Mortgage Rates Newsletter - Market Analysis

Provided courtesy of: http://www.mortgagenewsdaily.com/reports/mortgage_rates/archive

Mortgage Rates Move Higher Again
Tue, 07 Dec 2021 21:52:03 GMT - Mortgage rates moved higher again today thus keeping them well within the sideways range that's been in place for the past 2 months. Omicron-related news continues having an impact on the bond market. At first, uncertainty surrounding the new variant drove demand for bonds. Higher demand means higher prices and lower yields (aka "rates"). This week, the theme has been different . While plenty of uncertainty remains, there are more headlines regarding "lower severity" of covid symptoms in omicron cases. Investors have rushed back into the stock market as a result, and bonds have suffered. Fortunately, the bonds that specifically underlie mortgages have taken less damage than US Treasuries--largely because they didn't experience as much benefit last week. Nonetheless, rates are modestly higher
Omicron Helping Rates More Than The Fed is Hurting
Fri, 03 Dec 2021 21:22:17 GMT - Several developments are converging on the global economy and financial markets at the moment. Each brings its own causes for concern. Together, they bring a significant increase in volatility. Should we be worried about Omicron? Answering such questions is beyond the scope of this newsletter. What we can say is that the financial market is clearly asking itself this question and the effects are obvious. Stocks had been flat in the weeks leading up to omicron and bonds had been moving higher in yield. Post-omicron and they've entered into a familiar risk-aversion pattern marked by lower stock prices and bond yields. The same "risk-off" vibes are apparent in other assets as well. Covid may not be the only consideration for oil prices, but it did give them a push. Lower oil prices don't dictate
Mortgage Rates Rise Then Fall as Volatility Persists
Wed, 01 Dec 2021 21:54:17 GMT - Mortgage rates were much lower at the start of business yesterday , but began rising in the afternoon as the bond market lost ground. That same momentum continued in the overnight trading session. By the time mortgage lenders were setting rates this morning, bonds had deteriorated enough for a noticeable bump toward higher rates. This was especially noticeable for lenders who didn't change rates in the middle of the day yesterday. By the early afternoon, bonds were recovering as financial markets reacted to news of the first omicron case in the US. That sort of news fuels what's known as a flight to safety in the market. This generally means weakness in stocks and strength in bonds. When bonds improve, rates fall , all other things being equal. The net effect was a return to Monday's levels
Veterans Affairs Loan

Veterans Affairs Loan

DEFINITION of 'VA Loan'

A mortgage loan program established by the United States Department of Veterans Affairs to help veterans and their families obtain home financing. The Department of Veterans Affairs does not directly originate VA loans; instead, they establish the rules for those who may qualify, dictate the terms of the mortgages offered and insure VA loans against default.

BREAKING DOWN 'VA Loan'

VA loans offer up to 100% financing on the value of a home. To qualify for a VA loan, borrowers must present a certificate of eligibility, which establishes their record of military service, to the lender. VA loans, FHA loans and other loans insured by departments of the United States government are securitized by the Government National Mortgage Association (Ginnie Mae). These securities carry the guarantee against default of the United States government.

If you are stationed in the United States, you may want to consider a VA loan instead of living in base housing.

The advantages of VA loans are that they do not require a down payment and that they are easier to get than conventional loans.

In addition to this, VA loans limit the buyers closing costs. Things like escrow fees and photo inspection fees are not allowed to be paid for by the buyer. The seller can pay for these. In fact, the seller will usually agree to pay for all of the buyers closing costs (if the deal is fair to the seller).

A VA home loan is guaranteed with no money down for as much as $1,094,625.00!

Before you apply for a VA loan, you should determine if you are eligible for a VA loan.

If you are active duty and have served for 181 days (or 90 days in a war), or are the spouse of a veteran who is MIA or has died as a result of duty, or if you are former military and have been honorably discharged, you are eligible.

Conventional loans require a down payment of 5% minimum. A 20% down payment is required to avoid mortgage insurance. The VA loans do not have a mortgage insurance requirement.

VA loans also feature a special government inspection of the home to ensure you are getting a fair deal.

Another great thing about VA loans is that the interest rates are 0.5% to 1% lower than those of conventional house mortgages.

A VA loan can be used to buy a new home or existing construction. Regardless if you chose to buy a new home or an older home, you can also add energy efficient improvements (up to $6,000). The only requirement is that the improvements must save the borrower money on their electric or other utility bill.

For example, if you live in San Diego and you get a VA loan, you can install a tank-less water heater in your home. By adding the installation to the loan amount, you may be able to receive California Stat tax incentives, San Diego County tax incentives and federal tax incentives for residential energy efficiency in conjunction with your San Diego VA mortgage.

Depending on the overall property condition and land rights, you can also use your VA loan to buy a manufactured home and land.

To get more information on possible uses for your VA loan, consult with a VA Counselor before you submit your VA house loan application.

Before you apply for a VA loan you should realize that you are not automatically approved. Each VA loan has a private funder / or investors that will still require you to show an acceptable credit record (no late payments in the last 12 months) before they approve your loan application.

 

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