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Posts Tagged Year Fixed Mortgage

Have Refis Run Out?

The average rate on the 30-year fixed mortgage is up about a half a percentage point since the middle of February, when they hit a record low. Mortgage refinances, however, dropped 24 percent in the same period of time. That's a huge reaction to a small move from a record low.

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Daily Rate Update: 8/10/2011

Average Mortgage Rates
 TODAYYESTERDAYCHANGE
30 Yr FRM 4.10 4.18 -0.08%
15 Yr FRM 3.56 3.60 -0.04%
FHA 30 Year 3.96 4.00 -0.04%
Jumbo 30 Year 4.59 4.61 -0.02%
5/1 Yr ARM 3.15 3.18 -0.03%
» View Current Mortgage Rates
» Compare Mortgage Rates
Updated: 8/10/11 6:41 PM
Aug 10, 2011 6:40PM

Mortgage Rates: Sharp Improvements

We experienced some wild price swings today but consumer borrowing costs improved in the end. In many cases those improvements were significant. CURRENT MARKET *: The BestExecution 30-year fixed mortgage rate is between 4.00 and 4.250%. More lenders are willing to offer 4.00% and 4.125% is widely available. On FHA/VA 30 year fixed BestExecution is 4.00%. Some lenders are willing to quote 3.875% without extra closing costs. 15 year fixed conventional loans are best priced at 3.625% but we're seeing...

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Daily Rate Update: 8/9/2011

Average Mortgage Rates
 TODAYYESTERDAYCHANGE
30 Yr FRM 4.18 4.23 -0.05%
15 Yr FRM 3.60 3.62 -0.02%
FHA 30 Year 4.00 4.04 -0.04%
Jumbo 30 Year 4.61 4.68 -0.07%
5/1 Yr ARM 3.18 3.19 -0.01%
» View Current Mortgage Rates
» Compare Mortgage Rates
Updated: 8/9/11 5:06 PM
Aug 9, 2011 4:57PM

Mortgage Rates: Even More Nuts!

We've used the word "nuts" in the past to describe extra volatile movements in the mortgage market, but today takes the cake. Many market records were broken following today's Federal Reserve FOMC meeting. The net effect was positive for consumer borrowing costs... CURRENT MARKET *: The BestExecution 30-year fixed mortgage rate is still 4.250%. More lenders are however willing to offer 4.00% and 4.125% is approaching BestExecution status. On FHA/VA 30 year fixed BestExecution is 4.00%. Few lenders...

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Mortgage Rates: Regaining Some Ground

Last week the intense rally in bond markets helped mortgage rates reach their best levels of the year, but the rally came to an end on Friday.  Then on Friday evening, news the S&P downgraded the US Sovereign Debt Rating set a chain of events in motion that completely rocked the markets.  Despite steep losses in stocks and insane rallies in Treasuries, the Secondary Mortgage Market has been more of a bystander today, leaving Home Loan Borrowing Costs slightly better than Friday, but not as good as Thursday.

CURRENT MARKET*: The BestExecution 30-year fixed mortgage rate is 4.250%. Not many lenders are willing to offer 4.00% but 4.125% is available if you're willing to pay additional closing costs.  On FHA/VA 30 year fixed BestExecution is 4.00%. Fewer lenders willing to quote 3.875% (includes additional closing costs).  15 year fixed conventional loans are still best priced at 3.75% and we're still seeing aggressive quotes at 3.625%. Five year ARMs are still best priced at 3.25. ARMs and 15 year quotes seem to have bottomed out. 

It's important that we point out an increased amount of variation in what individual lenders are quoting as their BestExecution rates.  This is a factor of price volatility in the secondary mortgage market. Unfortunately when volatility picks up in the secondary mortgage market, the cost of doing business gets more expensive for lenders (hedging costs go up). Those added costs are usually passed down to consumers via extra margin in rate sheets.

