|Existing home sales in January increased 0.6% compared with December, according to the National Association of Realtors. There were 1.04 million homes for sale at the end of January, a 26% drop from a year ago. The lack of supply in the face of strong demand continues to push prices higher and higher.
Lumber price is double the price from just three months ago, a record high. Single-family homes, which are the most desperately needed, fell 12% from December as material costs increase and delays slow down home building.
Mortgage rates sat near record lows in December, when most of the contracts on these sales would have been signed. That gave buyers additional purchasing power, especially given sky-high prices. However, mortgage rates have moved sharply higher in this week. The average rates have risen by nearly 0.25%
The Fed will be purchasing up to $5.29B in mortgage-backed-securities today.
Since it still takes longer than usual to process application, approved file must be prepared to lock what you can and keep close monitor on the market.
|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.