Category: FCM Blog

Quite the Last Week in Interest Rates

March 3, 2021

We had quite a bit of optimism toward the U.S. economic recovery last week. Daily COVID-19 case counts fell further from their January peak, and vaccinations continued across the country. No one for sure knows if the pandemic will fade away into the summer. But the pandemic is not the only thing driving rates. Economic data last week beat expectations. And in Washington DC, President Joe Biden’s $1.9 trillion stimulus proposal moved forward, which would accelerate the rebound even more.

All of these developments fueled a sudden shock in the Treasury and mortgage-backed security markets. Good news for the economy tends to push rates higher whereas news that the economy is slowing tends to lead to lower rates. The benchmark U.S. 10-year yield hit 1.61 percent on Thursday, its highest level in a year.

A new stimulus is expected to lead to faster economic growth and inflation. Could the Federal Reserve predict what would happen politically in Washington? Of course not. The stimulus is forecast to push inflation higher, probably faster and farther, than our Federal Reserve’s economists expected. Even Fed Chair Powell agreed with the market in expecting a “robust and ultimately complete recovery” but stated that the Fed won’t cut down on asset purchases or consider rate hikes until it sees “substantial further progress” toward its inflation and employment targets.

Many believe that last week’s price moves were less inspired by rate-hike expectations and simply a case of “buying the fundamental dip” before strong economic growth. Although it won’t help the pool of available borrowers to refinance, there’s room for yields to climb higher still. Real yields, which are nominal yields adjusted for inflation, remain negative, signaling there’s still enough weakness in the economy to warrant parking cash in the safe haven.

The Federal Reserve’s Open Market Committee will likely move first in this case to avoid additional Treasury-market drama, but the Fed won’t have the luxury of waiting for the next meeting and will have to respond to the abrupt market moves in speeches this week.

Despite what moves the Fed makes, at First Community Mortgage we are keeping an eye on the markets, honor rate locks, will continue to focus on our brokers’ business.

New VP for First Community Mortgage in St. Augustine

March 2, 2021

FCM has named Cassidy Spencer Vice President. She has nearly 20 years’ experience in the industry and can originate mortgages for consumers in the many markets in which FCM is licensed across the country.

“Cassidy is a great fit for our team,” says Dan Smith, President of First Community Mortgage. “In addition to being a talented mortgage lender, she has a laid-back demeanor that puts clients at ease while also being able to hold those involved in the mortgage process accountable, thus keeping things moving efficiently toward closing. Her approach creates a service experience that is incredible, and that’s why her client love her and rely on her again and again.”

The California native prides herself on being well versed on lending and on the real estate business. In fact, Spencer has held a real estate broker’s license for 19 years. She provides a full range of residential mortgage products, including purchases, refinance, construction and home equity loans, and is adept at helping clients with first-time homebuyer programs, conventional financing and VA, Jumbo, FHA and USDA programs.

Away from work she enjoys running, golfing, singing, snowboarding, ATV quading, fishing, wakeboarding and spending quality time with friends and family, which includes her husband and their two sons. They reside in St. Augustine.

View original press release here: https://www.prnewswire.com/news-releases/new-vp-for-first-community-mortgage-in-st-augustine-301237723.html

CEO Keith Canter speaks with NBJ on the state of Nashville’s housing market

January 11, 2021

By Carol Smith  – Research Director, Nashville Business Journal

While the pandemic has slowed down much of the economy, Nashville’s home sales have been on the rise in recent months. According to data from Greater Nashville Realtors, the nine-county area they cover showed a 14% year-over-year increase in November and a 17% increase in both October and September.

And, with interest rates being at historic lows, we wondered about the impact on the local housing market. First Community Mortgage is one of the largest homegrown mortgage lenders in Nashville, and we asked a few questions of their CEO, Keith Canter.

Read the rest of the article on the Nashville Business Journal website: https://bizj.us/1q885p

When Health and Housing Overlap

January 6, 2021

We find ourselves at the start of 2021, a fresh, new year. Plenty of us will continue to type “2020” or write it on our checks. Politics is still front and center in the headlines, as well as the stimulus package and the pandemic. Through it all, we continue to help our borrowers achieve the dream of home ownership, or save money through refinancing with us. You may, or may not, wonder, “How might a vaccine being made publicly available impact the housing market?” No one has a crystal ball, but we do have some useful thoughts.

First, the United States has lost over twenty-two million jobs since the start of the pandemic across various sectors impacted by restrictions and shutdowns, though housing has remained a bright spot. People still need a roof over their heads.

