Mortgage Market Update 3-12-21

Fannie Mae and Freddie Mac announced March 10 that they are limiting new loans secured by second homes or investment properties to 7% of the overall loans they purchase (roughly HALF their historic levels!), effective April 1. Some mortgage lenders have started to raise their pricing adjustments in response to FHFA’s announcement.

The housing market stands at a tipping point after a stunningly successful year during the pandemic. Homes are pricier than usual, mortgage rates are rising, the supply of for-sale homes is anemic and consumer confidence in the housing market is falling. Pandemic-related mortgage bailouts are set to expire this summer.

U.S. consumer prices increased solidly in February as the cost of gasoline rose further, leading to the biggest annual gain in a year, but underlying inflation remained tepid amid sluggish demand for services like airline travel. The Labor Department said on Wednesday its consumer price index increased 0.4% last month after rising 0.3% in January. It was in line with economists’ expectations.

The bond market also stands at a tipping point trying to figure out where inflation will be in the short and/or long term. The Fed continues to purchase mortgage-backed-securities. Locking rates is recommended for all approved applications.

Fannie Mae和Freddie Mac的管理委员）于3月10日宣布，他们将對第二套房（2nd Home）或投资物业作抵押的新贷款限制在其购买的总贷款的7％（大约为历史水平的一半！）中，自4月1日起生效。 FHFA宣布后，各大抵押贷款银行相继提高关于2nd HOME 和投资屋的贷款利率。

在疫情期间住房市场飘升之后，現在处于一个转折点。房价过热，抵押贷款利率上升，待售房屋供应疲软，消费者对房地产市场的信心下降。疫情相关的抵押贷款救助计划将于今年夏天到期。

由于汽油成本进一步上涨，美国消费者价格在2月份稳步上涨，这是一年来最大的年度涨幅，但由于对航空旅行等服务的需求低迷，潜在的通货膨胀率仍然不高。劳工情部周三表示，其消费者价格指数在1月份上涨0.3％之后，上个月上涨了0.4％。这符合经济学家的预期。

债券市场也处在转折点，通货膨胀是短期的或长期的影响会让结果不同。美联储还在购买的抵押贷款证券。建议尽快锁定利率现有的贷款申请。

Economic Calendar

Report

Period

Estimate

Impact

Date: Mon. Mar. 15

Empire State Index

Mar

14.5

Moderate

Date: Tue. Mar. 16

Retail Sales

Feb

-0.5%

High

Retail Sales ex-auto

Feb

High

Housing Market Index

Mar

Moderate

Date: Wed. Mar. 17

Housing Starts

Feb

1.570M

Moderate

Building Permits

Feb

1.750M

Moderate

FOMC Meeting

Mar

Unch

High

Date: Thu. Mar. 18

Jobless Claims (Initial)

3/13

699K

Moderate

Philadelphia Fed Index

Mar

24.5

High

Today’s Rate

Mar. 12, 2021

Conforming Loan

Loan Term (Yr)

Rate (%)

APR (%)

30yr Fixed

2.690%

2.757%

15yr Fixed

1.990%

2.057%

High Balance Loan

Loan Term (Yr)

Rate (%)

APR (%)

30yr Fixed

2.750%

2.817%

15yr Fixed

2.125%

2.192%

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.