Mortgage Rate Update for April 2, 2010
The following is a mortgage rate update for April 2, 2010
Terms: (A+ paper)
Purchase money, Owner Occupied, 60 day rate lock, Full Doc.
ALL RATES ASSUME 1 POINT
30 yr Fixed 5.375% (unchanged)
5/1 ARM 4.875% (unchanged)
CONFORMING (up to $417,000)
30 yr Fixed 5.125% (up 1/8)
15 yr Fixed 4.375% (unchanged)
5/1 ARM 3.750% (up 1/8)
10/1 ARM 4.500% (up 1/8)
CONFORMING + LOANS (417,001 – $729,750)
Purchase and no cash out, use conforming rates add up to 1/2 point fee at closing depending on scenario.
These price adjusters are subject to change
Prime Rate = 3.250% (unchanged)
APR: 30 yr = 5.27%, 15yr = 4.66%, 5/1 = 4.44%, 10/1 = 4.99%
:: Market Update ::
It was here and now it is gone…
Since January of 2009, the Fed had been buying up Mortgage Backed Securities in an effort to keep rates low.
They spent $1.25 Trillion and by all accounts, the strategy worked as rates improved by over 1%.
As the program tapered down, rates pushed higher (up 1/4% in the past 2 weeks alone!). As of April 1, the program is officially over…
While rates are still very good, the ‘training wheels’ are off and we can likely expect volatility while rates inch upward.
If you have not yet locked in, you probably should…
In today’s news, the US economy added 162,000 jobs in March. This is very encouraging and represents the biggest one-month pickup in 3 years!
On the news however, Mortgage Bonds traded lower and rates are up. Next week will also be a volatile one as there is $82 Billion in Treasuries to be auctioned.
Markets closed early today in observance of Good Friday.
Have a safe and happy Easter Weekend!
Private Mortgage Banker
Wells Fargo Home Mortgage