Kemmer's call

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
Higher mortgage rates have led to a decline in home sales this year, the weakness has been effected more  expensive segments  along with the limitations on maximum interest and property tax deductions.
The California Association of Realtors (CAR) released its’ housing affordability index for the second quarter of 2018.recently and the combination of increasing housing prices and rising mortgage rates have reduced the home buying affordability in the state to the lowest level in 10-years.
This obviously would mean a drop in price eventually as the market dries up of qualified borrowers..
Posted by Kemmer Daniel Matteson on November 7th, 2018 11:09 AM
Mortgage rates moved up slightly over the past week to their highest level since June.

Sales of new homes are slowing and unsold inventory is rising for the first time in three years. 

With mortgage rates increasing affordability is becoming an issue and we may see a drop in the market valuations in spite of a growing economy!

Posted by Kemmer Daniel Matteson on July 27th, 2018 3:03 PM

After leveling off recent weeks, mortgage rates move up to reach a new high last seen seven years ago.

The 30-year fixed mortgage rate edged up to 4.61 percent, which matches the highest level since May 19, 2011.

Consumer spending and higher commodity prices caused bond markets to increase and led to higher mortgage rates over the past week.

While this year’s higher mortgage rates have not caused much of an effect in the strong demand for buying a home seen in most markets, inflationary pressures and the prospect of rates approaching 5 percent could begin to hit the valuation of home prices.

Many people are refinancing to convert their adjustable rate mortgage to a fixed wile rates are still low, get cash out for hone improvements to there existing homes or paying off debt to free up cash flow for other investments

I would be happy to discuss any and all options or concerns  you may have.

OR Price your own loan   http://www.firstcaliforniafinancial.com/CaliforniaMortgageRateSheet  and give me a call for a custom quote..

Posted by Kemmer Daniel Matteson on May 23rd, 2018 11:44 AM

Long-term U.S... government bond yields topped 3% for the first time in more than four years The 10-year yield is a barometer that influences borrowing costs for consumers, corporations and state and local governments. Mortgage rates are tied to this and have reached almost 4.5%  see this  article from Government backed funding source. http://www.freddiemac.com/pmms/ great graphs.

My concern is that the Home affordability index will lesson with higher rates = higher payments and the housing values will slow if not even drop in value. This could trigger another financial situation as so much of the economy is tied to housing.

Many people are refinancing to get cash out for improvements to there existing homes rather than buying new ones or paying off debt to free up cash flow for other investments or simply converting there adjustable rate mortgage to a fixed wile rates are still low.

I would be happy to discuss any and all options or concerns  you may have.

OR Price your own loan   http://www.firstcaliforniafinancial.com/CaliforniaMortgageRateSheet  and give me a call for a custom quote..

Posted by Kemmer Daniel Matteson on April 24th, 2018 8:52 AM
Posted by Kemmer Daniel Matteson on November 16th, 2017 8:40 AM

"I’VE FOUND A HOUSE THAT I REALLY WANT TO BUY, BUT THE AMOUNT I’M PRE-APPROVED FOR IS SLIGHTLY LESS THAN WHAT THE SELLER IS ASKING. DO I HAVE ANY OPTIONS? OR SHOULD I KEEP LOOKING?"

 

The answer to that depends on how much less you’re pre-approved for. If the home is truly out of your price range, you really should move on and look for a home that you can afford. However, if the difference between the seller’s asking price and what you’re approved for is a small amount, there are several possible ways to close that gap, including:

• Working with your lender to increase the amount you’re approved for.

• Putting down a larger down payment.

• Negotiating with the seller to lower the price.

Before you do anything else, though, you should talk to your broker. Although it may not always be feasible, some borrowers are able to get approved for a larger amount, especially if the difference between the pre-approval and the asking price is minimal. A pre-approval is not necessarily set in stone, so definitely touch base with your broker. Also, make sure you bring your real estate agent into the loop so that they’re aware of the situation.

Posted by Kemmer Daniel Matteson on April 8th, 2015 7:07 AM

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