Weekly Mortgage Update – April 23, 2010
The following is a mortgage rate update for April 23, 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 5.000% (up 1/8)
7/1 ARM 5.125% (up 1/8)
10/1 ARM 5.250% (unchanged)
CONFORMING (up to $417,000)
30 yr Fixed 5.000% (unchanged)
15 yr Fixed 4.250% (unchanged)
5/1 ARM 3.625% (unchanged)
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 ::
This past week, mortgages reacted to daily market news and had some good and some bad days, netting out close to where we started the week.
News from Greece continues to make headlines, the latest is that deficits may be worse than originally reported. The country has asked the European Union and International Monetary Fund to activate the $45B Euro bailout that has been raised for the country.
In housing news, numbers indicate that the pending expiration of the homebuyer tax credit is causing a spike in purchase volume. It will be interesting to see the numbers next month, to know if the momentum will continue or if the spike is strictly attributed to the tax credit stimulus.
Lastly, the Fed is still considering the possibility of reducing its $1.2 Trillion Mortgage Backed Security (MBS) portfolio by selling. This could start as early as 3rd or 4th quarter of this year. Depending on how the supply is managed, this is likely to put upward pressure on mortgage rates.
Private Mortgage Banker
Wells Fargo Home Mortgage