Tag: real estate
Great May Jeff Quincey
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:
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
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
MORTGAGE RATES SEE SAW BACK AND FORTH
MORTGAGE RATES SEE SAW BACK AND FORTH
March 5th, 2012
The MBS Market closed last week trading up (+6 bps). Although the market ended the week very close to how it began, there were major swings during the week.
The week began with small improvements on Monday and Tuesday. On Wednesday, Ben Bernanke made a speech were he stated that the FEDERAL RESERVE would not start a new plan for purchasing mortgage backed securities, pushing demand up and rates down.
Interest rates immediately took a nose dive, the mortgage backed securities market lowered – 60 bps over 3 days. The market did recover some Friday, pushing the mbs market positive for the week.
Interest rates go up faster than they go down. So even though the mbs market ended the week higher, many of the long term fixed rates went slightly up in price. That being said, Over 417k High Balance Loans are actually pricing better, so are ARM and FHA loans. So some loans are pricing better, and some are pricing worse.
My long term outlook is that rates have likely hit their lows, but if they do go up, they will not likely go up much for the foreseeable future.
Below are rates available today paying a point or less:
30 year fixed: 3.875% paying .89 points, 4.125% paying 0 points
20 year fixed: 3.75% paying .63 points, 3.99% paying 0 points
15 year fixed: 3% paying .91 points, 3.375% paying 0 points
5/1 ARM: 2.5% paying .97 points, 3% paying 0 points
7/1 ARM: 2.875% paying .68 points, 3.125% paying 0 points
30 year fixed High Balance Loan: 4% paying .31 points, 4.125% paying 0 points
30 year fixed FHA: 3.75% paying 0 points
15 year fixed FHA: 2.75% paying .867 points, 3% 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.
Mortgage Rates See Saw Back and Forth – March 2012