Tag: economy

MORTGAGE RATES REBOUND – 30 YEAR FIXED BACK TO 3.5%

MORTGAGE RATES REBOUND – 30 YEAR FIXED BACK TO 3.5%

August 27th, 2012

The MBS market closed last week trading up (+ 81 bps) and on Monday the MBS market closed trading up ( + 19 bps).    

So over the past week and 1 day, the MBS market is trading up +100 bps and rates have improved dramatically after going higher in hurry the week before last.

We still stand in a market where rates will likely stay low, but if they do go up, they can go up quickly.  All eyes this week are on Ben Bernanke’s speech at the Jackson Hole economic conference on Friday.   Experts are about 50/50 on whether the FED will ease and buy more mortgage backed securities in the future.  This speculation and Europe’s debt situation has dominated mortgage markets for most of this year. 

The Fed will move to ease if it thinks the economy needs it.  I don’t see it happening as the past 2 Fed purchase programs have kept rates low, but they haven’t improved the economic numbers and have bloated the FED’s balance sheet.  Either way, expect rate movement in one direction or the other depending on what Bernanke hints towards in his speech.

College football is here, and my family and I are super excited.  Growing up in Michigan, I have always been a huge Michigan Wolverine Fan.  On a trip to Michigan this week, I was able to visit the Big House and catch a glimpse of Denard Robinson outside Schembechler Hall.  Very cool – here is my son and hopefully future Wolverine, at the gates of the big house. 

My best value of the week:

15 Year Fixed at 2.99% with 0 points

Below are rates available today paying a point or less:

30 year fixed:  3.5% paying .411 points, 3.625% paying 0 points

20 year fixed:  3.25% paying .937 points, 3.5% paying 0 points

15 year fixed:  2.75% paying .938 points, 2.99% paying 0 points

5/1 ARM:  2.125% paying .99 points, 2.5% paying 0 points

7/1 ARM:  2.375% paying .795 points, 2.625% paying 0 points

30 year fixed High Balance Loan:  3.625% paying .603 points, 3.875% 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 REBOUND – 30 YEAR FIXED BACK TO 3.5%

MORTGAGE RATES REMAIN STABLE – 30 YEAR FIXED AT 3.75%

MORTGAGE RATES REMAIN STABLE – 30 YEAR FIXED AT 3.75%

July 17th, 2012

The MBS market closed last week trading down (-3 bps). Basically a ho-hum week with not a lot of data or change in rates.

This week FED chairman Ben Bernanke testifies before Congress on Tuesday and Wednesday.  On Tuesday, he said that the FED could still use measures to boost economy if it saw fit. While not saying they would use them, he says they are available if they feel the need.

This economic easing could include another round of buying mortgage backed securities and lowering of the interest rate the FED charges it’s reserve banks. He noted that using these measures is an option,but  there a certain risks and side effects that need to be considered carefully before using them.

The FED is still happy with inflation staying below 2%. It will focus on job growth when deciding if more economic easing is necessary. Job growth has been very slow and below projected numbers the past few months.

All in all, there is not much information that we have not already been given. Mortgage rates are remaining at record low levels and it appears the FED will not push to purchase mortgage backed securities unless it absolutely has too.

I predict for rates to stay stable barring anything unforeseen happening in the market.

My best value of the week:

30 Year Fixed High Balance Loans at 3.75% paying 0 points
5/1 ARM at 2.5% paying .0 points

Below are rates available today paying a point or less:

30 year fixed: 3.375% paying .89 points, 3.5% paying 0 points
20 year fixed: 3.25% paying .78 points, 3.375% paying 0 points
15 year fixed: 2.75% paying .7 points, 2.99% paying 0 points
5/1 ARM: 2.25% paying .8 points, 2.5% paying 0 points
7/1 ARM: 2.375% paying .8 points, 2.625% paying 0 points
30 year fixed High Balance Loan: 3.5% paying .90 point, 3.75% paying 0 points
30 year fixed FHA: 3.25% paying 0 points
15 year fixed FHA: 2.75% paying .19 points, 2.875% 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. 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 Remain Stable – 30 Year Fixed at 3.75%

TODAY’S MORTGAGE RATES – MAY 29th, 2012

MORTGAGE RATES RISE – BUT COULD DROP LOWER.   

