Mortgage Market Update 2-01-21

According to the 2020 Commerce report, the GDP declined by 3.5% for the full year and by 2.5% from the fourth quarter of 2019; this is the worst decline since the end of World War II.

A slower-than-anticipated vaccine rollout, coupled with a continued rise in cases and restrictions, likely held back growth. However, activity is projected to rebound strongly once vaccines are more widely distributed, returning the economy to some semblance of normal.

Fed Chairman Jerome Powell said it was premature to taper bond purchases, and the Fed would have to see improvement towards its goals before possibly cutting back on purchases. He expects inflation to tick higher in the coming months because of low prices last year, as well as a potential burst in consumer spending as vaccines help to reopen the economy. Powell reiterated that the Fed would allow inflation to rise above 2% for some time。

The Fed will be purchasing up to $7.79B in mortgage-backed-securities today.

Interest rates have been rising recently, it is recommended that everyone sets their lock-in target rate, and keeps paying attention to the market.

根据2020年商务报告，全年GDP下降3.5％，比2019年第四季度下降2.5％;这是自第二次世界大战以来最严重的下降。

疫苗推出的速度慢于预期，再加上病例的持续增加和活动的限制，很可能会抑制增长。但是，一旦疫苗分發更广泛，一切活动预计会强劲反弹，从而使经济恢复到正常水平。

美联储主席鲍威尔（Jerome Powell）表示，逐渐减少债券购买为时尚早，美联储必须在实现目标之前经济有所改善，然后才可能减少购买。他预计，由于去年的低价，以及由于疫苗有助于重新开放经济而使消费者支出可能激增，未来几个月的通货膨胀率将会上升。鲍威尔重申，美联储将允许通胀在一段时间内升至2％以上。

美联储今天将购买最多$ 7.79B的抵押贷款支持证券。

利率最近有上涨的势头，建议大家随时关注市场，设定合理锁定目标。

Economic Calendar

Report

Period

Estimate

Impact

Date: Mon. Feb. 01

ISM Index

Jan

59.5

High

Date: Wed. Feb. 03

ISM Services Index

Jan

56.5

Moderate

ADP National Employment Report

Jan

40K

High

Date: Thu. Feb. 04

Jobless Claims (Initial)

1/30

827K

Moderate

Productivity

-2.8%

Moderate

Date: Fri. Feb. 05

Unemployment Rate

Jan

6.8%

High

Hourly Earnings

Jan

0.3%

High

Average Work Week

Jan

34.7

High

Non-farm Payrolls

Jan

20K

High

Today’s Rate

Jan 29, 2021

Conforming Loan

Loan Term (Yr)

Rate (%)

APR (%)

30yr Fixed

2.375%

2.442%

15yr Fixed

1.875%

1.942%

High Balance Loan

Loan Term (Yr)

Rate (%)

APR (%)

30yr Fixed

2.375%

2.442%

15yr Fixed

2.000%

2.067%

Jumbo Loan

Loan Term (Yr)

Rate (%)

APR (%)

30yr Fixed

2.750%

2.817%

15yr Fixed

2.750%

2.817%

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.