Eddie Johns, Loan Officer NMLS 1804588

Eddie Johns, Loan Officer NMLS 1804588 updated their business hours.

Eddie Johns, Loan Officer NMLS 1804588 updated their address.

KIND REVIEW FROM A GREAT BOSTON FIRST RESPONDER FAMILY !

GREAT REVIEW FROM A HAPPY CLIENT !

- https://cardinalfinancial.com/edwardjohns

MORTGAGE MINUTE

THE POOL IS GETTING FULL

It's on like Donkey Kong in the financial markets. Last week equities were down 11-12%, oil lost 16%, and even gold, which made 7 year highs on Monday, ended down on the week after margin calls in other sectors triggered a wave of late week selling in gold to fulfill minimum deposits in leveraged accounts. If kitchen sinks were available, investors would have sold those as well.
The flight to quality continued as massive buying of U.S. Treasuries pushed the yield on the 10 year treasury down to a record low of 1.13%. This is turn dragged 30 year mortgage rates down to a record low range of 3.125%-3.375%. The market is so volatile that mortgage rates arent being quoted day to day but hour to hour. It should be noted that investors are still moving rates with treasuries but not without stickiness. The volatility, volume, and all in returns have temporarilly caused a buying slow down in the secondary mortgage market. Treasuries could indeed keep rallying but mortgage rates may sit in the mud and wait for volatility to decrease and rates to drift higher before reconnecting to their benchmarks.

At the end of January, there were 9.5 million borrowers in the high quality Refi-pool which is defined as 80% or < LTV, credit scores of 720 and higher, and the ability to shave at least .75 percent off their mortgage rate. Last week's move down in rates has now increased the size of that same pool to 11.5 million. In all, there are 20 million borrrowers out there who have mortgage rates .75 above current market rates.

If you haven't jumped in the pool yet, you should before the "All Out" bell rings.

Have a good week,
Eddie

GAME OF LOANS
The Millennials are coming!
EPISODE-1 -THE BASICS
The 4.8 million Millennials celebrating a 30th birthday in 2020 are the cast of this series. In 2019 52% of buyers were 29-38 years of age. 86% of buyers 28 and younger, were first time home buyers. As we sit here today, housing supply is at a 5 year low, top tier mortgage rates are 3.5% and rent prices are at all time highs. There is more competition than ever for entry level homes. Start preparing with your Realtor, get pre-approved for a loan and inquire about first time home buyer programs. As little as 3-5% down!

Stay tuned for EPISODE 2: CARDINAL FINANCIAL LOAN PRODUCTS
Or if you would like to binge read ahead , feel free to contact me.

Eddie

- https://cardinalfinancial.com/edwardjohns

EXTRA CREDIT

REFINANCE OR 2020 HINDSIGHT

Last week refinance applications spiked 15% for the week and 183% higher than a year ago. As you may likely know, mortgage rates today now sit at the lowest levels since 2016. Demand to refi also hit the highest level since 2013
The financial markets have been driving rates lower over the last month as market professionals have taken a "flight to quality" position, buying U.S. Treasuries with both hands. The main driver of this herd mentality trading are the events in China and investor concerns about how they will impact the U.S. and global economies. The result on rates has left the yield on the 10 year treasury sitting near a record low range of 1.50-1.60%. Mortgage rates, although not 100% correlated, are closely tied to the 10 year treasury as investors like Fannie Mae and Freddie Mac use it as a benchmark to set their pricing for loan purchases. As a result of this Government Bond rally, rates on 30 year fixed rate mortgages have dropped to near record lows of 3.50%.
Given the current market conditions and rate environment, homeowners should be examining their primary mortgage rate, the equity position, and any additional secured or unsecured debt . Today's historically low mortgage rates present extraordinary opportunities to refi and reduce overall housing expenses.

Don't let refinancing become 2020 hindsight. $$

Eddie