Kemmer's call

After a year-long slide, mortgage rates hit a cycle low in September 2019 and have risen in six out of the last nine weeks due to modestly better economic data and trade related optimism. The improvement in sentiment has been one of the main drivers behind the surge in equity prices and will provide a halo effect to consumer spending heading into the important holiday shopping season.
Posted by Kemmer Daniel Matteson on November 12th, 2019 1:01 PM

Generally, lenders will evaluate the four Cs when determining a borrower's eligibility for a mortgage. If your self-employed, you'll still be evaluated on the four Cs, but may be asked to provide some different or additional documentation to determine how much you may be qualified to borrow.

If you're self-employed, you may be required to submit the following documents when applying for a mortgage:

  • Two years of personal tax returns
  • Two years of business tax returns including schedules K-1, 1120, 1120S
  • Business license
  • Year-to-date profit and loss statement
  • Balance sheet
  • Signed CPA statement
  1. Capacity: Lenders look at your income, employment history, savings, and monthly debt payments, such as credit card charges and other financial obligations, to make sure that you have the capacity to take on a mortgage comfortably.
  2. Capital: Lenders consider your readily available money and savings plus investments, and other assets that you could sell fairly quickly for cash. Having these reserves demonstrates that you have additional funds, in addition to your income, that are readily available to pay the mortgage.
  3. Collateral: Lenders take into account the value of the property that you're pledging as security against the loan. Depending on how your personal business is organized, additional documentation may be required.
  4. Credit: Lenders check your credit score and history to assess your record of paying bills and other debts on time.
Posted in:General
Posted by Kemmer Daniel Matteson on October 23rd, 2019 2:02 PM

Mortgage Rates Remain Near Historical Lows

The sound and fury of the financial markets continue to warn of an impending recession, however, the silver lining is mortgage demand reached a three-year high this week. The decline in mortgage rates over the last month is causing a spike in refinancing activity – as homeowners currently have $2 trillion in conventional mortgage loans that are in the money – which will help support consumer balance sheets and increase household cash flow. On top of that, purchase demand is up seven percent from a year ago.

Posted by Kemmer Daniel Matteson on August 21st, 2019 8:52 AM

Mortgage Rates Level Out

We’re seeing a tug of war happen as the fixed income market flashes warning signs while the equities market continues to march higher with optimism. The data suggests the economy is weakening but is still on very solid ground with high consumer confidence and a strong labor market. Closer to home, the housing market continues to slowly improve and gain momentum as we head into the second half of the year, which is good news and should keep the economy growing.

Posted by Kemmer Daniel Matteson on July 8th, 2019 4:01 PM
The drop in mortgage rates over the last several  months is showing up  already in the housing market. Through June, home purchase applications increased by five percent,  compared to the previous month.

In the near-term, we expect the housing market to continue to improve from both a sales and price perspective.
Posted by Kemmer Daniel Matteson on June 28th, 2019 2:02 PM
Modestly weaker consumer spending and manufacturing data, along with continued jitters around trade policy, caused interest rates to decline throughout the yield curve. While signals from the financial markets are flashing caution signs, the real economy remains on solid ground with steady job growth and five-decade low unemployment rates, which will drive up home sales this summer.
Posted by Kemmer Daniel Matteson on May 21st, 2019 12:18 PM
Slightly weaker inflation and labor economic data caused mortgage rates to dip this week. Moving into summer, we expect rates to be about a quarter to half a percentage point lower than where they were last year, which is good news for the housing market. These lower rates combined with solid economic growth, low inflation and rebounding consumer confidence should provide a solid foundation for home sales to continue to improve over the next couple of months.
Posted in:General
Posted by Kemmer Daniel Matteson on May 7th, 2019 8:49 AM
Purchase mortgage application demand saw the second highest weekly increase over the last year and thanks to a spike in refinancing activity, overall mortgage demand rose to the highest level since the fall of 2016. While the housing market has faced many head winds the last few months, it sailed through the turbulence to calmer seas with demand buttressed by a strong labor market and low mortgage rates. The benefits of the decline in mortgage rates that we’ve seen this year will continue to unfold over the next few months due to the lag from changes in mortgage rates to market sentiment and ultimately home sales.
Posted by Kemmer Daniel Matteson on April 9th, 2019 3:37 PM
While mortgage rates very modestly rose to 4.4% last week, they remain below year-ago levels for the fourth week in a row. In late 2018, mortgage rates rose over a full percentage point from the prior year, which was one of the main reasons for the  weakness in home sales has continued. .

However, the impact of recent lower rates and a strong labor market has led to a rise in purchase mortgage demand as we start the spring home buying season..
Posted by Kemmer Daniel Matteson on March 13th, 2019 4:38 PM

The economy continued to show strong business activity and growth in employment which drove the 30-year fixed mortgage rate to a seven year high of 4.94 percent  on national average– WE are still at 4.75%

Higher mortgage rates have led to a slowdown in national home price growth, and  the price deceleration has been primarily concentrated in affluent coastal markets in California.

If you are in an adjustable rate mortgage  Lock in a fixed rate now.!

Posted by Kemmer Daniel Matteson on November 14th, 2018 12:40 PM

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