May 29th, 2012

The MBS Market closed last week trading down (-9 bps).  

After hitting all time lows the week before, mortgage rates have pulled up a bit.  This is pretty typical when mortgage pricing hits a low point.  Pricing only stays there for a day or so.  Lenders also don’t bring pricing down as much when the market improves, and lenders bring pricing up quicker when it worsens. 

Even so, mortgage rates are still unbelievably low and I am optimistic they will stay low and may even go a bit lower. 

Europe is still in a huge mess, and until that clears up, investors will continue to seek the sanctity of safe US Treasury bonds.  This helps keeps rates low and could push them lower. 

Below are rates available today paying a point or less:

30 year fixed: 3.625% paying .95 point, 3.875% paying 0 points

20 year fixed: 3.5% paying .61 points, 3.75% paying 0 points

15 year fixed: 2.875% paying .83 points, 3.125% paying 0 points

5/1 ARM: 2.25% paying .99 points, 2.75% paying 0 points

7/1 ARM: 2.5% paying .99 point, 2.875% paying 0 points

30 year fixed High Balance Loan: 3.875% paying .33 points, 4% paying 0 points

30 year fixed FHA: 3.75% paying 0 points

15 year fixed FHA: 2.75% paying .84 points, 3.125% 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, Refinance mortgages, purchase mortgages, and Jumbo Mortgages.

Today’s Mortgage Rates

INTEREST RATES HIT BOTTOM!!

INTEREST RATES HIT BOTTOM

May 7th, 2012

The MBS Market closed last week trading up (+31 bps.)    

Even though the market continues to move higher, rates have hit a bit of a stand still.  There usually comes a point where lenders are unwilling to keep going lower on the pricing – and it appears we have hit that at least for the time being.

With the mortgage backed security market improvement – mortgage rates should price about .25% better on costs, but those gains are not being passed on. 

On the bright side, rates are right in line with their lowest levels ever.  With increased concerns regarding Europe and the US Economy, they may stay here for a while.

The best values I am seeing on the market right now are a 30 Year Fixed at 3.99% at $0 costs, and a 2.875% 7/1 ARM at 0 points.   From the eyes of a consumer, those are products I would be strongly considering.    

Below are rates available today paying a point or less:

30 year fixed: 3.625% paying 1 point, 3.875% paying 0 points

20 year fixed: 3.5% paying .56 points, 3.75% paying 0 points

15 year fixed: 2.875% paying .87 points, 3.125% paying 0 points

5/1 ARM: 2.375% paying .9 points, 2.75% paying 0 points

7/1 ARM: 2.625% paying 1 point, 2.75% paying 0 points

30 year fixed High Balance Loan: 4% paying .37 points, 4.125% paying 0 points

30 year fixed FHA: 3.75% paying 0 points

15 year fixed FHA: 2.875% paying .7 points, 3.125% 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, Refinance mortgages, purchase mortgages, and Jumbo Mortgages.

Interest Rates Hit Bottom

INTEREST RATES IMPROVE AGAIN / 30 YEAR FIXED AT 3.625%

INTEREST RATES IMPROVE AGAIN / 30 YEAR FIXED AT 3.625%

April 30th, 2012

The MBS Market closed last week trading up (+16 bps).

Mortgage rates continue to improve as more and more investors are concerned regarding the slumping economy and the still unresolved Europe debt crisis.

30 year fixed rates are now down to 3.625% and the 30 year fixed High balance loans are down to 3.875%. This is a great time to lock. These are the lowest interest rates I have seen in a couple of months.

The Fed Meeting last week didn’t cause as much drama as some anticipated. Ben Bernanke’s statement said that the FED is still committed to keeping interest rates low through the end of 2014, and will not be doing another round of mortgage backed security purchases at this time. They kept this open ended, saying the FED will act if it was needed to help the economy.

