What happened in the Mortgage and Real Estate Market this week? What is going on with interest rates? What is happening with forbearance? Are there a ton of foreclosures coming? In this video, Josh Lewis of Buywise Mortgage and I discuss forbearance, interest rates, guidelines and our thoughts on the housing market and how it differs from the financial collapse in 2008.
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What is new in the world of forbearance?
Fannie Mae and Freddie Mac both issued statements this week reiterating that homeowners are not required to pay all of the missed payments in one lump sum when their forbearance period comes to an end unless they are willing and able to do so.
What is a mortgage forbearance?
A mortgage forbearance agreement is an agreement made between a mortgage lender and delinquent borrower in which the lender agrees not to exercise its legal right to foreclose on a mortgage and the borrower agrees to a mortgage plan that will, over a certain time period, bring the borrower current on his or her mortgage.
Interest Rate Update
The Federal Reserve just announced that they will be keeping interest rates near 0% until we are back at full employment. What does that really mean? We discuss this in more detail in the video.
Also, Fannie Mae came out this week and said they expect interest rates to drop below 3% but as of now Interest rates remain around that 3.25% for standard conventional financing on well qualified buyers as Josh mentioned. He also mentioned how the 10 year note is around that .6 range and over the last 10 years the spread between that and where interest rates are is usually around 1.6% which means that in a normal market rates would be around 2.3% or so if that trend continued. What I’m hearing from that is that as the market normalizes, we could see interest rates go lower
Will the real estate market crash in 2020?
I don’t personally believe that a real estate crash is coming. As of February, we were on track to have one of our best real estate markets on record until the pandemic hit. With that said, we have inventory levels we haven’t seen since 2006 and interest rates at levels we have never seen. I believe that once the coronavirus is under control, the market will pick back up (maybe not at the same pace) due to low inventory levels and low interest rates.
How to contact Josh Lewis at Buywise Mortgage
Josh Lewis – 714.390.6198 – firstname.lastname@example.org
Buywise Mortgage Youtube – https://www.youtube.com/channel/UCvb_…
Some other news that was published this week.
- Pending Home Sales Drop nearly 21% in March
- Mortgage applications to buy a home rise week over week up nearly 12%
- Jobless Claims reach nearly 30M for the last 6 weeks with 3.8M filing for unemployment this past week.
Do you have additional questions about forbearance, mortgage, interest rates, lending guidelines or real estate? If so, please comment below or contact me directly.
Thank you for watching.
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