RATES STEADY – WILL FED MOVE CAUSE INTEREST RATES TO RISE IN SEPTEMBER?
August 12th, 2013
Last week started off with rising rates, but interest rates improved the last 3 days of the week. Overall, the Mortgage Backed Security Market closed up + 1 bps on the week – keeping rates very similar to the week before.
On Monday morning, interest rates were improving when we had a big intraday swing which ended with the MBS market closing down – 25 bps.
Much of the swing appeared to be due to the San Francisco chapter of the FED releasing an economic report essentially stating that the FED’s Mortgage Backed Security purchases were not very effective in stimulating the economy. The report indicated very modest GDP growth as a result of the stimulus.
In the past week we have also heard over 5 FED members state that the FED needs to taper it’s bond purchasing program.
This is a ticking time bomb at this point. All signs point to the FED tapering in 2013. They have FOMC meetings scheduled in September, October and December.
I recommend any customers that can benefit from a refinance to take advantage of it before this move happens. When it does, I expect 30 Year Fixed rates to jump into the 5%’s.
The FED could slow the stimulus as early as September.
Make it a great week!!
BEST VALUE OF THE WEEK:
15 Year Fixed at 3.625% with 0 points
TODAY’S RATES:
30 year fixed: 4.375% – .72 points, 4.5% – 0 points, 4.625% – $0 costs
20 year fixed: 4.125% – .96 points, 4.375% – 0 points, 4.625% – $0 costs
15 year fixed: 3.375% – .88 points, 3.625% – 0 points, 3.75% – $0 costs
5/1 ARM: 3% – .95 points, 3.625% – 0 points
7/1 ARM: 3.375% – .98 points, 4% – 0 points
10/1 ARM: 4% – .97 points, 4.5% – 0 points
30 year fixed FHA: 3.75% – .21 points, 4% – 0 points, 4.25% – $0 costs
15 year fixed FHA: 3.25% – .1 points, 3.375% – 0 points, 3.75% – $0 costs
30 year fixed VA: 4% – .17 points, 4.125% – 0 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. Arizona refinance, California refinance, Colorado refinance. 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 refinance mortgages, Conforming mortgages, Conventional Mortgages, 100% Financing Mortgage, High Balance Mortgages, Fannie Mae mortgages, Freddie Mac Mortgages, No appraisal refinance, 0 point mortgages, 0 closing cost mortgages, paying a point mortgages, Refinance mortgages, purchase mortgages, and Jumbo Mortgages.
RATES STEADY – WILL FED MOVE CAUSE INTEREST RATES TO RISE IN SEPTEMBER?