Below are rates available today paying a point or less:

30 year fixed: 3.625% paying .99 pts, 3.99% paying 0 points

20 year fixed: 3.5% paying .63 points, 3.75% paying 0 points

15 year fixed: 2.875% paying .91 points, 3.125% paying 0 points

5/1 ARM: 2.25% paying .97 points, 2.625% paying 0 points

7/1 ARM: 2.625% paying .77 points, 2.875% paying 0 points

30 year fixed High Balance Loan: 3.875% paying .69 points, 4% paying 0 points

30 year fixed FHA: 3.75% paying 0 points

15 year fixed FHA: 2.875% paying .7 points, 3.125% 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, Refinance mortgages, purchase mortgages, and Jumbo Mortgages.

INTEREST RATES IMPROVE AGAIN / 30 YEAR FIXED AT 3.625%

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%

MORTGAGE RATES SLOWLY RISING FROM RECORD LOWS / COULD PUSH LOWER THIS WEEK.

MORTGAGE RATES SLOWLY RISING FROM RECORD LOWS  /  COULD PUSH LOWER THIS WEEK.

February 20th, 2012

The MBS Market closed last week trading down (- 13 bps).   Rates continue to slowly inch higher with increased optimism towards the economy and the recent rally in the stock markets.

The stock market is at a 9 month high but concerns still remain that the market is higher than it should be.  Over 85% of stocks in the New York Stock Exchange are trading above their 50 day moving averages, even though profit reports have been less than stellar.  In Europe news, a meeting on Monday to try and finally resolve the Greek debt issue was not successful.  (2/21/12 UPDATE – they have now negotiated a deal)

I’m thinking we may see the stock market push down this week, which could push mortgage rates lower from their recent move up.  

I recommend customers serious about getting a mortgage being ready to lock on short notice this week.   

Below are rates available today paying a point or less:

30 year fixed: 3.875% paying .99 points, 4.125% paying 0 points

20 year fixed: 3.625% paying .95 points, 4% paying 0 points

15 year fixed: 3.125% paying .94 points, 3.375% paying 0 points

5/1 ARM: 2.75% paying .85 points, 3.125% paying 0 points

7/1 ARM: 3% paying .71 points, 3.25% paying 0 points

30 year fixed High Balance Loan: 4% paying 1 point, 4.375% paying 0 points

30 year fixed FHA: 3.75% paying 0 points

15 year fixed FHA: 3% paying .82 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, Freddie Mac Foreclosure Relief Mortgage, VA mortgages, VA Interest Rate Reduction Loans, FHA mortgages, FHA streamline mortgages, Conforming mortgages, Conventional Mortgages, High Balance Mortgages, Fannie Mae mortgages, Freddie Mac Mortgages,  No appraisal refinances, and Jumbo Mortgages.

MORTGAGE RATES SLOWLY RISING FROM RECORD LOWS  /  COULD PUSH LOWER THIS WEEK.

30 YEAR FIXED AT 3.75% / WHAT DOES THE U.S. 25 BILLION BANK SETTLEMENT MEAN TO ME?

TODAY’S MORTGAGE RATES: 

February 13th, 2012

The MBS Market closed last week trading down (- 31 bps).   Mortgage rates haven’t seen much positive momentum since they hit their all time lows 2 weeks ago.  Pricing has slowly risen since then, as is typical when a very low rate/pricing is reached. The lowest rate pricing usually only lasts for a couple of days.  Rate shoppers and borrowers not ready to lock quickly will usually miss locking in at the best pricing. 

This is another week that should be relatively calm.

