FED TAPERS – RATES WILL GO UP IN 2014 WITH GSE FEE INCREASE

FED TAPERS – RATES WILL GO UP IN 2014 WITH GSE FEE INCREASE

December 26th, 2013

I hope everyone had a Happy and Safe Holiday!!

As many have heard by now – The FEDERAL RESERVE BOARD finally decided to taper their bond purchasing program – capping months of speculation on when the move would take place.   The FED will reduce it’s bond purchasing by 10 million per month. This relatively small taper as well as the market already taking into account that a taper would happen helped rates not go through the roof. Still mortgage interest rates are much higher than most have become accustomed to and will head higher in 2014.

GSE FEE INCREASE IN 2014:

Along with more tapering likely coming from the FEDERAL RESERVE BOARD in 2014, the GSEs FANNIE MAE and FREDDIE MAC announced fee changes to lenders last week.

These fee changes will raise the rate for most borrowers .125% – .375% once they hit lender rate sheets. After announcing the Fee change, FHFA director Mel Watt pulled back the implementation, announcing a delay in the fee change until he is able to further determine if this plan of action is the best way to move forward.

So at this point, the fee changes which raises the fees FANNIE MAE and FREDDIE MAC charge lenders to buy their loans is delayed after most expected these changes to hit lender rate sheets in January 2014.

If/when these changes going into effect – they will dramatically raise rate/borrower costs for most borrowers. Loan level pricing adjustments are certain characteristics of a customer’s loan that cause the loan to be more expensive. Some of the changes announced:

– Highest qualifying credit score will now be 800, currently any borrower with a 740+ credit score will get best mortgage pricing
– Cash out loans will increase in rate/costs
– Lower credit score borrowers will increase in rate/costs
– Investment property loans will increase in rate/costs

Below is a chart of the proposed loan level pricing adjustment for Fannie Mae and Freddie Mac in 2014.  Below is also a great article explaining the Fee changes:

http://www.mortgagenewsdaily.com/12172013_mortgage_rates_to_take_big_hit_from_fee_hikes.asp 

Fannie_Mae_LLPA

So at this point these changes are delayed, but I guarantee fee increases are coming – but maybe not as drastic as the ones announced.

All signs point to higher rates in 2014.

It has been a great few years with record low mortgage interest rates. If you haven’t taken advantage, I would recommend locking in before rates continue to move higher.

Have a great week!!

BEST VALUE OF THE WEEK:

10 Year Fixed at 3.5% with 0 points

5/1 ARM at 3.25% with 0 points

TODAY’S RATES:

30 year fixed:     4.625% – .30 points,      4.75% – 0 points,      4.875% – $0 costs

20 year fixed:      4.25% – 1 point,       4.5% – 0 points,       4.625% – $0 costs

15 year fixed:      3.625% – .49 points,      3.75% – 0 points,       4% – $0 costs

10 year fixed:      3.25% – .99 point,      3.5% – 0 points,       3.75% – $0 costs

5/1 ARM:       3% – .81 points,       3.25% – 0 points,        3.625% – $0 costs

7/1 ARM:       3.375% – 1 point,        3.75% – 0 points,        4% – $0 costs

30 year fixed FHA:      4.125% – .37 points,       4.25% – $0 costs

15 year fixed FHA:      3.375% – .95 points,      3.625% – 0 points,       3.75% – $0 costs

30 year fixed VA:       4.125% – .83 points,       4.25% – 0 points,       4.375% – $0 costs

Today's Interest Rates - December 26th, 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. McCormick Ranch Loan Officer. 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.  December 26th mortgage interest rates, December 27th mortgage interest rates, December 28th mortgage interest rates, December 29th mortgage interest rates, December 30th mortgage interest rates.

FED TAPERS    –     RATES WILL GO UP IN 2014 WITH GSE FEE INCREASE

INTEREST RATES REMAIN STABLE – FISCAL CLIFF TALKS STALL

INTEREST RATES REMAIN STABLE – FISCAL CLIFF TALKS STALL

December 10th, 2012

Interest rates started off last week lower and then rose near the end of the week. Overall, the mortgage backed security market closed the week trading down (-22 bps). On Monday morning, the MBS market is trading (+ 15 bps).

Rates are very similar across with ARM pricing showing some improvement. The better than expected employment report on Friday caused rates to lose some of the gains from earlier in the week.

The Fiscal Cliff negotiations remain at a standstill with neither side willing to budge just yet. It looks more and more likely that a temporary agreement may go into place pushing this issue down the road yet again. I expect rates to continue to trade in narrow ranges until something of substance happens with the Fiscal Cliff.

