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

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
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
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

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