It's possible, but unlikely last week will be the last time you'll see a 4% rate available on a 30 year fixed mortgage. When jobs data is strong, rates usually move higher. So weigh the risks of an unfriendly market movement . If you're in a purchase scenario or are certainly going to refinance, the reward for a well-timed float likely isn't worth the risk here.
At the Senate Banking Committee Hearing on Thursday, Treasury Secretary Timothy Geithner said he expects a U.S. housing regulator to detail mortgage refinance programs that could help the battered housing market in the coming weeks.
"My sense is, based on what I've seen...it's going to be meaningful enough to make a difference." Geithner said. "They are looking at a range of things and you'll see more details in a couple of weeks."
Bank of America this week made the decision to exit retail lending in six low volume states including Alabama, Alaska, Montana, Nebraska, Wisconsin, and Wyoming, per the National Mortgage News.
"An inspector general for HUD has recommended that Bank of America face fraud charges relating to faulty borrowing data submitted to the agency in connection with its Country Wide unit. In his words "Country Wide did not properly verify, analyze, or support borrowers' employment and income, source of funds to close, liabilities and credit information." And isn't that the basic problem, summed up in one little sentence?
Fannie has new policies for loans that become delinquent after 10/1 "to streamline and simplify servicing processes, help servicers to contact delinquent borrowers more effectively, determine eligibility and offer foreclosure prevention alternatives to struggling homeowners." Your servicing group had better know them!
Fannie 3.5's are in line with their lows of the day at 102-04 and 10 year yields are also at their worst levels at 1.98. Unless things bounce back fairly quickly, we're at a moderate risk for re-prices for the worse. However, there hasn't been a material shift in the broader trends.
10 year yields traded up to 1.92 but quickly fell back into the 1.89's after the Bank of England left interest rates unchanged. This put a dent in stock futures as well, but after only a brief reversal of the overnight sentiment, all sides of the market Thursday bounced right back ahead of 8:30 am Jobless Claims.
For Mortgage Backed Securities, this is lowest end of the trend channel they've been in since early August. For Treasuries, it's looking like a technical bounce off their midpoint with support up around the 2% range.
If current weakness holds, rate sheets should be weaker. Fannie 3.5's got pretty close to 102-00 after the Jobless Claims report but have since surged back more than quarter of a point and now sit only 3 ticks down vs 102-11. While this significantly improves the rate sheet outlook, it could also cause delays. The last thing to consider is that we may soon find out that the big upswing was due to opportunistic Fed buying which could result in Mortgage Backed Securities drifting back toward previous lows.
30 year fixed - 3.99 + 0 points for rate
20 year fixed - 3.875% + .0 points for rate
15 year fixed - 3.250 % + .0 points for rate
10 year fixed - 3.250% + .0 points for rate
5/1 ARM - 2.625% - 0 points for rate
7/1 ARM - 2.875 % + 0 points for rate
FHA/VA
30 year fixed - 3.875 % + 0 points for rate
5/1 ARM - 2.875 + 0 points for rate
7/1 ARM - 3.25 + .50 lender credit point for rate
Jumbo - over 635,000 up to 2,000,000 at 80% loan to value
30 year fixed - 4.750 % with +0 points for rate
15 year fixed - 4.250 % + 0 points for rate
5/1 ARM - 3.250 % + 0 points for rate
7/1 ARM - 3.625% + 0 points for rate
10/1 ARM - 4.375% with + .0 points cost for rate
Jennifer Buchanan, Certified Mortgage Planning Specialist at MetLife Loans is a seasoned veteran of the Mortgage, Banking and Broker Industry and specializes in mortgage loans throughout Fairfield County, Connecticut.
Her attention to detail is unsurpassed, and her understanding of the marketplace makes it easy to find the right loan to fit her clients specific needs . Jennifer's local processing and closing team are also known for their exemplary service.
Understanding that the vast majority of mortgage brokers never discuss the long or short term financial needs or goals with their clients, she set herself apart from the rest by obtaining the coveted CMPS designation. (Certified Mortgage Planning Specialist)
She is a member of the National Association of Responsible Loan Officers, and her commitment to ethics, understanding of the marketplace, and business acumen have earned her the respect of her peers and clients alike.
Jennifer Buchanan
Metlife Loans
203-341-6949
Jennifer Buchanan- Your certified expert
on mortgages offering Free Unbiased
recommendations based on your needs.