Mortgage Roundup (9/3/20) – Building, Relief & Peril

Good morning! Today is Thursday, September 3. The CDC sent a letter to governors asking them to be ready to use vaccine distribution centers by Nov. 1, just before Election Day. Tokyo Olympics organizers say the Games can proceed without a coronavirus vaccine. 

And in mortgage and housing news …

MORTGAGE APPS: Mortgage applications dipped ever so slightly in the last week of August but remained significantly higher than a year ago, according to the weekly survey released Wednesday by the Mortgage Bankers Association.

FED “BEIGE BOOK”: We can count on the Federal Reserve to keep mortgage rates low this month, based on a new survey of economic conditions. 

HOUSING FINANCE PERIL: PIMCO warns that mortgage rates will increase, and homeownership will likely suffer if Fannie Mae and Freddie Mac are released

NEW CONSTRUCTION: A shortage of existing homes for sale is driving growth in the new construction of homes. 

OWNER RELIEF: The National Association of Realtors president warned that the eviction moratorium order as written will bring chaos to our nation’s critical rental housing sector and put countless property owners out of business

HOUSING MARKET HEALTH: The housing market continues to thrive in a pandemic. Low mortgage rates coupled with a shift to working at home are driving demand.

REFINANCE FEE FALLOUT: The surprise mortgage refinance fee has been put on pause until December, but some borrowers will still pay now.

FANNIE MAE DELINQUENCIES: Fannie Mae Conventional Single-Family Serious Delinquency Rate increased 59 basis points to 3.24 percent in July. One year earlier, this serious delinquency rate was 0.67 percent 

CONVENTIONAL MORTGAGE ADVANTAGE: In the current market conventional mortgage loans may be the best option, but only for those with excellent credit. 

DISCOUNT POINTS: Discount points on jumbo mortgages are hot again. High-balance borrowers are paying more in points than they did before Covid-19 hit