It might be time to Refi if you purchased in the last 6 months. Mortgage rates have fallen to their lowest levels since last April.
Freddie Mac stated this week that the 30-year fixed-rate average sank to 4.45 percent with an average 0.5 point. It is nearly 0.5% below the recent peak of 4.94% in November of 2018.
Although rates have been continually declining since November 15, 2018, that trend is not expected to continue. The recent strong jobs report, 4th Quarter Holiday sales, and upcoming corporate earnings reports are expected to impact the rates to the positive in the near future.
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Kristofer Chun, CDPE & SFR
1560 Silverado Trail
Napa, CA 94559
Cal BRE# 01870237
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The effect of the government shutdown and real estate
The impact of the government shutdown will be short lived, but if you are currently looking to purchase or sell a home today, here are a few things you need to be aware of.
Most mortgages are sold to or originated by the federal government. These fall into two categories. Government Sponsored Enterprises - GSEs (Fannie Mae and Freddie Mac Conforming loans) and Government insured loans (VA, FHA, and USDA)
The GSE loans are originated by a bank and then sold back to the GSEs. These entities are operating as usual, but may have some minor slowdowns as other entities in the government that they rely on are furloughed.
The Government Insured loans of FHA, VA and USDA are not issuing new case numbers during the shutdown. This mean that if you are looking to purchase with these types of loans, your escrow will be delayed as long as the shutdown continues. For both buyers and sellers, make sure you are aware of this effect on the terms of the contract.
Additionally, if you work for the government and you have been furloughed, it is not a guarantee that you will receive the back pay once the shut down ends, this can affect your loan approval.
If you have any questions about this please do not hesitate to call.