June 6, 2020 - Economic Updates and Mortgage Minute

The Federal Reserve meets this coming week. We expect no increases or decreases in interest rates. We are looking forward to the Federal Reserve comments on GDP and other economic reports in 2020.

This week the stock market (Dow Jones) back up to over 27,000.00 again. Stock market is expecting a short recovery and back to economic growth. Things being considered – many businesses opened up again and lower than expected unemployment report. This is great news for the stock market and the real estate industry.

Almost every economist was expecting a 19.5% unemployment. A huge surprise yesterday as the report came in at 13.3%. This is very encouraging that our economy is recovering much faster than expected. 

China and US tension continue over trade issues, stolen trade secrets, Hong Kong, and issues about the Coronavirus.

Congress continues fighting over another stimulus package (helping States and Local counties). Waiting to see if they can get this passed.

The government has decided that once the borrower has finished forbearance on a loan and brought the loan current – they will only have to wait 3 months instead of 12 months to refinance or buy another property.  Much better policy than before!

VA loan – the Blue Water Veterans Act of 2019 allows borrower with JUMBO loans 100% financing. Before they would have to put down 25% of the difference of the loan amount and the conforming loan limit of that county.  This is great news for veterans who would like to purchase a high loan balance loan.  Please call for more details.

For the 7th week in a row loan application are much stronger than expected. Purchase applications are now up 18% year-to-date and refinances are still up 130% year-to-date.

FHA and VA have changed the minimum FICO scores to 620 (dropped from last week - which was 640). Many lenders have also decreased debt-to-income (DTI) standards on other loan products with borrower lower FICO scores. 

Don’t forget about First Responder Programs available! Many lenders offer programs for first responders to thank the nurses, doctors, fireman and police officers for keeping us safe through these tough times!

2.875% (3.075% APR)