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.

LOWEST MORTGAGE RATES EVER!! – OBAMA’S MASS REFINANCING PROGRAM

LOWEST MORTGAGE RATES EVER!!

January 9th, 2012

The MBS Market closed last week trading up (+ 25bps).  This was another great week for interest rates that saw fixed rates reach their LOWEST LEVELS EVER!!  In the history of the mortgage industry, borrowers have never been able to get better mortgage pricing than they can now.  It’s a pretty good time to be doing a mortgage. 

Rates might have dropped even lower if Congress did not pass HR3630.

I mentioned HR3630 in previous updates.  Congress is charging increased fees to homeowners to extend the employment taxes.  This comes in the form of Fannie Mae increasing guaranteed pricing to lenders which have to pass that on to borrowers.  This change goes into effect on loans delivered to Fannie Mae after February 10th.  Since most lenders lock on 30 day locks – this change will go into effect with almost every lender by the end of the week. 

This means that mortgage rate pricing should go up approximately .3 pts on every rate or .125% higher on the rate for the same costs.      

This can be offset if the MBS market continues to trade higher, but the market has trended up for almost 2 months – it will turn eventually. 

Below are rates available today paying a point or less:

30 year fixed: 3.75% paying .99 points, 4% paying 0 points

20 year fixed: 3.75% paying .1 points, 3.875% paying 0 points

15 year fixed: 3.125% paying .85 points, 3.25% paying 0 points

5/1 ARM: 2.5% paying .92 points, 2.875% paying 0 points

7/1 ARM: 2.875% paying .95 points, 3.25% paying 0 points

30 year fixed High Balance Loan: 4% paying 1 point, 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


OBAMA’S MASS REFINANCING PROGRAM

There is a lot of chatter that a Mass Refinance Program could be released by President Obama before the elections.

The chatter centers around the possibility of President Obama replacing the current FHFA director with one of his own.  This would allow the President to implement his own guidelines for FANNIE MAE, FREDDIE MAC, FHA and VA.

The plan is said to allow borrowers to refinance their current loans to today’s low rates without:

AN APPRAISAL OR LTV REQUIREMENTS

CREDIT REQUIREMENTS OUTSIDE OF MORTGAGE HISTORY

INCOME REQUIREMENTS

ASSET REQUIREMENTS

The main requirement would be that the borrower has to be current on their existing mortgage for the past 3 months.  This is only for rate and term refinancing – no cash out.  This is also only for first mortgages – not combining a 1st and 2nd

So this basically takes out the main things blocking a lot of people from refinancing.  If this plan is implemented, we could see mass refinancing across the nation.  Now keep in mind this plan is meant for people that CAN NOT refinance with the current guidelines.  For example, if you have a lot of equity, good credit, and qualifying income – this plan is not going to offer you anything that is not currently on the market.

This plan is meant to help people that are upside down, low equity, bad credit, can’t prove their income, etc.

Watch for more updates on if this plan comes to fruition.  This should be very interesting to say the least. 

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, 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.

Lowest Mortgage Rates Ever – Obama’s Mass Refinancing Program

MORTGAGE RATES LIKELY TO RISE IN 2012

HAPPY NEW YEAR – MORTGAGE RATES LIKELY TO RISE IN 2012

December 27th, 2011

The bond market closed last week trading down (- 66 bps).  Interest rates/pricing rose last week by approximately .5% in costs.  This week will likely remain stable but we could see further rate increases next week. 

I expect rates to rise in 2012, and here are a few things that will likely affect interest rates and the US markets during the upcoming year. 

1.)    HR3630  is new bill likely to pass in Congress very soon.  The bill increases guaranteed fees on Fannie Mae and Freddie Mac loans (the vast majority of loans written in the USA) up 10 basis points.  FHA will also increase it’s annual mortgage insurance 10 basis points.  These price hikes will be passed on to the consumer, pushing the closing costs you pay for a new mortgage higher.  Since Fannie Mae, Freddie Mac, and FHA are all run by the government now, these price increases are likely being put in to place so the government does not have to increase the employment tax.  So instead of employees paying higher taxes for unemployment expenses and social security – mortgage borrowers will instead. 

2.)     The majority of economists (Based on an Associated Press Poll) feel that the US economy will start to grow faster in 2012.  The economy has created at least 100,000 new jobs in the past 5 months straight.  People applying for unemployment benefits are at their lowest levels since April of 2008. 

Economists predict jobs creation to increase even more in 2012.  Even though the projections for job growth are higher, experts predict the unemployment rate to stay near 8.4%.  The new jobs are only cancelling out population increase. 

3.)     Europe still remains a constant concern.  A default in the Europe debt situation could cause major ramifications to the US Economy. 

With the economy likely to improve in 2012 – we will likely see the stock market improve and investors moving their money from the bond market and into the stock market.  This should create higher pricing on mortgages. 

Unless a default happens in Europe (which will trigger investors to move funds back into the safety of the bond market), interest rates are very likely to rise in 2012. 

Below are rates available today paying a point or less:

30 year fixed: 4% paying .51 points, 4.25% paying 0 points

20 year fixed: 3.875% paying .68 points, 4.125% paying 0 points

15 year fixed: 3.25% paying .9 points, 3.5% paying 0 points

5/1 ARM: 2.625% paying ..74 points; 3% paying 0 points

7/1 ARM: 2.875% paying .91 points, 3.25% paying 0 points

30 year fixed High Balance Loan: 4.25% paying .49 point, 4.375% paying 0 points

30 year fixed FHA: 3.75% paying .36 points, 3.875% paying 0 points

15 year fixed FHA: 3.25% paying .13 points; 3.375% paying 0 points

30 year fixed VA: 3.75% 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, 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 likely to rise in 2012