MORTGAGE RATES SURPASS ALL TIME LOWS WITH THE FED’S 40 BILLION BOND PURCHASE ANNOUNCEMENT:
September 17th, 2012
The MBS market closed last week trading up (+ 28 bps).
The big news happened on Thursday when the FED announced they would purchase 40 Billion in Mortgage Backed Securities per month until the economy improves. This sent the MBS market way up, and mortgage pricing to all time low levels. The MBS market ended up closing + 134 bps on Thursday alone. On Friday and Monday, the Mbs market gave some gains back, closing – 62 bps on Friday, and – 3 bps on Monday.
The elephant in the room is still the Fannie Mae and Freddie Mac guaranteed fee increase. These will be hitting all rate sheets very soon. As a direct lender, my bank has 8 big banks that provide us credit lines in which to fund loans. All but 2 have increased pricing due to the Fannie Mae pricing announcement. The others could happen at any time. That is why I am recommending locking loans as soon as possible to take advantage of where current pricing is before the pricing goes up on all rate sheets.
The risk of waiting is not worth the reward at this point as the market will have to improve by .5 to .625% in costs just to take back the losses as a result of the Guaranteed Fee increase when it goes into effect.
Below are rates available today paying a point or less:
30 year fixed: 3.375% paying .43 point, 3.5% paying 0 points
20 year fixed: 3.25% paying .59 points, 3.375% paying 0 points
15 year fixed: 2.75% paying .65 points, 2.875% paying 0 points
5/1 ARM: 2.25% paying .43 points, 2.5% paying 0 points
7/1 ARM: 2.25% paying .87 points, 2.625% paying 0 points
30 year fixed High Balance Loan: 3.5% paying .36 points, 3.625% paying 0 points
30 year fixed FHA: 3.25% paying 0 points
15 year fixed FHA: 2.75% paying 0 points
30 year fixed VA: 3.25% paying 0 points
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.
MORTGAGE RATES SURPASS ALL TIME LOWS WITH THE FED’S 40 BILLION BOND PURCHASE ANNOUNCEMENT