September 4th, 2012

Happy September!!

The MBS market closed last week trading up (+ 78 bps) and on Tuesday the MBSmarket is currently trading up ( + 2 bps).    

The market received a jolt on Friday with Ben Bernanke’s speech at the Jackson Hole economic conference.  The Fed Chairman stated that the Fed can and will do more to boost the economy and help lower unemployment.  This moved the MBS market from trading down to closing up + 50 bps. 

The speculative nature of the market took this as a sign that the Fed would “ease” again by purchasing more mortgage backed securities.  The next meeting of the Federal Open Market Committee is September 13th

Since the market has basically already priced in a possible mortgage backed security purchase into mortgage rates, if they don’t “ease” on the 13th, rates will likely go higher.  Data this week will likely determine if the FED will make this move on the 13th.  This week is highlighted by the August unemployment report on Friday.

This week will likely be volatile – right now is a great time to lock with rates significantly improving on Friday and holding their gains today. 

My best value of the week:

30 Year Fixed High Balance Loan at 3.625% with 0 points

Below are rates available today paying a point or less:

30 year fixed:  3.375% paying 1 point, 3.625% paying 0 points

20 year fixed:  3.25% paying .717 points, 3.375% paying 0 points

15 year fixed:  2.75% paying .881 points, 2.99% paying 0 points

5/1 ARM:  2.125% paying .779 points, 2.5% paying 0 points

7/1 ARM:  2.375% paying .762 points, 2.625% paying 0 points

30 year fixed High Balance Loan:  3.5% paying .701 points, 3.625% 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.  Arizona Home Loans, California Home Loans, Colorado Home Loans.  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.

Mortgage Rates Fall Again – FED can and will do more.