October 11, 2011

October 2011 has been a great month for the stock market and a bad month for interest rates. The DOW JONES average is up 500 points in October. This recent surge in optimism has taken investors out of the safety of the bond market and into the thriving stock market. The bond market closed last week down (-134 bps) – causing a large jump in mortgage rates/pricing.

The bond market passed certain technical indicators that could make it difficult for rates to drop back down to their record low levels. The stock market is not stable, but there has been some temporary resolutions to the debt crisis in Europe that could keep the market up for the time being.

My lock recommendation is to lock in pricing if a loan is beneficial to you. Many customers get caught waiting for a pie in the sky rate and end up losing a good rate that was beneficial to them. If I lock your loan and rates drop significantly, I can typically float down your rate. If they drop after your loan closes, you can always refinance again. There is no rule to the amount of times you can refinance.

Below are current rates available paying a point or less.

30 year fixed: 4.25% paying .7 points, 4.375% paying 0 points / 4.34% APR

20 year fixed: 4% paying .67 points, 4.375% paying 0 points / 4.12% APR

15 year fixed: 3.625% paying .8 points, 3.875% paying 0 points / 3.75% APR

5/1 ARM: 2.75% paying .67 points / 2.88% APR

7/1 ARM: 3.125% paying .55 points / 3.27% APR

30 year fixed FHA: 3.75% paying .7 points, 3.99% paying 0 points / 4.05% APR

15 year fixed FHA: 3.5% paying .8 points, 3.75% paying 0 points / 3.72% APR

30 year fixed VA: 3.75% paying .55 points, 3.99% paying 0 points / 4.05% APR

30 year fixed High Balance Loan: 4.5% paying .88 points, 4.875% paying 0 points / 4.61% APR

Today’s Mortgage Interest Rates.  Current Mortgage Rates and APRs for refinancing and purchasing in Arizona, California, and Colorado.  Mortgage Rates Sheets for fixed mortgages, ARM mortgages, Variable Mortgages, Interest Only Mortgages, HARP mortgages, VA mortgages, FHA mortgages, Conforming mortgages, Conventional Mortgages, High Balance Mortgages and Jumbo Mortgages.

CLINE / 21321 East Ocotillo Road B105 / Queen Creek, AZ 85142

NMLS: 229993

Mortgage Rates Rise with Stock Market Rally.