mortgage-market-update-6-01-21

A key inflation indicator rose 3.1% in April, much faster than expected, as price pressures built in the rapidly expanding U.S. economy, the Commerce Department reported Friday. The core personal consumption expenditures index was forecast to increase 2.9% after rising 1.9% in March. Federal Reserve officials consider the core PCE to be the best gauge of inflation.

Despite the hot inflation reading, government bond yields were mostly lower while stocks were higher heading into the Memorial Day weekend. The central bank is buying at least $120 billion of bonds each month and has kept benchmark short-term borrowing rates anchored near zero even with the rising economy. Mortgage rates go lower as economists ease anxiety over inflation. A week after it hit 3%, the average 30-year fixed-rate mortgage headed back down as inflation concerns subsided temporarily.

Fannie Mae’s “RefiNow” program for lower-income homeowners opens June 5, and Freddie Mac is expected to launch its own initiative later this summer. Borrowers will need to meet eligibility requirements, which includes having income that is no more than 80% of their area’s median income. Lenders would be required to lower a borrower’s monthly mortgage payment by at least $50 and provide at least a half percentage point reduction in their interest rate.

Continual floating of longer-term and brand new files, while locking interest rates in time for purchasing loan is recommended.

Economic Calendar

Daily rate based on: SFR/Primary/LTV60/FICO 780/Purchase

IMPORTANT: Advertised rates were valid and effective as of the date reflected above, are for informational purposes only, and are subject to change without notice.

Loans are subject to credit and collateral approval. Advertised rates are based on a set of loan assumptions including a borrower with excellent credit history and optimal loan characteristics. Your final interest rate and annual percentage rate (APR) may differ depending on your individual transaction’s specific characteristics, and certain products may not be available for your situation. Several determining factors include, but are not limited to, the state of the property location, loan amount, documentation type, loan type, occupancy type, property type, loan to value, and credit score.

APR reflects the cost of credit over the term of the loan expressed as an annual rate. For mortgage loans, APR may include the interest rate, discount points (also referred to as “points”), and other charges or fees (such as mortgage insurance and origination fees), but does not necessarily take into account other loan-specific finance charges you may be required to pay.

Golden Star, Inc. dba Transglobal Lending, 185 W. Chestnut Ave., Monrovia, CA 91016, NMLS # 1437002 (www.transgloballending.com). All rights reserved. Equal Opportunity Employer and Equal Housing Lender. All mortgage products are subject to credit property approval. Rates, Program terms and conditions are subject to change without notice. Additional conditions, qualifications, and restrictions may apply. This is not an offer for extension of credit or a commitment to lend.