The strong possibility of a vaccine being made available by, or before, the spring (though once again it seems that the distribution is subject to political moves) beckons the possibility of a boom in employment, consumer spending, the economy, and likely a rise in prices. Rates move up when the economy is growing, or expected to grow, and vice versa. With the expectation of “normal” returning to the economy, upward pressure may be put on interest rates, including mortgage rates. Historically low rates have had an impact on the housing markets: despite the pandemic and tens of millions of Americans being out of work, home sales were up this year from July, August, and September 2019 by 8.7%, 10.1% and a massive 20.9%, respectively.

Those low rates have enabled more buying power for home seekers, which will begin to evaporate if rates rise. That, along with increasing forbearances, delinquencies foreclosures are some upcoming headwinds for the housing market.

That said, buyers who we have helped at First Community Mortgage know how wonderful it is to own their home. Ownership is still the American Dream, and we’re here to help.

First Community Mortgage adds new Atlanta-area team; this time in Johns Creek

January 6, 2021

Mortgage veterans Greg and Michelle Janicki have been serving clients from metro Atlanta to Athens and throughout the Southeast; they are joined by teammate Melinda Schneider.

First Community Mortgage has hired Greg and Michelle Janicki to establish a lending team in Johns Creek, based out of its Atlanta branch. Together they have a combined 50+ years’ experience in the mortgage industry.

“Greg’s 30 years in the mortgage industry and Michelle’s 20 years in the business, along with the previous executive leadership experience they both have, benefits their clients immensely,” says Dan Smith, President of First Community Mortgage. “Their passion about building ‘Clients for Life’ is reflected in their real estate agent relationships and repeat business from satisfied homeowners.”

Team Janicki – which will include Melinda Schneider, Processor – focuses on a full range of residential mortgage needs, including first-time and self-employed homebuyers; VA, FHA and USDA lending; and all conventional and jumbo mortgage products. While they focus on the Southeastern market, they can assist consumers with mortgages in the many markets in which FCM is licensed across the country.

“Greg’s work ethic and commitment to cultivating successful, mutually beneficial relationships is a key to his having helped so many people achieve their home ownership dreams over the years,” says Atlanta native Michelle. And Greg notes that, “Michelle’s knowledge of the industry as a previous operations manager, ensures she provides the best guidance to help their clients meet all of their home financing needs.”

Away from work, both Janickis are involved in charitable activities, including previously co-chairing the Board of the nonprofit Wellspring Living. In addition to spending time with family, including their two granddaughters, they have a passion for rescue animals and are avid golfers.

View original press release here: https://www.prnewswire.com/news-releases/first-community-mortgage-adds-new-atlanta-area-team-this-time-in-johns-creek-301201386.html

What’s in a rate?

December 31, 2020

As we find ourselves beginning a new year, our loan officers continue to be asked why different mortgage rates exist for different borrowers. We believe that it is important for you to understand the reasons, and they have nothing to do with politics!

It really comes down to the perceived underlying risk on that loan. The subject property and the borrower will always have unique characteristics, but even identical scenarios will be priced differently by different lenders. For every borrower, thousands of different banks, lenders, and credit unions compete with one another to offer the lowest rate and/or the best customer service and product.

You can think of it as the higher the risk of default, the higher the mortgage rate. Banks and lenders start with a base interest “par” rate and then raise or lower it based on the specific home loan criteria. Other mortgage lenders make many assumptions when advertising rates, and particular loan scenarios may be quite different than the hypothetical. First Community Mortgage loan officers discuss your scenario with you in order to best understand the rate and price for you. There are loan pricing adjustments for things like loan amount (conforming or jumbo), documentation (full, bank statements, etc.), credit score, occupancy (primary, vacation, investment), state, loan purpose (purchase or refinance), debt-to-income ratio, property type (single-family home, condo, multi-unit) and LTV or CLTV. And more!

An individual purchasing a single-family home with a conforming loan amount, a 20% down payment, and an 800 FICO score is going to qualify for a different rate than the individual requesting cash-out on a three-unit investment property with a 650 FICO. And again, rates will vary from lender to lender, because different lenders want different loans in their portfolio to hold onto or sell into the secondary market, meeting investor appetite. This is why it’s important for borrowers to understand how risky their particular loan is, and the different rates and products for which they can qualify.

First Community Mortgage firmly believes that we can offer you the best combination or product, pricing, and service, and thousands upon thousands of our borrowers agree. Ask one of our loan officers… we will work with you to determine the best combination for your unique situation.