Category: debt ceiling

INTEREST RATES HIT 4 MONTH LOWS

INTEREST RATES HIT 4 MONTH LOWS

October 21st, 2013

Interest Rates hit 4 month lows on Friday /  Fannie Mae changes coming November 16th. 

After a US debt deal in principal was announced on Wednesday – Interest rates greatly improved after slowly moving higher in the proceeding 2 weeks.   The uncertainty regarding the government closure and the debt ceiling caused markets to stagnate.  The markets rejoiced with great gains across the board when a deal was in place.

gordon-gekko

When the dust settled, interest rates hit 4 months lows and 30 year fixed rates dipped down to 4%-4.125%. 

On Tuesday, the payroll report for September will be released late due to the government shutdown.  This usually has a big effect on rate pricing.  The FED meets October 29th and will release a statement on the 30th. 

Since the government closure, it is now believed that the FED will hold off on tapering its bond purchasing program until possibly 2014.  The reason is that the economy will still be in flux due to the long term budgetary issues Congress must decide on during the next 4 months.

I see rates staying stable but not improving greatly from their current levels.  Still, you never know what the FED will do.  Many thought the FED would taper the bond program in September.  If you are risk averse, I would lock before October 30th because when the FED tapers , interest rates will go up quickly. 

FANNIE MAE CHANGES COMING NOVEMBER 16TH

On the weekend of November 16th, Fannie Mae will update it’s automated underwriting system.  Below are the 2 biggest changes:

1.)    Interest Only Loans will no longer be offered by Fannie Mae.

2.)    Fannie Mae will now have a maximum loan to value of 95%.  Currently it’s 97%.

You can begin a loan before November 16th, and still go off the old guidelines.

If you want an interest only loan – now is the time to get started. 

The 97% Fannie Mae purchase loan was starting to take the place of FHA loans with higher credit score borrowers.  The down payment was less than FHA, and the monthly mortgage insurance was substantially less.  Now Fannie Mae will require 5% down, or 95% max LTV/CLTV on a refinance that is not HARP eligible.

Make it a great week!!           

BEST VALUE OF THE WEEK:

30 Year Fixed at 4.25% with 0 points

TODAY’S RATES:

30 year fixed:     4.125% – .87 points,     4.25% – 0 points,     4.5% – $0 costs

20 year fixed:   4% – .78 points,     4.125% – 0 points,     4.25%  – $0 costs

15 year fixed:   3.25% – .85 points,     3.375% – 0 points,     3.5% – $0 costs

10 year fixed:   3% – .79 points,     3.375% – 0 points,     3.5% – $0 costs

5/1 ARM:   2.75% – .74 points,     3% – 0 points,     3.25% – $0 costs

7/1 ARM:    3.125% – .99 points,     3.5% – 0 points,     3.625% – $0 costs

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

15 year fixed FHA:    3.25% – .43 points,     3.5% – 0 points,     3.625% – $0 costs

30 year fixed VA:     3.75% – .11 points,    3.875% – 0 points,     4% – $0 costs

Today's Interest Rates - October 21st, 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.  Arizona refinance, California refinance, Colorado refinance.  Scottsdale, Arizona Mortgage Banker in McCormick Ranch.  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.

INTEREST RATES HIT 4 MONTH LOWS

RATES REMAIN AT LOWEST LEVELS SINCE JUNE – WHAT AFFECT DOES GOV’T SHUTDOWN HAVE ON RATES?

RATES REMAIN AT LOWEST LEVELS SINCE JUNE – WHAT EFFECT DOES GOV’T SHUTDOWN HAVE ON RATES?

October 7th, 2013

Interest rates remained at current levels last week with the bond markets in a stalemate because of the government shutdown.  Rates for the past 2 weeks have held at their lowest levels since June 2013. 

The government shutdown is keeping trading in narrow ranges as there is a lot of uncertainty how long this will last.  This along with the major issue of the debt ceiling just 10 days away is forcing traders to be cautious.

Govt shutdown

The debt ceiling is the much bigger issue as this could result in the US Treasury not paying their bills, which would have catastrophic effects on the economy and interest rates would go through the roof.

