INTEREST RATES RISE – WHERE WILL MORTGAGE RATES GO FROM HERE?
October 22nd, 2012
Last week was a pretty tough week for interest rates. Mortgage pricing went up Monday through Thursday, but a rally on Friday pulled interest rates back down a bit.
The Mortgage Backed Security market closed last week trading (-64 bps). On Monday, the market is currently trading down (– 8 bps).
WHERE WILL MORTGAGE RATES GO FROM HERE?
Most agree that rates will not rise substantially with the weakening MBS market. Even though rates have trended up for the majority of two weeks, rates are still very low.
Mortgage rates will likely stay in the range they are now. I don’t think rates will go lower than the rate pricing we saw a couple of weeks ago, but I also don’t see them going substantially up from where they are now.
Confidence in the economy is growing which will typically cause a rise in rates. But the FED introducing QE3 will help them remain low for the rest of 2012.
THIS WEEK:
This week starts with the Presidential Debate on Monday. The Treasury will begin a 99 billion note auction on Tuesday. The Federal Open Market Committee is meeting on Tuesday with a press release on Wednesday. September results from new homes sales are released on Wednesday.
Barring any unforeseen events – I am hoping that rates will improve a little bit this week, but I don’t see anything too drastic happening one way or the other.
My lock recommendation is to lock on any rate improvement this week.
My Best Value of the week:
15 Year Fixed at 2.99% paying $0 costs
Below are rates available today paying a point or less:
30 year fixed: 3.375% paying .70 points, 3.5% paying 0 points, 3.625% – $0 costs
20 year fixed: 3.25% paying .88 points, 3.5% paying 0 points, 3.625% – $0 costs
15 year fixed: 2.625% paying .82 points, 2.875% paying 0 points, 2.99% – $0 costs
5/1 ARM: 2.25% paying .85 points, 2.625% paying 0 points
7/1 ARM: 2.5% paying .59 points, 2.75% paying 0 points
30 year fixed High Balance Loan: 3.5% paying .43 points; 3.625% paying 0 points, 3.75% – $0 costs
30 year fixed FHA: 3.25% – $0 costs
15 year fixed FHA: 2.75% – $0 costs
30 year fixed VA: 3.25% – $0 costs
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.
INTEREST RATES RISE – WHERE WILL MORTGAGE RATES GO FROM HERE?
