dow jones

MORTGAGE RATES LOWER SLIGHTLY , 30 YEAR FIXED AT 3.875%

MORTGAGE RATES LOWER SLIGHTLY  /  30 YEAR FIXED AT 3.875%

February 27th, 2012

The MBS Market closed last week trading up (+12 bps).   Rates pulled down slightly after moving up the past couple weeks.

The DOW Jones moved over 13,000 and the stock market has sustained a rally that has the stock market at their highest levels since 2008. 

There is thought that the stock market could be overbought, but with the public’s outlook towards the economy improving, the bullish market could continue with new investors trying to get in on the gains.   Here is a good article explaining the current state of the stock market:

http://www.msnbc.msn.com/id/46519385/ns/business-stocks_and_economy/#.T0sF6_WNOuI

As always, the mortgage rate market is closely tied to the stock market and if the market keeps improving, interest rates will likely rise. 

There a number of key economic releases this week along with a speaking engagement for Ben Bernanke.  This should be an interesting week with clues as to where we are heading. 

Below are rates available today paying a point or less:

30 year fixed: 3.875% paying .77 points, 4% paying 0 points

20 year fixed: 3.625% paying .78 points, 3.875% paying 0 points

15 year fixed: 3% paying .81 points, 3.375% paying 0 points

5/1 ARM: 2.625% paying .85 points, 3% paying 0 points

7/1 ARM: 2.875% paying .71 points, 3.125% paying 0 points

30 year fixed High Balance Loan: 4% paying .95 points, 4.25% paying 0 points

30 year fixed FHA: 3.75% paying 0 points

15 year fixed FHA: 2.875% paying .67 points, 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, 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, and Jumbo Mortgages.

Mortgage Rates Lower Slightly , 30 year fixed at 3.875%

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MORTGAGE RATES RISE WITH STOCK MARKET RALLY

MORTGAGE RATES RISE WITH STOCK MARKET RALLY:

October 11, 2011

October 2011 has been a great month for the stock market and a bad month for interest rates. The DOW JONES average is up 500 points in October. This recent surge in optimism has taken investors out of the safety of the bond market and into the thriving stock market. The bond market closed last week down (-134 bps) – causing a large jump in mortgage rates/pricing.

The bond market passed certain technical indicators that could make it difficult for rates to drop back down to their record low levels. The stock market is not stable, but there has been some temporary resolutions to the debt crisis in Europe that could keep the market up for the time being.

My lock recommendation is to lock in pricing if a loan is beneficial to you. Many customers get caught waiting for a pie in the sky rate and end up losing a good rate that was beneficial to them. If I lock your loan and rates drop significantly, I can typically float down your rate. If they drop after your loan closes, you can always refinance again. There is no rule to the amount of times you can refinance.

Below are current rates available paying a point or less.

30 year fixed: 4.25% paying .7 points, 4.375% paying 0 points / 4.34% APR

20 year fixed: 4% paying .67 points, 4.375% paying 0 points / 4.12% APR

15 year fixed: 3.625% paying .8 points, 3.875% paying 0 points / 3.75% APR

5/1 ARM: 2.75% paying .67 points / 2.88% APR

7/1 ARM: 3.125% paying .55 points / 3.27% APR

30 year fixed FHA: 3.75% paying .7 points, 3.99% paying 0 points / 4.05% APR

15 year fixed FHA: 3.5% paying .8 points, 3.75% paying 0 points / 3.72% APR

30 year fixed VA: 3.75% paying .55 points, 3.99% paying 0 points / 4.05% APR

30 year fixed High Balance Loan: 4.5% paying .88 points, 4.875% paying 0 points / 4.61% APR

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.

CLINE / 21321 East Ocotillo Road B105 / Queen Creek, AZ 85142

NMLS: 229993

Mortgage Rates Rise with Stock Market Rally.

 

 

 

30 YEAR FIXED RATES DROP TO 4% / WILD WEEK ON WALL STREET

30 YEAR FIXED RATES DROP TO 4%

Last week was one of the craziest weeks in the financial markets since 2008. The stock market and interest rate market fluctuated greatly every day, sometimes changing mortgage pricing by thousands of dollars in a few minutes. Things can change fast due to the extreme volatility in the market. The good news is that mortgage rates went down to their lowest levels ever.

Technical indicators show that the bond market is overbought right now – which means interest rates are really lower than they should be. I expect a correction in the near future pushing rates/pricing back up a little bit – maybe to 4.25% on a 30 year fixed product. My advice would be to lock in pricing if you are floating a loan or considering starting a new loan.

Below are current rates and pricing for a well qualified borrower.

30 year fixed: 4% paying 1 pt, 4.25% paying 0 pts

20 year fixed: 3.875% paying .8 pts , 4.125% paying 0 pts

15 year fixed: 3.375% paying 1 pt, 3.75% paying 0 pts

5/1 ARM: 2.875% paying .61 pts, 3.125% paying 0 pts

7/1 ARM: for 3.125% paying .83 pts, 3.5% paying 0 pts

30 year fixed FHA: 3.875% paying .9 pts, 4.25% paying 0 pts

15 year fixed FHA: 3.25% paying .45pts, 3.5% paying 0 pts

30 year fixed VA: 3.875% paying .75 pts, 4.125% paying 0 pts

30 year fixed High Balance Loan: 4.375% paying 0 pts

THE WILD WEEK ON WALL STREET

Below is how the DOW ended each day last week:

Monday: -634.76

Tuesday: +429.62

Wednesday: -519.83

Thursday: +116.63

Friday: +125.71

In a normal market, a large swing is 100 pts one way or the other. This is a market that over reacts to most financial news. Panic can set in very easily. If you look at the stock market – it has ended lower 4 of the past 5 weeks. When stock markets are down, interest rates usually get better.

Typically a stock market can only go one way for so long before you get some sort of correction back the other way. I expect that to happen again here. That is why I recommend taking advantage of the recent rate dip if you are on the market for a home loan. Even though the FED on Tuesday maintained their commitment to keep rates low for at least the next 2 years, they have already used most of their tools to keep rates low. I do expect mortgage interest rates to remain low, but I do not expect 30 year fixed rates to remain as low as 4%.

30 year fixed rates drop to 4% , wild week on Wall Street

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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