This Weeks Homeowner News:
January 2019 has started with a bang in the mortgage industry as mortgage rates pushed down to levels not seen in nearly a year. While mortgage applications for both purchase and refinance transactions dropped significantly over the holidays they've rebounded back to more normal levels in January. Below is a brief overview of the homeowner news topics recently discussed at koloans.com.
Home Sales Decline:
The most recent home sales report showed one of the largest moves ever seen despite mortgage rates declining for the same period. Sales declined over 6% however the median sales price increased to $253,600.00. Why was there such a significant decline? According to Lawrence Yun, the National Association of Realtors Chief Economist, there were two important factors that attributed to the decline:
- Mortgage rates pushed to very high levels in October
- Lack of inventory
It will be interesting to see the report for January 2019; will sales push higher after the holidays or will the decline in sales continue? With mortgage rates at great levels to start the year hopefully we'll see a bounce back.
What Are The Main Drivers Mortgage Rates:
- Is it the Fed? No
- The 10y Treasury? No
- The Federal Government? No
Understanding what are the main drivers of mortgage rates can help you save thousands of dollars on your next mortgage. While all the above can and do influence mortgage rates; they are not the main driver of mortgage rates. The three main drivers of mortgage rates are:
- The Mortgage Backed Securities Market (MBS)
- Lender Volume
- Economic Data
Being more knowledgeable about these three things will put you in a much better position when it comes time to locking in an interest rate.
Fannie Mae and Freddie Mac Face Big Changes in 2019:
Ever since the economy stabilized after the 2008 financial crisis there has been a push to have the Federal government move away from controlling Fannie Mae and Freddie Mac and allowing them to exist on their own. According to some reports the current administration is in the process of drafting legislation to do just that. While it is unlikely the legislation will pass quickly; it will at least set in motion a discussion that many people have wanted to see happen.
JB Mortgage Capital, Inc.:
If you are in the market to purchase a home in California or you are looking to refinance your current mortgage please be sure to contact us for a no cost - no obligation quote: 1-800-550-5538