Mortgage Market Update 10-05-20

President Donald Trump and first lady Melania Trump have tested positive for COVID-19, the president tweeted early Friday morning. The recent news, coupled with the disappointing Jobs Report, caused U.S. stocks to drop even lower, and showed almost no gain on bonds.

This overnight news from the White House even lowered global stocks, coming after fears of a second coronavirus wave.

The September Jobs Report showed employers added 661K new workers last month, lower than the 800k expected. The total unemployed percentage (U6 number) rose from 12.8% to 14.2% while the Labor Force Participation Rate fell to 61.4 from 61.7. The labor market slowly improves from April. Overall, we have reclaimed 52% of the jobs lost from the shutdown. However, there is much more work to do to improve the job market.

There are many uncertainty factors in the coming weeks. Market turmoil is inevitable; it’s hard to predict the impact on the new stimulus package. It is still recommended to lock and close files as soon as possible.

Economic Calendar

Report

Period

Estimate

Impact

Date: Mon. Oct. 05

ISM Services Index

Sep

55.6

Moderate

Date: Wed. Oct. 07

FOMC Minutes

Sep

High

Date: Thu. Oct. 08

Jobless Claims (Initial)

10/3

800K

Moderate

Today’s Rate

Oct 2, 2020

Conforming Loan
Loan Term (Yr)	Rate (%)	APR (%)
30yr Fixed	2.500%	2.567% APR
15yr Fixed	2.000%	2.067% APR

High Balance Loan
Loan Term (Yr)	Rate (%)	APR (%)
30yr Fixed	2.500%	2.567% APR
15yr Fixed	2.125%	2.192% APR

Jumbo Loan
Loan Term (Yr)	Rate (%)	APR (%)
30yr Fixed	3.000%	3.067% APR
15yr Fixed	2.875%	2.942% APR

Daily rate based on: SFR/Primay/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.

admin2021-01-07T21:33:04+00:00October 5, 2020|