The Fed hikes rates again!
After pausing its cycle of policy rate hikes in June, the Fed implemented another increase at its July meeting. Many rate watchers hope the 0.25% hike will be the final increase of the year.
Future Fed action depends on the economy.
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In a statement issued after their meeting, the Fed reiterated their goal of keeping inflation at 2%.
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The Board maintained its commitment to monitoring economic data to make decisions on future adjustments.
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It's simply too soon to know what will come next.
Please Note: Mortgage rates are impacted by market forces beyond Fed actions and will not necessarily change at the same pace as the Fed's moves. They often shift before the Fed acts, in anticipation of changes.
Where Does this Rate Watch News Leave You?
If you are ready to make a move, we have programs that can help mitigate high rates. Options like fixed rate buydowns, hybrid ARMs and HELOCs can help you move forward with your plans.
If you want to wait a little longer for more favorable rates, this is a good time to start preparing so you’ll be ready when the time is right for you.
Background on the Fed:
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The Federal Reserve Board (the Fed) controls the federal funds rate and discount rate, which are charges for overnight loans from bank to bank or from the Fed to member banks.
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The Fed has a standing goal to maintain inflation within a 2% range. Over the last year, they hoped to slow spending and inflation by making borrowing more expensive.
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The rate was lowered to near zero in March 2020 in response to the pandemic. These historic measures are now being reversed.
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The Fed raised rates for 10 straight meetings then paused their hikes in June. July’s increase is the 11th in this cycle and places the mid-range benchmark borrower cost at its highest level since 2001.
Bottom Line:
Don't let interest rates hold you back from making a move or accessing cash. We're still closing loans every day! Contact us today to learn about your home buying options.
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Our Jumbo Loans Are Sizzling Hot!
Jumbo loans are in high demand especially in today's competitive housing market. It might be because of their competitive interest rates and flexible loan requirements. But it’s more than that.
Since the pandemic hit many people have spent more time than ever at home and have soon realized the need for more space. Naturally, bigger houses come with a higher price tag and often require a bigger loan.
Que Greenway’s Jumbo Mortgage Program which may just be the solution you’re looking for to get you closer to the home of your dreams. Whether you’re buying your forever home or a vacation house, these jumbo loans can help.
And, for those looking to refinance, we didn’t forget about you. Our Jumbo Loan Program allows you to refinance so you can take advantage of today’s low rates or even take cash out of your home equity.
Read on for more information and details on our loan program.
Generous Loan Amounts
Rates on non-conforming loan programs have been far from competitive lately, until now. Greenway has created the Jumbo Mortgage Program to help our well-qualified clients secure a great rate on loans up to $5 million.
If you can demonstrate the ability to repay and are looking for higher loan amounts with more flexible guidelines, Greenway’s Jumbo Mortgage can provide the perfect lending solution.
Features and Benefits
- Loan Amounts Up To $5 million
- Purchase, Rate and Term Refi, and Cash-out Refi Programs
- Available for Primary Residence, Second Homes, and Multi-families
- Fixed and Adjustable Rates
- Available in NY, NJ, PA & CT
The Fine Print
- Minimum FICO 680
- Up to 90 LTV based on FICO and Loan amount
*Cash-Out Refi subject to max loan amount. Eligibility requirements, exclusions and other terms and conditions apply.
The Bottom Line
The Jumbo Mortgage will give you more buying power while taking advantage of competitive interest rates. Get in touch to discuss your options and how this program can provide you more choices to help you achieve your financial goals.
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Greenway Mortgage now offers a White Coat Mortgage Program specifically tailored for doctors
Why? Simply because we admire the extraordinary dedication doctors give to their patients and want to recognize that. This program has special benefits to help new and established doctors achieve their homeownership goals no matter where they are in in their career.
Student loan debt, income and work history can be a challenge for doctors, but this program helps relax guidelines making mortgage credit more accessible.
PROGRAM DETAILS
- Lessens the impact of student loan debt on qualification
- Future earnings may be included in income
- Fixed and Adjustable Rates / Purchase and Refinance
Fine Print & Eligibility
- Newly licensed medical residents
- Less than 6 months residency/fellowship left or about to start employment
- Credit score restrictions
- Qualification varies by scenario. Additional guidelines and restrictions may apply. Contact your Greenway Loan Officer for complete details.
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Greenway's Markets in a Minute: Demand is high but inventory remains low
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| For the Week Ending July 27, 2018 |
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Please enjoy this quick update on what happened this week in the housing and financial markets.
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Talk of tariffs and trade concerns continue to help keep mortgage rates low. However, the strong economy and labor market could pressure rates higher. |
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Recent comments by President Trump about raising rates are not likely to affect the Fed's plans. One or even two policy rate increases are still expected for 2018. |
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The European Central Bank is seeing inflation increase overseas and should end economic stimulus this year. This could pressure future mortgage rates higher. |
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Existing home sales continued to slide in June, to a 5-month low. A persistent shortage of properties on the market drove house prices to a record high. |
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New home sales also dropped to an 8-month low in June. Demand remains high, but builders are struggling with labor shortages and material costs. |
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Fifteen more states can now accommodate fully digital home closings. A total of 265 million homebuyers can now enjoy fully online closing processes across the country. |
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Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time |
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| For the Week Ending July 13, 2018 |
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Consumer prices barely rose in June, but the underlying trend points to inflation. Rising inflation will likely lead to more Fed rate increases and higher rates. |
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Producer prices rose more than expected in June, another factor pointing to inflation. This jump was the largest annual increase in 6-1/2 years. |
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Although trade war concerns have escalated, there's not a lot of fear that this will hurt the economy. In the meantime, mortgage rates have remained stable. |
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Homeowners have an estimated $5.8 trillion in accessible equity, the highest ever recorded. Despite this, fewer owners are taking cash out than in previous eras. |
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Inventory remains tight, but could loosen up a bit in the near future. Inventory increased 12.2% in the 2nd quarter, the biggest gain since early 2015. |
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Although refinance applications were down last week, purchase applications rose 7% for the week and were 8% higher than the same week a year ago. |
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