Connecticut Financing Update and Today's Mortgage Rates 5/18/12

For only the 3rd time since early February, the Conventional 30 yr Fixed Best-Execution Rate is arguably straddling 3.75% and 3.875%.  Some lenders' rate sheets are structured such that 3.75% is clearly Best-Execution.  More have moved down into that territory, though many remain at 3.875%.  

Mortgage Rates are steady to slightly improved today following as Europe's fiscal woes continue providing downward pressure on US interest rates.  The forces at work keeping rates low were joined today by "minutes" from the most recent FOMC meeting.  All told, several notable lenders are offering their all-time lowest interest rates while others remain close.  

Markets actually got off to a shaky start as far as rates were concerned.  Had it not been for the European headlines and the FOMC Minutes, we'd likely be looking at slightly higher rates today.  Mortgage-backed-securities (aka "MBS," the most direct influence on mortgage rates) and US Treasuries began the day in weaker territory until news that the European Central Bank had ceased it's normal interactions with several Greek banks, and the ECB President essentially wasn't willing to bend over backwards to make sure Greece stays in the Euro-zone.  

Until and unless mortgage rates actually break into NEW all-time lows (which they are very close to doing), we'll likely keep reiterating that which has already been said:

We see two diametrically opposed forces pushing and pulling on mortgage rates here at these key levels.  The European component is the obvious force pushing rates down, but less obvious is the underlying structure of the Secondary Mortgage Market providing resistance to moving lower.  The latter is what has prevented rates from getting any lower now and in the past.

That said, if the economic outlook remains fairly dim and if European concerns continue to fuel that "flight-to-safety" demand for long enough, the Secondary Mortgage Market CAN slowly evolve to accommodate lower rates.  It remains to be seen whether or not it will actually happen.  Global economic panic is not our favorite justification for thinking rates will move predictably lower.

Investors in the secondary mortgage market have demonstrated that they tend to feel the same way, having clearly avoided a quick move down into uncharted territory with respect to the "buckets" on the secondary mortgage market.  Without a more stable motivation for low interest rates, we'd expect ongoing progress in creating a market for even lower rates to continue to be slow and small.  

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

And a note From Judy: If you have a question about buying or selling Real Estate in Fairfield County, and are in need of an Realtor to represent you, I invite you to contact me, and if you have an idea for a topic that you would like to see on The CT Realty Blog, please include it in the "Post a Comment" section link below this post. We appreciate the feedback and look forward to providing you with the best real estate content, advice and service in Fairfield County, Connecticut.

Open House Sunday May 20 on 12 Warnock Drive in Westport ONLY $438,900

Mark Your Calendar!

Public Open House at 12 Warnock Drive in Westport CT

 on Sunday May 20, 2012 from 1-3:30 PM- JUST $438,900

- as cliche as it sounds, bring your checkbook. We're not kidding. This home has just been reduced for a quick sale.

 $438,900

Here are the quick details:

Westport* 1,817 SF*  3 BR, 2 baths *1.03 acres

Time is 1-3:30.  SEE YOU THERE!

Want more info about the house? Click here

Call us at 203-257-5892 for any questions or email us. Either way, make it there!

And a note From Judy: If you have a question about buying or selling Real Estate in Fairfield County, and are in need of an Realtor to represent you, I invite you to contact me, and if you have an idea for a topic that you would like to see on The CT Realty Blog, please include it in the "Post a Comment" section link below this post. We appreciate the feedback and look forward to providing you with the best real estate content, advice and service in Fairfield County, Connecticut.

All About Hydronic Heating Systems for Your Home

Have you ever been to a home where there was a noticeable difference in the warmth of the floor as opposed to the home that you now live in?   If you have, you  may not have known it , but that particular home probably had radiant hydronic heat.

When you think of radiant heat,  (that is- a heating system within the flooring), you might think of what the electric  conductors that run through the flooring creating that cozy  warmth, but more efficient systems exist and they are "hydronic".

Hydronic systems use a boiler to heat hot water, and a pump to circulate that hot water in flexible plastic tubing installed the floor. Hydronic systems no longer need to be installed ONLY in concrete floors- technology has come a long way.  The pipes, embedded in the floor, carry heated water that conduct warmth to the surface of the floor where it transfers the heat into the room.

The single best  benefit of radiant heating, is that it  provides an outstanding level of comfort due to teh entire floor radiating heat upwards  from the ground in an even and consistent manner.

Properly designed hydronic systems control the surface temperature and air temperature  of a room to maintain optimal comfort.  Hydronic heat emitters, such as radiant floors raise the average surface temperature of these rooms, and since the human body is especially responsive to radiant heat loss, this type of heat significantly enhances comfort.

Low Heat Loss:

Buildings can have significantly different rates of heat loss based on the types of heating systems installed. Buildings with hydronic heating systems have consistently shown lower heating energy use than equivalent structures with forced-air heating systems.
Hydronic systems do not affect room air pressure while operating, but changes  in room air pressure occur when the blower of a forced-air heating system is operating. The increased air pressure in the room most often comes from the lack of an adequate return from the rooms back to the furnace. This condition drives heated air out through every small crack, hole, or other opening in the exterior surfaces of the room.

