Mortgage Update 7/21/09 Fed to Keep Rates Low?
Mortgage rates are largely determined by the free market system. If people feel better investing in bonds and mortgage backed securities, rates are low. If folks are buying more stocks, hoping for a greater return, rates will be higher.
What’s different about this year is the Fed has invested in it’s own stuff, treasuries, to arbitrarily keep rates low to spur people on to buy homes, refinanance to free up cash flow to re-circulate in the economy and so on. Fed head Ben Bernanke says he plans to keep short term interest rates low for the near future, until unemployment figures drop and the economy as a whole shows more long-term stability.
This is, of course, good news and the market reflects a small dip in pricing today, maybe an 1/8th better than yesterday. See previous posts for more details, whether you have a mortgage need in Ephrata, Pa or elsewhere.
Mortgage Update 7/20 Same S*%$ Different Day!
The market is mixed today. Rates rolled higher this morning, and rolled back this afternoon. All in all, we are where we were Friday for the most part, high 4’s to high 5’s depending on points on conventional 30 year loans. 5.5 to 6.0 on FHA.
Mortgage Update 7/17/09 On the Up and Up
Surprisingly there was another jump in new home construction in the latest report. Obviously people would no be building a house with out feeling confident about their place in this wobbly economy. A confident consumer inspires confidence in investors, a group starving for evidence of an economic recovery.
Thus it’s good news, bad news. Good news for the economy as a whole, bad news for you as a borrower as it pushes mortgage rates higher. Conventional rates on a 30 year fixed rate are 4.75 to 5.75 depending on the usual factors, credit, points, amount borrowed and so on. FHA is 5.5 to 6.0 with origination between 0 and 1 point.
Recent weeks and months have shown that a runup in the stock market is followed by a dip, when the dip happens rates will dip too, but of course no one can predict such a dip.
That wraps up the mortgage news for Ephrata,PA for another week!
Mortgage Update 7/15/09 See Saw Up
Okay it looks like the teeter totter is tipping rates up again for a 3rd day, putting rates up a 1/4 from the end of last week.
Conventional 30 year rates are in the hig 4’s to high 5’s depending on points, and FHA still in the 5.5 to 6.0 range.
That’s the call for an Ephrata Mortgage from beautiful Beacon Mortgage at 123 E.Main St. in Ephrata, PA!
Mortgage Update 7/14/09 Inching Up
On the heels of a robust day in the stock market yesterday, rates are up about an 1/8th today.
30 year fixed rates are mid to high 4’s with points and mid to high 5’s with no points. FHA is 5.5 to 6.0 depending on points.
All in all rates are outstanding from a historical perspective. Definitely better than 30 days ago when they were a half point higher, but a little lower than the first few months of the year when we hit all-time lows.
For a specific question about a specific situation regarding rates, credit or real estate in Ephrata, PA or around the universe I’m at (717) 468-0130 and broweems@ptd.net
Mortgage Update 7/9/09 Steady as She Goes
No big change from yesterday, if anything, the cost of a particular rate may be a hair higher today. See previous post for more details.
Mortgage Update 7/8/09 Going Down?
Hey now! Rates may be headed lower. This is in step with the principles of stock market down and bonds up, mortgage rates down.
We’re probably down an eighth with conventional loan rates today, high 4’s to mid 5’s would be the norm depending on points and credit. For FHA 5.5 might be more likely than 6.0.
That’s the call for a mortgage on main street in Ephrata, PA and the surrounding universe!
Mortgage Update 7/2/09 Unemployment Impact
One of the most influential pieces of economic data that comes out every month is the report on how many jobs were added or lost in a calendar month. When the data is worse than expected, the stock market tumbles and the bond market gains, which is usually good news for mortgage rates. That is the case today, as more jobs were lost than anticipated, and unemployment rose to a 26 year high.
That being said, there is only modest improvement in mortgage rates, an we are probably the same as we were a week ago. 30 year conventional rates are high 4’s to high 5’s depending on points, and FHA is generally 5.5 or 6.0 depending on points.
Absoring economic data from the last few weeks, it seems that a robust turnaround in the economy is still not imminent in the short term. Consumer confidence has dimmed, we’re still losing jobs, 1 in 10 homeowners is in some stage of mortgage delinquency and while this is not great news overall, it does keep mortgage rates down.
That’s story on a mortgage in Ephrata, PA and the surrounding area!
Mortgage Update 6/29/09
The market remains stable as we wrap up the 1st half of the year. Not a ton of news forcing the market up or down.
Conventional 30 year rates in the high 4’s to high 5’s depending on points and credit. FHA is 5.5 to 6.0.
That’s the story for a mortgage in Ephrata, PA and beyond!
Mortgage Update 6/26/09
We continue with the ever so slight downward movement in rates from their peak about 2 weeks ago. On a conventional loan with excellent credit the range is 4.75 to 5.5 with 0 to 3 points. FHA is 6.0 at zero and 5.5 with a point.
The term “excellent” credit is not subjective. I mean 740 plus with your Fico score. I’ve seen the scores with clients drop somewhat as credit has tightened in the last 12 months. Banks shrinking limits on open lines of credit, credit card companies doing the same, or closing accounts completely are things that will have a negative impact on your credit score.
Lending money, be it on a mortgage or credit card, is all about risk. Will the lender be paid back on time? What is the risk of not being paid back? What is the risk of the borrower paying just interest and not principal? Don’t expect lending to get any easier any time soon.
If the prospect of a new mortgage, either through a refinance or a purchase is a real possibility in the next 6 to 12 months, I advise clients to look at credit now, so there is enough to time to take whatever steps necessary, if any, to get the score as high as possible.
That’s the mortgage story in Ephrata, PA and beyond!!