Hello Friends, Since the last update, mortgage rates for conforming, single- unit, residential properties continued to be at the lowest levels I have ever seen with most of my borrowers being able to lock and close a 30-year fixed rate at 3% APR with minimum closing costs. This rate environment primarily exists for no cash out, first mortgage refinances, where the property type is a single-unit, residential property and the loan amount is under the standard conforming loan limit of $510,400.
Mortgage rates currently exist below 3% APR for 30, 25, 20, 15, and 10year fixed mortgage products for mortgages that fit into this narrow window. 15-year fixed has fallen to 2.5% APR, in some cases, with simple interest rates even lower than that.
The majority of loan products, outside of no cash out refinances and purchases where the loan amount is below the standard conforming loan limits, are still impacted by a lack of investor appetite for any mortgage that doesn’t fit into a very small box.
As the economy continues opening up, we are slowly seeing more loan products come back to the market. Coupled with the overall low rate environment, fueled by the easing measures driven by the Federal Reserve, these products are coming back to market at a great time for borrowers.
I am still working 16+ hour days for over fifteen weeks straight to try and
Some high balance loan amounts have finally started to drop in rate, and I have even been able to negotiate some special deals at close to 3% APR on high balance, 30year fixed. Non-conforming/jumbo lending for 30-year fixed is still up in rate, but some adjustable rate mortgages, ARMs, are showing rates with APR in the mid to low 3% range again.
“I am re-locating...can I get a mortgage for a new home before I start work?”
Consider Locking In Your Mortgage Rate!
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primarily institutional retail banks. One of my primary
We are still closing most refinances lenders, with 30- in 30 to 45 days with some lenders year fixed rates at on fire and closing in three weeks the 3% APR and or less! One of my primary lenders, lower, requires us with 30-year fixed rates at the 3% to close those loans APR and lower, requires us to close with them in 22 those loans with them in 22 days days or less. or less.
I am finally closing 75% of the loan requests that came in an avalanche in late February/early March, which is creating more bandwidth for me to take on more loan requests. Once I create more room, it seems like another wave of loans comes on again. The first week in June I was hit with over 35 new loan requests for 15-year fixed mortgages at close to 2.5% APR when one borrower posted this deal that she was getting from me online.
These waves will keep coming for the foreseeable future. Last month in this newsletter, I predicted that mortgage rates should be at or near these historically low levels through this year and into next year. At the June Fed meeting, Fed chair Jerome Powell backed up my prediction by committing to keeping the Fed’s target rate, the Fed Funds, where it is now, at 0% to .25%, until at least 2022. The last time the Fed Funds was at this level was from 2008-2016 during the Great Recession, so I am now predicting that the Fed will keep suppressing interest rates through the end of 2022 and possibly beyond that.
Thank you again for your continued patronage, support, and patience during this historic time. Wishing you and your loved ones good health in these stressful times.