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 4th 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 Interest Rates - July 1st, 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.

INTEREST RATES IMPROVE  –  30 YEAR FIXED TO 4.25%

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