The debt ceiling involves Congress passing legislation to approve paying the debts currently due.  The US treasury will run out of money around October 17th.  The rating agencies of US treasury debt have not lowered the US’s grade at this time, as they feel the Treasury will pay the bill even if debt ceiling legislation doesn’t get passed. 

I hold the view of most Americans.  I’m really frustrated that we have a new crisis every couple months and no long term agreements in place.  It has a major effect on the markets.

The September employment report and many other economic reports are not being released with the government being shut down.  The FED will release their minutes from the last FOMC meeting on Wednesday at 2 pm Eastern.

It is a very uncertain time right now.  I always air on the side of caution.  I still think its safer to lock and interest rate float downs are available if rates drop a lot after a loan is locked.

Make it a great week!!                  

BEST VALUE OF THE WEEK:

30 Year Fixed at 4.25% with 0 points

10 Year Fixed at 3.125% with 0 points

5/1 ARM at 3.125% with 0 points

TODAY’S RATES:

30 year fixed:     4.25% – .9 points,     4.25% – 0 points,     4.5% – $0 costs

20 year fixed:   4% – .77 points,     4.125% – 0 points,     4.25%  – $0 costs

15 year fixed:   3.25% – .91 points,     3.5% – 0 points,     3.625% – $0 costs

10 year fixed:   3% – .59 points,     3.125% – 0 points,     3.5% – $0 costs

5/1 ARM:   2.75% – .88 points,     3.125% – 0 points,     3.5% – $0 costs

7/1 ARM:    3.25% – .89 points,     3.5% – 0 points,     3.75% – $0 costs

30 year fixed FHA:    3.75% – 0 points,      4% – $0 costs

15 year fixed FHA:    3.25% – .36 points,     3.375% – 0 points,     3.625% – $0 costs

30 year fixed VA:     3.875% – .2 points,    4% – 0 points,     4.125% – $0 costs

Today's Interest Rates - October 7th, 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.  Arizona refinance, California refinance, Colorado refinance.  Scottsdale, Arizona Mortgage Banker in McCormick Ranch.  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.  October 7th interest rates, October 8th interest rates, October 9th interest rates, October 10th interest rates, October 11th interest rates, October 12 interest rates, October 13th interest rates, October 14th interest rates.

RATES REMAIN AT LOWEST LEVELS SINCE JUNE – WHAT EFFECT DOES GOV’T SHUTDOWN HAVE ON RATES?

HOW WILL THE FISCAL CLIFF DEAL AFFECT MORTGAGE RATES?

HOW WILL THE FISCAL CLIFF DEAL AFFECT MORTGAGE RATES?

January 2nd, 2013

Happy New Year!!

On January 1st, Congress finally came to a deal to avoid the “fiscal cliff”.  The deal essentially kicks the main issues down the road, but averts the tax increases for the majority of Americans.

As expected, the markets responded and the stock market surged and mortgage rates went up.  Currently the Mortgage Backed Security market is trading down – 22 bps on the week. 

Fortunately, because the Feds continue to buy and keep demand in place for mortgage backed securities, rates were not hit that hard.  The average 30 year fixed pricing went up .23 pts at any given rate.  Shorter term loans and ARM pricing did not go up as much. 

The Fiscal Cliff deal basically:

1.)     Increases taxes on individuals making 400k per year or more

2.)     Increases taxes on married couples making 450k per year or more

3.)     Increases taxes on dividend and capital gain income.

So one part of the Fiscal Cliff is resolved – the major tax increases that would have affected all Americans. 

The other issue that was kicked down the road was the debt issue.  There is a 2 month period before automatic spending cuts will go into effect for the US treasury.  So the debate on the fiscal cliff is really just beginning, with the US deficit still not addressed. 

Congress will have to come to an agreement on key spending cuts or raise the debt ceiling again.  The markets will likely remain volatile until March 1st, as a deal will likely not happen until the last possible moment.

