Sunday Night Mortgage Talk
I’m sure I’m the only one who finds that the least bit interesting.
So we ended last week at great levels for mortgage rates. For your A paper type loan with excellent credit, low LTV and no cash out 30 year fixed mortgage rates were below 3.625% and 15 year fixed mortgage rates were below 3.25%. Those are great levels for mortgage rates and significantly lower than where mortgage rates were at this time last year.
Quick Peek At Next Week
Friday’s Employment report was bond and consumer mortgage rate friendly so the question to ask is will we receive more bond and mortgage rate friendly news this week? Our first noteworthy report is on Tuesday, the Core CPI report. Last month the report came in at 2.3% (annual growth) and that is what the market is expecting for the December report. Also on Tuesday is the monthly CPI report and the market is expecting a 0.3% increase.
On Wednesday we have the weekly Mortgage Market Index and the Core Producer Prices index. The Mortgage Market is not something that typically moves markets but the Core Producer Prices report can.
Last month the CPP declined -0.2% and the market is expecting a 0.2% increase this time around. The annual report is expecting to show a 1.3% increase.
To finsih off the week we have the Retail Sales, Philly Fed and Import and Export Prices on Thursday. On Friday its the 1 year and 5 year Inflation Outlook. It’s going to be a busy week and a very busy Thursday and Friday.
If you are looking at applying for a new FHA home loan here is what you need to qualify for the popular loan program.
- 620 or higher credit score
- 3.5% down payment (or equity)
- A Debt-To-Income under 43%
Now if you have a sub 620 credit score you still may qualify, you may even qualify if you have a DTI above 43% but you must at least provide a 3.5% down payment. There are no exceptions to the down payment guideline.
The FHA home loan program is a great way to buy that first home and it’s even good for refinancing. Make sure you work with an exprienced Loan Officer if you are considering a FHA home loan.