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Historically Low Mortgage Rates May Continue

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I recently spoke with Kathleen Howley and Forbes about the expectation that rates may remain low, as we have seen over the past year.

Just recently the Federal Reserve Bank of Kansas City canceled their Jackson Hole Economic Policy Symposium due to the rising spread of the delta-variant. How does this point to low rates?

Well, when shutdowns across the country began occurring last year the Fed cut rates and they have remained low throughout this year as well. In January, the average rate for a 30-year fixed mortgage reached 2.65%, an all-time low according to data from Freddie Mac. The recent cancellation of this in-person event may signal to investors that the pandemic is not truly over. Despite the vaccine rollout cases continue to increase in many places across the country.

“The Fed has been reassuring markets since last year that they will keep buying bonds as long as there’s a concern that the pandemic is going to slow the economy,” said Mark Goldman, a mortgage broker with C2 Financial Corp. in San Diego. “Now, we’re hearing every day that hospitals are full, and that’s not a sign that the economy is about to take off.”

For the full article, click here.

Mortgage Rates Close To All-Time-Low

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Mortgage rates continue to fall for another week amid the pandemic. This week rates fell to 3.31%, putting them only three basis points away from an all-time-low.

The government continues to put money into capital markets to keep rates low and help the recovery of the economy once it begins reopening. I believe rates will continue to float down by a small amount in the coming weeks.

What does this mean for you? If you have been contemplating a refinance of your mortgage now may be a good time to act. A lower monthly payment may be a good option for you during these times of uncertainty. If you had been thinking of purchasing a home and still find yourself in the position to do so, it would be a good time to lock in a low rate for your mortgage. If you have questions, reach out and let’s discuss a plan of action.

For the full article from Housing Wire and my comments, click here.

Stricter rules for adjustable-rate mortgages

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marketwatch_logo-1 While many lenders already use the fully-indexed rate to approve borrowers, it’s not a standard used throughout the industry. Some lenders are approving borrowers with a rate that may be slightly higher than the starter rate but less than the fully-indexed rate, says Mark Goldman, senior loan officer with C2 Financial Corp, a San Diego-based mortgage brokerage firm.

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