Mortgage Rates Predictions | 30 Fixed 5.625% 15 Fixed 5.375% FHA 5.500%

 

The US Trade deficit was significantly wider than expectations this morning.  Even with the Initial Jobless claims beating expectations, the Fannie Mae Mortgage Backed Securities are +12bp currently.  We ended the day yesterday with about +26bp so long term mortgage rates have seen some benefit.  The credit tightening has shown no signs of letting up in regards to mortgage lending.  United Guarantee [the Mortgage Insurance Company] sent notification yesterday that they will be making major overhauls to their mortgage insurance guidelines.  All of St. Louis will now be considered a declining market, limiting loan to values [LTV] to 90%.  They require a 680 credit score for conventional loans to $417,000.  Also, they will no longer insure cash out, A-Minus, Limited Doc, Second Homes, Condos, Investment Properties, Arms, and will require 5% down payment from the buyers own funds [no gifts or grants].  Let’s hope everyone doesn’t follow suit with this overreaction.  I recommend locking and closing if you are in a position to.

30 Fixed/apr | 5.625%/5.725%

15 Fixed/apr | 5.375%/5.475%

FHA/apr | 5.5%/5.95%

 

ADP National Employment Report for March

 

ADP Employment Report | Reported 8,000 | Est -23,000 | Prior -23,000 | ELEVATED

The better than expected Employment Report has given stocks another reason to rally.  Mortgage Bonds are currenlty down -25bp on the day.  The ADP report is not always accurate, but analyst are expecting better employment numbers on Friday now. 

grauteam | mortgage update 1.7.2008

Today continued the FNMA 30 Year Mortgage bonds rally. The last 7 sessions have closed positive for mortgage bonds. Rates are knocking on the door of 5.625%. Read more

grauteam | mortgage update 12.27.2007

This has been a pretty light week for economic reports. Bonds have been taking their direction from Stocks. The Case-Shiller Price Index for October showed a 6.1% decline in home prices. Read more

grauteam | mortgage update 12.17.2007

Rates have risen back to a 5 week high. Expect more volatility since the Fed is caught between fighting inflation and preventing a recession. Friday’s Personal Consumption Expenditure [ PCE ] Report confirms if inflation remains under to 2% and could be the deciding factor on future rate cuts. Read more

grauteam | mortgage update 12.10.2007

We have had another extremely volatile week for Mortgage Rates and it has continued today. Tomorrow the FED meets to decide policy on the Fed Funds Rate. We are banking on a .50bp rate cut.  Read more

grauteam | mortgage update 12.03.2007

Rates have not been this good in 26 months ! Friday’s jobs report will be the deciding factor on how much the Fed Cuts its rate December 11 th . Read more

grauteam | mortgage update 11.19.2007

Interest Rates are continuing to improve today. They have not been this good since November 2, 2007 and are still very close to the lowest rates we’ve seen in 07.  Read more