BERNANKE’S COMMENTS CAUSE INTEREST RATES TO HEAD EVEN HIGHER

BERNANKE’S COMMENTS CAUSE INTEREST RATES TO HEAD EVEN HIGHER

May 27^th, 2013

On Wednesday, Bernanke publicly testified to the Joint Economic Committee that the Fed could ease it’s monetary assistance with the bond market in the next 3 to 4 FOMC meetings. These simple comments caused one of the largest one day rate hikes I have ever seen.

The Mortgage Backed security market closed Wednesday trading down – 98 bps and closed the week trading down -86 bps. I have warned about this in past updates. When the FED leaves the mortgage backed security market, rates will rise quickly. The FED indicating they may do so soon causes the same reaction.

This continues the terrible month of May for interest rates. There is panic selling in the Mortgage Backed Security market and investors are cutting their losses. Expect high volatility moving forward.

The May unemployment report coming out next Friday could fuel interest rates to rise even more or help them pull down a little bit. Either way, if the FED is indicating they will leave the MBS market, you won’t see rates hit the previous lows may have become accustomed to.

Make it a great week!!

BEST VALUE OF THE WEEK:

7/1 ARM at 2.75% paying 0 points

TODAY’S RATES:

30 year fixed: 3.75% paying .36 points, 3.875% paying 0 points, 4% – $0 costs

20 year fixed: 3.5% paying .99 points, 3.75% paying 0 points, 3.875% – $0 costs

15 year fixed: 2.875% paying .74 points, 3% paying 0 points, 3.25% – $0 costs

5/1 ARM: 2.25% paying .76 points, 2.5% paying 0 points, 2.75% – $0 costs

7/1 ARM: 2.5% paying .89 points, 2.75% paying 0 points, 3%- $0 costs

30 year fixed High Balance Loan: 3.875% paying .81 points, 4.125% paying 0 points, 4.25% – $0 costs

30 year fixed FHA: 3.25% paying .37 points, 3.375% paying 0 points, 3.5% – $0 costs

15 year fixed FHA: 2.75% paying .89 points, 3% paying 0 points, 3.25% – $0 costs

30 year fixed VA: 3.25% paying .28 points, 3.375% paying 0 points, 3.625%- $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.

BERNANKE’S COMMENTS CAUSE INTEREST RATES TO HEAD EVEN HIGHER

INTEREST RATES CONTINUE UPWARD TREND

INTEREST RATES CONTINUE UPWARD TREND

May 19th, 2013

The Mortgage Backed Security market closed last week trading down -59 bps. Interest rates continued to rapidly move higher after hitting their 2013 lows just over 2 weeks ago.

The MBS market now has a lower 20 day and 40 day average than it’s 100 day average. The stock market’s key indexes keep going higher even though economic reports aren’t showing much economic improvement. Japan’s plan to weaken it’s currency is also working against the US Bond market.

The simple truth is there is just not a lot of appetite for mortgage backed securities and we could continue to see more sell off with investors cutting their losses.

Even though fixed rates have moved higher, ARM loans don’t follow the market trends as much as fixed loans. You can still get a great ARM rate in the low to mid 2%’s if you are comfortable with a rate that is fixed for 5,7, or 10 years.

This week, Ben Bernanke will be testifying at the Joint Economic Committee and the FED minutes will be released on Wednesday. Both events usually trigger movement in the interest rate markets. The markets will likely slow down near the end of the week due to Memorial Day weekend.

Have a great Memorial Day and make it a great week!!

BEST VALUE OF THE WEEK:

5/1 ARM at 2.5% paying 0 points

TODAY’S RATES:

30 year fixed: 3.5% paying 1 point, 3.75% paying 0 points, 3.875% – $0 costs

20 year fixed: 3.5% paying .34 points, 3.625% paying 0 points, 3.75% – $0 costs

15 year fixed: 2.625% paying .95 points, 2.875% paying 0 points, 3% – $0 costs

5/1 ARM: 2.25% paying .62 points, 2.5% paying 0 points, 2.75% – $0 costs

7/1 ARM: 2.5% paying .65 points, 2.75% paying 0 points, 3%- $0 costs

30 year fixed High Balance Loan: 3.75% paying .70 points; 4% paying 0 points, 4.25% – $0 costs

30 year fixed FHA: 3.25% – $0 costs

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

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

INTEREST RATES CONTINUE UPWARD TREND

INTEREST RATES GOING UP QUICKLY!!

