Mortgage Market Update

So here we are early on a Friday afternoon and it’s time to take a look at what’s going on in the market today……

I’m not going to go into great detail because I’ll be writing my Mortgage Market Week in Review later today and that will tell you more.   But here goes:

Rates have eased off a bit today.  We’re at:
5.875% with .125 pts for a 30 year refi
5.625% with 0 pts for a 30 year purchase
5.375% with .125 pts for a 15 year refi
5.125% with 0 pts for a 15 year purchase

All of those assume a credit score of 740 or above and a 30 day rate lock.

I’ll write more later, but it appears a couple of things are happening:

• the bond market had a good day on Thursday.   This was reflected in today’s pricing.
• consumer sentiment was better than expected.

Is this the “curve” that we’ve been talking about?   Is the upward trend over?

Not so fast.   We’re a long ways from over with the upward pressure on interest rates.

Recommendation:
I’m still recommending that you lock all loans as quickly as possible.   The risks are still, in my mind, predominantly on the upside, but I’m changing to a 70/30 stance.   I think there’s a 70% chance that rates will go up in the near term and a 30% chance that they’ll go down.

Hope that helps, have a good day and if you haven’t already, go to the box on the left and sign up for my Mortgage Market Week in Review so you can get my weekly thoughts on what’s going on in the market.

June 12, 2009