This week the Federal Open Market Committee (FOMC) is meeting and is expected to announce a continuation of Operation Twist, which expires this month.

The FHFA announced that they may raise the guaranteed fee (G FEE) for Fannie Mae and Freddie Mac loans again in these states: Connecticut, Illinois, Florida, New Jersey and New York. The FHFA raised the G Fee nationally earlier this year. If this goes into effect, the cost of borrowing in these states will increase and a national G fee increase may be coming.

Have a great week!!

TODAY’S RATES:

30 year fixed:     3.25% paying .87 points,     3.5% paying 0 points,     3.625% – $0 costs
20 year fixed:     3.25% paying .379 points,     3.375% paying 0 points,     3.5% – $0 costs
15 year fixed:      2.625% paying .94 points,      2.875% paying 0 points,     3% – $0 costs
5/1 ARM:      2% paying 1 point,      2.375% paying 0 points,      2.625% – $0 costs
7/1 ARM:      2.25% paying .9 points,      2.5% paying 0 points,      2.75%- $0 costs
30 year fixed High Balance Loan:      3.5% paying .32 points;      3.625% – 0 points;      3.75% – $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 - 12-10-2012

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 Remain Stable – Fiscal Cliff Talks Stall

OCTOBER 2012 – RATES RISE SLIGHTLY, STILL NEAR RECORD LOWS

OCTOBER 2012 – RATES RISE SLIGHTLY, STILL NEAR RECORD LOWS

October 1st, 2012            

Happy October!!

The MBS market closed last week trading up (+ 37 bps), and is currently trading (+ 25 bps) on Monday morning.

While mortgage rates should have improved last week- they actually increased slightly.  This is a result of most lenders enacting the Fannie Mae/Freddie Mac guaranteed fee increase for loans delivered to Fannie Mae/Freddie Mac December 1st, 2012 and later.

This week will likely be volatile in the rate markets with Europe still working on plans to save the Euro.  On Friday, the unemployment report comes out.  This will usually push rates one way or the other.  The expectation is that jobs will increase but the unemployment report will stay the same due to potential workers dropping out of the job market.

Now is still a great time to lock in at record low rates.

My best values of the week:

30 Year Fixed at 3.5% paying 0 points

30 Year Fixed High Balance Loan at 3.5% with 0 points

Below are rates available today paying a point or less:

30 year fixed:  3.25% paying .773 point, 3.5% paying 0 points

20 year fixed:  3.25% paying .149 points, 3.375% paying 0 points

15 year fixed:  2.625% paying .74 points, 2.875% paying 0 points

5/1 ARM:  2.125% paying .99 points, 2.5% paying 0 points

7/1 ARM:  2.25% paying .99 points, 2.625% paying 0 points

30 year fixed High Balance Loan:  3.5% paying 0 points

30 year fixed FHA:  3.25% paying 0 points

15 year fixed FHA:  2.75% paying 0 points

30 year fixed VA: 3.25% paying 0 points

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.

OCTOBER 2012 – RATES RISE SLIGHTLY, STILL NEAR RECORD LOWS

 

MORTGAGE RATES SURPASS ALL TIME LOWS WITH THE FED’S 40 BILLION BOND PURCHASE ANNOUNCEMENT

MORTGAGE RATES SURPASS ALL TIME LOWS WITH THE FED’S 40 BILLION BOND PURCHASE ANNOUNCEMENT:

September 17th, 2012

The MBS market closed last week trading up (+ 28 bps).

The big news happened on Thursday when the FED announced they would purchase 40 Billion in Mortgage Backed Securities per month until the economy improves.  This sent the MBS market way up, and mortgage pricing to all time low levels.   The MBS market ended up closing + 134 bps on Thursday alone.  On Friday and Monday, the Mbs market gave some gains back, closing – 62 bps on Friday, and – 3 bps on Monday.

The elephant in the room is still the Fannie Mae and Freddie Mac guaranteed fee increase.  These will be hitting all rate sheets very soon.  As a direct lender, my bank has 8 big banks that provide us credit lines in which to fund loans.  All but 2 have increased pricing due to the Fannie Mae pricing announcement.  The others could happen at any time.  That is why I am recommending locking loans as soon as possible to take advantage of where current pricing is before the pricing goes up on all rate sheets. 

The risk of waiting is not worth the reward at this point as the market will have to improve by .5 to .625% in costs just to take back the losses as a result of the Guaranteed Fee increase when it goes into effect.

