Tag: HARP 2.0

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 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:

INTEREST RATES RISE – WHERE WILL MORTGAGE RATES GO FROM HERE?

INTEREST RATES RISE – WHERE WILL MORTGAGE RATES GO FROM HERE?

October 22nd, 2012

Last week was a pretty tough week for interest rates. Mortgage pricing went up Monday through Thursday, but a rally on Friday pulled interest rates back down a bit.

The Mortgage Backed Security market closed last week trading (-64 bps). On Monday, the market is currently trading down (– 8 bps).

WHERE WILL MORTGAGE RATES GO FROM HERE?

Most agree that rates will not rise substantially with the weakening MBS market. Even though rates have trended up for the majority of two weeks, rates are still very low.

Mortgage rates will likely stay in the range they are now. I don’t think rates will go lower than the rate pricing we saw a couple of weeks ago, but I also don’t see them going substantially up from where they are now.

Confidence in the economy is growing which will typically cause a rise in rates. But the FED introducing QE3 will help them remain low for the rest of 2012.

THIS WEEK:

This week starts with the Presidential Debate on Monday. The Treasury will begin a 99 billion note auction on Tuesday. The Federal Open Market Committee is meeting on Tuesday with a press release on Wednesday. September results from new homes sales are released on Wednesday.

Barring any unforeseen events – I am hoping that rates will improve a little bit this week, but I don’t see anything too drastic happening one way or the other.

My lock recommendation is to lock on any rate improvement this week. 

My Best Value of the week:

15 Year Fixed at 2.99% paying $0 costs

 

Below are rates available today paying a point or less:

30 year fixed: 3.375% paying .70 points,     3.5% paying 0 points,     3.625% – $0 costs
20 year fixed: 3.25% paying .88 points,     3.5% paying 0 points,     3.625% – $0 costs
15 year fixed: 2.625% paying .82 points,     2.875% paying 0 points,      2.99% – $0 costs
5/1 ARM: 2.25% paying .85 points,     2.625% paying 0 points
7/1 ARM: 2.5% paying .59 points,     2.75% paying 0 points
30 year fixed High Balance Loan: 3.5% paying .43 points;     3.625% paying 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.

INTEREST RATES RISE   –    WHERE WILL MORTGAGE RATES GO FROM HERE?

MORTGAGE RATES INCH HIGHER – 30 YEAR FIXED TO 3.375%

MORTGAGE RATES INCH HIGHER – 30 YEAR FIXED TO 3.375%

October 8th, 2012

Last week the mortgage backed security market told 2 stories. 

The MBS market closed (+ 50 bps) from Monday to Tuesday.  This continued the trend of rates dropping since the FED announced QE3.  But every positive interest rate streak will eventually end and pull back the other way.

From Wednesday to Friday, the MBS market closed down (– 84 bps), finishing the week (– 34 bps). 

The week was capped off with the September unemployment rate dropping from 8.1% to 7.8% with 114,000 new jobs created.  There was a lot of controversy regarding the validity of the report – but either way the MBS market had a mini sell off and closed the week down. 

Mortgage rates are still very low, but a bit higher than their previous lows.  The bond market is closed Monday due to Columbus Day. 

I don’t expect a ton of rate movement next week, but I do think rates may improve a bit, taking back some of the losses of last week.

Keep in mind most news websites/channels report when rates drop but not so much when they rise.  Rates are always fluctuating until a loan is locked.

My best value of the week:

30 Year Fixed at 3.5% paying 0 points

Below are rates available today paying a point or less:

30 year fixed:  3.375% paying .69 points, 3.5% paying 0 points

20 year fixed:  3.25% paying .79 points, 3.5% paying 0 points

15 year fixed:  2.75% paying .81 points, 3% paying 0 points

5/1 ARM:  2.25% paying .98 points, 2.75% paying 0 points

7/1 ARM  :2.5% paying .77 points, 2.75% paying 0 points

30 year fixed High Balance Loan:  3.5% paying .49 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 Inch Higher – 30 Year Fixed to 3.375%

MORTGAGE RATES SURPASS ALL TIME LOWS WITH THE FED’S 40 BILLION BOND PURCHASE ANNOUNCEMENT

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

30 YEAR FIXED AT 3.5% WITH 0 POINTS / FANNIE MAE AND FREDDIE MAC TO RAISE RATES

30 YEAR FIXED AT 3.5% WITH 0 POINTS – FANNIE MAE AND FREDDIE MAC TO RAISE RATES

September 10th, 2012

The MBS market closed last week trading down (-12 bps).

The market was very volatile last week. On Thursday, mortgage rates spiked up due to the stock market posting great gains and hitting a 4 year high. On Friday, the August unemployment report was released and the amount of jobs created was lower than projected by the experts. The unemployment rate went down from 8.3% to 8.1%, but this was mainly due to people exiting the work force and not continuing to look for a job. This caused mortgage rates to finish the week on a high note, closing + 50 bps.

Expect more volatility this week highlighted in The Federal Open Market Committee (FOMC) news conference on Thursday. If the FED does not “ease”, I expect rates to go up as the market already built in pricing improvements based on Ben Bernanke’s hint last week that the FED can and will do more.

