Financing Update and Today's Mortgage Rates in Connecticut 6/1/12

  Mortgage Rates continue to experience minor volatility near all-time lows, bouncing moderately LOWER today after moving HIGHER yesterday.  Rates moved in a different direction every day this week!  Today's moves didn't take rates to the lowest recent levels, but did slightly improve borrowing costs for the prevailing rates.

The Best-Execution Rate for Conventional 30yr Fixed Loans remains at 3.75%, but closing costs would be slightly lower for that rate today vs yesterday (or the amount of lender credit would be higher, depending on your scenario).

After a relatively calm day yesterday (Get Caught Up With: Yesterday's Post), markets were nearly dead today, with a majority of trading motivation arriving early in the morning on European considerations.  Volume and volatility have been dwindling ever since as the session ends early today ahead of the 3 day weekend in honor of Memorial Day.  Banks and Markets are closed on Monday, so most lenders will not issue rate sheets or be accepting locks.  

Next week starts out light, but finishes with the important Employment Situation Report.  This is one of the few pieces of domestic economic data that we actually care about in light of how much Europe has been a driver of rates markets movements these days.  Reason being: it's potentially informative for Fed policy, and with the Fed scheduled to make it's next policy announcement on June 20th, the employment numbers would certainly be a consideration as to whether or not the Fed makes any further hints or outright commitments at more quantitative easing.  Even then, Europe continues to keep swings in rates muted on the occasions where we're waiting for the next big shoe to drop--in this case, Greek elections in late June (though we think things could easily come to a head before then).  

Ongoing Guidance: We'd continue to advocate not trying to "get ahead" of current market movements as a high degree of uncertainty is pervasive.  While it's a reasonably safe assumption that European concerns will generally help rates stay lower than they otherwise would be, that "otherwise would be" part is very much a moving target.  Best bet is to focus on the fact that rates are at their all time lows, and with very close to their all-time low borrowing costs.  Add in the fact that progress has always been increasingly difficult from current levels and risk vs reward for floating vs locking looks a bit larger than we'd like, but not out of the question for those who understand the risks and have an exit strategy if things don't go their way.

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

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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