Mortgage Minute with Michelle Morris/GRate

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Real Estate

A quick update with some interesting points from one of our most trusted mortgatge brokers, Michelle Morris at GuaranteedRate... 

Risky assets like stocks are performing well here as efforts toward reopening the US economy continue. To be sure, there is an underlying tension between the easing of restrictions related to COVID-19 and the economic costs associated with extending them.  This clash will be in the driver’s seat of the bond mobile going forward as we weigh the trade-off between the long-term effects on the economy and protecting our most vulnerable.  The main takeaway for you is that successful steps toward reopening the economy are bad for interest rates and good for stocks.  Right now, the momentum is shifting toward reopening and the markets reflect it.  Treasury yields have moved higher, mortgage backed securities (MBS) are moving lower in price, which means mortgage rates are ticking up.  A few days ago, the Fed cut purchases to just over $4 billion.   At this point, I’m not alarmed; both MBS and Treasuries are still trading within post-Fed intervention trading ranges.  Further, the bond market lemmings (banks, REITs, Money Managers), who were nowhere to be found 3 weeks ago, are all huge buyers of mortgage-backed securities, following the Fed’s lead. Bottom line - Fed Chairman Jerome Powell said just last week that rates are going to be low for a very, very long time.

A few things to remember -

-if you have buyers that were pre-approved before please make sure that i have spoken to them to make sure i can give you a pre-approval letter to see properties. 

-I will call listing agents once you find a home for your client which always helps 

-FICO score changes-  Conforming 680 min and jumbo 700 minimum -

-Possible more LIQUID reserves are required  

-HELOC'S are starting to dry up for stand alone ( too risky) except for purchases


I am just a phone call away!   Michelle Morris 619-850-3600