Connecticut Mortgage Rates and Financing Update August 19, 2011

Purchasing a home is currently cheaper than renting in 74% of major U.S. cities, according to Trulia's Summer 2011 Rent vs. Buy Index , which compares the cost of buying and renting a two-bedroom apartment, condominium or townhouse in the nation's 50 biggest cities

Thursday was one day where the importance of  watching the Treasury market for mortgage rate indications was clear.  Although there are a few instances of lower-than-2% 10 year rates in the ancient past, the fact that 10 year notes dipped into the 1's is an unprecedented event in modern economic history.

With a market this volatile and moving this quickly, the secondary mortgage market simply can't keep pace with the Treasury yields.  These  rapid movements ultimately weaken current mortgage rate offerings.  The best thing for mortgage rates right now is stability.

Borrowing costs are higher this week.  When volatility picks up in the secondary mortgage market, the cost of doing business gets more expensive for lenders (hedging costs go up). The added costs are passed down to consumers. These costs are unavoidable.

This Week's News as it Relates to the Mortgage Industry and You.

Some lenders have been adjusting their loan pricing much higher because they can't take-in anymore business.  They have pushed rates higher to encourage consumers to either wait it out or find another lender offering lower rates.  

CURRENT MARKET as reported by Mortgage Rate Watch - The Best Execution 30-year fixed mortgagerate  has fallen to 4.125%.  Several lenders are willing to offer 4.000% and even 3.875% is possible for those interested in buying down the rate with points. 4.250% is widely-available. On FHA/VA 30 year fixed Best Execution is 4.000%, but 3.875 and even 3.750 are available with additional closing costs. 15 year fixed conventional loans are best priced at 3.625% but we're seeing aggressive quotes as low as 3.375%. Five year ARMs are still best priced at 3.25. ARMs seem to have bottomed out.

Today's Mortgage Rates

30 year fixed - 4.125% + .0 points for rate
20 year fixed - 3.750% + 0  points for rate
15 year fixed - 3.375 % + 0 points for rate
10 year fixed - 3.250%  + .50 points credit for rate
5/1 ARM - 2.625% - 0 points for rate
7/1 ARM - 3.00%  + 0 points for rate

FHA/VA
30 year fixed - 4.00 % +  .500 points for rate
5/1 ARM - 2.750 +  0 points for rate
7/1 ARM - 3.125 + .250 point for rate

Jumbo - over 625,500 - to 2,000,000 Fairfield County
30 year fixed - 4.625 % + 0  points  for rate
15 year fixed - 4.250% + 0   points for rate
5/1 ARM - 3.125 % + 0 points for rate
7/1 ARM - 3.625% + 0 points for rate

10/1 ARM -  4.250% + 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

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