Mortgage Guy, Brian Cav, is back with his weekly interest rate report. He says while it’s been a “slow boring week for rates, ” rates remain at all time lows.
Mortgage rates are currently holding down by 2010 lows, the 15 year conforming hit a all time low earlier this week… but I do not expect them to stay down this long for much longer. It’s been a slow boring week for rates but I expect Fridays Retail Sales to make the Mortgage Markets volatile. I would suggest LOCKing in at these 2010 low rates in the next few days.
Brian Cav
The conventional rate mortgage remains in the 4.625% to 4.875% range for qualified borrowers, and for a 15 year fixed you should expect rates in the 4.125% to 4.375% . Well qualified borrowers should have a 740 FICO score of better and have a loan to value of less than 80%. Closing costs for this pricing would include 1% discount point of origination for both products.
FLOAT your rate for now? I find it difficult to turn down this current mortgage market pricing. The only loans I maybe recommend floating are those that can be locked on a shorter commitment period in the next few days, certainly before Friday. If stocks rally soon be careful of mortgage rates going up as well.
Inquire within for current Mortgage Rates [email protected] 617.771.5021
Economic Data
Wednesday’s bond market opened in negative territory again following early stock strength. The stock markets are showing gains with the Dow up 120+ points and the Nasdaq up 30 points. The bond market is down 12/32 as investors shift funds into stocks. However, due to some improvements in bond prices late yesterday, we should see little change in this morning’s mortgage rates.
Fed Chairman Bernanke’s statement to the House Budget Committee was the only relevant news this morning. He reiterated similar comments made Monday evening that helped influence trading yesterday. He said this morning that the U.S. economic recovery is moving in the right direction and that the European financial crisis will have a “moderate” impact on it but will not derail it. He mentioned that the employment and housing sectors are still of concern but his words seem to have reassured the markets that all will be well eventually.
The Fed will post its’ Beige Book report at 2:00 PM ET this afternoon. This report is named simple for the color of its cover, but contains details about economic conditions throughout the U.S. by region. It is relied upon heavily by the Federal Reserve to determine monetary policy during their FOMC meetings. If it shows much stronger economic activity than its last release, we could see mortgage rates rise this afternoon. Particularly if the report indicates inflation is growing.
We also have to watch for the results of today’s 10-year Treasury Note auction. Results the sale will be posted at 1:00 PM ET. If investor demand was high for the Notes, we may see bonds rally during afternoon trading, however, weak demand could lead to broader selling in bonds and an increase to mortgage rates.
FLOAT or LOCK
If I was closing on a Home Mortgage in the next 0 to 15 Days – LOCK, FLOAT until Friday
If I was closing on a Home Mortgage in the next 15 to 30 Days – LOCK
If I was closing on a Home Mortgage in the next 30 to 60 Days – LOCK
If I was closing on a Home Mortgage in the next 60+ LOCK
This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
- Are you a possible Massachusetts First Time Homebuyer?
- Do you have a Real Estate client inquiring about current Mortgage Rates?
- Do you have any Refinancing questions?
- Should you be thinking about Refinancing out of your ARM (Adjustable Rate Mortgage)?
- Have your Real Estate clients been Pre Approved?
[email protected] 617.771.5021
Credit: Bloomberg, Yahoo Finance, Mortgage News, MBS Quoteline, WSJ, NY Times
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