INTEREST RATES SURGE HIGHER / BERNANKE TO SPEAK ON WEDNESDAY
July 8th, 2013
Interest rates moved slightly higher before the 4th of July. On Friday, interest rates had their largest one day increase in over 10 years. Rates ended the day almost .5% higher than Wednesday’s close.
The June employment report showed higher than expected job creation – further supporting the belief that the economy is recovering. The Mortgage Backed Security market reacted swiftly, closing Friday trading – 200 bps, and closing the week trading down -255 bps.
On Monday, we did see some pull back in the markets with the MBS market closing Monday + 93 bps, helping take back some of the losses on Friday.
Interest continue to move higher with improved signs in the economy, the FED ending it’s stimulus package, and investors having a small appetite for fixed income securities. This trend will likely continue unless we have a major economic drawback or the FED changes it’s plans.
On Wednesday, the FED minutes from June 19th will be released and Ben Bernanke will be giving a speech. Many suspect that the FED didn’t think rates would move so high so quickly. Ben Bernanke may be doing a little damage control, trying to keep interest rates from continuing to spike. Regardless of what he says, it will be difficult to retract what he has already stated.
I expect some small improvements in rate pricing this week due to investor pull back that usually happens with the market goes one way very quickly. My recommendation is to lock on any improvement in the market. I believe in the long term, interest rates will continue to rise.
Make it a great week!!
BEST VALUE OF THE WEEK:
15 Year Fixed at 3.875% with 0 points
TODAY’S RATES:
30 year fixed: 4.625% – .37 points, 4.75% – 0 points, 5% – $0 costs
20 year fixed: 4.25% – .67 points, 4.625% – 0 points, 4.875% – $0 costs
15 year fixed: 3.625% – .72 points, 3.875% – 0 points, 4.25% – $0 costs
5/1 ARM: 2.875% – 1 point, 3.375% – 0 points
7/1 ARM: 3.375% – .88 points, 4.375% – 0 points
10/1 ARM: 4.125% – 1 point, 4.625% – 0 points
30 year fixed FHA: 4.125% – .76 points, 4.25% – 0 points, 4.5% – $0 costs
15 year fixed FHA: 3.25% – .5 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 SURGE HIGHER / BERNANKE TO SPEAK ON WEDNESDAY