Rates are very volatile right now and the benefits in locking a loan outweigh the risk and possible pricing improvement that may accompany floating a rate.  Rates are only .125% higher than their all time lows.  I am recommending locking at this point.  If rates drop .25% during the loan process, a rate can be floated down.

Have a great week!!

TODAY’S RATES:

30 year fixed:     3.375% paying .634 points,     3.5% paying 0 points,     3.75% – $0 costs

20 year fixed:   3.25% paying .99 points,     3.5% paying 0 points,     3.625%  – $0 costs

15 year fixed:   2.75% paying .30 points,     2.875% paying 0 points,     2.99% – $0 costs

5/1 ARM:   2.25% paying 1 point,     2.625% paying 0 points,     3% – $0 costs

7/1 ARM:    2.5% paying .99 points,     2.875% paying 0 points,     3.125%- $0 costs

30 year fixed High Balance Loan:    3.5% paying .966 points;     3.75% paying 0 points;    3.875% – $0 costs

30 year fixed FHA:    3.25% – $0 costs

15 year fixed FHA:    2.75% – $0 costs

30 year fixed VA:    3.25% – $0 costs

TR - 1-2-2013

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.

HOW WILL THE FISCAL CLIFF DEAL AFFECT MORTGAGE RATES?

INTEREST RATES IMPROVE – UNCERTAINTY LOOMS WITH HURRICANE SANDY, THE ELECTION AND THE FISCAL CLIFF

INTEREST RATES IMPROVE – UNCERTAINTY LOOMS WITH HURRICANE SANDY, THE ELECTION AND THE FISCAL CLIFF:

October 31st, 2012

Happy Halloween!!

Interest rates improved slightly last week with the MBS market closing up (+ 9 bps).  Mortgage rate pricing was higher for most of the week – but a rally on Friday ended the week with the MBS market in positive territory. 

Markets have been closed the majority of this week due to Hurricane Sandy.  So far this week, the MBS market is trading up (+16 bps). 

MORTGAGE RATE OUTLOOK:

Above is a mortgage rate graph taken from bankrate.com which surveys the average mortgage rates funded every week.  Current rates are quite a bit lower than they were in August – but not as low as the end of September / early October.

Most experts agree that the lowest mortgage rates are past us.  I expect rates to stay in their current range through the end of the year – with some swings up and down in the process.

Even though I don’t expect rates to change much through 2012, there are a lot of events coming up that could cause movement.

CONFLICTING ECONOMIC DATA:

Rates typically go up when the economy improves.  Right now we are seeing a lot of conflicting economic data.

We have stronger retail sales reports, increasing construction and more applications for building permits.  But we are also seeing many large corporations reporting lower than expected earnings numbers. 

Hurricane Sandy will also likely slow economic growth in many parts of the country, which could cause investors to pull money from the stock market and into the bond market.

THE ELECTION:

Many consumers think that the Presidential election has a huge effect on the mortgage rate market.  I don’t really think it does nor will this time.

Regardless of who wins – the US economy doesn’t change overnight.  The bigger impact will be when Barrack Obama or Mitt Romney enact new economic policies that affect business profitability and growth.

THE FISCAL CLIFF:

I think this issue is probably the one event that can change interest rates the most. 

The US Treasury is set to hit their debt ceiling near the end of 2012 – and a deal needs to be completed for the US Treasury to be able to borrow money to meet their obligations.

If a deal is not completed – the government may have to stop providing Medicare benefits, Social Security benefits, military salaries, tax refunds, etc.

I think this is too much of a political issue for some type of deal to not get done, but the details of the deal and how it affects future government borrowing could have a big effect on the economic market. 

LOCK RECOMMENDATION:

I still recommend locking mortgage pricing.  There is more risk in rates going up than the benefit of them going down.

Rates are still very close to all time lows and experts don’t think that rates will hit that level again.  So there is not much room for rates to go down, and much more room for them to go up.

If a rate is beneficial, lock it.    

