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Mortgage Rates December 2019

Written by Posted On Monday, 23 December 2019 17:01

Mortgage Rates December 2019:

As we finish off the year mortgage rates are a bit elevated from their recent lows as trade war fears disapate and the 10 year Treasury Yield moves back about 1.90%. The good news is that consumer mortgage rates remain well below levels seen at the end of 2018. Looking back; the 10 year yield was above 2.70% (it was higher during October 2018 and November 2018) and 30 year fixed mortgage rates were in the mid 4% range for most homebuyers and homeowners.

For most borrowers 30 year fixed mortgage rates are below 3.875% for both purchase transactions and for those looking to refinance a current mortgage. 

What To Look For In 2020:

The biggest thing that will impact mortgage rates in 2020 is the economy. It's always had the biggest impact and that will not change as we enter the next decade. When the economy is growing mortgage rates tend to be elevated when the econonmy is weakening the opposite happens, mortgage rates move lower. When the economy is just treading water; mortgage rates stay level and don't change much.

The Fed has said on more than one occassion; they have no plans to lower rates in 2020. In fact they won't do anything unless there is a significant turn in the economy. Now the Fed does NOT set mortgage rates however they do have an influence over them. Like mortgage rates; the Fed takes its cues from the economy.

If you were to follow three economic reports you should keep an eye on these four:

  • Monthly jobs report
  • ISM
  • CPI
  • Retail Sales

If these reports start to move south and get worse than you may start to see mortgage rates improve. If however they improve then mortgage rates will move up quickly.

Loan Processing Times:

What's so great about 2020?

In the mortgage world it's processing times. Lenders are more efficient now then they were a year ago so loan processing times are quick and easy. Most of the time disclosures can be signed on a smart phone, tablet or regular computer. 2-3 years ago many homeowners and homebuyers were still printing out the initial disclosures, signing/dating them then faxing (or scanning) them back.

Doc Less Approvals:

Some people wil have the opportunity to close their mortgage loan without proving a single document. How can lenders do that? Simple; lenders now try to do the work for you and independlty verify your income and assets (if assets are needed on the loan). Not all lenders do this and not all borrowers qualify but I would expect this program to dramatically grow to cover more people in 2020.

 

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Kevin O'Connor

California Mortgage Finder, Loan Officer Kevin O’Connor. Low rates, fast closings, and exceptional service. Over 20 years of experience in the mortgage industry, and top ratings with Zillow, Google, and Yelp. Loan Officer Kevin O’Connor (NMLS #247447 and CA DRE #01499872) has the resources to deliver unparalleled results. He works in association with JB Mortgage Capital, Inc., an “A+” rated mortgage broker licensed by the state of California (NMLS #238036 and CA DRE #1836772).

https://californiamortgagefinder.com/

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