January 9th, 2012

The MBS Market closed last week trading up (+ 25bps).  This was another great week for interest rates that saw fixed rates reach their LOWEST LEVELS EVER!!  In the history of the mortgage industry, borrowers have never been able to get better mortgage pricing than they can now.  It’s a pretty good time to be doing a mortgage. 

Rates might have dropped even lower if Congress did not pass HR3630.

I mentioned HR3630 in previous updates.  Congress is charging increased fees to homeowners to extend the employment taxes.  This comes in the form of Fannie Mae increasing guaranteed pricing to lenders which have to pass that on to borrowers.  This change goes into effect on loans delivered to Fannie Mae after February 10th.  Since most lenders lock on 30 day locks – this change will go into effect with almost every lender by the end of the week. 

This means that mortgage rate pricing should go up approximately .3 pts on every rate or .125% higher on the rate for the same costs.      

This can be offset if the MBS market continues to trade higher, but the market has trended up for almost 2 months – it will turn eventually. 

Below are rates available today paying a point or less:

30 year fixed: 3.75% paying .99 points, 4% paying 0 points

20 year fixed: 3.75% paying .1 points, 3.875% paying 0 points

15 year fixed: 3.125% paying .85 points, 3.25% paying 0 points

5/1 ARM: 2.5% paying .92 points, 2.875% paying 0 points

7/1 ARM: 2.875% paying .95 points, 3.25% 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


There is a lot of chatter that a Mass Refinance Program could be released by President Obama before the elections.

The chatter centers around the possibility of President Obama replacing the current FHFA director with one of his own.  This would allow the President to implement his own guidelines for FANNIE MAE, FREDDIE MAC, FHA and VA.

The plan is said to allow borrowers to refinance their current loans to today’s low rates without:





The main requirement would be that the borrower has to be current on their existing mortgage for the past 3 months.  This is only for rate and term refinancing – no cash out.  This is also only for first mortgages – not combining a 1st and 2nd

So this basically takes out the main things blocking a lot of people from refinancing.  If this plan is implemented, we could see mass refinancing across the nation.  Now keep in mind this plan is meant for people that CAN NOT refinance with the current guidelines.  For example, if you have a lot of equity, good credit, and qualifying income – this plan is not going to offer you anything that is not currently on the market.

This plan is meant to help people that are upside down, low equity, bad credit, can’t prove their income, etc.

Watch for more updates on if this plan comes to fruition.  This should be very interesting to say the least. 

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.

Lowest Mortgage Rates Ever – Obama’s Mass Refinancing Program