Posts

Why Are Rates Not HIGHER – With Inflation, Fed Tightening, & Economy Improving?

HORRIFIC SPACE SHUTTLE CRASH On January 28th, 1986, the entire world watched the Space Shuttle Challenger explode and crash to the earth – on live TV. Seven people lost their lives, including school teacher Christa McAuliffe, right in front of our eyes and – everyone wondered what the hell happened? The talking heads in the […]Read More

The 6 Forces Driving Interest Rates

THE THREE FORCES DRIVING RATES The mortgage industry’s primary voice/blogger, Rob Chrisman, recently wrote this: “There are three forces driving mortgage rates these days: uncertainty about the effects of the pandemic drives money to the safety of fixed income securities (mortgage bonds) moving rates lower; inflation fear backed by data moves rates higher, and an […]Read More

Why Lenders HATE Jumbo & Why JVM’s Jumbo Rates Are SO LOW

JVM FHA OFFER ACCEPTED OVER CASH OFFER As a brief aside – one of our clients recently had his 14-day-close FHA offer accepted over an all-cash offer – at the same price. Why? The listing agent knew our reputation and knew the appraisal would not be an issue (b/c of comps and b/c our buyer […]Read More

Jumbo Rates – Almost 1% LOWER Than Conforming; Going For Jumbo!

ACTUAL CONVERSATION AT FANNIE MAE Fannie Mae Bob: “Hi Mike, I just remembered we have no competition, so let’s charge a lot more…” Fannie Mae Mike: “Hmmm, great idea, but what about Freddie Mac?” Fannie Mae Bob: “Freddie always follows us, and we are so much bigger that we can do whatever we want anyway.” […]Read More

Mortgage Applications Down 30%; What Does It Mean For Borrowers? Refi Boom Coming?

2020 = BEST YEAR EVER FOR MORTGAGE INDUSTRY The mortgage industry had its best year ever last year (over $4 trillion of funded loans), as rates fell to all-time lows and both purchases and refis shot up to record levels. Industry capacity could not come close to meeting demand, and lenders were able to charge […]Read More

13 Factors That Impact Your Mortgage Rate

We often have buyers or agents ask: “What is your 15-year rate today?” Or “What is today’s interest rate?” We always respond by explaining there is no single rate, because the market moves so often and because there are so many things that affect an individual borrower’s rate. Here are 13 factors that affect almost […]Read More

The Other Reason Housing Inventory Is So Low (Not What You Think)

In the 1970s, when inflation was out of control, the press was always looking for scapegoats to blame like “middlemen” and “greedy businessmen” when the cause was really at the feet of Fed and Government policy. That is largely the situation today with respect to housing, as Fed and Government Policy – intended to help […]Read More

What Is A Conventional Loan?

What Is A Conventional Loan Conventional loans are a favorite for homebuyers with decent credit scores and who have a fair amount of funds for a down payment. Conventional mortgages should not be confused with “Conforming Mortgages.” Conventional mortgages are institutional mortgages that are not insured by the FHA (Federal Housing Administration) or guaranteed by […]Read More

Will Mortgage Rates Fall Again? What Are The Variables?

I received numerous questions in regard to mortgage rates yesterday, e.g. Will they come down again? Should I lock now or wait? What do I think will happen? As always, my answer was don’t wait to lock in your rate b/c nobody has a clue what will happen. VARIABLES AT PLAY I responded that way […]Read More

What Are Current Mortgage Rates In Texas?

What Are Mortgage Rates Today On Friday, January 29, 2021, mortgage rates in Texas are holding in the mid-to-high 2% range. You can view JVM Lending’s current mortgage rates for Texas loans on our website here. Our team updates these mortgage rate scenarios daily; however, our team is also available seven days a week for […]Read More

Outlook On FHA Mortgage Rates In 2021

The housing market has shown remarkable strength despite the challenges the COVID-19 crisis brought to the economy in 2020. The housing market has made a comeback primarily because of low mortgage rates spurred on by strong demand from homebuyers. FHA INTEREST RATE FORECAST According to NerdWallet’s rate survey, as of January 13, 2021, the average […]Read More

Mortgage Rates Climbing As Predicted; “Average Rates” Are Often Very Misleading

RATES UP 1/4% Yesterday, we were quoting rates a full 1/4% higher than what we quoted as recently as last week. Rates have been climbing despite negative economic news – which normally pushes rates down. This is partially b/c investors expect the negative news to spark more stimulus from Congress which could trigger more growth […]Read More

