Mortgage Market
Mortgage Rates are still at all-time lows folks, they have even gone a bit lower over the past few days as “flight to safety” jumps into the bond market. The FOMC met on Tuesday afternoon (215 PM.) and released a statement that everyone knew was coming, they reminded us that the economic recovery will be very slow and that they are purchasing additional Treasury debt in the open market. Ii is looking like Mortgage Rates are down this low for a while.
Mortgage Rates improved again today. We are now seeing Lenders offer 4.5% on rate sheets and are even seeing a few who are willing to go down to 4.25%. This rate will cost nearly 1 point at closing. Again these rate quotes are only available to borrowers whose pricing is not subject to risk based adjustments. If you are seeking a 15 mortgage, they are in the 3.75% to 4.00% range with additional fees. The Jumbo Mortgage market has really picked up the past 2 to 3 weeks with a 30 year fixed being offered at 5.25% and a Jumbo 5/1 at 4.125%
I do everything that I can to monitor what is happening in the secondary mortgage market every day, if I see any changes for the good or bad I will let you know… well at least give you my opinion. If you are thinking of refinancing I would submit a Mortgage Application sooner than later and maybe hold off on LOCKing in your rate for a bit, Banks are so backed up right now that it still my take 60 plus days to close on your refinancing. Submitting an application takes 5 minutes.
Inquire within for current Mortgage Rates or guidelines bc@SmarterBorrowing.com 617.771.5021
Economic Data
Wednesday’s bond market has opened in positive territory, extending Tuesdays’s late rally. The stock markets are posting sizable losses with the Dow down 184 points and the Nasdaq down 51 points. The bond market is currently up, which with yesterday’s afternoon improvements should improve today’s mortgage rates by approximately .250 – .375 of a discount point compared to yesterday’s morning rates.
Today’s only relevant economic data was June’s Trade Balance that was released early this morning. It showed that the U.S. trade deficit stood at $49.9 billion in June. This was a much larger deficit than many had expected, but this data is not considered to be highly important to the bond market. Therefore, its results have had only a very slight impact on this morning’s trading and mortgage rates.
There is no relevant monthly or quarterly economic data scheduled for release tomorrow, but we will get weekly unemployment figures from the Labor Department. They are expected to say that 465,000 new claims for unemployment benefits were filed last week, falling from the previous week’s 479,000 total. Since this data only tracks a single week’s worth of claims, it usually takes a wide variance from forecasts for this report to affect mortgage rates.
Friday brings us the release of three reports that will likely influence mortgage pricing. Two of them are considered to be very important to the financial and mortgage markets. Those two reports, July’s Retail Sales and Consumer Price Index, can lead to sizable movement in the markets and mortgage rates. So, expect an active day in the mortgage market Friday.
FLOAT or LOCK
If I was closing on a Home Mortgage in the next 0 to 15 Days – LOCK
If I was closing on a Home Mortgage in the next 15 to 30 Days – FLOAT
If I was closing on a Home Mortgage in the next 30 to 60 Days – FLOAT
If I was closing on a Home Mortgage in the next 60+ FLOAT
This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
- Are you a possible Massachusetts First Time Homebuyer?
- Do you have a Real Estate client inquiring about current Mortgage Rates?
- Do you have any Refinancing questions?
- Should you be thinking about Refinancing out of your ARM (Adjustable Rate Mortgage)?
- Have your Real Estate clients been Pre Approved?
bc@SmarterBorrowing.com 617.771.5021
Credit: Bloomberg, Yahoo Finance, Mortgage News, MBS Quoteline, WSJ, NY Times
bc@smarterborrowing.com
617.771.5021
