INTEREST RATES IMPROVE – BIG FED STATEMENT ON WEDNESDAY
September 16th, 2013
Interest rates improved last week with the Mortgage Backed Security market closing the week trading up + 33 bps. The MBS market came out very strong on Monday with the MBS trading up over + 60 bps in the morning. That has since lowered to just under + 30 bps at the time of this writing.
The MBS improvement improved rates by about .125% from my last update. 5/1 ARMs had the biggest improvement – improving about .375%. 30 year fixed par rates have lowered back to 4.5% and 15 year fixed are back down to 3.5%
The Monday rate improvement came about mainly because the market feels that the next Federal Reserve Board Chairman nominee will likely be Janet Yellen, who is less likely to taper the Fed’s Bond purchasing program immediately. Even so, any tapering will likely take place before she is ever in office.
At 12:30 PM Eastern on Wednesday, the FED will release it’s policy statement which will include if the FED will taper their bond purchasing program.
If the FED decides to taper now, rates will likely go up in a hurry.
If the FED decides it will not taper now, we will likely see some moderate rate improvement.
To me, the risk is not worth the reward. I am recommending to lock in any rates before Wednesday to avoid this volatility. If rates do improve substantially after locking, float downs are available if rates go down far enough.
Make it a great week!!
BEST VALUE OF THE WEEK:
30 Year Fixed at 4.625% with 0 points
TODAY’S RATES:
30 year fixed: 4.5% – .74 points, 4.625% – 0 points, 4.75% – $0 costs
20 year fixed: 4.25% – .81 points, 4.5% – 0 points, 4.625% – $0 costs
15 year fixed: 3.5% – .78 points, 3.75% – 0 points, 3.875% – $0 costs
10 year fixed: 3.125% – 1 point, 3.5% – 0 points, 3.75% – $0 costs
5/1 ARM: 3% – 1 point, 3.5% – 0 points, 3.875% – $0 costs
7/1 ARM: 3.625% – .95 points, 4% – 0 points, 4.25% – $0 costs
30 year fixed FHA: 4.125% – .45 points, 4.25% – $0 costs
15 year fixed FHA: 3.5% – .74 points, 3.75% – $0 costs
30 year fixed VA: 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. 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 IMPROVE – BIG FED STATEMENT ON WEDNESDAY