Three Factors That Influence Your Mortgage Interest Rate

The interest rate tied to your mortgage directly affects how much you are required to pay over the term of your loan. If you are considering purchasing a home, researching the market’s current interest rate is essential. There are three major factors that can influence the interest rate you can lock in for your mortgage. […]Read More

Mortgage Rate Rules Out The Window; Confirmation Bias; Kool-Aid Mustaches, Sting-Rays & Snakes

In the pre-internet days of the mid-1990s, we would call the “Bond Market Hotline” on the telephone (with a cord 😊) several times per day to see how the 10 Year Treasury was performing. This is b/c the 10 Year correlated so closely to mortgage rates. If the 10 Year prices were falling, for example, […]Read More

Stocks Way Up & Rates Way Down – Very Unusual! Why?

The stock market has been on a tear lately, with the Dow Jones index flirting with 30,000. This is amazing b/c the Dow dropped down to close to 19,000 as recently as March when COVID-concerns peaked. What makes the sharp rise in stock prices particularly interesting to those of us in the mortgage industry is […]Read More

Rates Hit Another All-Time Low… Yawn; Why and Will They Go Lower?

Rates edged lower again, allowing me to quote the lowest 30-year fixed-rate I have ever quoted (see our rates here). MARGINAL DROP/MARGINAL HELP FOR CONSUMERS Rates only fell marginally though, so it is not like borrowers with currently locked rates are missing the boat. In addition, b/c the mortgage industry cannot begin to process all […]Read More

Outlook On FHA Mortgage Rates In 2020

FHA and Conventional mortgage rates in California and across the country had been in a state of extreme volatility due to the onset of the Coronavirus but have been holding steady and improving over the last few months. FHA MORTGAGE RATES LEVEL IN 2020 According to the weekly market survey conducted by Freddie Mac, the […]Read More

Rates Hit Record Lows – Again; Forbearance Effect On Credit

FORBEARANCES, CREDIT, & ABILITY TO GET MORTGAGE FINANCING I recently blogged about how forbearances will affect credit and a borrower’s ability to obtain mortgages, pointing out how borrowers just out of forbearance will have to “season” their forbearance for 3 months before they can get new mortgage financing if they still have a past due […]Read More

How Low Can Rates Go? Not Waiting To Refi

One of the most interesting aspects of the COVID-19 crisis is its effect on interest rates. In “normal” times, mortgage rates correlate closely with the 10 Year Treasury Bond. In other words, when the 10 Year moves higher so do mortgage rates, and vice versa. Also, “the spread” or the difference between the 10 Year […]Read More

3.3 Million Unemployment Claims & Rates UP! Why? Lenders Misleading Borrowers

3.3 million people filed for unemployment last week, shattering the previous record of 700,000 set in 1982. Normally, such news would send rates into a massive downward spiral – but not in today’s world. Rates remain higher primarily b/c of the extra risks involved with mortgages now. These risks are enormous and include job losses […]Read More

Explaining Mortgage Rates for Borrowers in Texas

Mortgage rates are a hot topic for borrowers in Texas. Everyone wants to get the best mortgage rate possible when they’re getting ready to take out a loan for their home purchase. Here are a few helpful reminders to keep in mind about mortgage rates in Texas: 1. Mortgage rates will vary depending on the […]Read More

Rates Way Up! Liquidity Crisis; Refi Later for Free; Buy Takeout Food :)

INTEREST RATES SHOT UP AGAIN YESTERDAY Rates shot up 1/4 percent yesterday over about a 30 minute period – something we have not seen for years. Rates came back a bit this morning, but then shot up again over the last hour in an extremely volatile market. Rates are now about 3/4 percent higher than […]Read More

Bay Area Shutdown; COVID-19 Update; Delays; Appraiser Shortage; Rates Not Falling

As everyone in the Bay Area now knows, the entire Bay Area is subject to a mass “Shelter in Place” order by local health authorities in an effort to combat the spread of COVID-19. I won’t go into all of the details here, but it restricts all large gatherings and major events, and only “essential […]Read More

Stocks Down; Rates Up; DELAYS Caused by Coronavirus and Refi Boom

NORMALLY – WHEN STOCKS FALL, RATES FALL (BUT NOT THIS WEEK) The Dow Jones stock market index peaked at 29,551 only 1 month ago (on Feb 12th). As I type this on March 13th, the index has fallen to 21,362 – a staggering 27% drop. Initially, as everyone knows, mortgage interest rates plummeted along with […]Read More

