Shelter Six:  Mortgage Markets Have Stabilized

There were no dramatic mortgage product changes last week and it feels like things have stabilized in the mortgage world.

Riskier programs have either been eliminated or tightened up significantly, but Conforming loans remains strong with few changes and a more streamlined process.

The Federal Reserve meets on Wednesday and investors will be closely tuned in to learn more about the Fed’s plan for future bond purchases.

A growing concern is furloughed or laid-off borrowers who won’t be able to qualify until they go back to work.

The longer self-employed and commissioned employees are out of work, the longer they will need to be back at work to show their income is consistent with pre-virus levels.

Thankfully, Fannie Mae and Freddie Mac announced they will buy loans that have entered into forbearance (except cash-out refinances).

Rate Update

The Fed continues to buy bonds stabilizing the market and keeping rates low. The benchmark Conforming 30-year fixed remains in the low-to-mid 3’s.

This Week

Investors will be watching for news about medical advances and government fiscal stimulus programs. First Quarter GDP will be released on Wednesday and ISM Manufacturing on Friday.

April 27, 2020 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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