Weichert Mortgage - MMG Weekly Newsletter 03-30-2020 - Home Rates Declined

Dated: March 30 2020

Views: 44

   
 
Daneen Marie McGinley
NMLS #: 140346
Mortgage Advisor
Weichert Financial Services
Phone: (908) 735-8140
 In This Issue   
 Last Week in Review: Liquidity Defined

Forecast for the Week: Bracing for Bad Data

View: Tips for Working With First-Time Homebuyers
 
   
 Last Week in Review   
 
This past week, thanks to the Federal Reserve, home loan rates declined. The high uncertainty around the coronavirus and its impact on homeowners and mortgage payments created a dire need for liquidity in the mortgage-backed security (MBS) market.

This is where the Fed came to the rescue by providing liquidity.

What is liquidity?

Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market at a price reflecting its intrinsic value. In other words, it's the ease of converting it to cash.

Last Sunday, the Fed announced that it would purchase an unlimited amount of MBS in order to provide the much-needed liquidity to get the MBS market to perform correctly.

As a result, MBS prices showed more normal trading activity which resulted in lower rates and more stable pricing this week.

We expect more stabilization in the days and weeks to come as the Fed is committed to getting the MBS market to function as normal.

Bottom line: the Fed's unlimited MBS buying doesn't mean home loan rates are going to improve much further, but it will rather stabilize the market and keep rates near current levels, affording homeowners the ability to refinance and secure a low home loan rate.

If you or someone you know has questions about home loans, give me a call. I'd be happy to help.
 
   
 Forecast for the Week   
 
Expect the recent extreme volatility to likely continue this week, but probably to a lesser extent with the Fed stepping in to stabilize the U.S. financial markets.

In addition, the massive stimulus bill enacted by Congress may help to soothe the nerves of many Americans who were hurt both physically and financially from the coronavirus.

Economic reports may not be market movers this coming week as everyone is expecting negative readings everywhere, especially in the labor market. Weekly initial jobless claims, ADP Private Payrolls for March, and the closely watched Jobs Report for March will reveal the initial economic impact of the coronavirus.

The two questions that will be front and center for mortgage professionals in the upcoming week, addressed in the above "Week in Review," will be: has the mortgage market stabilized, and what is the path for rates for the foreseeable future?

 
Chart: Fannie Mae 2.5% Mortgage Bond (Friday March 27, 2020)
Japanese Candlestick Chart
 
   
 The Mortgage Market Guide View...   
 
Tips for Working With First-Time Homebuyers

Today, many millennials are ready to start looking for a place to call their own. It's a thrill to help these individuals realize the dream of owning a home, but there are a few challenges that may come up along the way.

The process of purchasing a home is second nature to real estate professionals, but it's important to remember just how foreign and overwhelming it can be to someone who's buying for the very first time. Spend more time talking about all the different steps of the process before going out to look at homes. Provide helpful guides that summarize each part of the homebuying process if possible.

Some homebuyers get caught up in the excitement of looking at homes and neglect to think about the long-term responsibilities of owning property. Help your clients connect with a loan officer to determine a budget they can afford and help them stick to it. Advise them about the unexpected costs of homeownership that go beyond the monthly mortgage payments.

Financing is a major concern for many first-time home buyers. They may not have major assets to bring to the table, and a smaller down payment is likely. Assist your clients in finding the best financing options for their needs. Work with an experienced loan officer to ensure they're aware of local, statewide, and national programs for first-time buyers.

While there is more handholding involved, working with first-time homebuyers can be incredibly rewarding. Use these tips to help your clients find their dream home while staying within their budget.

Sources: Inman, Real Estate Express



Economic Calendar for the Week of Mar 30 - Apr 03

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Mon. Mar 30
10:00
Pending Home Sales
Feb
-1.3%
 
5.2%
Moderate
Tue. Mar 31
10:00
Consumer Confidence
Mar
NA
 
130.7
Moderate
Wed. Apr 01
08:15
ADP National Employment Report
Mar
-150K
 
183K
HIGH
Wed. Apr 01
09:45
Chicago PMI
Mar
40.0
 
49.0
Moderate
Thu. Apr 02
10:00
ISM Index
Mar
44.3
 
50.1
HIGH
Thu. Apr 02
08:30
Jobless Claims (Initial)
3/28
3.0M
 
3.283M
Moderate
Fri. Apr 03
08:30
Average Work Week
Mar
34.1
 
34.4
HIGH
Fri. Apr 03
08:30
Non-farm Payrolls
Mar
-123K
 
273K
HIGH
Fri. Apr 03
08:30
Hourly Earnings
Mar
0.2%
 
0.3%
HIGH
Fri. Apr 03
08:30
Unemployment Rate
Mar
4%
 
3.5%
HIGH
   
   
  
 
 
The material contained in this newsletter has been prepared by an independent third-party provider. The content is provided for use by real estate, financial services and other professionals only and is not intended for consumer distribution. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is without errors.
 
As your mortgage professional, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.
 
Mortgage Market Guide, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated. Mortgage Market Guide, LLC does not grant to you a license to any content, features or materials in this email. You may not distribute, download, or save a copy of any of the content or screens except as otherwise provided in our Terms and Conditions of Membership, for any purpose.
 
 
 
 
For professional use only. Not intended for consumer distribution.

Mortgage Access Corp. d/b/a Weichert Financial Services - NMLS # 2731 ( www.nmlsconsumeraccess.org). Executive Offices: 225 Littleton Road, Morris Plains, NJ 07950. Main: 1-800-829-CASH. Equal Housing Lender. All loans are subject to credit and property approval. Programs, rates, terms and conditions are subject to change without notice. Licensed in 37 states. CA (Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, File 4130435), CO (Regulated by the Division of Real Estate), GA (Georgia Residential Mortgage Licensee, License #15719), IL (Illinois Residential Mortgage Licensee # MB.0006377), KS (Kansas Licensed Mortgage Company- MC.0001229), MA (Massachusetts Mortgage Lender and Broker Licenses #MC2731), ME (Licensed as a Supervised Lender), MN: This is not an offer to enter into an interest rate lock agreement under Minnesota Law, MS (Licensed by the MS Dept. of Banking and Consumer Finance, NJ(Licensed by the N.J. Department of Banking and Insurance), NY (Licensed Mortgage Banker - NYS Department of Financial Services), OH (Registration #MBMB.850209.000 & SM.501248.000), OR (OR Mortgage Lending License #ML-2528), PA (Licensed as a 1st Mortgage Banker by the Dept. of Banking), RI (Rhode Island Licensed Lender and Loan Broker), WA (WA: Consumer Loan License CL-2731) Weichert Financial Services arranges loans with third-party providers. Refinancing to reduce total monthly payments may lengthen repayment term or increase total interest expense. For more licensing info, visit www.weichertfinancialservices.com/aboutus/licensing. This site is not authorized by the New York State Department of Financial Service. No mortgage applications for properties located in the State of New York will be accepted through this site.

 
   
 
 
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Weichert Financial Services
Daneen Marie McGinley
9 West Main Street
Clinton, NJ 08809
    
 
 
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Jean Pederson

Jean Pederson - Professional Realtor - I'm the key to get you inside the home. Call or Text me: 908-319-9556 Weichert, Realtors – Clinton, NJ 08809 Route 78, Hunter....

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