Rates 1/2 Percent HIGHER Than On Monday; Early Pay-Off Penalties

Mortgage Interest Rates remain a full 1/2% higher than where they were on Monday, and 5/8% higher than where they were last week. So, while the 10-Year Treasury Bond (government debt) remains in record-low territory, mortgage rates are up considerably as the industry tries to stem excess volume. EARLY PAY-OFF PENALTIES – HOLDING ON TO […]Read More

Fed Rate Cuts Don’t Mean Mortgage Rate Cuts

We were asked a variance of the below question over and over yesterday: “I heard that the Fed cut the rate by 1/2 percent; can I lower my mortgage rate by 1/2 percent?” We would respond by explaining that the “Fed Funds Rate” often does not correlate to mortgage rates for a variety of reasons. […]Read More

Signing Bonuses = Higher Rates; No Free Lunch In Mortgages

Heejin and I have been offered seven-figure “signing bonuses” (in exchange for aligning with a new mortgage bank) on numerous occasions by large mortgage banks trying to lure JVM under their umbrellas. We always say “no thank you” without hesitation b/c we know for certain that there are no free lunches in the mortgage world. […]Read More

Why I Was So WRONG About Interest Rates Rising – Part CCXXIX

If you Google the word “Wrong,” the below picture pops up in the results: OK… that is a real photo taken at a holiday party (in a photo booth – thank you Danny Winkler) when I really did think rates were going to shoot up. BUT, I am pretty sure I was not thinking about […]Read More

Six Factors That Can Impact Your Mortgage Rate in Texas

Every Texas borrower wants to get the lowest mortgage rate when applying for a loan. JVM is proud to offer our Texas buyers some of the lowest mortgage rates in the industry. But many Texas buyers are unaware of the different factors that can affect mortgage interest rates. The market moves. The Texas market is […]Read More

Rates Fell Again – Why? Unexpected, As Per Usual

Rates have moved steadily lower over the last week. And, as per usual, nobody saw it coming. The unexpected news that pushed rates down included the following: Nancy Pelosi’s Impeachment Inquiry. Major uncertainty in both political and economic arenas tends to push rates down. Waning Consumer Confidence. Traders watch these surveys closely and react sharply […]Read More

The Fed Cut Rates by 1/4 Point And Mortgage Rates Fell Marginally

The Fed cut the Fed Funds Rate by 1/4 percent yesterday, and rates…actually fell after the announcement. I was almost disappointed to see that b/c it will again confuse people about the influence the Fed has on mortgage rates. Briefly and once again – the Fed cut “The Fed Funds Rate” which is a short […]Read More

“This was the worst week for mortgage rates in 3 years – and it may be just the beginning”

Rates fell sharply on Wednesday and everyone breathed a sigh of relief and started locking like crazy. But then rates shot up again yesterday and a friend of mine sent me this link to a short CNBC article with a title that I borrowed for the above subject line. Here are the article’s key points: […]Read More

Rates – “Sticky” Down; “Slippery” Up; Why We Like to Lock

Rates moved higher today primarily in response to the removal of tariff threats with Mexico. I mention often how good economic news (regarding employment, retail sales, GDP growth, trade, etc.) usually moves rates higher while bad news tends to push rates lower. But, the market’s response to good and bad news is not always proportional. […]Read More

7 Dangers From Falling for “Rate Quotes”

Our borrowers come to us constantly with rate quotes from other lenders, and that is all well and good because our rates are very low and we love competition! What is not good though is that those quotes are often misleading or inaccurate, or they can’t be honored at all. And worst of all from […]Read More

The Fed Halts Rate Increases; Good Or Bad?

Yesterday, the Fed announced that there will be no more rate hikes in 2019. And many people in the mortgage and real estate industries cheered. But a lot of economists and Fed-watchers are more worried than ever. Here is just one of many articles (from the WSJ) I read today illuminating serious concerns. The Fed […]Read More

States With Lowest Mortgage Rates; CA Wins! Why? Bringing Low Rates To Texas!

Lending Tree recently did a study to see which states offered the lowest mortgage rates. And surprisingly, California (the land of all-things-expensive) won! The next best states for low mortgage rates were New Jersey, Washington, Massachusetts, Utah, and Colorado. The worst five states for rates were New York, Iowa, Arkansas, Oklahoma, and Maine. WHAT INFLUENCES […]Read More

Transparent Pricing for Mortgages; It Worked for Macy’s and Wanamaker’s!

