Brief Market Update

With summer vacations essentially behind us, we have been experiencing an uptick in calls, texts, and email from our clients and potential borrowers inquiring about what’s going on with mortgage rates and the housing market. Below is a quick update.

The first seven months of this year have been a roller coaster in terms of rates. As of late, however, mortgage rates have been trending lower due to concerns over a global economic slowdown in addition to uncertainties from the escalating U.S.- China trade war, Argentina and “Brexit” and more recently the civil unrest in Hong Kong. Home sales have been sluggish, weighed down by high prices coupled with lower affordability and a lack of new and used homes in many markets. The drop in mortgage rates has helped ease some of the affordability issues, but lower rates have only provided a modest boost to sales and so home sales are expected to remain flat during the final months of 2019.

On the flip side, refinancing has picked up as more homeowners pull cash out for debt consolidations and other purposes while reducing their rates and loan terms - we are seeing more refinances into 20 and 15-year loan terms. We now have the ability provide exact/custom loan terms (for example, 25, 26, 8, 10 etc.) and rates (3.599%, 3.122% etc.). 

We always appreciate and welcome the opportunity to answer any questions and provide free no obligation rate quotes.