Shelter Six:  Mortgage Rates Down to Lowest Level in a Year

Due to trade tensions with China and political upheaval in Britain, money flowed out of the riskier stock market and into the safer bond market last week pushing mortgage rates to the lowest point in over a year.

Economic news was mixed over the last week with New Home Sales and Housing Starts coming in stronger than expected, while Existing Home Sales and Retail Sales came in weaker than expected.

Shelter’s new Peak 100 Conventional loan requires no money down and no PMI through a creative combination of a 97% 1st mortgage and a 4% 2nd mortgage.

The Peak 100 1st mortgage is a traditional, fully-amortizing 30-year fixed-rate loan that requires only 3% down.  The rate is about 1% higher than prevailing rates.

The Peak 100 2nd mortgage is a 30-year interest-only, fixed-rate loan that provides the 3% down payment as well as an additional 1% toward closing costs.  The rate is the same as the 1st mortgage.

The program is for single-family purchases only and allows credit scores down to 660.  Homebuyer education is required and income can’t exceed 140% of the area median income.

Rate Update

Mortgage rates fell to the lowest levels in 16 months following increased international trade tensions, political uncertainty in the U.K., and weak manufacturing data in the U.S.

This Week

Pending Home Sales and the 2nd Estimate of 1st Quarter GDP will be released on Thursday and the Core PCE Price Index on Friday.

May 27, 2019 by · Leave a Comment

About James

James A. Williamson is currently the Sr VP of Sales Development for Shelter Lending Services (formerly Fairfield Mortgage). James joined Shelter in 1994 and was the company's top Loan Officer in GA for 20 straight years helping over 2500 families finance their homes. James now oversees an incredible group of Loan Officers in Atlanta while further building Shelter's Atlanta business.

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