Mortgage Rates Once Again Hit an All Time Low! 2.86% & 2.37% (National Avg.)

• 30-year fixed loan Average for Rates, fell to 2.86%! 
• 15-year fixed loan Average for Rates, fell to 2.37%!
• The lowest in History (approximately 50 years)(of record keeping by Freddie Mac)!

    The most important thing to keep in mind is that these are National averages!  So there are lenders out there that could very well offer even lower rates.  Of course factors like credit scores, debt to income, open tradelines, reserves, and other variables which can impact what can be offered to a potential borrower.  

    Here at Mason Mortgage Advisors we are a Brokerage that works with over 20 different lenders, all with multiple lending programs to give the borrow options.  We add value by placing a focused importance on mortgage rates and closing costs.  See what you quality for by visiting us at: http://applywithwooley.com  You will be glad that you did.  

Rates In The Past 3 Years:

Rates Since 1971:

http://www.freddiemac.com/pmms/

July 2020 Existing and Pending Home Sales (National Association of Realtors)

Key Factors Currently Driving the Real Estate Market (Alongside COVID-19)

Lumber Prices Hit an All Time High!

 

1. Tariffs On Imported Lumber(Canadian).
2. Housing Starts Up 22.6%(month-on-month)(People moving out of cities).
3. New Home Sales Up 36%(Year-over-year).
4. Home Improvement Projects Up b/c Work from home(and/or time off work) + Stimulus checks.
5. Social Distancing at Saw Mills created a reduction of supply.  
6. Historical Low interest rates created increase in demand.

Bloomberg Markets and Finance

Two Story House built in one piece by Giant 3D printer.

 

Source:  https://youtu.be/lZh8E6zZdzk

Mortgage Rates Hit all Time Lows! Again! A Historical 2.88% & 2.44% (National Avg.)

• 30-year fixed loan Average for Rates, fell to 2.88%! 
• 15-year fixed loan Average for Rates, fell to 2.44%!
• The lowest in History (approximately 50 years)(of record keeping by Freddie Mac)!
•  The 8th time that rates have dropped to a new low since the corona-virus started. 

Rates since 1971:

Rates in Past 3 years:

Most importantly:

• This is only the national average.  Meaning that there are lenders out there that can beat that.  
• Focus on Lenders that will give you the lowest tier of rates and closing costs.  
• Don't deal with a lender that slaps you with excessive lender overlays above and beyond what the program/source calls for. 

1. Here at Mason Mortgage Advisors we are a brokerage that works with over 20 different lenders, each with all their own individual programs.  We have a multitude of lending avenues for the borrower.  Get the rates, closing costs, and flexibility you deserve.  
2. See what you qualify for by visiting here: http://applywithwooley.com/  Our team manager will greet you with a quick intro video. 

     

Bank of England Hold Interest Rates at 0.1%

• "The Bank of England left interest rates and asset purchases unchanged and said it doesn’t plan to tighten policy until it’s more certain about the outlook for inflation."

Source:  https://youtu.be/pj5aGKc0FJs

“Mortgage rates fell below 3 percent for the first time in 50 years" Sam Khater (Freddie Mac’s Chief Economist)

• MCLEAN, Va., July 16, 2020 (GLOBE NEWSWIRE) 
• Freddie Mac(OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), 
• showing that the 30-year fixed-rate mortgage (FRM) averaged 2.98 percent, 
• the lowest rate in the survey’s history dating back to 1971.

Full article: https://freddiemac.gcs-web.com/news-releases/news-release-details/mortgage-rates-fall-below-three-percent

New construction home sales are up 55%, the highest pace since the housing boom.

• Sales of newly built homes jumped 55% annually in June, according to a monthly survey by John Burns Real Estate Consulting, which has historically mirrored the U.S. Census report.

• It was the largest annual gain since homebuilding began again following the epic housing crash a decade ago. It is also the highest pace since the height of the unprecedented housing boom in 2005.

Top 50 Metropolitan Areas With the Strongest Rebounds Since Lockdown

See if your Area made the list:

Consumer Views On Buying and Selling a Home (2nd Quarter)

Full Article:  https://www.nationalmortgagenews.com/news/home-sales-outpace-projections-in-june-but-coronavirus-clouds-outlook?utm_source=twitter&utm_campaign=natmortgagenews-tw&utm_medium=social&utm_content=socialflow

Remote Online Notarization Laws 2020

Source:  https://www.youtube.com/channel/UCHkeJOyp0Pb3dJSt4iXjPQA

Home Flipping Rate Increases to 14-Year High (1Q 2020)

• Flipped Home Sales hit its highest level since 2nd Quarter 2006!
• However, Profit Margins on flipped homes sit at the lowest level since 3rd Quarter 2011.
• Home Flips Purchased with financing dip, while those purchased with cash climb. 

Much more information here in the Full Article:

https://www.attomdata.com/news/market-trends/flipping/attom-data-solutions-q1-2020-u-s-home-flipping-report/

Mortgage Credit Availability at lowest level since April 2014 (Mortgage Bankers Association)

Press Release:

"The overall credit availability index decreased 3.3% to its lowest level since April 2014, with all of the sub-indexes falling to lows not seen since 2014-2015," Joel Kan MBA's associate vice president of economic and industry forecasting.

Full Article:  https://www.nationalmortgagenews.com/news/mortgage-credit-availability-fell-over-30-in-four-months-mba?utm_campaign=natmortgagenews-tw&utm_source=twitter&utm_content=socialflow&utm_medium=social

We're not even thinking about raising rates: Fed chair Powell

"We are not even thinking about, thinking about raising rates" 
(Federal Reserve Chairman Jerome Powell)
Video Discussion on The Fed's next move if the U.S. economy recovers better than expected:

Source:
https://youtu.be/iGRuY2XwK4k

Continued Onslaught of Mortgage Demand From Homebuyers (CNBC's Diana Olick)

Source::
https://www.cnbc.com/video/2020/06/10/purchase-mortgage-applications-rise-for-eighth-straight-week.html

Residential Housing Crisis Unlikely (Goldman Sachs Mike Swell on Bloomberg TV)

No Foreseen Housing Crisis Based on: 

• Job improvement, "true unemployment under 10%" 
• No "oversupply of housing inventory."
• Not having "too much leverage in the system" in regards to LTV, and interest only loans...

VIDEO:

Source:

https://www.bloomberg.com/news/videos/2020-06-08/housing-crisis-unlikely-as-long-as-jobs-improve-goldman-s-swell-says-video

Housing Cost and Income Changes

Full Article:

https://urbn.is/2XGxurg

Update: Existing and Pending Home Sales April 2020 (NAR).

• Significantly fewer transactions Nationwide due to certain states Covid virus regulations which hindered property showings. 
• Some sellers took their homes off the market and some are holding back until the Covid situation settles. 
• More For Sale inventory is needed, from sellers and builders, to satisfy the current demand. 
• "Prices rose to a record high"  +7.4% since last year  (98 straight months of year over year gains).
• Buyers are still "facing record low mortgage rates!"
• Mortgage applications are up. "shows buyers are ready!"