BERNANKE’S COMMENTS CAUSE INTEREST RATES TO HEAD EVEN HIGHER

BERNANKE’S COMMENTS CAUSE INTEREST RATES TO HEAD EVEN HIGHER

May 27th, 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 Interest Rates - May 27th, 2013

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

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