Mortgage Market Update: Rates, Branch Closures, Forbearances
Concerns about Covid-19 have led to a lot of economic uncertainty since March. However, the mortgage market has been a bright spot. For most people, commercial and residential properties are the biggest assets they own. This means it is always important to keep up to date on what is happening with mortgage rates and other related factors. Here are some of the things that the team at People’s Choice Mortgage are keeping an eye on:
Mortgage Rates Inch Lower
Mortgage rates were already at historic lows. That did not stop the rates for 30-year fixed-rate and 15-year fixed-rate mortgages to drop even lower. The average rate on a 30-year-fixed rate mortgage fell to 3.106%. The average rate on a 15-year fixed-rate mortgage fell to 2.682%. These rates are a national average, so it is important to find a mortgage broker that can shop your loan around to different lenders to get you the best possible rate. The team at People’s Choice Mortgage has long standing relationships with national and local lenders. We can put you in the best situation possible to get you the best rate on a new home purchase or on refinancing your current home.
Lending Location Inconvenience
The spread of Covid-19 has disrupted many aspects of our lives. While low rates make it more attractive to get a new home loan or to refinance your current mortgage, the pandemic has made some things more difficult. When the pandemic first hit, many banks changed their hours of operations. Some banks even closed branches. It is hard to tell whether or not this trend will be temporary or permanent. It seems to depend on the particular bank. Chase is using the pandemic as an opportunity to shrink the number of branch locations it has across the nation. Bank of America is beginning to open up some of the locations they closed as some parts of the country are getting the spread of Covid-19 under control.
It is hard to tell what the future holds. Different sized banks are doing different things. Same thing goes for different regions. The United States is a large country and not everybody is experiencing the pandemic in the same way at the same time. This means that banks are changing hours and availability depending on what is best for the current time. While it makes sense for banks to not adopt a one-size-fits-all approach to branch availability, it is a big inconvenience for consumers in the mortgage market. To make matters worse, branch closures mean that more people are turning to the telephone to speak with their banks. This has overloaded call centers, which can add to consumer frustration.
Turning to an experienced mortgage broker can solve these frustrations and provide some additional benefits for those in the market for a mortgage. People’s Choice Mortgage has a large list of lenders that we have been working with for years. This means that we can get your mortgage application to the right people even if your local bank branch is closed. We have special access to a variety of lenders that help you get the best rate, while avoiding having to drive across town to fill out paperwork. Save yourself the headache and inconvenience of trying to figure out which branch locations are still in operation. Contact us and have the team at People’s Choice Mortgage make securing a new loan or refinancing your existing loan as easy as possible.
Mortgage Market Madness
Unfortunately, the number of people who are filing unemployment claims is still increasing. This means that a lot of families are falling behind on their mortgages. A recent article on MarketWatch broke down just how serious of a problem this is:
“According to data provider Black Knight Financial Services, 46% of borrowers who obtained a forbearance actually made a mortgage payment in April. However, that percentage has plunged over the past two months. According to Black Knight, 22% of borrowers had paid their mortgage in May and only 15% did so in June.”
The federal government took some measures back in April when they issued a moratorium on foreclosures on all mortgages through Freddie Mae and Freddie Mac. This moratorium was set to expire at the end of June; however, it was extended through August 31st by the Federal Housing Finance Agency. Some legislators have introduced legislation to expand the moratorium for a full year. However, when it comes to congress, it is hard to predict if this legislation has any hopes of passage.
We will have to wait and see if the government kicks the can down the road again now that we are almost a month away from the new expiration date. If not, a lot more homes might be on the market sooner rather than later. If you are in a position to buy a new home or refinance your current mortgage, there might not be a better opportunity. The team at People’s Choice Mortgage is ready to help you take advantage of the current mortgage market. Do not wait to capitalize on these historically low rates.
