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

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 5/18/12

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.

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.

Connecticut Financing Update and Today's Mortgage Rates May 4, 2012

Mortgage Rates Rise Modestly After Strong Manufacturing Report. Just before reaching fresh multi-month lows, Mortgages Rates rose slightly today after a stronger than expected read on the manufacturing sector.  Overall, rates continue to operate at the same "best-execution" level of 3.875% and today's deterioration would instead be seen in the form of slightly higher borrowing costs (or decreased lender credit toward closing costs, depending on your scenario).

Keep in mind that "best-execution" as we calculate it, connotes the no-closing-cost rate for the best-qualified borrowers in the most ideal scenario.  For many scenarios, 4.0% continues to constitute a good bang for the buck.  

Whatever the case, take a look at the the rate and fee structure of adjacent rates.  In other words, you may find that paying more up front for a lower rate makes more sense for you due to payment savings.  Conversely, maybe you'd rather spend less out of pocket in exchange for a slightly higher payment.  

Moving on to markets and movement now...  Yesterday we said that we'd expect the level of market activity to pick up as the week progresses, and indeed that was the case after this morning's ISM Manufacturing report came in stronger-than-expected.  Economic data has been sort of lackluster recently, and yesterday's data had markets fearing another weak report this morning.  So when it surprised to the upside, stocks rallied significantly and interest rates on fixed-income investments generally rose.  The MBS ("mortgage backed securities") that most directly influence mortgage rates are part of that fixed-income sector.  

Yesterday's stance is actually still the best way to think about the rest of the week for now, and may continue to be, barring any dramatic surprises in data or headlines.  Particularly:

Whereas we might see some small movement in either direction throughout the week, things can change abruptly on Friday with the release of The Employment Situation Report.  The fact that rates have been so low and so stable is a negative risk in our view.  Historically, there's been limited benefit in floating at current levels, and historically, "big news" that follows "flat markets" creates the potential for huge swings.  This is not at all to say that rates couldn't or wouldn't improved if the Jobs report was very weak, simply that there's no historical precedent to them improving much beyond current levels and that the Jobs report creates the potential for volatility.  

In other words, we have two ingredients.  First, there's the fact that historical examples of the Jobs report coming up on Friday have been among the biggest potential market movers on any given month.  There are plenty of times where this DOES NOT turn out to be the case, but if you lined up all the various pieces of scheduled data each month next to their corresponding market movements over time, The Employment Situation report would be at the top along with FOMC Announcements.  

Second, there's the fact that lenders' rate sheet offerings haven't been much lower than they are currently.  Now...  "much lower" is subjective, of course.  The few hundred dollars in closing cost difference could mean different things to different people.  Additionally, certain scenarios that are on "the edge" between two different interest rates (say 4.0% and 3.875%) could actually move down in rate within the confines of the "not much" generality above.  But on average, Best-Execution rates for 30yr Conventional loans have been CLOSE to edging down to 3.75, but have never done so on a widespread basis or for more than a day.  

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

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 4/27/12

Freddie Mac Update-

Freddie Mac approved 4,308 loan modifications in March 2012 and 13,677 for the three months ended March 31st.

The portfolio continues to contract. According to Freddie Mac's Monthly Volume Summary for March, the corporations' total mortgage portfolio decreased at an annualized rate of 2.9 percent in March compared to a decrease of 3.3 percent in February.  So far this year the portfolio has shrunk by 3.8 percent.  The volume of single-family refinance-loan purchase and guarantee volume was $34.9 billion representing 83 percent of the total mortgage portfolio.

The unpaid principal balance of the mortgage related investments portfolio at the end of the period was $618.3 billion compared to 627.3 billion at the end of February.  The portfolio is composed of $201.8 billion in PCs, REMICs, and other structured securities, down from $206.1 billion in February; $20.3 billion in Agency securities compared to $31.0 billion; $138.3 billion in non-Agency securities ($139.8 billion) and $248.0 billion in mortgage loans, down from $250.9 billion the previous month.  The total mortgage portfolio balance was 2.056 trillion compared to $2.061 trillion the month before.  The annualized growth of the total portfolio thus far in 2012 is -3.8 percent.

The measure of Freddie Mac's exposure to changes in portfolio market value (PMVS-L) averaged $233 million in March with a duration gap that averaged 0 months.

The single family seriously delinquent rate was 3.51 in March, down from 3.57 percent in February.  The rate for the non-credit enhanced portion of the portfolio was 2.90 percent and the credit enhanced rate was 8.02 percent.  Multi-family delinquencies increased from 0.21 percent to 0.23 percent.

Freddie Mac approved 4,308 loan modifications in March 2012 and 13,677 for the three months ended March 31st.

Today's Mortgage 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

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.