Mortgage Rate Update For June 4, 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 4.500% (unchanged)
7/1 ARM 5.000% (unchanged)
10/1 ARM 5.375% (unchanged)
CONFORMING (up to $417,000)
30 yr Fixed 4.750% (down 1/8)
15 yr Fixed 4.250% (unchanged)
5/1 ARM 3.500% (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 = 5.22%, 15yr = 4.44%, 5/1 = 3.68%
:: Market Update ::
This morning, the Jobs Report for May was delivered and it was a complete surprise. The markets were expecting some very strong numbers and instead we got a weak report. 431,000 jobs were created in May which is below the 500,000 expected. However, 411,000 of those jobs were temporary census workers so the true numbers were not very good at all. There was also a negative adjustment to previous months reports. The unemployment rate did drop, we are now at 9.7%.
On the news, stocks took a tumble and the bond market rallied. Further helping the bond market is more news from Europe, this time from Hungary. It is being reported that the financial situation there is pretty bad and we are starting to see the ‘Greece effect’ all over again.
Rates remain very low, but next week there is a large Treasury Auction which could weigh on Mortgage pricing.
Private Mortgage Banker
Wells Fargo Home Mortgage