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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

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TODAY’S MORTGAGE RATES – RATES DROP TO LOWEST LEVELS ON THURSDAY , BUT PULL BACK ON FRIDAY!!

MORTGAGE RATES DROP TO LOWEST LEVELS ON THURSDAY / BUT PULL BACK ON FRIDAY

From Thursday July 28th to Thursday August 4th – mortgage interest rates improved every single day – pushing par 30 year fixed rates down to 4% on Thursday July 28th. The lower rates were all over the news, CNN, MSNBC, etc. And then Friday hit, the bond market dropped 100 basis points, and rates rose back up quite a bit.

If there is a lesson to be learned here it is this: You have to be prepared to lock your loan when the rates drop. Because when rates drop to their lowest levels, they are only there for a day or two.

In order for me to lock your loan – I need to have your credit and income to make sure you qualify for the loan. If you need a specific rate / costs to make a loan work for you – my suggestion is to get me your loan application and income so I can lock your loan if that pricing becomes available. (you can email me for a loan application – rpgj80@hotmail.com) I only have until 4 pm Pacific to lock a loan. Pricing can change on a loan dramatically even one day later.

Rates are still great right now, but they were really great on Thursday. I expect rates to have a little more pull back next week as well.

Below are current rates and pricing for a well qualified borrower. I can go below these rates, but I do not quote rates that cost over a point to get.

30 year fixed: 4.25% paying .82 pts, 4.375% paying 0 pts

20 year fixed: 4% paying .9 pts , 4.25% paying 0 pts

15 year fixed: 3.375% paying .79 pts, 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: 4% paying .9 points, 4.25% paying 0 points

15 year fixed FHA: 3.25% paying .73 pts, 3.5% 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 .75 pts, 4.625% paying 0 pts.

 

Mortgage banker / Loan officer for Arizona, California, and Colorado.  Mortgage Rate sheet – Fixed, ARM, Variable, Interest Only, High Balance Conforming, FHA, VA, Jumbo, HARP, etc.

TODAY’S MORTGAGE RATES  –  RATES DROP TO LOWEST LEVELS ON THURSDAY  ,  BUT PULL BACK ON FRIDAY!!

TODAY’S MORTGAGE INTEREST RATES

Today’s Mortgage Interest Rates – Rate sheet for Home loans in Arizona, California, and Colorado.  Call today to prequalify for a new home purchase or refinance.

Reggie Green – your source for mortgage loans in Arizona, California, and Colorado.  Conforming, FHA, VA, High balance conforming, Jumbo, etc.

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