Are you a prospective homebuyer in Idaho, eagerly exploring your mortgage options? As you delve into the world of home financing, you might come across the concept of "buying points" on your mortgage. But what exactly does this mean, and how can it impact your homeownership journey? Let's explore the benefits and risks associated with buying points down on a mortgage, tailored specifically for Idaho residents.

Refinancing your mortgage can be a game-changer in your financial strategy, but timing is crucial. If you’re contemplating this significant financial move, it’s important to know when the conditions are in your favor. This blog will guide you through the top 5 critical factors that indicate it’s the right time to refinance your mortgage, helping you to make an informed decision and potentially saving you a substantial amount of money.

The Gem State has long been a hidden jewel in the real estate market. However, recent trends indicate a surge in the Idaho housing scene, making it a hot topic for both local and out-of-state buyers. A significant player in this landscape? Interest rates. Let's delve deeper into the current real estate climate in Idaho and how interest rates play a pivotal role.

As a potential home buyer, the thought of higher mortgage rates may be intimidating. However, it is important to understand that there are reasons why you should not be afraid of higher mortgage rates.

Mortgage rates ticked up last week. With us up .05 of a point and that is .10 for the last 2 weeks. It is all about China and Trade, again. As the stock market is rolling and hitting new highs each week, investors are putting their money into Stocks and out of Bonds and Mortgage Backed Securities. Again, no use talking about technicals or data (although new home sales were up 1.3% M/M) and traders are going to focus on Trump, Tariffs & Tweets over the next 2 weeks.

Also, don't forget:

• VA removed ALL Loan limits as of 1/1/2020.
• FHA loan limits are now $366,850,
• Conventional Loan limits are $510,400,
• High Balance Conventional is $765,500, and
• Jumbo is anything over $765,501 Merry Christmas to you all!

Mortgage rates in Idaho worsened last week, as the Trump Admin and China looks like they have made a trade deal, or atleast Phase 1.  I indicated a few months back that I felt the closer we got to the election the more likely a trade deal would get done.  I really feel that this deal was pushed up to front run the impeachment hearings...but what ever.

The bond market and stock market really are not looking at economic numbers and is focusing on Trade, so no use speaking about numbers today (housing, unemployment, inflation).  I will speak about the pending recession, when ever that may happen.  Two talking heads spoke last week, pushing the recession out of 2020 and into 2021, and with the pending Trade Deal, 2020 is looking REALLY GOOD for economic growth.

Watch for the details to come out of the Trade Deal, this will really either set the stock market on FIRE, and thus mortgage rates will continue to go up.  OR if it is like the deal with Mexico/Canada, which is flaking out, then we could see stocks sell off and mortgage rate improve.

Mortgage rates worsened again last week for Boise & Nampa, and through yesterday. The main cause is the potential of getting a trade deal with China AND the potential of the Federal Reserve lowering rates this week. YES when the Federal Reserve lowers their rates, historically mortgage rates go up.

Mortgage rates were pretty much flat last week, but that was hugely STRANGE, as the stock markets totally sold off and typically with that much sell off, Mortgage Bonds would of rallied and rates should of improved, SIGNIFICANTLY. But they did not. Rates are currently worsening. With Consumer Confidence, GDP and Personal Consumption all this week, going to be a rough ride again for rates.

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Mortgage rates are on a cusp of jumping quite a bit higher, as the 10 year Bond and the Mortgage Bonds are close to making a jump, which would allow rates to jump in to the mid 5%.  We are going to watch Federal Reserve decision on Thusday, not for a rate increase, but for what their policy statement is.  Then on Friday we will have Producer Price Index, or inflation at the producer level, and also this week the US is going to sell of more of our debt, which will influence rates also.  Gonig to be another roller coaster week for rates, with the consensus that rates will increase.