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?

INTEREST RATES IMPROVE .25% – 30 YEAR FIXED TO 4.375%

INTEREST RATES IMPROVE .25%  – 30 YEAR FIXED TO 4.375%

July 15th, 2013

Interest rates gained some positive momentum after the worst day for interest rates in over 10 years on Friday, July 5th.  The market is rebounding, which can often happen when rates move one way very quickly, signaling a possible overreaction by the market.

The Mortgage Backed Security market closed last week trading up + 118 bps and closed Monday, July 15th trading up + 35 bps.  Although interest rate pricing is still not at prior to 4th of July levels, interest rates improving 5 of the past 6 days is a step in a positive direction.

Last Wednesday was interesting in that we saw the release of the FED minutes from the June FOMC meeting and Ben Bernanke delivered a speech later in the day.  The FED minutes showed that about 50% of the FED wants to taper the QE stimulus in 2013.  This further confirmed the market’s belief that the FED’s asset purchasing program would soon be coming to an end.  Then later in the day, Ben Bernanke made a vague speech stating that the FED planned to keep monetary policy positive for business and that the US economy was still not where they wanted it.

Basically what we are seeing is Bernanke back tracking a bit because no one though interest rates would move up this quickly. 

On Wednesday and Thursday, Bernanke will be testifying before the House and the Senate.  Expect further volatility depending on how he answers Congress’s questions.  If he gives the impression that QE will last through the end of 2013, I would expect to see rates improve. 

Until the FED plainly states it’s direction, volatility in the market will continue to be the norm.  When the FED finally does end it’s QE stimulus, expect rates to jump quickly. 

Make it a great week!!       

BEST VALUE OF THE WEEK:    

5/1 ARM at 3.375% with 0 points

TODAY’S RATES:

30 year fixed:     4.375% – 1 point,     4.625% – 0 points,     4.75% – $0 costs

20 year fixed:   4.125% – .81 points,     4.25% – 0 points,     4.625%  – $0 costs

15 year fixed:   3.5% – .73 points,     3.75% – 0 points,     4% – $0 costs

5/1 ARM:   2.875% – .98 points,     3.375% – 0 points

7/1 ARM:    3.25% – .96 points,     3.875% – 0 points

10/1 ARM:    4.125% – 1 point,     4.625% – 0 points

30 year fixed FHA:    3.875% – .6 points,     4% – 0 points,      4.25% – $0 costs

15 year fixed FHA:    3.25% – .85 points,     3.5% – 0 points,      3.75% – $0 costs

30 year fixed VA:    4.25% – $0 costs

TR - July 15th, 2013

INTEREST RATES IMPROVE .25%  – 30 YEAR FIXED TO 4.375%

INTEREST RATES HIT MULTI YEAR HIGHS – WITH NO SIGNS OF STOPPING

INTEREST RATES HIT MULTI YEAR HIGHS – WITH NO SIGNS OF STOPPING

June 24th, 2013

Last week was the single worst week for interest rates that I can remember (I have been doing mortgages for 10 years). As expected and stated in last week’s update – the FED’s statement on Wednesday would bring about volatility in the market and it certainly did.

Ben Bernanke and the FED maintained that they would scale back the stimulus and bond purchasing plan. The mortgage backed security and stock markets plummeted. The MBS market closed the week trading down -314 bps.  When the dust had settled, 30 year fixed rates were .625% higher than they were at the end of trading on Friday.

The interest rates people have been accustomed to for the past couple years are gone and they are not coming back. I have warned about this for the past year – when the FED leaves the bond purchasing market – rates will go higher, quickly. The FED has basically kept rates lower than they should be for 2.5 years.

On the bright side – interest rates are historically still very good, but I do expect them to continue to rise.

If you can benefit from refinancing – I wouldn’t wait or spend a week shopping. Rates have been moving up so quickly that shoppers are losing a ton more in daily rate hikes than actually finding a better deal. Even if the savings are not unbelievable, this may be your last chance to lower your rate and payment for the life of your loan.

My recommendation is to lock in if you are currently floating.

Make it a great week!!

BEST VALUE OF THE WEEK:

15 Year Fixed at 3.75% with 0 points

TODAY’S RATES:

30 year fixed:      4.5% – .89 points,      4.75% – 0 points,      4.875% – $0 costs

20 year fixed:      4.25% – .32 points,      4.375% – 0 points,      4.75% – $0 costs

15 year fixed:      3.5% – .84 points,      3.75% – 0 points,       4% – $0 costs

5/1 ARM:      3.25% – .81 points

7/1 ARM:      3.375% – .97 points

10/1 ARM:       4.25% – .91 points

30 year fixed FHA:      4% – .99 points,      4.25% – 0 points,       4.5% – $0 costs

15 year fixed FHA:      3.25% – .48 points,      3.375% – 0 points,       3.5% – $0 costs

30 year fixed VA:      4.25% paying 0 points,      4.625%- $0 costs

TR - 6-24-13

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 HIT MULTI YEAR HIGHS  –  WITH NO SIGNS OF STOPPING

INTEREST RATES CONTINUE UPWARD TREND

INTEREST RATES CONTINUE UPWARD TREND

May 19th, 2013

The Mortgage Backed Security market closed last week trading down -59 bps.  Interest rates continued to rapidly move higher after hitting their 2013 lows just over 2 weeks ago. 