INTEREST RATES GOING UP QUICKLY!!

May 15th, 2013

Interest rates are moving up quickly all around the world. Rates have moved higher every day since the release of the April employment report. The mortgage backed security market closed last week trading down -94 bps and this week is trading down -59 bps.

I hinted at this in my last weekly update – I think that May will be a bad month for interest rates. Investors will not buy mortgage backed securities aggressively after getting burned on the April employment report.

The overall sentiment in the bond market is to sell. This likely won’t change without a Fed statement reaffirming continued mortgage backed security purchases, a worse than expected May employment report, or some other major event.

It’s important to keep things in perspective. Rates are still unbelievably low – they are just a bit higher than the past few weeks. This massive move in the markets has only moved interest rates .125% to .25% higher.

The world is not coming to end, but I would definitely recommend locking in your rate as soon as possible.

Make it a great week!!

BEST VALUE OF THE WEEK:

15 Year Fixed at 2.875% paying 0 points

TODAY’S RATES:

30 year fixed: 3.5% paying 1 point, 3.75% paying 0 points, 3.875% – $0 costs

20 year fixed: 3.375% paying 1 point, 3.625% paying 0 points, 3.75% – $0 costs

15 year fixed: 2.625% paying .78 points, 2.875% paying 0 points, 3% – $0 costs

5/1 ARM: 2.25% paying .65 points, 2.5% paying 0 points, 2.75% – $0 costs

7/1 ARM: 2.5% paying .71 points, 2.75% paying 0 points, 3%- $0 costs

30 year fixed High Balance Loan: 3.75% paying .59 points; 3.875% paying 0 points, 4.25% – $0 costs

30 year fixed FHA: 3.25% – $0 costs

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

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

MORTGAGE RATES MOVE HIGHER WITH APRIL EMPLOYMENT REPORT

MORTGAGE RATES MOVE HIGHER WITH APRIL EMPLOYMENT REPORT

May 6th, 2013

Interest rates have steadily moved lower for the majority of April. Most economic reports were down and most investors didn’t expect an improved April employment report. When the report was released, the market’s response was immediate.

The stock markets soared and the mortgage backed security market ended the day trading down (– 61 bps).

The unemployment rate dropped to 7.5% and there were also revisions to the March report showing 50k more jobs than previously reported. Whenever there is increased economic optimism, there will be talk of the FED exiting their mortgage backed security purchasing plan. Whenever this happens, prepare for interest rates to jump quickly and much higher than the recent jumps.

My outlook in May is that you won’t see rates drop and mortgage backed securities being bought as aggressively as April. There will be caution that there could be another higher than expected employment report for May.

Rates are still great – my recommendation is to lock as I think rates will likely rise in May.

Make it a great week!!

BEST VALUE OF THE WEEK:

30 Year Fixed at 3.625% paying 0 costs

TODAY’S RATES:

30 year fixed: 3.375% paying .74 points, 3.5% paying 0 points, 3.625% – $0 costs

20 year fixed: 3.125% paying 1 point, 3.5% paying 0 points, 3.625% – $0 costs

15 year fixed: 2.5% paying .6 points, 2.75% paying 0 points, 2.875% – $0 costs

5/1 ARM: 2.125% paying .97 points, 2.375% paying 0 points, 2.625% – $0 costs

7/1 ARM: 2.375% paying .75 points, 2.625% paying 0 points, 2.75%- $0 costs

30 year fixed High Balance Loan: 3.625% paying .52 points; 3.75% paying 0 points, 3.875% – $0 costs

30 year fixed FHA: 3% paying .99 points; 3.25% – $0 costs