Shelter Six:  Mortgage Rates Drop to Lowest Level in Over a Year

June 3, 2019 by · Leave a Comment 

Inflation continues to help keep mortgage rates low.  April’s Core PCE Price Index was just 1.6% higher than a year ago and well below the Fed’s 2% target.

Tame inflation, along with uncertainty on the trade front, have contributed to falling rates and inspired the Federal Reserve to now contemplate a rate cut by the end of the year.

A sign of economic strength.  According to the Mortgage Bankers Association, the overall mortgage delinquency rate is down to 4.42%, a very low number historically.

Traditional Conventional and FHA guidelines prevent many people who have the ability to repay from buying a home and that is where Shelter’s SmartEdge program comes in.

SmartEdge is an excellent financing alternative for customers who just miss out on Conventional or FHA loans and requires only 10% down (15% for an investment property).

SmartEdge allows for a higher debt ratio, has an interest-only feature, and is particularly helpful in situations where income from one borrower is very recent or difficult to document.

Rate Update

Mortgage rates dropped last week to the lowest level in well over a year mostly due to the increased trade tensions with China and Mexico, which could slow down global economic activity.

This Week

The ISM National Manufacturing Index will be released on Monday, ISM National Services Index on Wednesday, and the Employment Report on Friday.