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Welcome to the BeSmartee blog. Enjoy a wide selection of articles related to mortgages, the industry, and real estate.

Mortgage Rates Drop After the Unexpected Jobs Report

By Amanda Curry · Jun 8, 2016 · Mortgage

Mortgage Rates Drop After the Unexpected Jobs Report

Image courtesy of google, geralt

Mortgage rates ending as of June 9, 2016

Mortgage interest rates have moved lower this week after a disappointing jobs report that was released last Friday, June 2nd, says Freddie Mac.

The Bureau of Labor Statistics (BLS) reported that the US unemployment rate dipped to 4.7% in May. However, unfortunately, hiring in May slowed to a near-standstill, workforce participation declined, more people who said they wanted full time work were employed only part time, and employers added only 38,000 nonfarm jobs during the month. Nearly a half-million jobless Americans stopped looking for work and so were no longer counted as unemployed.

These factors contributed to a troublesome week for the US economy, causing mortgage rates to drop further. The 30-year fixed rate mortgage responded by falling 6 basis points to 3.60 percent. Additionally, the 10-year Treasury yield dropped 10 basis points immediately after Friday's announcement.

Mortgage rates ending as of June 9, 2016

  • 30 year fixed rate mortgage from Freddie Mac averaged 3.60 percent with an average of 0.5 percent in fees for the week ending June 9, 2016, down from last week's 3.66 percent. A year ago at this time, the 30 year fixed rate mortgage averaged 4.04 percent.
  • 15 year fixed rate mortgage averaged 2.87 percent with an average 0.5 percent in fees, down from last week's 2.92 percent. A year ago at this time, the 15-year fixed rate mortgage averaged 3.25 percent.
  • 5 year adjustable rate mortgage averaged 2.82 percent this week with an average 0.5 percent in feed, up from last week's 2.88 percent. A year ago, the 5-year ARM averaged 3.01 percent.

30 year fixed

15 year fixed

5 year ARM

This week's rate

3.60

2.87

2.82

Fees and Points

0.5

0.5

0.5

Margin

N/A

N/A

2.74

Good news for buyers, it was the 10th consecutive week in which the 30 year fixed-rate mortgage has been below 3.70%. Calculate your maximum affordable mortgage here.

Mortgage Rate Applications Jump 9.3%

As rates continue to fall, mortgage applications continue to rise, jumping 9.3% last week from the previous week, according to Mortgage Bankers Association. The results were seasonally adjusted to account for the Memorial Day holiday weekend.

Additionally, applications to refinance a home loan increased 7 percent from the previous week and are about 14 percent higher than this time last year.

Yellen Speech Indicated Fed Will Rethink Interest Rate Plans

After the disappointing job growth last month, The Federal Reserve indicated that they would rethink their plans to raise its benchmark interest rate in the coming months, making the timing of the hike less clear. Earlier this year, the Fed entered the year predicting quarterly rate increases, only to back away from a first increase in March when the economy showed unexpected signs of weakness. Then, officials hinted that they were thinking about raising rates in June, however, this has seemed to pass, too.

According to Yellen's speech on Monday, June 6th, it's not clear that the hike will be in the coming months or gradually over time. However, other economic data is pointing to continued growth, so increase in rates could follow the July meeting.

Lock or float your mortgage rate?

The weak employment rate indicates that mortgage rates should remain low through the end of this year. However, any decision to lock a mortgage rate should be based on a borrower's risk tolerance and short and long term goals. Check mortgage rates now.


Real Estate Commission: Explained, Revealed and Compared
By Arvin Sahakian · Aug 17, 2015 · Real Estate Data

Real estate agents receive commissions from home buyers and sellers, collectively earning over $50 Billion per year. Learn how commission amounts are set, who pays them, and how they work in this article. Read more.

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California Property Tax: Complete List by County 2014-2015
By Tim Nguyen · Nov 26, 2014 · Real Estate Data

List of secured property tax rates for all counties of California fiscal year for 2014-2015. Read more.

126,863

California Proposition 60 and 90: Your Complete Guide
By Tim Nguyen · Nov 28, 2014 · Real Estate Data

If you live in California and are over the age of 55 you can effectively reduce your property taxes when buying a new home. Read more.

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What to Expect During the Home Loan Closing Process
By Arvin Sahakian · Feb 24, 2015 · Mortgage

You've heard the term used before, but what does loan closing mean? Find out all you need to know about the process. Read more.

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The Surge in Foreign Real Estate Investment in the United States
By Laura Agadoni · Feb 24, 2016 · Real Estate

Foreign real estate investment in the United States, both commercial and residential, is a huge phenomenon that is only expected to accelerate, maybe even to skyrocket, in 2016. Read more.

50,343

Houston vs. Dallas: Which One is Better to Live in?
By Amanda Curry · Oct 11, 2016 · Real Estate

Houston Vs. Dallas? If you are considering moving to either of these major metropolitan areas, we've created a resource to help you make the decision process a little easier. Read more.

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5 Illegal Borrowing Activities: Things That Are Illegal When You Try to Get a Home Loan
By Laura Agadoni · Jan 22, 2016 · Mortgage

Whenever there is money to be made or money to be spent, some unscrupulous folks will take advantage, trying to game the system or commit all-out fraud. Read more.

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Does Homeowners Insurance Pay Off your Mortgage if the House is Burned Down?
By Amanda Curry · Feb 8, 2017 · Mortgage

In this article, we explore how homeowners insurance works and what happens in the event of a house fire. Read more.

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16 Ways to Improve Your Debt-to-Income (DTI) Ratio
By Veronica Nguyen · Nov 29, 2014 · Mortgage

Your DTI is used by mortgage lenders to determine whether you qualify for a loan, and if so, for how much. Improve your DTI with these 16 tips. Read more.

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5 Tips on Getting a Mortgage Loan after Bankruptcy
By Veronica Nguyen · Apr 15, 2015 · Mortgage

A bankruptcy will make it very difficult to attain a home loan. These 5 tips will help you re-establish your credit quickly in order to qualify for a home loan. Read more.

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