Mortgage News For January 7, 2019

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.


So 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 news 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, the 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.

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 and 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).

Loan Officer Kevin O'Connor

Loan Officer Kevin O'Connor

He is the founder and main contributor of He has over 16 years of experience as a Mortgage Loan Originator (MLO) and is fully licensed with the state of California and the Nationwide Mortgage Licensing System (NMLS). He has a top rating with the Better Business Bureau, Google, and Zillow. He continually delivers the results homeowners are looking for; low rates, fast closings, and exceptional service. CA DRE #01499872 and NMLS # 247447