Mortgage Market Update 12-21-20

U.S. weekly jobless claims rose unexpectedly last week to 885,000. The number of first-time unemployment-benefits filers totaled 885,000 in the week ending Dec. 12, the most since the week of September 5th. Economists polled by Dow Jones expected initial claims to fall to 808,000.

Congress is now pushing through new legislation to aid individuals and businesses before year-end. The Congressional leaders on Wednesday closed in on a $900 billion package that would include direct payments to individuals. However, the measure would exclude liability protections for businesses as well as aid to state and local governments.

The Federal Reserve committed to continue buying bonds until the economy reaches full employment and inflation stays at 2%. With unemployment too high and inflation too low, it is expected that the Fed will be buying mortgage-backed-securities through 2021. Buying bonds and keeping rates low remain the main weapons for the Fed to help the economy return to normal.

Economic Calendar

Report

Period

Estimate

Impact

Date: Tue. Dec. 22

GDP Chain Deflator	Q3	NA	High
Existing Home Sales	Nov	6.62M	Moderate
Gross Domestic Product (GDP)	Q3	33.1%	High

Date: Wed. Dec. 23

Consumer Sentiment Index (UoM)	Dec	79.0	Moderate
Personal Consumption Expenditures and Core PCE	Nov	0.1%	High
Personal Consumption Expenditures and Core PCE	YOY	1.5%	High
Personal Income	Nov	-0.3%	Moderate
New Home Sales	Nov	988K	Moderate
Personal Spending	Nov	0.3%	Moderate

Date: Thu. Dec. 24

Durable Goods Orders	Nov	0.7%	Moderate
Jobless Claims (Initial)	12/19	799K	Moderate

Today’s Rate

Dec 18, 2020

Conforming Loan
Loan Term (Yr)	Rate (%)	APR (%)
30yr Fixed	2.350%	2.417% APR
15yr Fixed	1.875%	1.942% APR

High Balance Loan
Loan Term (Yr)	Rate (%)	APR (%)
30yr Fixed	2.375%	2.442% APR
15yr Fixed	1.875%	1.942% APR

Jumbo Loan
Loan Term (Yr)	Rate (%)	APR (%)
30yr Fixed	2.625%	2.692% APR
15yr Fixed	2.625%	2.692% APR

Daily rate based on: SFR/Primary/LTV60/FICO 780/Purchase

IMPORTANT: Advertised rates were valid and effective as of the date reflected above, are for informational purposes only, and are subject to change without notice.

Loans are subject to credit and collateral approval. Advertised rates are based on a set of loan assumptions including a borrower with excellent credit history and optimal loan characteristics. Your final interest rate and annual percentage rate (APR) may differ depending on your individual transaction’s specific characteristics, and certain products may not be available for your situation. Several determining factors include, but are not limited to, the state of the property location, loan amount, documentation type, loan type, occupancy type, property type, loan to value, and credit score.

APR reflects the cost of credit over the term of the loan expressed as an annual rate. For mortgage loans, APR may include the interest rate, discount points (also referred to as “points”), and other charges or fees (such as mortgage insurance and origination fees), but does not necessarily take into account other loan-specific finance charges you may be required to pay.

Golden Star, Inc. dba Transglobal Lending, 185 W. Chestnut Ave., Monrovia, CA 91016, NMLS # 1437002 (www.transgloballending.com). All rights reserved. Equal Opportunity Employer and Equal Housing Lender. All mortgage products are subject to credit property approval. Rates, Program terms and conditions are subject to change without notice. Additional conditions, qualifications, and restrictions may apply. This is not an offer for extension of credit or a commitment to lend.