Below are rates available today paying a point or less:

30 year fixed:  3.375% paying .43 point, 3.5% paying 0 points

20 year fixed:  3.25% paying .59 points, 3.375% paying 0 points

15 year fixed:  2.75% paying .65 points, 2.875% paying 0 points

5/1 ARM:  2.25% paying .43 points, 2.5% paying 0 points

7/1 ARM:  2.25% paying .87 points, 2.625% paying 0 points

30 year fixed High Balance Loan:  3.5% paying .36 points, 3.625% paying 0 points

30 year fixed FHA:  3.25% paying 0 points

15 year fixed FHA:  2.75% paying 0 points

30 year fixed VA3.25% paying 0 points

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.

MORTGAGE RATES SURPASS ALL TIME LOWS WITH THE FED’S 40 BILLION BOND PURCHASE ANNOUNCEMENT

30 YEAR FIXED AT 3.75% / WHAT DOES THE U.S. 25 BILLION BANK SETTLEMENT MEAN TO ME?

TODAY’S MORTGAGE RATES: 

February 13th, 2012

The MBS Market closed last week trading down (- 31 bps).   Mortgage rates haven’t seen much positive momentum since they hit their all time lows 2 weeks ago.  Pricing has slowly risen since then, as is typical when a very low rate/pricing is reached. The lowest rate pricing usually only lasts for a couple of days.  Rate shoppers and borrowers not ready to lock quickly will usually miss locking in at the best pricing. 

This is another week that should be relatively calm.

Below are rates available today paying a point or less:

30 year fixed: 3.75% paying .95 points, 4% paying 0 points

20 year fixed: 3.5% paying 1 point, 3.875% paying 0 points

15 year fixed: 3% paying .89 points, 3.375% paying 0 points

5/1 ARM: 2.625% paying 1 point, 3.125% paying 0 points

7/1 ARM: 3% paying .71 points, 3.25% paying 0 points

30 year fixed High Balance Loan: 4% paying .78 points, 4.25% paying 0 points

30 year fixed FHA: 3.75% paying 0 points

15 year fixed FHA: 2.875% paying .61 points, 3.125% paying 0 points

30 year fixed VA: 3.75% paying 0 points


THE U.S. 25 BILLION BANK SETTLEMENT – WHAT DOES IT MEAN FOR ME?

Last week, The US and 5 major US banks reached a 25 billion settlement meant to help homeowners who are delinquent or pose a threat to go delinquent.  The deal is the result of the major banks settling to help make right some illegal/unethical processes that took place in many loans written during the boom. 

So who will this settlement help?

The reality is that the 25 billion dollar settlement will help very few homeowners.  There are an estimated 11 million homeowners in the country that are upside down on their mortgage and another 6 million currently behind on their payment or facing foreclosure.  The Obama administration estimates this could help 1 million homeowners.  I remain skeptical, especially with the multitude of other failed bills meant to help the housing market.

Here is how it works – the Major Banks:

  • BANK OF AMERICA
  • WELLS FARGO
  • CITI GROUP
  • CHASE
  • ALLY FINANCIAL (FORMERLY GMAC)

Will put money aside to help delinquent or risk to go delinquent borrowers lower their payments, possibly reduce their principal, and get into payment plans to help customers become current on their delinquent mortgage.

The only borrowers eligible will be serviced by the above 5 banks.  If you are not, you are not eligible.  You are also not eligible if you are currently in a FANNIE MAE or FREDDIE MAC backed mortgage – the government agencies that back the majority of the mortgage in the country.

In all likelihood, the plan will not actually start for another 10-12 months. Eligible homeowners will be contacted by their servicer. 

So in conclusion – you will most likely not be eligible unless:

1.)     You are substantially upside down.  I talk to homeowners all the time that want to take advantage of government programs but have equity in their home and also have good credit and income.  If you could qualify for a refinance, you are not likely to ever qualify for these programs.

2.)    You are currently late or in danger of going late – typically homeowners that are upside down.

3.)    You current loan is with Bank of America, Wells Fargo, GMAC (Ally), Citigroup, or Chase.

4.)    Your loan is NOT backed by Fannie Mae or Freddie Mac.

5.)     This settlement will likely only apply to 1st Mortgages – not to 1st and 2nd’s if you have 2 mortgages. 

A small portion of American homeowners will benefit from this settlement, but the vast majority will have to go by existing refinance guidelines to change their current loan.

