Mortgage Rate Update for March 5, 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 4.875% (unchanged)
15 yr Fixed 4.250% (unchanged)
5/1 ARM 3.625% (unchanged)
10/1 ARM 4.375% (unchanged)
CONFORMING + LOANS (417,001 – $729,750)
Purchase and no cash out, use conforming rates add up to 1/2 point fee at closing.
These price adjusters are subject to change
Prime Rate = 3.250% (unchanged)
APR: 30 yr = 5.23%, 15yr = 4.55%, 5/1 = 4.25%, 10/1 = 5.22%
Today, the employment numbers were released and they were better than expectations. The unemployment rate is 9.7% – this includes some upward revisions to last month’s figures.
In Fed news, we are one week closer to the end of the MBS purchase program. This past week, the Fed purchased $10B in Mortgage Backed Securities, leaving just $34B remaining in the budget. There has been lots of speculation as to what will happen to rates once the purchasing stops. Rates are not expected to skyrocket but it seems reasonable that they will go up around 1/2 %.
Private Mortgage Banker
Wells Fargo Home Mortgage