Bonds are having a good day and this should push rates back down to last week’s levels. Consumer confidence came in lower than expected and there was a Treasury auction that was well received. This news has helped mortgage rates.
Also there is a bill up for vote in the Senate to extend the $8,000 First Time Homebuyer Tax Bill until June 30th. More details this week.
I recommend floating today.
30 Yr FRM 5.00% Up 0.08%
15 Yr FRM 4.43% Up 0.06%
1 Yr ARM 4.54% Down 0.06%
5/1 Yr ARM 4.40% Up 0.02%
Rates are up today as we got positive news from Existing Home sales, they were up to 5.57m. Most importantly inventory shrunk to 7.8 month supply, down from 10.1 in April. Bonds have broken thru important support levels, and this is will increase rates even more.
Today I recommend locking.
30 Yr FRM 4.92% +0.05%
15 Yr FRM 4.37% +0.04%
1 Yr ARM 4.60% +0.07%
5/1 Yr ARM 4.38% +0.03%
Mortgage Rates are coming down just a little today after weaker than expected housing reports and inflation numbers that are reasonable. Housing starts and building permit came out today and they were well below expectations. We have talked before about during a recovery the numbers wont continue to climb, they will bounce around each month.
Today I recommend floating, but will keep you posted.
30 Yr FRM 4.92% +0.05%
15 Yr FRM 4.37% +0.04%
1 Yr ARM 4.60% +0.07%
5/1 Yr ARM 4.38% +0.03%
Mortgage Rates are down just a little from their highs yesterday. Again the stock market is driving this as stocks are down from poor reports from GE, IBM and BofA.
Industrial Production and Capacity Utilization were reported better than expectations. These are positive signs from the economy. However what stocks are directing everything including bonds and rates.
I recommend floating today. Be sure to go to www.facebook.com/lukesmortgage and become a fan for a chance to win a new iTouch. Contest ends 10-21.
30 Yr FRM 4.87%
15 Yr FRM 4.33%
1 Yr ARM 4.53%
5/1 Yr ARM 4.35%
Mortgage rates are pushing back to lower levels after the beating they took last Friday. The decline in the stock market due to poor earnings reports has helped bonds and therefore interest rates.
I recommend floating today.
On Monday, October 5th, the White House came very close to endorsing an extension for the First Time Homebuyer Tax Credit. The White House Press Secretary said it had been a very successful program and is on a “short-list” of measures being considered to help further bolster the economy in its recovery. The likely-hood for an extension of the Tax Credit has been significantly improved (as much as 90% likely to pass). There has been no indication of the Tax Credit being revised that would increase the credit above the already available $8000 limit or offered beyond first-time homebuyers within the qualifying guidelines.
What does this mean?
Unless the Tax Credit provision is made a “stand-alone” bill or attached to an existing bill, a continuation in the program may mean there would be a lapse in availability for First Time Homebuyers, possibly in early December - since tax bills usually move at the end of the year (late December).
It is speculated that a steep drop in home prices may unravel as the current First Time Homebuyer Tax Credit is left to expire December 1st, further denying economic recovery.
If extended, the $8000 Tax Credit program would cost the government approximately $1 billion for each month it is extended as talks are in place that would determine how long it will be extended.
Further details on the possible extension of the First Time Homebuyer Tax Credit will be published when they become available.
30 Yr FRM 4.87% -0.07%
15 Yr FRM 4.33% -0.03%
1 Yr ARM 4.53% 0.04%
5/1 Yr ARM 4.35% -0.07%
The bond market had a bad day yesterday with the Treasury Auction that wasn’t well received. That has carried into today as well. Rates seem to be poised for another move higher. Since we are back near historic lows there are really only one way for rates to go, and that is up.
I have been asked my many followers of this blog to post actual interest rates. However that is so difficult to do given the rate adjustments for Loan To Value, Credit Score, etc. So what I have decided to do is post the National Average mortgage rate. Please understand it is possible to get a higher or lower interest rate than this given the individuals' situation.
I recommend locking today, and remember the markets are closed on Monday for Columbus Day.
Mortgage rates are headed up this morning on the news that the Reserve Bank of Australia has increased their benchmark interest rate. This is a sign that the global economy seems to be headed in the right direction. Which is not good news for mortgage rates.
This news has also given new legs to the stock market, which is further bringing down the price of bonds.
I recommend locking today.
Mortgage rates are down a little from the beginning of the week. The stock market hasn’t performed well this week and that has benefited Mortgage bonds. Today the Labor Dept reported that 263k jobs were lost in Sept. That is a higher number than was expected. In addition the unemployment rate went up to 9.8%. We will continue to see up and down numbers like this as the economy recovers.
Today I recommend locking and taking advantage of the gains earlier in the week.
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