MY BEST VALUE OF THE WEEK:

30 Year Fixed at 3.625% with $0 costs

30 Year Fixed High Balance Loan at 3.625% with $0 costs

TODAY’S RATES:

30 year fixed:   3.25% paying .99 points,     3.5% paying 0 points,     3.625% – $0 costs

20 year fixed:   3.25% paying .66 points,     3.375% paying 0 points,     3.625%  – $0 costs

15 year fixed:    2.625% paying .82 points,     2.875% paying 0 points,     3.125% – $0 costs

5/1 ARM:   2.25% paying .9 points,     2.625% paying 0 points

7/1 ARM:   2.5% paying .54 points,     2.75% paying 0 points,     3.25%- $0 costs

30 year fixed High Balance Loan:   3.5% paying .16 points;     3.625% – $0 costs

30 year fixed FHA:   3.25% – $0 costs

15 year fixed FHA:   2.75% – $0 costs

30 year fixed VA:  3.25% – $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 – UNCERTAINTY LOOMS WITH HURRICANE SANDY, THE ELECTION AND THE FISCAL CLIFF:

MORTGAGE RATES REMAIN AT RECORD LOWS!!

MORTGAGE RATES REMAIN NEAR ALL TIME LOWS

The bond market closed last week down – 94 bps pushing mortgage rates and pricing higher. This move higher was due to a great week on Wall Street where the stock market closed higher every day. There has been some pull back on Monday with the stock market being down, pushing rates back to lower levels. The bond market closed Monday up + 55 bps pushing mortgage rates and pricing back down to the low levels at the beginning of last week.

Below are current rates available paying a point or less.

30 year fixed: 3.875% paying 1 point, 4.125% paying 0 points

20 year fixed: 3.75% paying 0 points

15 year fixed: 3.25% paying 0 points

5/1 ARM: 2.625% paying .6 points, 2.875% paying 0 points

7/1 ARM: 2.875% paying .8 points, 3.25% paying 0 points

30 year fixed FHA: 3.75% paying 0 points

15 year fixed FHA: 3.25% paying 0 points

30 year fixed VA: 3.75% paying 0 points

30 year fixed High Balance Loan: 4.125% paying .85 points, 4.375% paying 0 points

Today’s Mortgage Interest Rates.  Current Mortgage Rates and APRs for refinancing and purchasing in Arizona, California, and Colorado.  Mortgage Rates Sheets for fixed mortgages, ARM mortgages, Variable Mortgages, Interest Only Mortgages, HARP mortgages, VA mortgages, FHA mortgages, Conforming mortgages, Conventional Mortgages, High Balance Mortgages and Jumbo Mortgages.

Mortgage Rates Remain at Record Lows

TODAY’S MORTGAGE RATES – MORTGAGE RATES DROP TO LOWEST LEVELS OF THE YEAR / LOAN LIMITS DECREASING ON OCTOBER 1st

TODAY’S MORTGAGE RATES / MORTGAGE RATES DROP TO LOWEST LEVELS OF THE YEAR:

The US debt deal looks like it will be completed.  Most of us expected this to get done in the 11th hour, but when you don’t know, the markets get nervous. Even though the deal looks to be done, the stock market is down 100 points on Monday morning, pushing the bond markets up and mortgage rates lower.

Last week was a see-saw all week. Luckily we had a huge day on Friday with the bond market closing 81 bps up, pushing mortgage rates and pricing to the lowest levels of the year. Last week, the bond market closed 91 bps up. Right now is a great time to lock a loan, below is the approximate pricing for a well qualified borrower on a variety of loan products.

30 year fixed: 4.375% paying .1 pts, 4.49% paying 0 pts

20 year fixed: 4.25% paying 0 pts , pricing rises over 1 pt below 4.25%

15 year fixed: 3.5% paying .9 pts, 3.75% paying 0 pts

5/1 ARM: 2.75% paying .7 pts, 3% paying 0 pts

7/1 ARM: for 3.125% paying .8 pts, 3.375% paying 0 pts

30 year fixed FHA: 4.25% paying 0 points, pricing rises over 1 pt below 4.25%

15 year fixed FHA: 3.375% paying . 6 pts, 3.625% paying 0 pts

30 year fixed VA: 4.25% paying 0 points, pricing rises over 1 pt below 4.25%

30 year fixed High Balance Loan: 4.375% paying .8 pts, 4.625% paying 0 pts

CONFORMING LOAN LIMITS CHANGING: On October 1st of 2011, loan limits are expected to decrease substantially for CONFORMING and FHA loans.

