Mortgage Rates Jump As Retail Sales Beat Expectations

Gustan Cho The Mortgage Expert
September 13, 2019 - 2 min read

Gustan Cho Associates are mortgage brokers licensed in 48 states

This ARTICLE On Mortgage Rates Jump As Retail Sales Beat Expectations And Trade Tensions Ease Was PUBLISHED On September 3rd, 2019

How Mortgage Rates Jump As Retail Sales Beat Expectations And Trade Tensions Ease

Mortgage Rates Jump As Retail Sales Beat Expectations
U.S. retail sales beat expectations in June, July, and August
Other factors for Mortgage Rates Jump is due to the news of trade tensions easing
Retail sales beating expectations normally increases consumer confidence and spending
Economists are predicting a rise in sales of automobiles and other high-ticket items

In this article, we will cover and discuss Mortgage Rates Jump As Retail Sales Beat Expectations and Trade Tensions Ease.

Mortgage Rates Jump With Positive Economic News

In general, mortgage rates jump with positive economic news.

Mortgage rates are at a 36-month low
However, home prices are increasing year after year
Due to rising home prices, HUD increased FHA Loan Limits for 2020 to $331,760
FHFA has followed with increasing conforming loan limits in 2020 to $510,400
The VA eliminated loan limit caps

There are no maximum loan limit caps on VA Loans.

What Experts Say

Why Are Mortgage Rates At A 3-Year Low With Great Economic News?

Many wonder why mortgage rates are at a 3-year low when the economy is doing so well with rising housing prices? Is something wrong here? Aren’t rates supposed to jump? Why is HUD and the Federal Housing Finance Agency (FHFA) increasing maximum loan limits on FHA and Conventional loans? The reason why rates are dropping is due to fears of inflation and a recession. The current trade war with China and the Trump Administration is making investors and Wall Street very nervous. As trade tensions ease, rates will go up. The biggest fear now is another recession happening. If a recession hits, many experts believe it will be a large prolonged recession like the 2008 Real Estate Collapse. Many potential homebuyers are on the sidelines as rates drop and home prices increase. However, they rather wait and buy a home when things are certain. Countless folks and families got stung big time during the last recession. They want to be prepared when another Great Recession hits.

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Gustan Cho

Gustan Cho NMLS 873293 is the National Managing Director of NEXA Mortgage, LLC dba as Gustan Cho Associates NMLS 1657322. Gustan Cho and his team of loan officers are licensed in multiple states. Over 75% of the borrowers of Gustan Cho Associates (Gustan Cho Associates) are folks who could not qualify at other lenders due their lender overlays on government and conventional loans. Many mortgage borrowers and real estate professionals do not realize a mortgage company like Gustan Cho Associates exists. We have a national reputation of being a one-stop mortgage company due to not just being a mortgage company with no lender overlays but also offering dozens of non-QM and alternative financing loan programs. Any non-QM mortgage loan program available in the market will be offered by the team at Gustan Cho Associates. Our team of support and licensed personnel is available 7 days a week, evenings, weekends, and holidays.