Month: February 2013

INTEREST RATES SHOW BIGGEST IMPROVEMENT IN OVER A MONTH

INTEREST RATES SHOW BIGGEST IMPROVEMENT IN OVER A MONTH

February 25th, 2013

Interest rates have remained consistent to slightly moving upward for many weeks. On Monday morning the mortgage backed security market was trading down (-21 bps), pushing rates higher again.

Finally a break through took place triggering a dramatic turnaround. The Italian parliament elections revealed no clear winner. The stock market plummeted and investors sought security in bonds and mortgage backed securities.

The MBS market ended up closing up (+ 56 bps), the largest single day improvement since early January.

Interest rates hit their lowest levels in over a month.

Stay tuned as increased volatility in the market is likely with over 85 billion in spending cuts scheduled to take place on Friday if a deal is not made.
Have a great week!!

BEST VALUE OF THE WEEK:

5/1 ARM at 2.375% paying 0 points

TODAY’S RATES:

30 year fixed:     3.5% paying .75 points,     3.625% paying 0 points,     3.875% – $0 costs

20 year fixed:     3.375% paying .57 points,      3.5% paying 0 points,     3.625% – $0 costs

15 year fixed:     2.75% paying .93 points,      3% paying 0 points,      3.25% – $0 costs

5/1 ARM:      2.125% paying .99 points,      2.375% paying 0 points,      2.75% – $0 costs

7/1 ARM:      2.5% paying .60 points,      2.625% paying 0 points,      2.875%- $0 costs

30 year fixed High Balance Loan:      3.625% paying .99 points;      3.875% paying 0 points;      4.125% – $0 costs

30 year fixed FHA:      3.25% – $0 costs

15 year fixed FHA:      2.75% paying 0 points,      2.875% – $0 costs

30 year fixed VA:       3.25% – $0 costs

TR - 2-26-13

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 SHOW BIGGEST IMPROVEMENT IN OVER A MONTH

INTEREST RATES STAY CONSISTENT / 85 BILLION IN SPENDING CUTS

INTEREST RATES STAY CONSISTENT  /   85 BILLION IN SPENDING CUTS ON FRIDAY

February 25th, 2013

Interest rates remain stable for the third straight week.  The Mortgage Backed Security Market closed the week trading up (+ 16 bps), but Monday morning is trading down (-21 bps). 

Interest rates continue the trend of staying relatively the same or slightly moving up.  The FEDs MBS purchasing program is keeping rates from going up to much, but the market has not significantly improved in over a month.

On Friday, 85 billion in spending cuts are scheduled to take place unless a deal is made in Congress.  The global markets have known about this for some time and it hasn’t affected the markets thus far.  This is something to watch closely though as both parties agree that the current spending cuts will have a negative effect on the economy.

Interest rates are unlikely to gain significant improvement without a dramatic loss in the stock market.  Maybe the automatic spending cuts will be the event that makes that happen.  I’ll be watching closely, but I still believe a last minute deal will take place kicking the can further down the road.

Have a great week!!

BEST VALUE OF THE WEEK:

5/1 ARM at 2.375% paying 0 points

TODAY’S RATES:

30 year fixed:     3.625% paying .56 points,     3.75% paying 0 points,     4% – $0 costs

20 year fixed:   3.5% paying .61 points,     3.625% paying 0 points,     3.875%  – $0 costs

15 year fixed:   2.875% paying .59 points,     3% paying 0 points,     3.25% – $0 costs

5/1 ARM:   2.125% paying .99 points,     2.375% paying 0 points,     2.75% – $0 costs

7/1 ARM:    2.5% paying .60 points,     2.625% paying 0 points,     2.875%- $0 costs

30 year fixed High Balance Loan:    3.75% paying .84 points;     4.125% paying 0 points;    4.25% – $0 costs

30 year fixed FHA:    3.25% paying 0 points,     3.375% paying $0 costs

15 year fixed FHA:    2.75% – 0 points,     3% – $0 costs

30 year fixed VA:    3.25% paying 0 pts,     3.375% – $0 costs

TR - 2-25-13

INTEREST RATES STAY CONSISTENT   /  85 BILLION IN SPENDING CUTS

INTEREST RATES STABLE LAST WEEK / UNCERTAINTY LOOMS

INTEREST RATES STABLE LAST WEEK  /   UNCERTAINTY LOOMS

February 18th, 2013

I hope everyone had a great President’s day and hopefully got the day off of work.

The MBS market closed down (-48 bps) on the week.  Most of the movement was due to a monthly rollover.  Even though the MBS market was down, interest rates stayed almost identical to the week before.

The markets are in a bit of a holding pattern on what will happen next.  The big events this week will be:

-The release of the FED minutes from January on Wednesday.  This is one of the events last month that led to rates rising.  If the FED conversations lead investors to believe that the FED plans to move away from QE or purchasing bonds and mortgage securities – rates will likely rise.