FANNIE MAE AND FREDDIE MAC RAISING GUARANTEED FEES – MEANING HIGHER RATE PRICING FOR CONSUMERS:

The FHFA announced on Friday that Fannie Mae and Freddie Mac will increase guaranteed fees by .1 basis points most likely by December 1st, which will equate to an approximate .5 point increase on pricing for all Fannie Mae and Freddie Mac backed loans moving forward.
Almost all of the loans you hear advertised are Fannie Mae and Freddie Mac conforming loans.

EXAMPLE: If you are being offered a 3.5% 30 year fixed at 0 points. That same loan after the pricing change will cost approximately .5 points. This is a huge swing and I think signals the end of the debate on whether rates will drop lower.

Since this starts in December, lenders will likely adopt the new pricing some time in October – giving lenders enough time to close loans originated under old pricing.

If you are considering refinancing, I would recommend locking sometime before October as rates will go up.

Below are rates available today paying a point or less:

30 year fixed: 3.375% paying .77 point, 3.5% paying 0 points
20 year fixed: 3.25% paying .5 points, 3.375% paying 0 points
15 year fixed: 2.75% paying .73 points, 2.875% paying 0 points
5/1 ARM: 2.125% paying .9 points, 2.375% paying 0 points
7/1 ARM: 2.25% paying .762 points, 2.625% paying 0 points
30 year fixed High Balance Loan: 3.5% paying .89 points, 3.75% 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.

30 YEAR FIXED AT 3.5% WITH 0 POINTS  /  FANNIE MAE AND FREDDIE MAC TO RAISE RATES

 

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%

30 YEAR FIXED BACK TO 3.375% – WILD WEEK FOR MORTGAGE RATES.

30 YEAR FIXED BACK TO 3.375% – WILD WEEK FOR MORTGAGE RATES

August 6th, 2012

The MBS market closed last week trading up (+ 3 bps) and on Monday morning the MBSmarket is tradingup (+ 20 bps).    

Although the MBS market closed higher on the week, mortgage rates went up quite substantially on Friday due to a stronger than expected Unemployment report.  Although the unemployment rate went up to 8.3%, there was more job growth than expected – causing a sell off of mbs bonds, and the stock market to surge up 200 points.  Still mortgage rates ended the week a bit better than they started off last week.

On Wednesday, the FED statement did not include a new round of “quantitative easing”, or more commitments to purchase mortgage backed securities.  Many investors expected the FED to act, and they did not. 

Overall, last week was a wild week in the mortgage markets.  Rates improved quite a bit on Monday and Tuesday, but pulled back higher near the end of the week. 

This week should be much calmer, with very little data coming out that would push the markets too far in either direction.  One thing we learned on Friday –  if the economy gets a string of positive reports, interest rates will go up and usually very quickly. 

My best value of the week:

20 Year Fixed Loan at 3.375% with 0 points

Below are rates available today paying a point or less:

30 year fixed:  3.375% paying 1 point, 3.625% paying 0 points

20 year fixed:  3.25% paying .63 points, 3.375% paying 0 points

15 year fixed:  2.75% paying .71 points, 2.99% paying 0 points

5/1 ARM:  2.25% paying .85 points, 2.5% paying 0 points

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

30 year fixed High Balance Loan:  3.625% paying .6 points, 3.75% 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.  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 Back to 3.375% – Wild Week For Mortgage Rates

MORTGAGE RATES RISE DUE TO OPTIMISM IN THE STOCK MARKETS:

MORTGAGE RATES RISE DUE TO OPTIMISM IN THE STOCK MARKETS:

July 30th, 2012

The MBS market closed last week trading down (- 44 bps) and on Monday morning the mbsmarket is tradingup (+ 15 bps).    

For the first week in many, the mortgage interest rate market pulled higher mainly due to optimism in the stock markets.  The President of the ECB stated in a speech that they are willing to do whatever it takes to save the Euro.  This public declaration resulted in optimism among investors wary of the European debt crisis that has been dragging on the market for months.  European stocks rose to a 4 month high last week. 

This week will be a critical and volatile week in the interest rate markets.  The Federal Open Market Committee (FOMC) is meeting on Tuesday and Wednesday with a statement on Wednesday.  Most of the market now expects the FED to take on another round of mortgage backed security purchases.  The European Central Bank will meet on Thursday.  The July employment report will come out on Friday. 

Tough to say whether to lock or float right now.  We will likely see some big swings in the market depending on the news of that day. 

My best value of the week:

30 Year Fixed High Balance Loan at 3.75% with 0 points

Below are rates available today paying a point or less:

30 year fixed:  3.5% paying .329 points, 3.625% paying 0 points

20 year fixed:  3.25% paying .94 points, 3.5% paying 0 points

15 year fixed:  2.75% paying .94 points, 2.99% paying 0 points

5/1 ARM:  2.375% paying .72 points, 2.625% paying 0 points

7/1 ARM:  2.5% paying .66 points, 2.75% paying 0 points

30 year fixed High Balance Loan:  3.625% paying .74 point, 3.75% paying 0 points

30 year fixed FHA:  3.25% paying 0 points

15 year fixed FHA:  2.75% paying .29 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.