INTEREST RATES IMPROVE – 30 YEAR FIXED TO 4.25%

INTEREST RATES IMPROVE – 30 YEAR FIXED TO 4.25%

July 1st, 2013

After the blood bath for interest rates the week before, interest rates managed to pull back some as the panic selling began to taper on Monday. On Monday morning, the mortgage backed security market was trading down over – 100 bps, and then pulled back close to even by the end of the day. This was a great sign as it looked like 30 year fixed rates might be at 5% by the end of the week.

The MBS market finished the week quite strong, closing up + 106 bps, with 30 year fixed interest rates down to 4.25%.

Don’t be fooled though – interest rates will not go back to the mid 3% levels they had been at for quite some time. The pull back was mainly due to the market panic selling which usually results in a correction the other way.

Ben Bernanke stated very clearly that the FED would likely curtail their asset purchases by the end of 2013 and completely stop them by 2014. This means that the FED keeping rates lower than they should be will be coming to an end soon – the main question is when. Some other members of the FED have diffused Bernanke’s comments, stating that there is no set time to stop and that quantitative easing will continue until the economy’s progress dictates them to stop.

Expect interest rate volatility to continue with all eyes on the FED’s actions. I don’t expect rates to go down significantly unless there is a major economic event that reveals the economy is not progressing like the FED currently thinks it is. In the long term, I expect rates to continue to rise although we may see some improvement in the short term. I recommend locking on any improvement.

Make it a great week and have a happy and safe 4^th of July!!

BEST VALUE OF THE WEEK:

30 Year Fixed at 4.5% with 0 points

TODAY’S RATES:

30 year fixed: 4.25% – 1 point, 4.5% – 0 points, 4.625% – $0 costs

20 year fixed: 4% – .95 points, 4.25% – 0 points, 4.375% – $0 costs

15 year fixed: 3.5% – .48 points, 3.625% – 0 points, 3.875% – $0 costs

5/1 ARM: 2.75% – 1 point, 3.25% – 0 points

7/1 ARM: 3% – 1 point, 3.5% – 0 points

10/1 ARM: 3.875% – 1 point, 4.625% – 0 points

30 year fixed FHA: 3.75% – .53 points, 3.875% – 0 points, 4.125% – $0 costs

15 year fixed FHA: 3.25% – 0 points, 3.5% – $0 costs

30 year fixed VA: 3.875% – .81 points, 4.25% -$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 IMPROVE – 30 YEAR FIXED TO 4.25%

INTEREST RATES HIT MULTI YEAR HIGHS – WITH NO SIGNS OF STOPPING

INTEREST RATES HIT MULTI YEAR HIGHS – WITH NO SIGNS OF STOPPING

June 24th, 2013

Last week was the single worst week for interest rates that I can remember (I have been doing mortgages for 10 years). As expected and stated in last week’s update – the FED’s statement on Wednesday would bring about volatility in the market and it certainly did.

Ben Bernanke and the FED maintained that they would scale back the stimulus and bond purchasing plan. The mortgage backed security and stock markets plummeted. The MBS market closed the week trading down -314 bps. When the dust had settled, 30 year fixed rates were .625% higher than they were at the end of trading on Friday.

The interest rates people have been accustomed to for the past couple years are gone and they are not coming back. I have warned about this for the past year – when the FED leaves the bond purchasing market – rates will go higher, quickly. The FED has basically kept rates lower than they should be for 2.5 years.

On the bright side – interest rates are historically still very good, but I do expect them to continue to rise.

If you can benefit from refinancing – I wouldn’t wait or spend a week shopping. Rates have been moving up so quickly that shoppers are losing a ton more in daily rate hikes than actually finding a better deal. Even if the savings are not unbelievable, this may be your last chance to lower your rate and payment for the life of your loan.

My recommendation is to lock in if you are currently floating.

Make it a great week!!

BEST VALUE OF THE WEEK:

15 Year Fixed at 3.75% with 0 points

TODAY’S RATES:

30 year fixed: 4.5% – .89 points, 4.75% – 0 points, 4.875% – $0 costs

20 year fixed: 4.25% – .32 points, 4.375% – 0 points, 4.75% – $0 costs

15 year fixed: 3.5% – .84 points, 3.75% – 0 points, 4% – $0 costs

5/1 ARM: 3.25% – .81 points

7/1 ARM: 3.375% – .97 points

10/1 ARM: 4.25% – .91 points

30 year fixed FHA: 4% – .99 points, 4.25% – 0 points, 4.5% – $0 costs

15 year fixed FHA: 3.25% – .48 points, 3.375% – 0 points, 3.5% – $0 costs

30 year fixed VA: 4.25% paying 0 points, 4.625%- $0 costs

INTEREST RATES HIT MULTI YEAR HIGHS – WITH NO SIGNS OF STOPPING

INTEREST RATES FINALLY IMPROVE – LOWEST RATES THIS MONTH

INTEREST RATES FINALLY IMPROVE – LOWEST RATES THIS MONTH

June 17th, 2013

After 6 straight weeks of interest rates moving higher, interest rates finally showed some improvement last week. The Mortgage Backed Security market closed the week trading up + 36 bps.

This is a huge week for interest rates as the Federal Open Market Committee (FOMC) will meet and release a statement on Wednesday followed by a Ben Bernanke press conference. Ben Bernanke’s last statements caused rates to rise .5% very quickly. It’s amazing how much power the markets put into any hint of what the FED may do.

There is speculation both ways on what the statement and press conference may reveal. Some predict that the FED may confirm it will not taper off the bond purchasing program. I don’t think Bernanke knew his last statement would cause such a panic sell off in the bond markets. This along with the unemployment rate still being high and the economy not improving as much as the FED would like could cause this response.

