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
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 HIT MULTI YEAR HIGHS – WITH NO SIGNS OF STOPPING
