Question of the week: No QotW this week, abbreviated holiday update.
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Update from last week’s update: The WR&MU topic last week was the California Dream For All Program where the state provides a 2nd mortgage to qualified buyers to assist their home purchases with no down payment. At the end of the Question of the Week response I noted that based on the median home price in California and the slow down in sales, the $300 million available for the program should last “well into 2024.” I was only off by about twenty months. Yesterday it was announced that the program’s funds could be fully committed by April 10th; next week April 10th, not April 10, 2024.
Rates for Friday April 7, 2023: Mortgage rates were dipping early in the week, but reversed course today. Primarily because the Labor Department’s job report for March showed the economy added 236,000 jobs in the month, dropping the unemployment rate to 3.5%. The additional jobs pushed the labor participation rate (percentage of those eligible to work who are working) to its highest level since before the pandemic. The strong labor report supports the Federal Reserve moving more aggressively on higher interest rates. Conforming rate is flat from last week, the high-balance rate continues to move higher.
FIXED RATE MORTGAGES AT COST OF 1.25 POINTS LOCKED FOR 45 DAYS FOR PURCHASE TRANSACTIONS:
30-year conforming 6.125% Flat
30-year high-balance conforming 7.00% Up 0.125%
Please note that these are base rates and adjustments may be added for condominiums, refinances, credit scores, loan to value, no impound account and period rate is locked. Rates are based on 20% down with 740 FICO score for purchase mortgages.
Some advice for parents with young children I have provided over the years in the Good Friday WR&MU. It comes from my mom; count the number of eggs you hide so you make sure they are all found. Mom learned this lesson when her young sons found an egg or two in the middle of August, in Tulsa, that had been rotting in the sun and heat since March. There was a special kind of scent on her boys after they found the putrid little bombs and did what boys do (throw at each other). Future Easters entailed Mom making sure she knew the number of eggs that where hidden and making sure the eggs found matched the number of those hidden.
Happy Easter,
Dennis
Past Weekly Rate & Market Updates can be found on my blog page at my website www.DennisCSmith.com/my-blog
