Well mortgage rates have regained some of their losses from last week. Bonds have had two good days in a row, after the comments of Chairman Bernanke yesterday. He said that inflation continues to stay in check, but says the economy will continue to face “formidable headwinds”. This has been viewed positive in the bond market.
I recommend floating for now, but that could change very quickly, stay tuned.
Well its good news for the economy, but bad news for mortgage rates. In the last few weeks we had touched on historically low rates again. However we have seen positive economic news almost every day this week, especially today. Only 11,000 jobs were lost in the month of November, the expectation was 125,000 jobs lost. Also the unemployment rate came in at 10%, and was expected to be 10.2%. This is really hitting the bond market hard today, and rates are headed up as well.
As we have talked about before the climb out of this recession will not be a smooth one, we will have bumps in the road. A chart of this will look more like a W than a V.
For the near future I recommend locking as soon as you can. I will continue to keep you updated.
Mortgage Rates are flat this morning. We had big news yesterday with the Existing Home Sales coming in above expectations and at their best level in 2.5 years. Also the index that measures home prices came in with a slight increase today. Both of these are a combination of the First Time Homebuyer Tax Credit and record low interest rates. Remember a 30 year fixed loan this time last year was 6.25%.
I recommend locking today, have a Great Thanksgiving.
National Average Mortgage Rates Today
30 Yr FRM 4.83%
15 Yr FRM 4.32%
Bonds are up just a little today after the Fed stepped in yesterday by purchasing some more Mortgage Backed Securities. However we are nearing the end of their purchase program so look for rates to start increasing in the coming months. However in the short term we could see rates dropping as retail sales number come out for the holiday season. It will be a interest rate roller coaster over the next few months.
I recommend locking today.
Mortgage bonds started in a positive direction today, but have since moved lower. The Treasury auction of 10 year notes didn’t go well. So interest rates are headed up today.
I recommend locking today, and feel free to ask me about the new Good Faith Estimate or HUD that is effective Jan 1 2010.
Rates have come down a little this morning as the jobs reports were worse than expectations.
Please read below on Tax Credit, the President has just signed it. Contact me if you have anymore questions on it.
I recommend locking today and taking advantage of the gains.
To much anticipation and longing for further improvement in the mortgage and housing industry, the First Time Homebuyer Tax Credit will be extended today. The program, scheduled to expire at the end of November, will now require buyers to sign a purchase agreement by April 30, 2010 and close by June 30th. The FTHB Tax Credit Extension would include:
Buyers who have owned their current homes at least 5 years would be eligible for up to $6,500
First Time Homebuyers - or anyone who has not owned a home in the last 3 years would still be eligible for the $8000 Tax Credit
The credit is available for the purchase of principal homes costing $800,000 or less - vacation homes are ineligible
The credit would now be eligible to purchasers up to $125,000 in single income or $225,000 in joint income
The credit would be extended an additional year, until June 30, 2011 for members of the military serving outside the United States for at least 90 days
Extending the credit should allow more people to purchase a home and help stop the continued downward spiral in housing prices caused by the foreclosure crisis. The extension has been a priority to the real estate industry which says that the FTHB Tax Credit has been instrumental in the turn around of the market that was a major cause of the economic downturn.
The tax credit program will cost the government about $10.8 billion and the National Association of Realtors has estimated that out of the 1.4 million homebuyers that have already used the tax credit, about 350,000 would not have purchased their home without the tax credit.
Bonds are having a good day and this should push rates back down to last week’s levels. Consumer confidence came in lower than expected and there was a Treasury auction that was well received. This news has helped mortgage rates.
Also there is a bill up for vote in the Senate to extend the $8,000 First Time Homebuyer Tax Bill until June 30th. More details this week.
I recommend floating today.
30 Yr FRM 5.00% Up 0.08%
15 Yr FRM 4.43% Up 0.06%
1 Yr ARM 4.54% Down 0.06%
5/1 Yr ARM 4.40% Up 0.02%
Rates are up today as we got positive news from Existing Home sales, they were up to 5.57m. Most importantly inventory shrunk to 7.8 month supply, down from 10.1 in April. Bonds have broken thru important support levels, and this is will increase rates even more.
Today I recommend locking.
30 Yr FRM 4.92% +0.05%
15 Yr FRM 4.37% +0.04%
1 Yr ARM 4.60% +0.07%
5/1 Yr ARM 4.38% +0.03%
Mortgage Rates are coming down just a little today after weaker than expected housing reports and inflation numbers that are reasonable. Housing starts and building permit came out today and they were well below expectations. We have talked before about during a recovery the numbers wont continue to climb, they will bounce around each month.
Today I recommend floating, but will keep you posted.
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