Connecticut Financing Update and Today's Mortgage Rates 3/30/12

Mortgages Rates broke a sideways streak to move lower yesterday, but are right back to their 'sideways ways' today!  This keeps the Conventional 30yr Fixed Best-Execution Rate at 4.0%, although 3.875% quotes are viable, even if they don't necessarily constitute the most efficient combination of closing costs and payment for most scenarios.

This raises an interesting point regarding "efficiency."  What is the "most efficient combination" of closing costs and payment?  Ultimately that will depend on several factors that can vary between scenarios and even between lenders.  There's always a COST associated with moving to a lower interest rate, and although rates move in linear 0.125% increments among most lenders, the COSTS to move between those rates can vary greatly.  
Right now, it's relatively cheap to go from 4.25% to 4.125% or from 4.125% to 4.0%, but costs increase sharply for the next eighth of a point lower.  That's why we note 4.0% as the most efficient combination, even if 3.875% is doable.  Above all though,  we'd continue to advocate that you assess multiple options to see which fit best for your own sense of efficiency. 

 
Despite recent improvements and today's sideways move, the current market dynamics underlying mortgages suggest a broader range of 3.875%-4.25%.  This range has persisted since August, and we tend to feel more defensive when rate offerings are nearer the lower end of any range of rates, especially one that has lasted this long.  

In other words, we're in favor of assessing your options based on this one moment in time to avoid the risk of being lulled into a false sense of security by recent improvements and stability.   We're not totally convinced the sense of security would indeed be "false," but the pace of economic events does increase noticeably into the end of the week, providing more opportunities for volatile market movements to have an effect on mortgage rates.

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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