On the other hand there is speculation that the FED will confirm that it will taper off the bond purchasing program, which has been hinted at for some time.

Either way, expect a very volatile rate market after Wednesday. The news on Wednesday will likely give us direction on where long term interest rates are headed.

Make it a great week!!

BEST VALUE OF THE WEEK:

15 Year Fixed at 3.25% – 0 points

TODAY’S RATES:

30 year fixed: 3.875% – .82 points, 4% – 0 points, 4.25% – $0 costs

20 year fixed: 3.625% – .27 points, 3.75% – 0 points, 3.875% – $0 costs

15 year fixed: 3% – .74 points, 3.25% – 0 points, 3.5% – $0 costs

5/1 ARM: 2.5% – .67 points, 2.75% – 0 points, 3.25% – $0 costs

7/1 ARM: 2.75% – .59 points, 3% – 0 points, 3.375%- $0 costs

10/1 ARM: 3.375% – .86 points, 3.75% – 0 points

30 year fixed FHA: 3.25% – .9 points, 3.5% – 0 points, 3.625% – $0 costs

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

30 year fixed VA: 3.375% – .66 points, 3.625% paying 0 points, 3.75%- $0 costs

INTEREST RATES FINALLY IMPROVE – LOWEST RATES THIS MONTH

INTEREST RATES IMPROVE – JUST KIDDING!!

INTEREST RATES IMPROVE – JUST KIDDING!!

June 10th, 2013

Last week was a volatile week for interest rates. Rates started the week much higher, then rebounded some on Wednesday and Thursday. Friday’s May unemployment report saw rates push higher again. The mortgage backed security market closed the week -44 bps, the 6th consecutive week the MBS market has closed down and rates have risen.

The employment report saw unemployment rise from 7.5% to 7.6%, and private jobs up 135k versus a forecast of 170k. The markets took this news as positive as some expected worse numbers after preliminary reports from other sources. The stock market shot up and rates worsened again.

The long term outlook is that the previous 30 year fixed rates many have become accustomed to are likely gone forever. The markets are still concerned about the FED’s eventual exit from the MBS market and based upon their comments – the end is coming.

This week will likely be uneventful with very little important economic reports on tap. The FOMC will meet next Wednesday.

My recommendation is for customers thinking about shortening their term to a 15 year fixed – I would do that now while the 15 year fixed rates are still very low. I also recommend more customers look into ARM loans if you need to lower your payment.

Make it a great week!!

BEST VALUE OF THE WEEK:

7/1 ARM at 2.875% paying 0 points

TODAY’S RATES:

30 year fixed: 4% paying .46 points, 4.125% paying 0 points, 4.25% – $0 costs

20 year fixed: 3.625% paying .90 points, 3.875% paying 0 points, 4.125% – $0 costs

15 year fixed: 3.125% paying .83 points, 3.375% paying 0 points, 3.625% – $0 costs

5/1 ARM: 2.5% paying .7 points, 2.75% paying 0 points, 3.25% – $0 costs

7/1 ARM: 2.625% paying .99 points, 2.875% paying 0 points, 3.375%- $0 costs

10/1 ARM: 3.375% paying .95 points, 3.75% paying 0 points, 4.375% – $0 costs

30 year fixed FHA: 3.375% paying .89 points, 3.625% paying 0 points, 3.75% – $0 costs

15 year fixed FHA: 3% paying .44 points, 3.25% – $0 costs

30 year fixed VA: 3.5% paying .99 points, 3.75%- $0 costs

INTEREST RATES IMPROVE – JUST KIDDING!!

INTEREST RATES CONTINUE UPWARD CLIMB / ARMS STILL IN THE 2%’s

INTEREST RATES CONTINUE UPWARD CLIMB / ARMS STILL IN THE 2%’s

June 3rd, 2013

Last week was yet another tough week for interest rates as they continue their climb to their highest levels in over a year. The MBS market closed last week trading down – 103 bps.

Each time you see a small rally in the bond market, investors unload and the market continues it’s downward spiral. It’s not uncommon to see the bond market higher in the morning and drop over 50 bps in an hour or two. There is simply not an appetite for mortgage backed securities right now.

The trend of interest rates rising will likely continue unless some economic event worries investors enough to seek safety in mortgage backed securities and US treasuries. Expect heavy volatility to remain the norm.

On Friday, the May unemployment report will be released. Remember that April’s unemployment report and revision to March’s numbers started rates moving higher after hitting very low levels at the beginning of May.

ARM loans continue to be very attractive options as rates on ARM loans don’t move as much with the market as fixed loans do. The most popular ARM loans are fixed for 5,7, or 10 years before they adjust and the adjustments are capped. They are a good option to consider if you missed the boat on refinancing to a low fixed rate.

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: 4% paying .66 points, 4.125% paying 0 points, 4.25% – $0 costs

20 year fixed: 3.625% paying .77 points, 3.75% paying 0 points, 4.125% – $0 costs

15 year fixed: 3.125% paying .66 points, 3.375% paying 0 points, 3.5% – $0 costs

5/1 ARM: 2.375% paying .99 points, 2.75% paying 0 points, 3.25% – $0 costs

7/1 ARM: 2.625% paying .91 points, 2.875% paying 0 points, 3.25%- $0 costs

30 year fixed High Balance Loan: 4.125% paying .86 points, 4.375% paying 0 points, 4.5% – $0 costs

30 year fixed FHA: 3.375% paying .66 points, 3.5% paying 0 points, 3.75% – $0 costs

15 year fixed FHA: 2.875% paying .99 points, 3.25% – $0 costs