-The release of various housing data that should give more indication on the direction of the economy.

We have a bullish stock market and rising confidence in the economy – not good signs for interest rates. 

I still think we are in a market where interest rates are more likely to rise than fall.  The one ace in the hole for interest rates is the debt ceiling debate.  If the sequester happens and large mandatory spending cuts take place, I think we will see stock markets drop some, and  interest rates drop some.  However, I think that is unlikely to happen.

My recommendation is still to lock on any improvements.  If you can refinance and lower your rate with $0 costs – that is never a bad thing.  If rates drop again, you can always refinance again as very few loans hold prepayment penalties any longer.

Have a great week!!

BEST VALUE OF THE WEEK:

15 Year Fixed at 2.99% paying 0 points

TODAY’S RATES:

30 year fixed:     3.625% paying .43 points,     3.75% paying 0 points,     3.99% – $0 costs

20 year fixed:   3.375% paying .99 points,     3.625% paying 0 points,     3.75%  – $0 costs

15 year fixed:   2.75% paying .99 points,     2.99% paying 0 points,     3.25% – $0 costs

5/1 ARM:   2.375% paying .53 points,     2.5% paying 0 points,     2.875% – $0 costs

7/1 ARM:    2.5% paying .99 points,     2.75% paying 0 points,     3.125%- $0 costs

30 year fixed High Balance Loan:    3.75% paying .76 points;     4.125% paying 0 points;    4.25% – $0 costs

30 year fixed FHA:    3.25% paying 0 points,     3.375% paying $0 costs

15 year fixed FHA:    2.75% – 0 points,     3% – $0 costs

30 year fixed VA:    3.25% – $0 costs

TR - 2-8-13

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 STABLE LAST WEEK – UNCERTAINTY LOOMS

INTEREST RATES RISING QUICKLY

INTEREST RATES RISING QUICKLY

February 8th, 2013

Rates have risen approximately .25% on fixed loans since my last update 2 weeks ago.  Adjustable Rate Mortgages have maintained their same levels.  The Mortgage Backed Security market is trading down (-83 bps) over that time.  The stock market has held recent gains which pushes investor money out of bonds, and into the stock market – increasing interest rate pricing. 

Many experts predicted the market would move back down after it’s recent rally.  It hasn’t.   There is increasing confidence among investors and the general public that the US economy is on the right track.  This week it was reported that homes values annually appreciated at their highest levels in 7 years. 

The debt ceiling debate is raging on again and most insiders predict another kick the can down the road strategy with debt cuts.  Congress’s new self imposed deadline is March 1st before large automatic cuts will go into effect.

LOCK RECOMMENDATION:

The market is extremely volatile right now – meaning interest rate pricing can vary significantly each day.  I am recommending locking on any improvements in the market. 

Have a great week!!

BEST VALUE OF THE WEEK:

5/1 ARM at 2.5% with 0 points

TODAY’S RATES:

30 year fixed:     3.625% paying .49 points,     3.75% paying 0 points,     3.99% – $0 costs

20 year fixed:   3.5% paying .89 points,     3.625% paying 0 points,     3.875%  – $0 costs

15 year fixed:   2.875% paying .55 points,     2.99% paying 0 points,     3.25% – $0 costs

5/1 ARM:   2.25% paying .99 points,     2.5% paying 0 points,     2.875% – $0 costs

7/1 ARM:    2.5% paying .96 points,     2.75% paying 0 points,     3%- $0 costs

30 year fixed High Balance Loan:    3.75% paying .77 points;     4% paying 0 points;    4.125% – $0 costs

30 year fixed FHA:    3.25% paying 0 points,     3.375% paying $0 costs

15 year fixed FHA:    2.75% – 0 points,     3% – $0 costs

30 year fixed VA:    3.25% – $0 costs

TR - 2-8-13

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 Rising Quickly

FHA OFFICIALLY INCREASING MORTGAGE INSURANCE PREMIUMS

FHA OFFICIALLY INCREASING MORTGAGE INSURANCE PREMIUMS:

I warned about this in previous updates.  FHA is now officially raising mortgage insurance premiums.  The good news is the new guidelines don’t go into effect until April 1st – so those looking to do a FHA loan should move quickly.  Here are the new guidelines:

–          Annually Mortgage Insurance Increasing by .1% on most loans

–          Monthly Mortgage Insurance will now be for the life of the loan on most loans

–          15 Year Fixed Loans under 78% Loan to Value will now require Monthly Mortgage Insurance

FHA is also in conversations to raise the minimum down payment on purchase loans to 5% versus the current 3.5%.

All changes go into effect on FHA case loan numbers pulled on or after April 1st, 2013. 

FHA

FHA OFFICIALLY INCREASING MORTGAGE INSURANCE PREMIUMS