Tag: 15 year fixed

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

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?

MERRY CHRISTMAS – 30 YEAR FIXED RATES REMAIN AT 3.375%

MERRY CHRISTMAS  –  30 YEAR FIXED RATES REMAIN AT 3.375%

December 26th, 2012

I hope everyone had a Merry Christmas!!

Interest rates did not change much over the past week.  The mortgage backed security market closed last week trading down (-3 bps). This week the MBS market is trading up (+6 bps). 

All eyes remain on the fiscal cliff negotiations.  We are getting down to the deadline and the sides still appear to be very far apart.  Congress will reconvene on Thursday and the President will be back from Hawaii on Thursday.

Some insiders still believe a deal will get done, while others are more pessimistic.  Some think that going over the cliff will cause serious economic repercussions, some don’t.  So you are seeing conflicting points of view on all angles of the fiscal cliff.

Going over the fiscal cliff will cause taxes to go up for all Americans, but many believe a tax deal will get done before the new tables are released even if a Fiscal Cliff deal does not get done.  The market is most concerned with the tax rates, as more taxes equals less disposable income to spend on goods and services.   Unfortunately, it appears likely that the issue of deficit reduction and spending cuts will get kicked down the road. 

My personal belief is:

If the Fiscal Cliff or Tax deal get done, rates will go up slightly.

If they don’t, rates will go down slightly.

In other news, the Senate will be introducing bill S3678 this week.  This bill will be voted on before the end of the year.  If it passes, FHA will raise Mortgage insurance premiums again.  The rumored changes are:

FHA raising monthly mortgage insurance premiums .1%

FHA monthly mortgage insurance premiums to continue for life  

If you are planning to start a new FHA loan, or streamline your existing FHA loan – I wouldn’t wait. 

Have a great week!!

TODAY’S RATES:

30 year fixed:     3.375% paying .40 points,     3.5% paying 0 points,     3.625% – $0 costs

20 year fixed:   3.25% paying .73 points,     3.375% paying 0 points,     3.625%  – $0 costs

15 year fixed:   2.75% paying .26 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 .88 points,     2.75% paying 0 points,     3%- $0 costs

30 year fixed High Balance Loan:    3.5% paying .99 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- 12-26-12

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.

30 Year Fixed Rates remain at 3.375%

INTEREST RATES MOVE HIGHER – 30 YEAR FIXED TO 3.375%

INTEREST RATES MOVE HIGHER – 30 YEAR FIXED TO 3.375%

December 17th, 2012

Interest Rates moved up slightly last week.  The Mortgage Backed Security Market closed the week down (-41 bps). 

The majority of the movement came when the Federal Open Market Committee announced that they were converting Operation Twist to a purchasing plan in line with QE3.  The purchasing allocation does not include mortgage bonds though, which caused pricing to fall and rates to go up. 

This week trading should be light with most traders stopping for Christmas.  Light trading usually translates to high volatility in the market.   

The Fiscal cliff negotiations still dominate the market.  Most traders are keeping close tabs on the negotiations and are prepared to come back in if something is announced.  If we go over the cliff, it will result in 600 Billion in tax increases and spending cuts starting in February, likely hurting our economy in the 1st quarter of 2013.

Have a great week!!

TODAY’S RATES:

30 year fixed:     3.375% paying .38 points,     3.5% paying 0 points,     3.625% – $0 costs

20 year fixed:   3.25% paying .61 points,     3.375% paying 0 points,     3.625%  – $0 costs

15 year fixed:   2.625% paying .96 points,     2.875% paying 0 points,     2.99% – $0 costs

5/1 ARM:   2.25% paying 76 points,     2.5% paying 0 points,     2.75% – $0 costs

7/1 ARM:    2.375% paying 1 point,     2.75% paying 0 points,     3%- $0 costs

30 year fixed High Balance Loan:    3.5% paying .94 points;     3.625% – 0 points;    3.75% – $0 costs

30 year fixed FHA:    3% paying .51 pts;    3.25% – $0 costs

15 year fixed FHA:    2.5% paying .8 points;     2.75% – $0 costs

30 year fixed VA:    3.25% – $0 costs

TR - 12-17-2012

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 MOVE HIGHER – 30 YEAR FIXED TO 3.375%

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

TODAY’S INTEREST RATES

TODAY’S INTEREST RATES

November 26th, 2012

I hope everyone had a happy and safe Thanksgiving!!

