Mortgage Market Update 2-15-21

Federal Reserve Chairman Jerome Powell on Wednesday expressed worry on the state of U.S. employment, saying that continued aggressive policy support is needed to fix the various issues still facing job markets. Despite an unemployment rate that has fallen to 6.3%, Powell said the employment picture is “a long way” from where it needs to be. He also noted that the actual unemployment rate is probably closer to 10% and said the Fed needs to stay focused on its “broad and inclusive” employment goal.

The central bank won’t have to worry about inflation getting in its way anytime soon, according to Philadelphia Federal Reserve President Patrick Harker on Thursday. The FOMC adopted a policy of flexible average inflation targeting, meaning that inflation can run above 2% for a while before the Fed will step in with rate increases.

The Fed will be purchasing up to $5.3B in mortgage-backed-securities today. Yields are climbing and the 10-year Note is approaching 1.20%, applying selling pressure on Mortgage Bonds.

Locking rates is recommended for approved files since traders will take the opportunity to sell MBS and push prices lower.

美联储主席杰罗姆·鲍威尔（Jerome Powell）周三对美国就业状况表示担忧，称需要持续的积极政策支持来解决就业市场仍面临的各种问题。尽管失业率已降至6.3％，但鲍威尔（Jerome Powell）表示，就业状况还有很长的路要走。他指出，实际失业率可能接近10％，并表示美联储需要继续关注其“广泛和包容性”就业目标。

费城联邦储备银行行长帕特里克·哈克（Patrick Harker）周四表示，央行不必担心通货膨胀会随时发生。联邦公开市场委员会采取了灵活的平均通胀目标政策。这意味着在美联储加息之前，通货膨胀可能会持续超过2％的时间。

美联储将在今天购买高达$ 5.3B的抵押贷款支持证券。如今，收益率正在攀升，十年期国债收益率接近1.20％。这对抵押债券施加了卖压。

建议对批准的貸款申请锁定定率，由於交易者将趁机出售MBS并将价格进一步推低。

由于最近利率略有上升，因此建议尽快提交貸款申请。

Economic Calendar

Report

Period

Estimate

Impact

Date: Tue. Feb. 16

Empire State Index

Feb

5.50

Moderate

Date: Wed. Feb. 17

Retail Sales ex-auto

Jan

1.0%

High

Producer Price Index (PPI)

Jan

0.4%

Moderate

Housing Market Index

Feb

Moderate

Core Producer Price Index (PPI)

Jan

0.2%

Moderate

Retail Sales

Jan

1.2%

High

Date: Thu. Feb. 18

Housing Starts

Jan

1.65M

Moderate

Jobless Claims (Initial)

2/13

787K

Moderate

Philadelphia Fed Index

Feb

20.0

High

Building Permits

Jan

1.680M

Moderate

Date: Fri. Feb. 19

Existing Home Sales

Jan

6.56M

Moderate

Today’s Rate

Feb. 12, 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

1.875%

1.942%

Jumbo Loan

Loan Term (Yr)

Rate (%)

APR (%)

30yr Fixed

2.750%

2.817%

15yr Fixed

2.625%

2.692%

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.