TODAY’S MORTGAGE RATES / MORTGAGE RATES DROP TO LOWEST LEVELS OF THE YEAR:
The US debt deal looks like it will be completed. Most of us expected this to get done in the 11th hour, but when you don’t know, the markets get nervous. Even though the deal looks to be done, the stock market is down 100 points on Monday morning, pushing the bond markets up and mortgage rates lower.
Last week was a see-saw all week. Luckily we had a huge day on Friday with the bond market closing 81 bps up, pushing mortgage rates and pricing to the lowest levels of the year. Last week, the bond market closed 91 bps up. Right now is a great time to lock a loan, below is the approximate pricing for a well qualified borrower on a variety of loan products.
30 year fixed: 4.375% paying .1 pts, 4.49% paying 0 pts
20 year fixed: 4.25% paying 0 pts , pricing rises over 1 pt below 4.25%
15 year fixed: 3.5% paying .9 pts, 3.75% paying 0 pts
5/1 ARM: 2.75% paying .7 pts, 3% paying 0 pts
7/1 ARM: for 3.125% paying .8 pts, 3.375% paying 0 pts
30 year fixed FHA: 4.25% paying 0 points, pricing rises over 1 pt below 4.25%
15 year fixed FHA: 3.375% paying . 6 pts, 3.625% paying 0 pts
30 year fixed VA: 4.25% paying 0 points, pricing rises over 1 pt below 4.25%
30 year fixed High Balance Loan: 4.375% paying .8 pts, 4.625% paying 0 pts
CONFORMING LOAN LIMITS CHANGING: On October 1st of 2011, loan limits are expected to decrease substantially for CONFORMING and FHA loans.
In many high priced areas, CONFORMING and FHA loan limits were temporarily increased with the Economic Stimulus package of 2008. For example, in most parts of Southern California, you can now do a CONFORMING and FHA loan with a loan amount up to $729,750. Since CONFORMING loans price substantially better than JUMBO loans, many customers have been able to refinance or purchase with high balance loans at a very low rate.
These temporary loan limits are expected to decrease substantially on October 1st of this year. FHA loan limits in many areas will also decrease lower than their current allowable loan amount.
If you want to take advantage of these temporary loan limit increases, I would act before August 15th, 2011. The loan has to be completed and delivered before October 1st to get the old guidelines. Even though refinance typically only take 2-3 weeks, purchases can take 4-8 weeks. I would not wait if you are a consumer that can take advantage of the current program.
Licensed in Arizona, California, and Colorado.