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

MORTGAGE RATES DROP TO THE LOWEST LEVELS IN HISTORY

RATES DROP AGAIN ; REACH LOWEST LEVELS IN HISTORY

On Thursday, mortgage rates dropped to their levels ever!! Monday through Thursday marked a sustained bond rally and the worst week in the Stock Market since October of 2008. The Bond Market finished Thursday +257 bps up, pushing 30 year fixed rates down to 3.75% with little costs. Unfortunately pricing pulled back a bit on Friday with the markets finishing down -88 bps. Overall, this week was an unbelievable week for interest rates and the pricing to get those rates. The market closed up +169 for the week.

So why has there been so much interest rate and stock market movement this week?

Whenever we have statements from the FED, we usually get large movements in the markets. On September 21st, The Federal Open Market Committee and Ben Bernanke announced “Operation Twist” – A new plan of theirs to sell off short term securities and purchase longer term securities. The plan is intended to stimulate the economy by lowering loan rates. After the announcement, the stock market went into a tailspin. The Down Jones finished 400 points down, the bond market closed 150 bps up – and mortgage rates lowered even further.

The rates we are seeing right now are the lowest rates the mortgage industry has ever seen. The interesting thing is that with the bond market movement we are seeing, rates would usually go even lower than they are right now, but there is a level of resistance. Mortgages are just not selling below certain interest rate levels on the secondary market. For example, we are not seeing VA and FHA 30 year fixed rates drop below 3.75%. For the most part 15 year fixed rates are not being offered below 3.25%. If there is not a secondary market to buy these loans, the loans will not be written. 

As always, these really low rates usually don’t last long!! Take advantage of them while they are here.

Below are current rates available paying a point or less. 

30 year fixed: 3.875% paying .5 points, 4% paying 0 points

20 year fixed: 3.75% paying 0 points

15 year fixed: 3.25% paying 0 points

5/1 ARM: 2.5% paying .7 points, 2.75% paying 0 points

7/1 ARM: 2.75% paying .8 points, 3.125% 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

30 year fixed High Balance Loan: 4.125% paying .75 points, 4.375% 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, VA mortgages, FHA mortgages, Conforming mortgages, Conventional Mortgages, High Balance Mortgages and Jumbo Mortgages.

Mortgage Rates Drop to the Lowest Levels in History

TODAY’S MORTGAGE RATES – MORTGAGE RATES DROP TO LOWEST LEVELS OF THE YEAR / LOAN LIMITS DECREASING ON OCTOBER 1st

TODAY’S MORTGAGE RATES / MORTGAGE RATES DROP TO LOWEST LEVELS OF THE YEAR:

The US debt deal looks like it will be completed.  Most of us expected this to get done in the 11th hour, but when you don’t know, the markets get nervous. Even though the deal looks to be done, the stock market is down 100 points on Monday morning, pushing the bond markets up and mortgage rates lower.

Last week was a see-saw all week. Luckily we had a huge day on Friday with the bond market closing 81 bps up, pushing mortgage rates and pricing to the lowest levels of the year. Last week, the bond market closed 91 bps up. Right now is a great time to lock a loan, below is the approximate pricing for a well qualified borrower on a variety of loan products.

30 year fixed: 4.375% paying .1 pts, 4.49% paying 0 pts

20 year fixed: 4.25% paying 0 pts , pricing rises over 1 pt below 4.25%

15 year fixed: 3.5% paying .9 pts, 3.75% paying 0 pts

5/1 ARM: 2.75% paying .7 pts, 3% paying 0 pts

7/1 ARM: for 3.125% paying .8 pts, 3.375% paying 0 pts

30 year fixed FHA: 4.25% paying 0 points, pricing rises over 1 pt below 4.25%

15 year fixed FHA: 3.375% paying . 6 pts, 3.625% paying 0 pts

30 year fixed VA: 4.25% paying 0 points, pricing rises over 1 pt below 4.25%

30 year fixed High Balance Loan: 4.375% paying .8 pts, 4.625% paying 0 pts

CONFORMING LOAN LIMITS CHANGING: On October 1st of 2011, loan limits are expected to decrease substantially for CONFORMING and FHA loans.

In many high priced areas, CONFORMING and FHA loan limits were temporarily increased with the Economic Stimulus package of 2008. For example, in most parts of Southern California, you can now do a CONFORMING and FHA loan with a loan amount up to $729,750. Since CONFORMING loans price substantially better than JUMBO loans, many customers have been able to refinance or purchase with high balance loans at a very low rate.

These temporary loan limits are expected to decrease substantially on October 1st of this year. FHA loan limits in many areas will also decrease lower than their current allowable loan amount.

If you want to take advantage of these temporary loan limit increases, I would act before August 15th, 2011. The loan has to be completed and delivered before October 1st to get the old guidelines. Even though refinance typically only take 2-3 weeks, purchases can take 4-8 weeks. I would not wait if you are a consumer that can take advantage of the current program.

Today’s Mortgage Rates – Down to lowest levels of the year.  August 1st, 2011.

Licensed in Arizona, California, and Colorado.

MORTGAGE RATES DROP FOR 2nd STRAIGHT WEEK; BUT BE CAUTIOUS – July 18th, 2011

MORTGAGE RATES DROP FOR 2nd STRAIGHT WEEK; BUT BE CAUTIOUS:

The bond market finished last week 31 bps up, pushing mortgage pricing down for the 2nd consecutive week.

A well qualified borrower can get a 30 year fixed at 4.375% for about .6 points, and a 4.5% with 0 points. 15 year fixed rates at 3.75% are now at 0 points, and 20 year fixed rates at 4.25% are at 0 points.

Even though rates and pricing are improving, we are seeing a benchmark rate that the market is not going below. For example, you can get a 4.375% for .6 points, but then if we go down to 4.25%, the pricing goes up to over 2 points. The cost difference is so large that for most loan amounts it makes no sense to pay that much more in fees. The same goes for 15 and 20 year fixed rates. There is a large pricing increase below a 3.75% 15 year fixed and a 4.25% 20 year fixed.

This will be a pivotal week for the U.S. stock market which means this could be a volatile week for interest rates. 20% of the S&P 500 are reporting earnings and 50% of the DOW Jones are reporting earnings this week.

Many experts believe that corporate earnings will be quite good, but many investors are uneasy about the debt ceiling negotiations in Washington. If the debt ceiling gets resolved and corporate earnings are positive, look for the stock market to shoot up, which will usually cause rates to rise.

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