GUIDANCE: We've realized a good portion of the rates rally we'd been holding out for.  And while things could still improve, it's an especially volatile time for the broader markets, meaning lenders have been slow to pass along gains.  Mortgage rates DO NOT like volatility and uncertainty.  Relative to various market levels, rate sheets are conservative yes, but there's no telling when things will get better, and sadly, always a chance that they won't get better at all.  Incidentally, we lean toward the possibility of them getting better, but the timing and flexibility required to capitalize on that possibility makes floating a less attractive choice for most scenarios right now, especially when what's on the table is already so much better than everything else 2011 has to offer and fairly darn close to all time low rates. 

CAUTION: MND guidance is speculative in nature. We don't have a crystal ball, we can't predict the future, we can only share our outlook. Making the following considerations extra important........................

What MUST be considered BEFORE one thinks about capitalizing on a rates rally?

   1. WHAT DO YOU NEED? Rates might not rally as much as you want/need.
   2. WHEN DO YOU NEED IT BY? Rates might not rally as fast as you want/need.
   3. HOW DO YOU HANDLE STRESS? Are you ready to make tough decisions?

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*BestExecution is the most cost efficient combination of note rate offered and points paid at closing. This note rate is determined based on the time it takes to recover the points you paid at closing (discount) vs. the monthly savings of permanently buying down your mortgage rate by 0.125%. When deciding on whether or not to pay points, the borrower must have an idea of how long they intend to keep their mortgage. For more info, ask you originator to explain the findings of their "breakeven analysis" on your permanent rate buy down costs.

*Important Mortgage Rate Disclaimer: The BestExecution loan pricing quotes shared above are generally seen as the more aggressive side of the primary mortgage market. Loan originators will only be able to offer these rates on conforming loan amounts to very well-qualified borrowers who have a middle FICO score over 740 and enough equity in their home to qualify for a refinance or a large enough savings to cover their down payment and closing costs.If the terms of your loan trigger any risk-based loan level pricing adjustments(LLPAs), your rate quote will be higher. If you do not fall into the"perfect borrower" category, make sure you ask your loan originator for an explanation of the characteristics that make your loan more expensive."No point" loan doesn't mean "no cost" loan. The best 30year fixed conventional/FHA/VA mortgage rates still include closing costs such as: third party fees + title charges + transfer and recording. Don't forget the fiscal frisking that comes along with the underwriting process

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Daily Rate Update: 7/21/2011

Average Mortgage Rates
 TODAYYESTERDAYCHANGE
30 Yr FRM 4.68 4.64 0.04%
15 Yr FRM 3.80 3.77 0.03%
FHA 30 Year 4.38 4.34 0.04%
Jumbo 30 Year 5.04 4.99 0.05%
5/1 Yr ARM 3.27 3.28 -0.01%
» View Current Mortgage Rates
» Compare Mortgage Rates
Updated: 7/21/11 4:11 PM
Jul 21, 2011 4:19PM

Mortgage Rates: Unfavorable Risks

Home loan borrowing costs increased today, basically to the high side of their recent "sideways" range. Lenders continue to price their loans from a defensive posture. These are generally unfavorable conditions for fencesitters. The market's "path of least resistance" is toward higher rates.... CURRENT MARKET *: The "BestExecution" conventional 30-year fixed mortgage rate is 4.625%. Some lenders are offering 4.50%. On FHA/VA 30 year fixed "BestExecution" is 4.375% and in some cases 4.25%. Strong...

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Daily Rate Update: 7/13/2011

Average Mortgage Rates
 TODAYYESTERDAYCHANGE
30 Yr FRM 4.59 4.60 -0.01%
15 Yr FRM 3.75 3.78 -0.03%
FHA 30 Year 4.33 4.33 0.00%
Jumbo 30 Year 4.96 4.97 -0.01%
5/1 Yr ARM 3.25 3.25 0.00%
» View Current Mortgage Rates
» Compare Mortgage Rates
Updated: 7/13/11 4:33 PM
Jul 13, 2011 4:11PM

Mortgage Rates: BestEx on Edge

Home loan borrowing costs moved slightly lower today. This is the fourth consecutive day where borrowing costs have declined in the primary mortgage market. With this positive progress, we're now teetering on a shift lower in Best Execution* quotes... CURRENT MARKET *: The "Best Execution" conventional 30-year fixed mortgage rate is 4.625%. While this was the case last week, few lenders were readily quoting it. More lenders were instead offering 4.75% (extra margin in rate sheets). But when taking...

