low mortgage rate. Avoid trying to compare today’s rate to the ultra low; once in a lifetime rates from several years ago that lasted for a very short period of time. The likelihood they’ll have go that low again is really small. Lastly; as we move further into 2019 this analysis may change due to possible changes in the market place and possible changes in the economy.

JB Mortgage Capital, Inc.:Mortgage company with an A+ Rating with the BBB

At JB Mortgage Capital, Inc. we offer one-on-one personal service; industry low mortgage rates 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 News For January 7, 2019

Many Americans Think It’s Not A Good Time To Buy A Home:

According to a recent survey conducted by Fannie Mae; the number of Americans dropped sharply in December (after an increase in November). Several news outlets blamed “higher rates” but the fact is rates were lower in December (compared to November and October). And others blamed higher purchase prices as the cause when in fact home values in many areas has pulled back a bit compared to previous months.

Mortgage Home InformationSo what’s the cause?

Possibly a combination of a slowing economy and the recent/sudden pull back in stocks. When ever there is a significant decline in stocks people generally feel less excited about spending money. Generally speaking; wages have not risen in a long time (once you factor inflation). In addition to that homes are still somewhat expensive considering the rise in values over the last 2-4 years. And in the last 5-6 weeks you’ve seen your 401k just decline by 20%. Throw in the fact you just spent a ton of money on Christmas presents so it’s not entirely surprising to read that some people simply were not interested in buying a home in December.

TransUnion Thinks Rates Will Go Higher:

The giant credit bureau is out with a report saying they believe mortgage rates will hit 5% by the end of 2019. One newsMortgage Interest Rates outlet is suggesting an old strategy of “paying points” will come back. For one; it never went away. Two it works with some loan scenarios and doesn’t work with others. While I do not think we’re going back to mid 3% range on a 30 year fixed mortgage rate I also don’t think we’ll see mortgage rates push to 5% or higher in 2019. Unless incomes rise and home values fall; 5% or higher in mortgage rates will have a significant impact on the US economy. Simply put; people can’t afford 5% or higher mortgage rates when you add in the student loans, car loans and other expenses. Predictions are difficult at best so we’ll have to see what happens. But for now we’re much closer to 4.00% then we are to 5.00%.

Lawsuit Against Homebuilder Lennar:

The homebuilding giant Lennar Homes has a mortgage division and according to a former employee they violated federal law by making loans to unqualified buyers. Back in December the Justice Department reached a $13.2 million settlement with their mortgage division to settle claims that they violated the False Claims Act (FHA mortgage loans). In court documents the whistle blower claims that in several cases the loan originator, California Homes To Refinancethe appraiser and the loan processor all were related, non verified reserves were allegedly added to loan application and debts were omitted as well. If true this would be a major issue for the company.

Best Mortgage Lenders For Refinancing:

With mortgage rates so low everyone is asking who the best mortgage lenders are for refinancing. Needless to say #1 is JB Mortgage Capital, Inc! However if you want a to know a step-by-step non-biased process for finding the best mortgage lenders for refinancing then continue reading on our page devoted to helping homeowners figure out who is the best. It starts with working with top rated companies and asking five simple questions to find which mortgage companies will fit your mortgage needs best.

JB Mortgage Capital, Inc.:Mortgage company with an A+ Rating with the BBB

At JB Mortgage Capital, Inc. we offer one-on-one personal service; industry low mortgage rates 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 Application Drop December 2018

Applications Decline Nearly 10%:

Mortgage Home InformationAccording to the Mortgage Bankers Association mortgage applications dropped 9.8% (seasonally adjusted) in the their most recent survey; a significant decline even for the holidays. Despite mortgage rates moving down to nearly 1 year lows; homeowners and homebuyers seemed to shy away from starting a new loan application. Un adjusted it dropped 46% compared with two weeks ago.

Refinance Applications:

Applications from current homeowners looking to refinance their current mortgage decreased 12% from the prior period 9 (two weeks ago). The holidays is usually one of the slowest times of the year when it comes to people applying for a mortgage. This is not a big surprise and normally as the weeks go on in the new year applications start to increase.

Purchase Applications:

Applications for those looking to purchase a new home decreased 8%, seasonally adjusted. The unadjusted decline was 46%. Generally speaking purchase applications are higher during the holidays (compared to refinance applications).

Statement From Joel Kan:Housing Mortgage Rates

Per Joel Kan, Associate V.P. for the Mortgage Bankers Association: “Even with lower borrowing costs, both purchase and refinance applications decreased over the two-week holiday period, as both conventional and government applications dropped. Part of the decline in mortgage applications was possibly because of the government shutdown, as concerns over delays in FHA application processing times likely contributed to the weakness in activity.”

Total Share:

The refinance share of the total applications receives was 42.7% (down from 43.6%), purchase applications came in at 57.3% of all applications. Fixed rate mortgages dominated the share as they typically do as adjustable rate mortgage applications only totaled 7.6% of all applications. FHA applications came in at 10% and VA applications came in at 11%.

