Mortgage Market Update 11-06-20

Volatility surrounding the 2020 presidential election has pushed mortgage rates to their 12th record low this year, giving both homeowners and buyers a boost. The average rate on the 30-year fixed mortgage fell to 2.78% for the week ending Nov. 5, down from 2.81% the previous week, and 3.69% the same week one year ago, according to Freddie Mac.

Job growth was stronger than expected in October, and the unemployment rate slides to 6.9% even as the U.S. faces the challenge of surging coronavirus cases and the impact they could have on the inceptive economic recovery.

The Fed will continue to purchase both Mortgage-Backed and Treasury securities to the tune of $120B per month.

Be mindful that upon a resolution of a clear presidential winner, uncertainty is removed from the markets and that tailwind for bonds will be gone. In addition, the bond market will have to deal with another $122B of Treasury supply at auction next week.

It is recommended to prepare documents in advance for refinance application due to long processing time, and to closely monitor the election results for market impact.

Economic Calendar

Report

Period

Estimate

Impact

Date: Thu. Nov. 12

Jobless Claims (Initial)	11/7	725K	Moderate
Consumer Price Index (CPI)	Oct	0.2%	High
Core Consumer Price Index (CPI)	Oct	0.2%	High

Date: Fri. Nov. 13

Producer Price Index (PPI)	Oct	0.2%	Moderate
Core Producer Price Index (PPI)	Oct	0.3%	Moderate
Consumer Sentiment Index (UoM)	Nov	0.5%	High
Personal Spending	Sep	1.0%	Moderate
Chicago PMI	Oct	61.0	High

Today’s Rate

Nov 06, 2020

Conforming Loan
Loan Term (Yr)	Rate (%)	APR (%)
30yr Fixed	2.375%	2.442% 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	2.875%	2.942% APR
15yr Fixed	2.750%	2.817% 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.

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.