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Refinancing Drop an Ill Wind for Housing Recovery

Does anyone remember when the rate on the 30-year fixed mortgage was up around 8 percent? I do. Perhaps that's why it continues to stun me that a tiny shift in our now ultra low rates can have a huge effect on consumer activity, namely refinancing.

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Daily Rate Update: 5/25/2011

Average Mortgage Rates
 TODAYYESTERDAYCHANGE
30 Yr FRM 4.69 4.70 -0.01%
15 Yr FRM 3.98 3.98 0.00%
FHA 30 Year 4.38 4.40 -0.02%
Jumbo 30 Year 5.18 5.18 0.00%
5/1 Yr ARM 3.30 3.30 0.00%
» View Current Mortgage Rates
» Compare Mortgage Rates
Updated: 5/25/11 5:22 PM
May 25, 2011 5:06PM

Mortgage Rates: Still Aggressive. Still Sideways

Home loan borrowing costs are still hovering near six-month lows but forward progress continues to be challenging. We've described the recent behavior of mortgage rates as "sideways" after running into "The Wall". This was the case once again today as there is no change to report in borrowing costs. Take a look at THIS CHART for a visual of how rates have hit "The Wall." CURRENT MARKET : The "Best Execution" conventional 30-year fixed mortgage rate remains a state of flux between 4.75% and 4.625...

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Daily Rate Update: 5/2/2011

Average Mortgage Rates
 TODAYYESTERDAYCHANGE
30 Yr FRM 4.77 4.76 0.01%
15 Yr FRM 4.10 4.09 0.01%
FHA 30 Year 4.57 4.58 -0.01%
Jumbo 30 Year 5.32 5.33 -0.01%
5/1 Yr ARM 3.43 3.43 0.00%
» View Current Mortgage Rates
» Compare Mortgage Rates
Updated: 5/2/11 4:29 PM
May 2, 2011 4:42PM

Mortgage Rates: Aggressive But Not Better

Home loan borrowing costs ended last week near their most aggressive levels of the year. Little has changed from Friday...check out this chart of home loan borrowing costs. CURRENT MARKET : The "Best Execution" conventional 30-year fixed mortgage rate is 4.875%. If you are looking to move down to 4.75%, this offer carries higher closing costs but could be worth it to applicants who plan on keeping their new mortgage outstanding for longer than the next 10 years. Some lenders are pricing loans more...

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Daily Rate Update: 4/27/2011

Average Mortgage Rates
 TODAYYESTERDAYCHANGE
30 Yr FRM 4.83 4.82 0.01%
15 Yr FRM 4.14 4.12 0.02%
FHA 30 Year 4.65 4.64 0.01%
Jumbo 30 Year 5.42 5.42 0.00%
5/1 Yr ARM 3.48 3.48 0.00%
» View Current Mortgage Rates
» Compare Mortgage Rates
Updated: 4/27/11 5:06 PM
Apr 27, 2011 4:26PM

Mortgage Rates: Stuck in Familiar Territory

Today's much anticipated high risk event, the FOMC Statement and subsequent press conference, leaves fence-sitters unscathed as no changes in home loan borrowing costs were seen before or after headline news was released. Best Execution 30-year fixed mortgage rates are the same as they were yesterday. Those who locked ahead of the event didn't "miss out" on additional gains. Those who've been more inclined to float received no reward for doing so... CURRENT MARKET : The "Best Execution" conventional...

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