MORTGAGE RATES LIKELY TO RISE IN 2012

HAPPY NEW YEAR – MORTGAGE RATES LIKELY TO RISE IN 2012

December 27th, 2011

The bond market closed last week trading down (- 66 bps).  Interest rates/pricing rose last week by approximately .5% in costs.  This week will likely remain stable but we could see further rate increases next week. 

I expect rates to rise in 2012, and here are a few things that will likely affect interest rates and the US markets during the upcoming year. 

1.)    HR3630  is new bill likely to pass in Congress very soon.  The bill increases guaranteed fees on Fannie Mae and Freddie Mac loans (the vast majority of loans written in the USA) up 10 basis points.  FHA will also increase it’s annual mortgage insurance 10 basis points.  These price hikes will be passed on to the consumer, pushing the closing costs you pay for a new mortgage higher.  Since Fannie Mae, Freddie Mac, and FHA are all run by the government now, these price increases are likely being put in to place so the government does not have to increase the employment tax.  So instead of employees paying higher taxes for unemployment expenses and social security – mortgage borrowers will instead. 

2.)     The majority of economists (Based on an Associated Press Poll) feel that the US economy will start to grow faster in 2012.  The economy has created at least 100,000 new jobs in the past 5 months straight.  People applying for unemployment benefits are at their lowest levels since April of 2008. 

Economists predict jobs creation to increase even more in 2012.  Even though the projections for job growth are higher, experts predict the unemployment rate to stay near 8.4%.  The new jobs are only cancelling out population increase. 

3.)     Europe still remains a constant concern.  A default in the Europe debt situation could cause major ramifications to the US Economy. 

With the economy likely to improve in 2012 – we will likely see the stock market improve and investors moving their money from the bond market and into the stock market.  This should create higher pricing on mortgages. 

Unless a default happens in Europe (which will trigger investors to move funds back into the safety of the bond market), interest rates are very likely to rise in 2012. 

Below are rates available today paying a point or less:

30 year fixed: 4% paying .51 points, 4.25% paying 0 points

20 year fixed: 3.875% paying .68 points, 4.125% paying 0 points

15 year fixed: 3.25% paying .9 points, 3.5% paying 0 points

5/1 ARM: 2.625% paying ..74 points; 3% paying 0 points

7/1 ARM: 2.875% paying .91 points, 3.25% paying 0 points

30 year fixed High Balance Loan: 4.25% paying .49 point, 4.375% paying 0 points

30 year fixed FHA: 3.75% paying .36 points, 3.875% paying 0 points

15 year fixed FHA: 3.25% paying .13 points; 3.375% paying 0 points

30 year fixed VA: 3.75% paying 0 points

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, HARP 2.0 mortgages, DU Refi Plus Mortgages, Freddie Mac Open Access Mortgages, Freddie Mac Foreclosure Relief Mortgage, VA mortgages, VA Interest Rate Reduction Loans, FHA mortgages, FHA streamline mortgages, Conforming mortgages, Conventional Mortgages, High Balance Mortgages, Fannie Mae mortgages, Freddie Mac Mortgages,  and Jumbo Mortgages.

Mortgage Rates likely to rise in 2012

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MORTGAGE RATES REMAIN AT RECORD LOWS

MORTGAGE RATES REMAIN AT RECORD LOWS:

December 19th, 2011

The bond market closed last week trading up (+ 66 bps). Another good week for the bond market but we have reached a level where rates aren’t really going any lower, regardless of the bond market. Some lenders have raised their pricing a little bit, even though the bond market is trading up.

The Mortgage rate market is still tied closely to the debt crisis in Europe. If investors continue to invest in the safety of US treasury bonds, mortgage rates should remain at their current levels.

Below are rates available today paying a point or less:

30 year fixed: 3.875% paying .55 points, 4% paying 0 points
20 year fixed: 3.75% paying .77 points, 4% paying 0 points
15 year fixed: 3.25% paying .658 points, 3.375% paying 0 points
5/1 ARM: 2.5% paying .87 points; 2.875% paying 0 points
7/1 ARM: 2.875% paying .475 points, 3% paying 0 points
30 year fixed High Balance Loan: 4% paying 1 point, 4.375% paying 0 points
30 year fixed FHA: 3.75% paying 0 points
15 year fixed FHA: 3.25% paying 0 points
30 year fixed VA: 3.75% paying 0 points

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, DU Refi Plus Mortgages, Freddie Mac Open Access Mortgages, Freddie Mac Foreclosure Relief Mortgage, VA mortgages, VA Interest Rate Reduction Loans, FHA mortgages, FHA streamline mortgages, Conforming mortgages, Conventional Mortgages, High Balance Mortgages, Fannie Mae mortgages, Freddie Mac Mortgages,  and Jumbo Mortgages.

December 19th, 2011

Mortgage Rates Remain at Record Lows

MORTGAGE PRICING BACK TO LOWEST LEVELS EVER!!

