Hello Friends, Since the last update, mortgage rates for conform ing, single unit, and resi dential properties have come back down to the lowest levels I have ever seen with some of my borrowers being able to lock and close a 30-year fixed rate at 3% APR with close to zero closing costs.
This rate environment only 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.
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 severely impacted by a lack of investor appetite for any mortgage that doesn’t fit into a very small box. Jumbo loans, cash-out refinances, loans for multi-unit properties, rental properties, alter nate lending products for self-employed borrowers, and even Home Equity Lines of Credit are all being impacted by a lack of investor interest due to the massive job losses and uncertainty
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I am still working 16+ hour days and have been for over ten weeks straight to try and keep up with the historic level of demand. The statistic that keeps getting repeated in the media is that there are $10 Trillion worth of mortgages that could potentially benefit from a mortgage refin ance, while the mortgage industry can only process $2 Trillion of that per year. That means the process is very slow for many lenders, primarily institutional retail banks. We are still closing most refinances in 30 to 45 days with some lenders on fire and closing in three weeks or
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I am finally closing about half of the loan requests that came in an avalanche in late February/early
March, which is creating more One of my primary bandwidth for me to take on lenders, with 30- more loan requests. I am still year fixed rates at waiting out the market for the the 3% APR and other half of the loan applilower, requires us cations in my pipeline but to close those loans eventually, when mortgage with them in 22 lending comes back, I will clear days or less.
out those deals and be ready for the next wave.
should be at or near historically low levels through this year and into next year, at the very least.
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.
These waves will keep coming for the foreseeable future with the Federal Reserve and Fed Chair Jerome Powell committed to helping the economy get back on its feet through the various stimulus tools that they are currently employing and did employ during the Great Recession. This means mortgage rates