Connecticut Financing Update and Today's Mortgage Rates 4/20/12

Rates are at their best levels since late February, however, rates were in similar territory on Tuesday 4/10.  The late February levels in question contained all time mortgage rate lows.

Any time we talk about "lows" or "best levels," it's important to keep in mind that we're constantly assessing BOTH the interest rates AND the costs associated with them.  In actuality, the interest rate you'd be quoted today may very well not be different from what you would have been quoted on Friday, although the lender's costs are likely somewhat lower.

The consideration of both RATES and COSTS is central to our determination of a "Best-Execution" rate, which can generally be thought of as the most efficient combination of payment vs. costs.  Today, the Best-Execution rate for 30yr Fixed Conventional Loans remains at 4.0% for many scenarios and is increasingly available at 3.875% for some scenarios.

Last week we noted a relatively indecisive attitude in the markets that underlie mortgage rate movements.  From Friday's commentary:

We're generally viewing next week as relatively inconsequential in the big picture given that the following week includes the next FOMC Announcement (you know... where the Fed puts out their official statement every month and a half or so...).  We could certainly see some level of improvement or deterioration in mortgage rates, but there's greater potential for bigger moves in the following week.  Keep in mind that "less volatile" and "less consequential" don't connote an absence of risk.  Unexpected market-moving headlines can happen any time.

This was evident today as markets reacted more to general concerns over the Spanish debt situation (some point to Spain as the next Greece) than to the stronger-than-expected Retail Sales report out this morning.

Once again, we want to be very careful about making any sort of assumption of stability in financial markets.  There's no way to guarantee that this will continue to be the case this week.  Whatever happens though, it does seem increasingly possible that markets are most focused on next week's FOMC, while still keeping an eye out for European concerns and to a lesser extent, any major surprises in this week's economic data.

Today's BEST-EXECUTION Rates

30-year fixed 3.875% APR-3.924% 0 points

20 year fixed-3.625% APR-3.692% 0 points

15 year fixed-3.250% APR-3.333% 0 points

10 year fixed-3.000% APR-3.123% 0 points

5/1 ARM-2.625% APR-3.091% 0 points

7/1 ARM-2.875% APR-3.127% 0 points

FHA

30 year fixed-3.750% APR-4.659% 0 points

15 year fixed-2.875% APR-3.319% 0 points

Jumbo- over $602,000 (Fairfield County)

30 year fixed-4.000% APR 4.117% 0 points

15 year fixed-3.500% APR 3.574% 0 points

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

7/1 ARM-3.500% APR 3.818% 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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