Interest rates rose last week with the Mortgage Backed Security market trading down (-53 bps).  The stock market has been doing very well recently with optimism that a Fiscal Cliff deal will get done and positive signs from the economy.

I think the stock market is probably overbought a little bit, so I expect some rate improvement this week.  On Monday morning, the MBS market is trading up (+22 bps), so rates should improve from their close on Friday.  I do not expect a huge change in pricing, but I do predict some movement in a positive direction for interest rates.

The Holidays are usually a popular time to refinance.  You always get a 1 month payment deferral on your mortgage, and you get refund from your old escrow account after closing if you impound your taxes and insurance in your payment.  I can still get most loans done today by Christmas.  If you are interested in lowering your payment and getting some extra cash in your pocket for the Holidays, please call me today.

TODAY’S RATES:

30 year fixed:     3.375% paying .43 points,     3.5% paying 0 points,     3.625% – $0 costs

20 year fixed:   3.25% paying .43 points,     3.375% paying 0 points,     3.5%  – $0 costs

15 year fixed:   2.75% paying .46 points,     2.875% paying 0 points,     3.125% – $0 costs

5/1 ARM:   2.125% paying .96 points,     2.5% paying 0 points,     2.75% – $0 costs

7/1 ARM:    2.375% paying .89 points,     2.625% paying 0 points,     2.875%- $0 costs

30 year fixed High Balance Loan:    3.5% paying .61 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

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.

Today’s Interest Rates.

INTEREST RATES RISE SLIGHTLY – 30 YEAR FIXED PAR RATE STILL AT 3.25%

INTEREST RATES RISE SLIGHTLY  –  30 YEAR FIXED PAR RATE STILL AT 3.25%

November 19th, 201

Interest rates rose slightly last week with the stock market optimistic that a deal will get done to avoid the fiscal cliff.

The Mortgage backed security market closed last week down (-28 bps), and is currently trading on Monday down (-11 bps). 

On Friday, President Obama met with other political leaders to discuss the fiscal cliff.  Both sides seem to be softening their stance so the stock market is optimistic that a deal will get done – which is pushing stocks up and mortgage backed securities down.

This is a shortened week due to the Thanksgiving Holiday. 

On Monday, housing data was released that continues to show the housing market improving.  On Tuesday, The European Union is meeting with Greece regarding additional funds to avoid the country defaulting on it’s debt.  Ben Bernanke is also speaking at the NY Economics Club.  The market will be listening for clues on the Fed’s next move.

Rates are still trading in narrow ranges with the same rates available with fluctuating costs depending on how the market is moving.  30 Year Fixed rates at 3.25% are still available paying a point.  I see interest rates remaining in this range through the end of 2012. 

Have a Happy and Safe Thanksgiving!!

TODAY’S RATES:

30 year fixed:     3.25% paying 1 point,     3.5% paying 0 points,     3.625% – $0 costs

20 year fixed:   3.25% paying .38 points,     3.375% paying 0 points,     3.5%  – $0 costs

15 year fixed:   2.75% paying .42 points,     2.875% paying 0 points,     3.125% – $0 costs

5/1 ARM:   2.125% paying .89 points,     2.5% paying 0 points,     2.75% – $0 costs

7/1 ARM:    2.375% paying .74 points,     2.625% paying 0 points,     2.875%- $0 costs

30 year fixed High Balance Loan:    3.5% paying .34 points;     3.625% – $0 costs

30 year fixed FHA:    3.25% – $0 costs

15 year fixed FHA:    2.75% – 0 points,     2.875% – $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 RISE SLIGHTLY  –  30 YEAR FIXED PAR RATE STILL AT 3.25%

INTEREST RATES VERY VOLATILE IN WAKE OF FISCAL CLIFF

INTEREST RATES VERY VOLATILE IN WAKE OF FISCAL CLIFF

November 14th, 2012

Interest rates have seen quite the see-saw action over the past week. Interest went up quite a bit on election day. Then dropped quite a bit after the election when the stock market dropped off.