In the 1870s, department stores Macy’s and Wanamaker’s completely transformed retail and soared to heights unseen by any retailer up to that time. What did they do? They put price tags on their merchandise! Prior to price tags, consumers didn’t know the cost of any item until they brought it to the counter and haggled […]Read More

Mortgage Middle Managers – Why They Matter

DECAY TOUR OF DETROIT I took my 17 year old daughter on a “decay tour” of Detroit last summer. She of course hated it, but I found it fascinating. From WWII through the early 1970s, Detroit was one of the mightiest industrial cities of the world, and it is now only a shell of its […]Read More

Six Factors That Can Impact Your Mortgage Rate in California

Every borrower wants to get the lowest mortgage rate when applying for a mortgage loan. JVM is proud to offer our buyers some of the lowest rates in the industry. But, few buyers are aware of the many different factors that could affect the mortgage rate they are given in California. Here are six factors […]Read More

What Affects Rates For An Individual? A Lot!

Yesterday, I wrote an all too complex explanation about macroeconomic influences on interest rates, and got this wonderful feedback from a top producing KW agent: I’m dying of boredom reading this….😁 OK – that is not the feedback we hope for, but I was just trying to be thorough…  :). Today’s subject will be simpler […]Read More

Why Rates FELL After Fed RAISED Rates; Econ Data Trumps Fed Policy

The Fed raised its short term “Fed Funds Rate” again yesterday, but long term mortgage rates fell. Once again, the Fed Funds Rate is only a short term interest rate (the rate that banks charge other banks for overnight loans necessary to pad their required reserves). This short term rate does not always directly influence […]Read More

How & Why We Offer “No Cost” Refi’s

Nobody, and I mean nobody, expected rates to fall this much in 2017. When rates do fall, we reach out to all of our eligible borrowers and offer the option to refinance – usually at “no cost” (where JVM pays for all non-recurring closing costs). Borrowers sometimes wonder how we get paid when we offer […]Read More

Rates Down After Fed Pushed Rates Up? Why?

The Fed raised the short-term Fed Funds rate yesterday by 1/4% to a range of 0.75% to 1.00%. And long term interest rates fell. Here are a few reasons why this happened. First of all, the markets anticipated the increase and had already accounted for it. Rates actually improved after the increase was announced, in […]Read More

Why Higher Rates Are Good? Rates Up After Fed Announced More Rate Increases

In real estate, we focus on the harm of higher interest rates – higher mortgage payments, less buying power, and fewer refinances for lenders. But, there are some good things for the economy overall that come from higher rates, and this benefits real estate in the long run. Here are a few benefits of higher […]Read More

Perspective for Fence Sitters Concerned About Rates & Presidents

We have had a few fence sitters lately, not wanting to get into the market now because they are concerned about rising rates and our new President. In regard to rates, we remind borrowers that rates remain amazingly low overall. The average rate over the last 45 years has been 8.26%, per the WSJ today. […]Read More

Can Rates Fall Again? Heck Yeah! New Conforming Loan Limits

One of the primary reasons behind the recent rate increases is the expectation that Mr. Trump will deregulate the economy and bring about more economic growth. B/c of this expectation, investors have moved into stocks and out of bonds, pushing rates up 5/8% since the election. But, while the stock market loves “Trump the Deregulator,” […]Read More

Timing The Bottom for Rates? Get While Gettin’ is Good; Refi Again

Borrowers often ask us if we think rates will fall further before they lock, or they want to “time to the market” and lock in their rate at the “bottom.” As a result, they are sometimes reluctant to lock or get us their paperwork. This in turn delays purchase transactions, and sometimes causes borrowers to […]Read More

Misleading Closing Costs Quotes, and Inaccurate Scenarios

JVM spends a substantial amount of time educating buyers, and this process includes multiple “Payment and Closing Cost” Scenarios. We go out of our way to make sure we include every possible cost in our estimates to ensure there are no surprises at closing time. Our estimates include Transfer Taxes, Property Taxes, Interest and Hazard […]Read More

When We Do/Don’t “Take” Loans From Other Lenders; 1/4 Percent Rule

We constantly get contacted by borrowers who are already working with or approved by other lenders. Sometimes borrowers come to us before they get their offers accepted, at their Realtor’s urging, b/c they need our speed and reputation to make their offers competitive. Borrowers also come to us b/c their current lender misled them, or […]Read More