Below are rates available today paying a point or less:

30 year fixed: 3.75% paying .95 points, 4% paying 0 points

20 year fixed: 3.5% paying 1 point, 3.875% paying 0 points

15 year fixed: 3% paying .89 points, 3.375% paying 0 points

5/1 ARM: 2.625% paying 1 point, 3.125% paying 0 points

7/1 ARM: 3% paying .71 points, 3.25% paying 0 points

30 year fixed High Balance Loan: 4% paying .78 points, 4.25% paying 0 points

30 year fixed FHA: 3.75% paying 0 points

15 year fixed FHA: 2.875% paying .61 points, 3.125% paying 0 points

30 year fixed VA: 3.75% paying 0 points


THE U.S. 25 BILLION BANK SETTLEMENT – WHAT DOES IT MEAN FOR ME?

Last week, The US and 5 major US banks reached a 25 billion settlement meant to help homeowners who are delinquent or pose a threat to go delinquent.  The deal is the result of the major banks settling to help make right some illegal/unethical processes that took place in many loans written during the boom. 

So who will this settlement help?

The reality is that the 25 billion dollar settlement will help very few homeowners.  There are an estimated 11 million homeowners in the country that are upside down on their mortgage and another 6 million currently behind on their payment or facing foreclosure.  The Obama administration estimates this could help 1 million homeowners.  I remain skeptical, especially with the multitude of other failed bills meant to help the housing market.

Here is how it works – the Major Banks:

  • BANK OF AMERICA
  • WELLS FARGO
  • CITI GROUP
  • CHASE
  • ALLY FINANCIAL (FORMERLY GMAC)

Will put money aside to help delinquent or risk to go delinquent borrowers lower their payments, possibly reduce their principal, and get into payment plans to help customers become current on their delinquent mortgage.

The only borrowers eligible will be serviced by the above 5 banks.  If you are not, you are not eligible.  You are also not eligible if you are currently in a FANNIE MAE or FREDDIE MAC backed mortgage – the government agencies that back the majority of the mortgage in the country.

In all likelihood, the plan will not actually start for another 10-12 months. Eligible homeowners will be contacted by their servicer. 

So in conclusion – you will most likely not be eligible unless:

1.)     You are substantially upside down.  I talk to homeowners all the time that want to take advantage of government programs but have equity in their home and also have good credit and income.  If you could qualify for a refinance, you are not likely to ever qualify for these programs.

2.)    You are currently late or in danger of going late – typically homeowners that are upside down.

3.)    You current loan is with Bank of America, Wells Fargo, GMAC (Ally), Citigroup, or Chase.

4.)    Your loan is NOT backed by Fannie Mae or Freddie Mac.

5.)     This settlement will likely only apply to 1st Mortgages – not to 1st and 2nd’s if you have 2 mortgages. 

A small portion of American homeowners will benefit from this settlement, but the vast majority will have to go by existing refinance guidelines to change their current loan.

 

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, Freddie Mac Foreclosure Relief Mortgage, VA mortgages, VA Interest Rate Reduction Loans, FHA mortgages, FHA streamline mortgages, Conforming mortgages, Conventional Mortgages, High Balance Mortgages, Fannie Mae mortgages, Freddie Mac Mortgages,  and Jumbo Mortgages.

30 Year Fixed at 3.75% / What does the U.S. 25 billion bank settlement mean to me?

MORTGAGE RATES REMAIN STABLE – 30 YEAR FIXED AT 3.75%

MORTGAGE RATES REMAIN STABLE – 30 YEAR FIXED AT 3.75%

February 6th, 2012

The MBS Market closed last week trading up (+ 3 bps).   Rates were better for the majority of the week, but a large stock rally and MBS market downward trend caused rates to pull back on Friday. 

Overall, mortgage rates are a little higher than the previous week even though the MBS markets ended the week trading up. 

This week is a relatively calm week in regards to market news.  Interest rate movement will likely be determined by the demand for Treasury bonds from Tuesday through Thursday, when the treasury is set to auction off 72 billion in bonds.

Today is still a great time to lock with mortgage rates a little higher than their lowest levels ever. 