Overall, last week interest rates improved – with the MBS market closing at (+ 47 bps).

This week has been a different story so far. The MBS market is trading (- 57 bps) for the week, pushing rates to the level we saw the week before the election.

Expect volatility in the markets right now. There is still the looming question of what Congress and the President are going to do regarding the fiscal cliff. It would be political suicide for this deal not to get done, so I definitely don’t see a compromise not being made. The question is – what will the compromise be?

I still see rates staying very similar to their current levels, but we could see quite a bit of closing cost variation on a daily basis depending on the market that day.

TODAY’S RATES

30 year fixed:    3.25% paying .97 points,    3.5% paying 0 points,     3.625% – $0 costs
20 year fixed: 3.25% paying .56 points,     3.375% paying 0 points,     3.625% – $0 costs
15 year fixed:     2.75% paying .59 points,    2.875% paying 0 points,    3.125% – $0 costs
5/1 ARM:     2.125% paying .76 points,     2.5% paying 0 points,     2.75% – $0 costs
7/1 ARM:     2.25% paying .99 points,     2.625% paying 0 points,     2.875%- $0 costs
30 year fixed High Balance Loan:     3.5% paying .199 points;     3.625% – $0 costs
30 year fixed FHA:     3.25% – $0 costs
15 year fixed FHA:     2.75% – 0 points,     2.875% – $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 VERY VOLATILE IN WAKE OF FISCAL CLIFF

 

INTEREST RATES HIT 3 WEEK LOW BEFORE ELECTION

INTEREST RATES HIT 3 WEEK LOW BEFORE ELECTION: 

November 5th, 2012

Rates improved to a 3 week low on the Monday before the election.

Last week the MBS market closed (+20 bps) for the week.  The markets were again helped by a  Friday rally that was somewhat unusual this time.  October’s unemployment report was released on Friday, and even though the unemployment rate went up to 7.9%, the job creation was higher than expected which will usually trigger higher stock prices and increasing rates.  This time it did the opposite. 

On Monday the MBS market closed (+18 bps) on the day, after trading up over 30 bps for most of the day. 

This week the market is focused on the election.  The general consensus is:

If Obama wins, rates will improve

If Romney wins, rates will increase

I don’t think there will be huge swings either way, but I do see some movement based on who wins.  What nobody wants is uncertainty over the results.  Hopefully the winner is confirmed Tuesday evening. 

Outside of the election – the Treasury is auctioning off 72 billion in notes this week.  There is concern that the European debt situation could creep back into the rate markets after being absent for some time.  Greece is having trouble meeting the terms of the country’s bail out.  There will likely be more news on this near the end of the week

Have a great election week and get out and vote. 

TODAY’S RATES:

30 year fixed:     3.25% paying .79 points,     3.375% paying 0 points,     3.625% – $0 costs

20 year fixed:   3.25% paying .25 points,     3.375% paying 0 points,     3.5%  – $0 costs

15 year fixed:   2.625% paying .82 points,     2.875% paying 0 points,     3% – $0 costs

5/1 ARM:   2.125% paying .99 points,     2.5% paying 0 points,     3% – $0 costs

7/1 ARM:    2.375% paying .98 points,     2.625% paying 0 points,     3.125%- $0 costs

30 year fixed High Balance Loan:    3.5% paying 0 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 HIT 3 WEEK LOW BEFORE ELECTION

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: