May 2020 mortgage rates are starting off the month near all time lows for both refinance and purchase transactions.Fixed rate mortgages remain more attractive then adjustable rate mortgages for both owner occupied and non-owner occupied transactions.
May 2020 Mortgage Rate Expectations:
Overall we believe the mortgage rates during the month of May will remain stable with a chance of seeing some improvements. In general, mortgage lenders have worked through most of the huge influx of applications they received from late February through mid-March. Demand for low rates mortgages remains strong and because of this mortgage lenders have little to no incentive to lower mortgage rates significantly further.
Processing times are generally 30 - 40 days for most applications with most lenders. However there are applications that are closing in as little as three weeks; especially for complete files that obtain an appraisal waiver.
Mortgage Guideline Update For May:
Mortgage lenders throughout the country are tightening their guidelines for two main reasons:
- The economy is significantly slowing and mortgage lenders are concerned many loans will go into default so they are making it a bit more difficult to obtain a new mortgage.
- The mortgage forbearance program has created a lot of uncertainty in the mortgage lenders and whenever that happens mortgage lenders become cautious. According to the Mortgage Bankers Association, over 7% of all mortgage loans have entered into a Forbearance agreement.
Homeowners looking for a cash out refinance, rental property transactions and those with less than perfect credit will all find it a bit more difficult to obtain a new mortgage. Now more than ever it's important you work with a well respected mortgage broker and a Loan Officer with at least 5+ years of experience (ideally 10+ years).
Are you buying a home or refinancing a mortgage and need an appraisal? Then check out our appraisal resource guide that provides a ton of useful information. Most people have to do an appraisal when they buy a home or refinance a current mortgage but some people obtain an appraisal waiver.