Cost of Installation will vary  for the size of the home, and its stage of construction- whether or not the home is already built and must be retro-fitted,  in building stages, or just a blueprint on paper. This type of heating system, should be considered as a long term investment, as it is costly.

And a note From Judy: If you have a question about buying or selling Real Estate in Fairfield County, and are in need of an Realtor to represent you, I invite you to contact me, and if you have an idea for a topic that you would like to see on The CT Realty Blog, please include it in the "Post a Comment" section link below this post. We appreciate the feedback and look forward to providing you with the best real estate content, advice and service in Fairfield County, Connecticut.

Connecticut Financing Update and Today's Mortgage Rates 5/14/12

Mortgages rates continue to operate at their best levels since early February following Friday's weaker-than-expected Employment Situation report.  There was effectively no change in most lenders' rate sheet offerings versus Friday morning's rates.  Even last week, there were no dramatic movements into the Employment Report, but more of a steady march toward historical lows.

This naturally leaves the 30yr Fixed Conventional Best-Execution Rate unchanged at 3.875%.  

With the Jobs Report behind us, there's less by way of big-ticket "risky events" in the near future.  Economic data in the current week is limited although Treasury coupon auctions (3, 10, and 30yr maturities) will take place on Tuesday, Wednesday, and Thursday respectively.  Another consideration is the market's ongoing reaction to current political events in Europe.  Euro-zone surprises can indeed have an effect on domestic rates, but we continue to see rates having a hard time getting lower from current levels.

"Floating into the auctions, and any potential Eurozone news only creates more risk than reward with rates as low as they are" says Constantine Floropoulos, VP and Sr. Loan Officer at Quontic Bank.  "We'll need liquidity in lower coupon MBS if we're going to see a drop in Best-Execution rates...  Not an overnight process."

There's a hidden "wall" in mortgage rates created by the underlying mechanics of the MBS Market (MBS are the "mortgage-backed securities" that most directly influence rates).  As Mr. Floropolous alludes to, the next coupon lower from current levels is not very active.  Think of this like a bucket that folks are generally hesitant to place their water in.  

In order for this relatively empty bucket to get more water, markets would have to languish at current levels, fueled by a steady stream of negative economic data.  Andy Pada, VP at 1st 2nd Mortgage, notes "Waiting for a parade of economic horribles to occur is neither good for the soul nor is it a guarantee for a lower rate. Lock in your historically low interest rate, assess any available lender credit and be content with having executed your mortgage transaction at this time in history."

Long story short, it will take more time and more stability at low rates before the underpinnings of the MBS market can adapt to make room for those frontier buckets.  Until then, further gains are minimal and hard-fought.  For Loan Officers like Mike Owens, at HorizonFinancial, Inc, the decision is easy: "I always lock the rate. As usual I'm not a risk taker and with rates at historical lows, there is just not much incentive to float. We can float down in rate with some investors as well so that's another reason to lock."

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

And a note From Judy: If you have a question about buying or selling Real Estate in Fairfield County, and are in need of an Realtor to represent you, I invite you to contact me, and if you have an idea for a topic that you would like to see on The CT Realty Blog, please include it in the "Post a Comment" section link below this post. We appreciate the feedback and look forward to providing you with the best real estate content, advice and service in Fairfield County, Connecticut.

Is The Real Estate Market Improving? Six Ways to Know.

You might remember when the real estate turned the corner to its downward spiral a few years ago. It seemed to happen overnight, but some analysts predicted it would come.

But how do you figure out when it starts to turn around?

There ARE ways to figure out when the market is about to turn the corner on a positive note, and the very first tip off is fewer For Sale signs popping up around town.

The real estate market, and pricing,  has a lot to do with supply and demand. When they are out of balance, the market is askew and prices will either rise with a lower supply, or go down when the demand is low.

TOP SIX WAYS TO FORECAST AN UPSWING IN THE MARKET IN YOUR AREA:

Employment Numbers: When the job market improves, so does the real estate market.

New Businesses Arrive in Town:  When that closed up shop re-opens, and others follow, it signals a recovery.

Median Prices Start to rise:  No matter how you track the market, whether its by cost per square foot, average or median prices, when the number beginsto rise steadily, the market is improving.

Distressed properties disappear from the market: When you stop seeing ads mentioning short-sales, and the foreclosure market seems to dry up.

Starter Homes begin to sell faster: When these homes (that are in reasonably good condition) sell within 30-60 days, demand is on the rise. That's a reduced market time- so watch the local statistics.

Sellers upgrade their homes and "move up": During rough times, generally speaking, the only homeowners who sell a home are those who MUST SELL, due to circumstances beyond their control such as lack of affordability, a divorce, or job transfer, divorce or they can't afford to make their mortgage payment- and many of those sellers don't or can't buy another home.

A balanced market is one where it is just as good to buy a home as it is to sell one.

Another GREAT way to know whether or not the time is right to buy or sell? Contact me, and I will assess your indiviual situation and let you know if the timing is best for you.

 If you have a question about buying or selling Real Estate in Fairfield County, and are in need of an Realtor to represent you, I invite you to contact me, and if you have an idea for a topic that you would like to see on The CT Realty Blog, please include it in the "Post a Comment" section link below this post. We appreciate the feedback and look forward to providing you with the best real estate content, advice and service in Fairfield County, Connecticut.