In many high priced areas, CONFORMING and FHA loan limits were temporarily increased with the Economic Stimulus package of 2008. For example, in most parts of Southern California, you can now do a CONFORMING and FHA loan with a loan amount up to $729,750. Since CONFORMING loans price substantially better than JUMBO loans, many customers have been able to refinance or purchase with high balance loans at a very low rate.

These temporary loan limits are expected to decrease substantially on October 1st of this year. FHA loan limits in many areas will also decrease lower than their current allowable loan amount.

If you want to take advantage of these temporary loan limit increases, I would act before August 15th, 2011. The loan has to be completed and delivered before October 1st to get the old guidelines. Even though refinance typically only take 2-3 weeks, purchases can take 4-8 weeks. I would not wait if you are a consumer that can take advantage of the current program.

Today’s Mortgage Rates – Down to lowest levels of the year.  August 1st, 2011.

Licensed in Arizona, California, and Colorado.

TODAY’S MORTGAGE RATES:

TODAY’S MORTGAGE RATES / MORTGAGE RATES RISE:

The bond market finished last week 16 bps down, pushing mortgage rates/pricing slightly higher.

Right now a well qualified borrower can get:

30 year fixed for 4.49% paying .6 pts, 4.625% paying 0 pts, 4.75% paying 0 costs

15 year fixed for 3.75% paying 0 pts, 3.99% paying 0 costs

7/1 ARM for 3.25% paying .9 pts, 3.5% paying 0 points, 3.75% paying 0 costs

30 year fixed FHA for 4.25% paying . 4 pts, 4.375% paying 0 pts, 4.5% paying 0 costs outside of FHA upfront MI

15 year fixed FHA for 3.5% paying . 6 pts, 3.75% paying 0 pts, 3.875% paying 0 costs outside of FHA upfront MI

30 year fixed VA for 4.25% paying .33 pts, 4.375% paying 0 pts, 4.49% paying 0 costs outside of VA funding fee

The markets are continuing to be fueled by the possibility of defaults in Europe and Congress working on increasing the debt ceiling. Even if the US deal gets done, America’s debt rating could lower from AAA.

The market is volatile right now so you could see large swings in mortgage pricing even during the same day. I still believe that rates will not go lower than the 4.375% – 4.5% 30 year fixed rates that we have seen for the past couple months.

Today’s Mortgage Rates.

Homes loans for Arizona, California, and Colorado.

 

MORTGAGE RATES DROP FOR 2nd STRAIGHT WEEK; BUT BE CAUTIOUS – July 18th, 2011

MORTGAGE RATES DROP FOR 2nd STRAIGHT WEEK; BUT BE CAUTIOUS:

The bond market finished last week 31 bps up, pushing mortgage pricing down for the 2nd consecutive week.

A well qualified borrower can get a 30 year fixed at 4.375% for about .6 points, and a 4.5% with 0 points. 15 year fixed rates at 3.75% are now at 0 points, and 20 year fixed rates at 4.25% are at 0 points.

Even though rates and pricing are improving, we are seeing a benchmark rate that the market is not going below. For example, you can get a 4.375% for .6 points, but then if we go down to 4.25%, the pricing goes up to over 2 points. The cost difference is so large that for most loan amounts it makes no sense to pay that much more in fees. The same goes for 15 and 20 year fixed rates. There is a large pricing increase below a 3.75% 15 year fixed and a 4.25% 20 year fixed.

This will be a pivotal week for the U.S. stock market which means this could be a volatile week for interest rates. 20% of the S&P 500 are reporting earnings and 50% of the DOW Jones are reporting earnings this week.

Many experts believe that corporate earnings will be quite good, but many investors are uneasy about the debt ceiling negotiations in Washington. If the debt ceiling gets resolved and corporate earnings are positive, look for the stock market to shoot up, which will usually cause rates to rise.

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