30 YEAR FIXED RATES UP TO 4.125% – MARKET VOLATILITY THE NEW NORM
The market had another wild week – pushing rates up and down each day. The wild swings are becoming the new norm. What this means for you as a consumer is that your mortgage quote could change thousands of dollars in a very short period of time. That is the market that we are in – so as always, if you like the rate/costs – lock it in as soon as you can, as it may not be there for long.
The bond market closed last week 37 basis points higher, which in theory should have improved mortgage rates. Unfortunately it did not on all mortgage products and here is why. Rates go up quicker than they go down. What this means is that lenders are more willing to change their pricing higher when the bond market is down, then they are to offer better rates / pricing when the bond market goes up.
Rates are still great and near all time lows set in the 1950’s. Below is current pricing paying a point or less on a 30 day lock:
30 year fixed: 4.125% paying .83 pt, 4.375% paying 0 pts
20 year fixed: 3.875% paying .6 pts , 4.125% paying 0 pts
15 year fixed: 3.375% paying .45 pt, 3.625% paying 0 pts
5/1 ARM: 2.875% paying .7 pts, 3.125% paying 0 pts
7/1 ARM: for 3% paying 1 pt, 3.375% paying 0 pts
30 year fixed FHA: 3.875% paying .85 pts, 4.125% paying 0 pts
15 year fixed FHA: 3.25% paying .6 pts, 3.5% paying 0 pts
30 year fixed VA: 3.875% paying .7 pts, 4.125% paying 0 pts
30 year fixed High Balance Loan: 4.375% paying .32 pts, 4.5% paying 0 pts – ONLY AVAILABLE FOR A LIMITED TIME FOR VERY HIGH LOAN BALANCES
LAST CHANCE FOR HIGH BALANCE CONFORMING LOAN LIMITS:
The max high balance conforming loan limit has been $729,750 since the ECONOMIC STIMULUS PACKAGE of 2008. This max loan limit will be going down to 625,500 in the highest priced areas, and lower than that in the mid high balance priced areas.
You have to get these started now if you want to close before the deadline of September 30th, 2011.