 

Today’s Mortgage Interest Rates.  Current Mortgage Interest Rates and APRs for refinancing and purchasing in Arizona, California, and Colorado.  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, Freddie Mac Foreclosure Relief Mortgage, VA mortgages, VA Interest Rate Reduction Loans, FHA mortgages, FHA streamline mortgages, Conforming mortgages, Conventional Mortgages, High Balance Mortgages, Fannie Mae mortgages, Freddie Mac Mortgages,  and Jumbo Mortgages.

30 Year Fixed at 3.75% / What does the U.S. 25 billion bank settlement mean to me?

MORTGAGE RATES HIT NEW ALL TIME LOWS – 30 YEAR FIXED AT 3.625%!!

MORTGAGE RATES HIT NEW ALL TIME LOW – 30 YEAR FIXED AT 3.625%

Last week saw a huge MBS rally, pushing mortgage rates to new all time lows.  The MBS Market closed last week trading down (+ 103 bps).

This rally started on Wednesday when the FOMC announced that the Federal Fund Rates (The rate at which the Federal Reserve loans to other banks) would remain at “exceptionally low levels” through late 2014.  After this, the MBS market had a huge rally and rates are now even lower than before, even with the Fannie Mae pricing increases now in effect. 

Today is a great day to lock in pricing on a new mortgage!!

Below are rates available today paying a point or less:

30 year fixed: 3.625% paying 1 point, 3.875% paying 0 points

20 year fixed: 3.5% paying .74 points, 3.75% paying 0 points

15 year fixed: 2.875% paying .94 points, 3.25% paying 0 points

5/1 ARM: 2.25% paying .99 points, 2.75% paying 0 points

7/1 ARM: 2.75% paying .62 points, 3% paying 0 points

30 year fixed High Balance Loan: 4% paying  .472 points, 4.125% 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

Thank you Telluride – you are awesome!!

Today’s Mortgage Interest Rates.  Current Mortgage Interest Rates and APRs for refinancing and purchasing in Arizona, California, and Colorado.  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, Freddie Mac Foreclosure Relief Mortgage, VA mortgages, VA Interest Rate Reduction Loans, FHA mortgages, FHA streamline mortgages, Conforming mortgages, Conventional Mortgages, High Balance Mortgages, Fannie Mae mortgages, Freddie Mac Mortgages,  and Jumbo Mortgages.

Mortgage Rates hit new all time lows – 30 year fixed at 3.625%

MORTGAGE RATES RISE – FANNIE MAE PRICING INCREASES NOW IN EFFECT.

MORTGAGE RATES RISE – FANNIE MAE PRICING INCREASES NOW IN EFFECT.

January 23rd, 2012

The MBS Market closed last week trading down (- 56 bps).  The stock market was up for most of the week, which saw investors pull money out of bonds and into stocks – pushing mortgage pricing up.

If you have read my last few mortgage updates, I have said that Fannie Mae pricing hits were coming.  In order for the US government to pay for unemployment taxes, Social Security, etc – they have increased Fannie Mae’s guaranteed fees.  These fees are being charged to lenders which must pass them onto borrowers.  This is increasing mortgage pricing by approximate .4 – .6 pts on each rate or approximately .125% higher on the rate for the same costs.

I am going out of town on Wednesday January 25th to Telluride, Colorado, for a nice quick vacation.  If you would like to lock in pricing on a new loan, please contact me by Tuesday January 24th.  I will be back on Monday, January 30th.    

Below are rates available today paying a point or less:

30 year fixed: 3.99% paying .68 points, 4.125% paying 0 points

20 year fixed: 3.75% paying .73 points, 4% paying 0 points

15 year fixed: 3.25% paying .768 points, 3.5% paying 0 points

5/1 ARM: 2.25% paying 1 point, 2.75% paying 0 points

7/1 ARM: 2.75% paying .758 points, 3% paying 0 points

30 year fixed High Balance Loan: 4.125% paying .98 points, 4.375% 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

Today’s Mortgage Interest Rates.  Current Mortgage Interest Rates and APRs for refinancing and purchasing in Arizona, California, and Colorado.  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, Freddie Mac Foreclosure Relief Mortgage, VA mortgages, VA Interest Rate Reduction Loans, FHA mortgages, FHA streamline mortgages, Conforming mortgages, Conventional Mortgages, High Balance Mortgages, Fannie Mae mortgages, Freddie Mac Mortgages,  and Jumbo Mortgages.

Mortgage Rates Rise – Fannie Mae pricing increases now in effect.