Mortgage Market Update

This is going to be a quick update for a couple of reasons:

• My schedule is kind of crazy today.
• The major economic news for this week is coming tomorrow through the end of the week.

So what’s happening?

• Rates have improved quite nicely today, mainly because the World Bank downgraded many economies and said that the world is going to take a lot longer to pull out of the economic slump we’re in.
• This has put pressure on the stock markets and the bond markets have improved quite nicely.

So what do I expect going forward?   Let’s put it this way:

Take  your seasickness pills now!Seriously folks, we’re in for a volatile week.   With the Fed, several economic reports and some pretty big Treasury auctions coming up, the volatility is going WAY up.

 

Recommendation:   Lock all loans - the downside potential is signficantly less than the upside risk.

Here’s a couple of samples of what I’m quoting today:

$300,000 purchase with 20% down, 30 year fixed with 0 pts with a credit score of 740 = 5.50%

$200,000 rate and term refi with 20% equity, 30 year fixed with .125 pts and a credit score of 740 = 5.75%

$270,000 FHA purchase with 3.5% down and a credit score of 640 and 1 pt = 5.375%

All APR’s available upon request.

Have a good day and keep in touch.

June 22, 2009