Below are rates available today paying a point or less:

30 year fixed: 3.75% paying .79 points, 4% paying 0 points

20 year fixed: 3.5% paying .95 points, 3.875% paying 0 points

15 year fixed: 3% paying .69 points, 3.375% paying 0 points

5/1 ARM: 2.375% paying .97 points, 2.75% paying 0 points

7/1 ARM: 2.75% paying .92 points, 3.125% paying 0 points

30 year fixed High Balance Loan: 4% paying ,49 points, 4.25% paying 0 points

30 year fixed FHA: 3.75% paying 0 points

15 year fixed FHA: 2.75% paying .892 points, 3.125% 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, Freddie Mac Foreclosure Relief Mortgage, VA mortgages, VA Interest Rate Reduction Loans, FHA mortgages, FHA streamline mortgages, Conforming mortgages, Conventional Mortgages, High Balance Mortgages, Fannie Mae mortgages, Freddie Mac Mortgages,  and Jumbo Mortgages.

MORTGAGE RATES REMAIN STABLE – 30 YEAR FIXED AT 3.75%

MORTGAGE RATES LIKELY TO RISE IN 2012

HAPPY NEW YEAR – MORTGAGE RATES LIKELY TO RISE IN 2012

December 27th, 2011

The bond market closed last week trading down (- 66 bps).  Interest rates/pricing rose last week by approximately .5% in costs.  This week will likely remain stable but we could see further rate increases next week. 

I expect rates to rise in 2012, and here are a few things that will likely affect interest rates and the US markets during the upcoming year. 

1.)    HR3630  is new bill likely to pass in Congress very soon.  The bill increases guaranteed fees on Fannie Mae and Freddie Mac loans (the vast majority of loans written in the USA) up 10 basis points.  FHA will also increase it’s annual mortgage insurance 10 basis points.  These price hikes will be passed on to the consumer, pushing the closing costs you pay for a new mortgage higher.  Since Fannie Mae, Freddie Mac, and FHA are all run by the government now, these price increases are likely being put in to place so the government does not have to increase the employment tax.  So instead of employees paying higher taxes for unemployment expenses and social security – mortgage borrowers will instead. 

2.)     The majority of economists (Based on an Associated Press Poll) feel that the US economy will start to grow faster in 2012.  The economy has created at least 100,000 new jobs in the past 5 months straight.  People applying for unemployment benefits are at their lowest levels since April of 2008. 

Economists predict jobs creation to increase even more in 2012.  Even though the projections for job growth are higher, experts predict the unemployment rate to stay near 8.4%.  The new jobs are only cancelling out population increase. 

3.)     Europe still remains a constant concern.  A default in the Europe debt situation could cause major ramifications to the US Economy. 

With the economy likely to improve in 2012 – we will likely see the stock market improve and investors moving their money from the bond market and into the stock market.  This should create higher pricing on mortgages. 

Unless a default happens in Europe (which will trigger investors to move funds back into the safety of the bond market), interest rates are very likely to rise in 2012. 

Below are rates available today paying a point or less:

30 year fixed: 4% paying .51 points, 4.25% paying 0 points

20 year fixed: 3.875% paying .68 points, 4.125% paying 0 points

15 year fixed: 3.25% paying .9 points, 3.5% paying 0 points

5/1 ARM: 2.625% paying ..74 points; 3% paying 0 points

7/1 ARM: 2.875% paying .91 points, 3.25% paying 0 points

30 year fixed High Balance Loan: 4.25% paying .49 point, 4.375% paying 0 points

30 year fixed FHA: 3.75% paying .36 points, 3.875% paying 0 points

15 year fixed FHA: 3.25% paying .13 points; 3.375% paying 0 points

30 year fixed VA: 3.75% 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, HARP 2.0 mortgages, DU Refi Plus Mortgages, Freddie Mac Open Access Mortgages, Freddie Mac Foreclosure Relief Mortgage, VA mortgages, VA Interest Rate Reduction Loans, FHA mortgages, FHA streamline mortgages, Conforming mortgages, Conventional Mortgages, High Balance Mortgages, Fannie Mae mortgages, Freddie Mac Mortgages,  and Jumbo Mortgages.

Mortgage Rates likely to rise in 2012