Connecticut Financing Update and Today's Mortgage Rates 3/23/12

Mortgages Rates continued pushing into their highest levels of the year today after yet another volatile session for bond markets.  Most lenders initial rate sheets were slightly improved from yesterday earlier this morning, but market movements during the course of the day prompted widespread repricing.  By the end of the day, it's questionable to continue thinking about Best-Execution in terms of 4.0-4.125% and more appropriate to shift that range from 4.125% to 4.25%.  That said, the combination of rate and fee at 4.0% is still competitive at many lenders, but it's doubtful that many could offer 4.0% without some lender-related closing costs.

This is now the largest magnitude move higher in mortgage rates since October 2011.  But things are potentially more painful this time due to extended period of flat, low rates, which makes the current movement much more abrupt with respect to recent norms.  Things really have changed overnight.  

Compounding the pain is the fact that markets pulled back from ugly level quickly enough last time, and sufficient economic risk remained for us to hold out more optimism for a return of "high 3's in the intermediate to near term future."  This time around, trends are suggesting it would take a longer time to get back down to those rates, if it is indeed in the cards.

Are rates on a one-way trip higher?  Despite the ugliness of the past few sessions, we still can't be sure about that.  Underlying bond markets are approaching some levels that many market participants are looking to for support.  Markets again today operated close to those levels without making a definitive gesture back towards recent, lower rates.  Despite the higher rates today, in terms of those market levels, the Mortgage-Backed Securities (MBS) that most directly influence mortgage rates, ended the day in similar territory to yesterday.  Although the absence of weaker MBS and Treasury levels is a good thing, it's not the sort of thing that it makes sense to plan on.  We continue to expect things to be volatile, and ultimately, volatility can cause rates to move higher even if the day-over-day changes in bond market metrics are not.

Today's BEST-EXECUTION Rates

30-year fixed 4.00% APR-4.050% 0 points

20 year fixed-4.00% APR-4.036% 0 points

15 year fixed-3.375% APR-3.458% 0 points

10 year fixed-3.250% APR-3.342% 0 points

5/1 ARM-3.125% APR-3.419% 0 points

7/1 ARM-3.250% APR-3.489% 0 points

FHA

30 year fixed-3.875% APR-3.934% 0 points

15 year fixed-3.125% APR-3.230% 0 points

Jumbo- over $576,000 (Fairfield County)

30 year fixed-4.125% APR 4.240% 0 points

15 year fixed-3.500% APR 3.574% 0 points

5/1 ARM-3.250% APR 3.540% 0 points

7/1 ARM-3.625% APR 3.940% 0 points

Pat Leary is  a mortgage banker with over 12 years experience as a lending specialist in Connecticut. Her passion is to guide her clients through the mortgage process. Pat takes pride on providing great customer service, through communication, trust and integrity, and strives to offer the best mortgage products and service in the industry. We're confident that you will receive the personal attention that you deserve. As a leading Mortgage Banker in Connecticut, Pat  is responsible for structuring your financing with the expertise to answer any questions you may have on rates, fees and products.

Pat Leary

NMLS #99279
Atlantic Home Loans
830 Post Road East

Westport CT 06880
203-645-1037 cell
203-691-9788 ext 226
1-203-413-5647 fax

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