Mortgage interest rateAverage Rate Conforming:

The average rate for all of the 30 year fixed conforming loan applications  was 4.84% with an average of 0.47 loan origination and discount points. That is significantly higher than what JB Mortgage Capital, Inc. is offering. See our fixed rate mortgage options on our mortgage rates page for the most current mortgage rates and news.

The average rate for all of the 15 year fixed conforming loan applications as 4.125% with 0.50 costs (loan origination and discount points. Like the 30 year fixed rate option; JB Mortgage Capital, Inc. is well below the “average” as we are seeing 15 year fixed rates below 4.00%.

Will Things Pick Up:

Hard to say however it should. Mortgage rates are moving down and typically mortgage volume increases during the first 4 -6 weeks on a new year. The size of the pickup may be dependent on how low mortgage rates stay. If we see 30 year fixed mortgage rates move below 4% (paying 1 point) then you may see a sizable pick up in mortgage applications.

JB Mortgage Capital, Inc.:Mortgage Pre-qualify

If you are thinking of purchasing a new home or refinancing a current mortgage please be sure to contact us for a no cost/no obligation quote. We offer mortgage rates well below the industry average, the latest technology so your mortgage closes fast and we offer personal one-on-one personal service. This means from application to closing your’ll work directly with Loan Officer Kevin O’Connor. He has over 14 years of experience and is very knowledgeable about how to get the lowest rate at the best terms. You can contact him directly (no extension needed) at 1-800-550-5538 or use the “Contact Us” form on your website.

Government Shutdown And Your Mortgage Application

Should You Be Concerned?:

A concern is growing among homeowners, homebuyers and realtors – will this current government shutdown prevent borrowers from closing their mortgage on time? The quick answer is not yet. If you are closing in the next week or two you should be fine because your mortgage company has probably already received the 4506-T report back from the IRS. However, if this goes on for weeks or even months there may be an impact to not only closing on time but also mortgage rates. However, for now homeowners and homebuyers should be able to close their loans as planned. The first thing you should do is check with your Loan Officer as to what their procedure is if the shutdown continues.

IRS

How Mortgage Transactions Are Tied To The Government:

When you apply for a mortgage there is a form that is included with the initial disclosures package you sign called the 4506-T. It’s included with the Loan Estimate, Equal Credit Opportunity Act form, Appraisal Disclosure form and others. The 4506-T is not a mortgage company document; it actually comes from the IRS. It’s used to verify income; more specifically verify you filled a return (or returns) with the IRS and the income you claimed. Lenders typically use this verification to confirm the income documentation you’ve sent to them.

Years Ago:

Just after the market crashed in 2008; lenders were not willing to close mortgage loans if the results from the 4506-T were in. This presented a lot of problems for people buying homes with specific close dates. However, lenders were under a lot of pressure post 2008 and were unwilling to take a chance until they received confirmation of your income from the IRS.

Mortgage Loan Application

Impact On Mortgage Rates:

For now there has been no impact on mortgage rates. In fact mortgage rates have improved since the shutdown started. However that may change as time goes on so we will have to keep a close eye on the market. A negative impact on rates long term might happen if the government has to increase borrowing costs due to the shutdown. Higher levels of borrowing can put pressure on bond yields and that may end up affecting consumer mortgage rates. Be sure to visit our Mortgage Rates page where we update daily the current market and outlook for mortgage rates.

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US National Debt As Of January 2nd, 2019

Processing A 4506-T:

The IRS is in charge of processing the 4506-T form and typically it takes 48-72 hours to receive the verification. At times it can take 7-10 days; all depends on how many requests they have to process and how busies they are.

What If The Request Was Not Processed Before The Shutdown?:

Are you concerned about closing because you just found out your mortgage company has not ordered the 4506-T yet? Don’t panic just yet. If you have a high credit score, low debt to income ratio and plenty of equity your mortgage company may not require they receive the results prior to you closing. And for those that have less than perfect credit; you can also remain calm. While each file and loan is unique it has been my experience that underwriting will try figure something out. If it’s a purchase there clearly is a greater sense of urgency than if it’s a refinance.

Solutions:

What underwriting will do is completely up to them since they make the final decision however if you’re purchasing a home they may waive the requirement so you can close on time. It really helps if you have a strong file but if not you still may find underwriting is willing to work with you so that you may close on time.

As for homeowners trying to refinance; you also might receive a waiver as well but a more likely solution is underwriting will extend your lock out to see if they can get it in before closing. For a refinance having a strong credit profile and low debt really helps getting the waiver to close without the 4506-T results.

JB Mortgage Capital, Inc.:

Not sure if your loan is a conforming loan? Check out our conforming loans page and see what the limits are in your county. CLICK HERE.

Mortgage Rates For January 1, 2019

Happy New Year!

From our family to years we wish you the very best for 2019. Markets are closed today and will re-open on Wednesday. There are no important economic reports on Wednesday however on Thursday we have the ADP National Employment Report for December, ISM New York Index for December, ISM Manufacturing PMI, ISM Manufacturing Prices Paid for December (an 2019 mortgage ratesimportant piece when it comes to inflation) and Vehicle Sales. To end the week we have the BLS Employment report, unemployment rate and Average Earnings for the month of December.

