August 20th, 2012

The MBS market closed last week trading down (-91 bps) and on Monday the MBS market is trading up ( + 18 bps).

Mortgage rates went up rapidly as investors saw more signs that the European Debt situation seems to be easing and the US economy is getting stronger. When investor confidence comes back, there is usually a quick turn around and rates rise much faster than they go down. This is why I always say if you like a particular rate and product, lock it, as rates can change very quickly. I don’t see rates ever going below 3.25% without getting very expensive. Many potential borrowers missed out on great rates waiting for a small dip in rates, which would only lower their payment an additional $10-$20. It is usually not worth the risk.

There is not much data this week. I expect rates to rebound slightly as is the norm when rates go one way very quickly. On August 30th, Bernanke will have his opening speech at the annual economic conference at Jackson Hole. With the recent signs of economic strength, there is now investor sentiment that the FED will not begin another round of quantitative easing. His speech on the 30th, will likely give us some insight on what the FED may do.

On the bright side, football starts in 2 weeks. I will be out of town from Wednesday to Monday so you may not be able to reach me during those days. Make it a great week!!

My best value of the week:

30 Year Fixed High Balance Loan at 3.875% with .199 points

Below are rates available today paying a point or less:

30 year fixed:   3.625% paying .58 points, 3.75% paying 0 points
20 year fixed:   3.5% paying .79 points, 3.75% paying 0 points
15 year fixed:   2.875% paying .98 points, 3.125% paying 0 points
5/1 ARM:   2.25% paying .96 points, 2.625% paying 0 points
7/1 ARM:   2.5% paying .74 points, 2.75% paying 0 points
30 year fixed High Balance Loan:   3.75% paying .88 points, 3.99% paying 0 points
30 year fixed FHA:   3.25% paying 0 points
15 year fixed FHA  2.75% paying 0 points
30 year fixed VA:   3.25% paying 0 points

Today’s Mortgage Interest Rates.  Current Mortgage Interest Rates and APRs for refinancing and purchasing in Arizona, California, and Colorado.  Mortgage Rate 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, Fannie Mae Home Path Mortgage, Freddie Mac Foreclosure Relief Mortgage, VA mortgages, VA Interest Rate Reduction Loans, FHA mortgages, FHA streamline mortgages, Conforming mortgages, Conventional Mortgages, 100%  Financing Mortgage, High Balance Mortgages, Fannie Mae mortgages, Freddie Mac Mortgages, No appraisal refinances, 0 point mortgages, 0 closing cost mortgages, paying a point mortgages, Refinance mortgages, purchase mortgages, and Jumbo Mortgages.