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30-Second Update:  Pending Home Sales Rise/Mortgage Rates Hit 2 ½ Year Low

The Pending Home Sales Index, which is a forward-looking indicator based on home contract signings, increased 1.1% to 105.4 in May, up from April’s 104.3.  Pending home sales in the northeast rose 3.5% to a 92 reading.  The National Association of Realtors (NAR) Chief Economist Lawrence Yun said, “The lower-than-usual mortgage rates have led to the increase in pending sales for May.” 

Mortgage rates for the week ending June 27th, have tumbled to their lowest levels since late 2016.  Yun went on to say, “Lower rates create extremely attractive conditions for consumers.  Buyers, for good reason, are anxious to purchase and lock in at these rates.”  The key right now is matching supply and demand.  Homes are selling at a swift pace, and there is a need for home builders to ramp up construction to help assist in balancing the two. 

Now is a great time for first-time homebuyers, as well as current homeowners looking to downsize or move-up from their existing homes, to capitalize and lock-in on these very low rates.

We Are Happy To Help” Call us at 855-LOANS-USA or visit us at AdvisorsMortgage.com

Sources:

https://bit.ly/2YfAt8W

https://on.mktw.net/2ZWBS4J


The Fed and Lower Rates

After the Fed’s meeting last week, we saw bond pricing improve which has pushed interest rates even lower.  The Fed has decided to keep the Fed Funds rate unchanged.  They also discussed no need to increase rates at this time, and even mentioned the idea of lowering it. 

The Fed has a dual mandate: keeping inflation near 2% and maintaining healthy job growth.  Because inflation is currently lower, actually at 1.5%, which was reported on May 31st in the PCE report, the Fed may open the appetite for lending money by decreasing the Fed Fund Rate.  Fred Bullard, St. Louis Fed President, actually voted against the national Fed decision and actually wanted a rate cut by a quarter percent, while the other members voted to keep the rate unchanged.  Bullard said, a rate cut “may be warranted soon”.   Analysts are also saying that even though there wasn’t a rate cut during this meeting, they are seeing the possibility of a rate cut as soon as the next meeting in July. 

With the current outlook of the economy and pending recession, rates are very attractive and moving lower.  This is a great time to start thinking about refinancing or purchasing a home.

We Are Happy To Help” Call us at 855-LOANS-USA or visit us at AdvisorsMortgage.com

Source: https://on.wsj.com/2ZClpCK


30-Second Update: Mortgage Applications Surge, Rates Near Lowest Level in Two Years!

According to the Mortgage Bankers Association’s seasonally-adjusted index, mortgage applications surged 26.8% in the week ending June 7th.  In addition, overall mortgage volume was 41% higher than this time a year ago.  Mortgage rates, which have dropped to their lowest level in nearly 2 years helped propel the surge in applications and volume.  Refinances, which are the most rate-sensitive, jumped a remarkable 47% week-to-week and 97% annually.  Mortgage applications to purchase a home, which usually react slower to drops in rates, increased 10%. 

Overall, the current lower interest rate environment is having a tremendous positive impact on the housing market.   Freddie Mac Chief Economist Sam Khater stated, “These low rates are good news for current homeowners.  With rates dipping this low, there are over $2 trillion worth of outstanding mortgages eligible to be refinanced, meaning the majority of what was originated in 2018 is now eligible.”

Whether you are in the market for a new home or getting ready to refinance, this is a great time to start the process and see what you qualify for.  Call Advisors Mortgage today to see how we can help.

We Are Happy To Help” Call us at 855-LOANS-USA or visit us at AdvisorsMortgage.com

Sources:

https://bit.ly/2F8684M

https://cnb.cx/2KJPH1Z


Home Appreciation is Improving and Refi’s are Hot!

According to CoreLogic, since this time last year, home prices have increased by 3.6%!  Since last month, they have increased by 1%.  CoreLogic also forecasts that home prices will continue to appreciate by about 4.7% over the next year.

Dr. Frank Nothaft, Chief Economist for CoreLogic said, “The pickup in sales between March and April has helped to counter the recent slowing in annual home price growth.”  Dr. Nothaft also said, “Mortgage rates are 0.6% below what they were one year ago and incomes are up, which has improved affordability for buyers.”

With these appreciation improvements and low interest rates, it is clear that this is a great time to purchase a home.  Speaking of interest rates, the MBA released their application index, and it shows that refinances are up 6% for the week and 33% over the last year.  Refinances now make up about 42% of all mortgage applications.  With the latest decline in interest rates, many homeowners are taking advantage of the savings and refinancing their current loans.

Whether you are in the market for a new home or getting ready to refinance, this is a great time to start the process and see what you qualify for.  Call Advisors Mortgage today to see how we can help.

Source: CoreLogic

 


30-Second Update:  Rates Are Low, Can They Go Lower?

Earlier this month, the Federal Open Market Committee announced that no foreseeable moves to interest rates were expected “for some time.”  Markets have now reversed their position, however, and now believe the Federal Reserve will likely cut rates twice in upcoming months (possibly September and January 2020).  According to CME’s FedWatch tool, futures trading indicated a 63% chance of a September rate cut and a 62% probability of another rate cut in January.  Since 1983, the average length of time from a rate hike to the next rate cut has been seven months.   With the most recent tightening occurring back in December, a September cut would be ten months apart, putting us closely in line with historical averages. 

Even with two possible interest rate cuts on the horizon, as of the week ending May 23rd, mortgage rates have fallen for the fourth straight week.  This marks the lowest level since January 2018.  This low interest rate environment is proving to be extremely beneficial to those looking to purchase a new home, in addition to homeowners looking to refinance into a lower interest rate, or pull cash out for home improvement or debt consolidation. 

Sources:

 

https://cnb.cx/2QBuYhH

https://cnb.cx/2Qj9WV1

https://bit.ly/2vYMqDU

 


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