Questions Remain:

The big question is what will mortgage rates will do in 2019? Heading into the year we are already at somewhat low levels; will the 30 year fixed rate move below 4.00%? Will the 15 year fixed mortgage rate get down to 3.00%? Great questions however it’s too early to tell if we’ll see improved levels. I’ve been a loan officer in the mortgage industry for over 14 years; and one thing I’ve learned is that mortgage rates may go straight up but they rarely if ever go straight down. Keeping that in mind I think we need to be cautiously optimistic and recognize that from a historical stand point current rates are very attractive. Did we have a period in which rates were lower? Yes however that was a very short period of time and it’s unlikely to return to those extreme lows. As we always do; we’ll keep a close eye on the markets and let our readers know of any significant movements. Happy New Year!

New website:

It’s here! Our brand new layout has arrived! Let us know what you think. Keep in mind it’s still “under construction” while we put the finishing touches on. Thank you to everyone who made this happen so quickly.Low 30 year fixed mortgage rate

Currently we are seeing:

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.

Connect with us on Social Media:

FYI – These pages are still being put together

FaceBook  –  Instagram  –  Pintrest   –  Reddit

Check Out Our Refinance Page:

Is now the right time for you to consider a refinance of your current mortgage? Does your current mortgage have a high interest rate or are you looking to refinance because you wish to take cash out? Doing a refinance with a reputable mortgage company ensures you’ll get a great Happy New Year 2019mortgage rate and a smooth closing. At JB Mortgage Capital, Inc. we provide the unique combination of a low interest rate along with top notch customer service.  With extensive knowledge and nearly over 14 years of experience; we will work hard to find the best refinance terms for you and provide our industry best 1-on-1 personal service from application to closing. Our top ranking with the Better Business Bureau ensures that you are working with a well-respected and trusted company. We are also a five star rated mortgage company with Mortgage101 and Kevin O’Connor has a five star rating on Zillow. We work with some of the top lenders in the country to make sure we provide the best terms possible and the best overall experience.

The Fed Raised On December 19, 2018

It happened; just like everyone was expecting – the Fed raised .25 and they softened their outlook going forward. Lots of market volatility post release but as we get into the presser things have calmed down. If the 10y yield can stay below that 2.82% level it will be a positive for mortgage rates moving forward. If there are any significant updates during the press conference with Fed Chairman Jerome Powell or post press conference we’ll certainly let you know. Just over 40 minutes pass the release the 10y yield is at Mortgage Home Information2.79%, Mortgage Backed Securities are slightly positive and stocks have dropped significantly from their intra-day highs. Moving forward it will be interesting to see how the bond market and mortgage rates to the hike, press release and press conference. Here are the general updates from the initial press-release:

NEWS FEED:

FED SETS INTEREST RATE ON EXCESS RESERVES AT 2.40 PERCENT, WIDENING THE SPREAD TO 10 BASIS POINTS BELOW TOP OF FED FUNDS TARGET RATE

FED SAYS INFLATION NEAR TARGET WITH EXPECTATIONS LITTLE CHANGED

FED CHANGES LANGUAGE SLIGHTLY, NOW SAYS EXPECTS ‘SOME’ FURTHER GRADUAL INCREASES IN FED FUNDS RATE WILL BE CONSISTENT WITH SUSTAINED ECONOMIC EXPANSION, STRONG JOBS MARKET AND INFLATION OBJECTIVE

FED LOWERS ESTIMATE OF LONG-RUN FED FUNDS RATE TO 2.8 PCT FROM 3.1 PCT PREVIOUSLY, WITH RATES SEEN HALTING AT 3.1 PCT IN 2020 VS 3.4 PCT IN PREVIOUS PROJECTION

FED SAYS ECONOMY, LABOR MARKET REMAIN STRONG BUT EXPECTS GROWTH TO SLOW TO 2.3 PCT IN 2019 VS 3.0 PCT THIS YEAR, INFLATION WEAKER AT 1.9 PCTMortgage Interest Rates

FED RAISES TARGET INTEREST RATE TO 2.25-2.50 PCT, REDUCES EXPECTED HIKES FOR 2019 TO TWO FROM THREE

FED SEES SLIGHTLY LOWER ECONOMIC GROWTH AND INFLATION IN 2019 COMPARED WITH SEPTEMBER PROJECTIONS

MEDIAN FORECAST OF FED POLICYMAKERS IS FOR A TOTAL OF TWO RATE HIKES IN 2019, ONE IN 2020

MEDIAN VIEW OF APPROPRIATE FEDERAL FUNDS RATE AT END-2019 2.875 PCT (PREV 3.125 PCT): END-2020 3.125 PCT (PREV 3.375 PCT); END-2021 3.125 (PREV 3.375); LONGER-RUN 2.750 PCT (PREV 3.000 PCT) – FED PROJECTIONS