The MBS market now has a lower 20 day and 40 day average than it’s 100 day average.  The stock market’s key indexes keep going higher even though economic reports aren’t showing much economic improvement.  Japan’s plan to weaken it’s currency is also working against the US Bond market. 

The simple truth is there is just not a lot of appetite for mortgage backed securities and we could continue to see more sell off with investors cutting their losses. 

Even though fixed rates have moved higher, ARM loans don’t follow the market trends as much as fixed loans.  You can still get a great ARM rate in the low to mid 2%’s if you are comfortable with a rate that is fixed for 5,7, or 10 years.

This week, Ben Bernanke will be testifying at the Joint Economic Committee and the FED minutes will be released on Wednesday.  Both events usually trigger movement in the interest rate markets.  The markets will likely slow down near the end of the week due to Memorial Day weekend.

Have a great Memorial Day and make it a great week!!       

BEST VALUE OF THE WEEK:

5/1 ARM at 2.5% paying 0 points

TODAY’S RATES:

30 year fixed:     3.5% paying 1 point,     3.75% paying 0 points,     3.875% – $0 costs

20 year fixed:   3.5% paying .34 points,     3.625% paying 0 points,     3.75%  – $0 costs

15 year fixed:   2.625% paying .95 points,     2.875% paying 0 points,     3% – $0 costs

5/1 ARM:   2.25% paying .62 points,     2.5% paying 0 points,     2.75% – $0 costs

7/1 ARM:    2.5% paying .65 points,     2.75% paying 0 points,     3%- $0 costs

30 year fixed High Balance Loan:    3.75% paying .70 points;     4% paying 0 points,     4.25% – $0 costs

30 year fixed FHA:    3.25% – $0 costs

15 year fixed FHA:    2.75% paying 0 points,     3% – $0 costs

30 year fixed VA:    3.25% paying 0 points,     3.25% – $0 costs

TR - 5-20-2013

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 CONTINUE UPWARD TREND

FED MINUTES RELEASE TRIGGERS RISE IN INTEREST RATES – COULD SEE SOME RECOVERY THIS WEEK

FED MINUTES RELEASE TRIGGERS RISE IN INTEREST RATES  –  COULD SEE SOME RECOVERY THIS WEEK

January 7th, 2012

On Thursday of last week – the mortgage backed security market saw one of its biggest sell offs in months with the release of the FED Minutes from the Federal Open Market Committee. 

On Thursday alone, mortgage backed securities dropped  (-69 bps) – pushing rates to their highest levels in months.  Luckily on Friday and Monday, we saw some recovery in the markets, closing up (+ 22 bps) and up (+ 6 bps) respectively. 

The Fed minutes release the discussions of the Federal Open Market Committee in their meetings.  The minutes show that many members of the FED believe that the FED should stop purchasing mortgage backed securities sooner rather than later.  The FED purchasing mortgage backed securities is keeping interest rates lower than they should be in a normal market.  The dissension among multiple FED members regarding the continuation of this policy caused the market to sell off mortgage backed securities pushing rates higher. 

I expect rates to improve some this week as the market overreacted to news that was already known.  Not every member of the FED approves of the FED printing money to keep interest rates artificially low. 

Many consumers have come to take for granted how low rates are.  Rates can go up and they can go up quickly.  If you can lock in a beneficial refinance rate do it – there is no guarantee that rate will be there tomorrow.  Rates go up a lot faster than they go down.

I do expect some modest pull back this week with some rate improvement – but I think the lowest rates are behind us. 

Have a great week!!

TODAY’S RATES:

30 year fixed:     3.375% paying .96 points,     3.625% paying 0 points,     3.75% – $0 costs

20 year fixed:   3.375% paying .62 points,     3.5% paying 0 points,     3.75%  – $0 costs

15 year fixed:   2.75% paying .43 points,     2.875% paying 0 points,     3% – $0 costs

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

7/1 ARM:    2.5% paying .97 points,     2.75% paying 0 points,     3.125%- $0 costs

30 year fixed High Balance Loan:    3.625% paying .526 points;     3.75% paying 0 points;    4% – $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-1-7-2013

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.

FED MINUTES RELEASE TRIGGERS RISE IN INTEREST RATES  –  COULD SEE SOME RECOVERY THIS WEEK