Mortgage Update | Stocks Rebound As Fed Begins Buying Individual Corporate Bonds
On Monday, the FED announced that they would begin buying individual corporate bonds which immediately resulted in a bump in the stock market. As prices were pushed higher, interest rates decreased.
Timing couldn’t be better for Sellers to list. Low interest rates coupled with rising consumer confidence is creating a huge demand for housing. Medium home prices continue to rise. In fact, they shot up 4.3% year over year in the week ending June 6, according to a recent Realtor.com® report. Today's housing environment has low vacancy and delinquency rates and a large home equity cushion.
A lack of available inventory combined with record-low mortgage interest rates is resulting in buyers continuing to return to the market en masse and sellers being able to list their homes for higher prices.
Rates fell below 3%, to hit an all-time low of 2.94% for 30-year fixed-rate loans on Thursday, according to Mortgage News Daily. For the past three weeks, the number of buyers applying for purchase mortgages rose year over year, according to the Mortgage Bankers Association. Applications shot up 12.7% annually in the week ending June 5. They were also up 15% from the previous week.
Buyers who had hit the pause button during the initial months of Covid-19 are ready to move and are now joining those who were planning to buy during the summer.
San Diego Funding has access to numerous loan products to help you qualify and take advantage of the summer market. Non-qualified mortgage products, such as bank statement loans, asset depletion loans, and cross-collateral loans and adjustable-rate loans to $5,000,000 are slowly returning. Qualifications have changed so it’s more important than ever to have your clients pre-approved.
Contact one of our loan officers with any questions. We are happy to provide pre-approval and explain all available financing opportunities and benefits of making a move now.