The rapid rallies of the market this week equals high pricing volatility. Mortgage Backed Securities don't like volatility and neither do lenders making rate sheets. The Friday rally is all EU Panic-driven. Greek default, Stark exit, take your pick. If Greece is alive on Monday, no more 1.8's in 10 year notes (probably?) We don't normally see aggressive moves on Mortgage Backed Securities settlement dates. Lenders will probably want more assurance of current benchmark ranges before getting more aggressive with rates. Lenders have recently gotten more aggressive with rates anyway! Another move down so quickly is going to cause capacity and fallout issues, which will cause rates to rise again with some lenders so they can control their pipelines. The bottom line , this speaks to bigger re-prices for the better. If we hold or improve upon these levels, "token" re-prices for the better are quite possible.
"Economic activity continued to expand at a modest pace, though some Districts noted mixed or weakening activity," the Fed said in its Beige Book collection of anecdotal reports of economic conditions in the 12 Fed districts. Growth was modest or slight in five districts, while the remaining seven described activity in terms such as "very subdued" or "more slowly." In the Fed's last Beige Book covering the period into early July, eight regions characterized growth as having slowed. Consumer spending increased in most districts, but spending on items besides cars was flat or down in several places through late August, Fed said. Manufacturing conditions were mixed across the country and had slowed in many districts, the central bank said. Hard-hit residential real estate markets remained weak overall. Price pressures edged lower, although retail prices rose in some districts, the Fed said. Labor markets were generally stable and some districts reported modest gains.
“I think we’ve got a good chance of continuing a moderate pace of growth coming out of this crisis,” Geithner said today in an interview with Bloomberg Television in Marseille, France. If Congress approves the plan, “it would dramatically reduce the risk of a long period of much weaker growth.” U.S. Treasury Secretary Timothy Geithner said on Friday that the administration did not need an act of Congress for new initiatives to boost refinancing of federally supported home mortgages. He said more details on how refinancing would work would be announced in the next three weeks. The indications are, it is a revamping of the current HARP/HAMP program that allows borrowers to refinance their current first mortgage at current market rates if the homeowner is underwater on the value of their mortgage debts. There is no indication that a new program is under consideration for those borrowers underwater who do not qualify for the current refinance programs.
30 year fixed - 3.99% + .0 points for rate
20 year fixed - 3.75 % + .0 points for rate
15 year fixed - 3.250% + .0 points for rate
10 year fixed - 3.250% .750% lender credit points for rate
5/1 ARM - 2.50% - 0 points for rate
7/1 ARM - 2.875 % + 0 points for rate
FHA/VA
30 year fixed - 4.005% + 0 points for rate
5/1 ARM - 2.750 + 0 points for rate
7/1 ARM - 3.25 + 1.00 lender credit point for rate
Jumbo - over 635,000 up to 2,000,000 at 80% loan to value
30 year fixed - 4.625 % with +0 points for rate
15 year fixed - 4.125% + 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% 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
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