MORTGAGE PRICING BACK TO LOWEST LEVELS EVER!!

December 14, 2011

It has been a great week for interest rates.  The bond market has rallied + 65 bps this week, pushing mortgage rates and pricing back to their lowest levels EVER!!

As I have discussed in previous updates, pricing can get better but rates should not go below the 3.75% to 3.875% range on a 30 year fixed loan.  Thus we are getting better pricing, but I don’t think rates will ever drop below 3.75% without significant costs.  The reason is because investors won’t buy them below this rate.  This is a good article from Mortgage News Daily on the current rate market: 

http://www.mortgagenewsdaily.com/consumer_rates/239687.aspx

I still recommend locking at this point.  Pricing usually only stays this low for a day or two before they move back up.

Below are rates available today paying a point or less:

30 year fixed: 3.75% paying 1 point, 4% paying 0 points

20 year fixed: 3.75% paying .567 points, 3.875% paying 0 points

15 year fixed: 3.25% paying .262 points, 3.375% paying 0 points

5/1 ARM: 2.5% paying .947 points; 2.875% paying 0 points

7/1 ARM: 2.875% paying .619 points, 3.125% paying 0 points

30 year fixed High Balance Loan: 4% paying .889 points, 4.25% paying 0 points

30 year fixed FHA: 3.75% paying 0 points

15 year fixed FHA: 3.25% paying 0 points

30 year fixed VA: 3.75% paying 0 points

 

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, DU Refi Plus Mortgages, Freddie Mac Open Access Mortgages, Freddie Mac Foreclosure Relief Mortgage, VA mortgages, VA Interest Rate Reduction Loans, FHA mortgages, FHA streamline mortgages, Conforming mortgages, Conventional Mortgages, High Balance Mortgages, Fannie Mae mortgages, Freddie Mac Mortgages,  and Jumbo Mortgages.

December 2011

Mortgage Pricing Back to lowest levels ever!!

MORTGAGE PRICING IMPROVES ; HARP 2.0 UPDATE

MORTGAGE RATES IMPROVE:

December 5th, 2011

Fixed Mortgage rates improved slightly last week with the bond market closing + 53 bps.  ARM pricing has started to creep a bit higher lately.  ARM loans are less tied to the bond market than fixed loans are. 

There is not too much data coming into the markets this week.  The leaders in Europe are meeting on Friday to continue debt talks, but I don’t expect too much to come of that.

I still feel that the long term outlook is that mortgage rates will start to rise slowly in the coming weeks and months. 

Below are rates available today paying a point or less:

30 year fixed: 3.875% paying .653 point, 4.125% paying 0 points

20 year fixed: 3.75% paying .935 points, 4% paying 0 points

15 year fixed: 3.25% paying .725 points, 3.5% paying 0 points

5/1 ARM: 2.5% paying .97 points; 2.875% paying 0 points

7/1 ARM: 2.875% paying .883 points, 3.25% paying 0 points

30 year fixed High Balance Loan: 4.25% paying .817 points, 4.5% paying 0 points

30 year fixed FHA: 3.75% paying .605 points, 3.99% paying 0 points

15 year fixed FHA: 3.25% paying .867 points, 3.5% paying 0 points

30 year fixed VA: 3.75% paying 0 points

HARP 2.0 UPDATE

When dealing with a new agency product, typically the big lenders announce when they are coming out and everybody falls in line.  The only lender I know of that has publicized HARP 2.0 updates is Wells Fargo.  They are releasing their HARP 2.0 rate sheets next week but are not offering the product for underwriting.

Many direct lenders have lines of credit from bigger banks to fund their loans.  Wells Fargo is an investor in my company as well as many, many other lenders.  Thus we will get it at the same time.

It is now starting to appear that the HARP 2.0 product may not make it to the market for some time.  As always, I will keep you updated on any new developments.    

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, DU Refi Plus Mortgages, Freddie Mac Open Access Mortgages, Freddie Mac Foreclosure Relief Mortgage, VA mortgages, VA Interest Rate Reduction Loans, FHA mortgages, FHA streamline mortgages, Conforming mortgages, Conventional Mortgages, High Balance Mortgages, Fannie Mae mortgages, Freddie Mac Mortgages,  and Jumbo Mortgages.

MORTGAGE PRICING IMPROVES ; HARP 2.0 UPDATE

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Really funny – Warning – some adult content.

HARP 2.0 UPDATE : December 1st, 2011

HARP 2.0 UPDATE

December 1st, 2011

I am getting a ton of calls today regarding HARP 2.0.  Just wanted to give a quick update.  Even though HARP 2.0’s application date starts today, there are not any lenders that I know of (including my bank) that actually have the product available yet.  

I think in the coming week or two, lenders will start giving pricing and being able to accept this product.  Until then, I have to wait to actually quote and start the product.  I would hold off on having your credit pulled until the loan is available on the market.

I will keep you updated – have a great day!!

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