Fed. Ceases Support But Rates Hang In There

Today marked the last day of Fed. support (buying) of US mortgage backed securities.  The market reacted with a .25% hike but hopefully that will be the extent of it.  Supposedly the exiting of the Fed. will open up the market to private investors who will fill the gap with not much slippage in rates.

30 year fixed, 5%
15 year fixed, 4.25%
5 year ARM, 3.875%

Call me about our great jumbos.

The Return of Jumbos

In addition to outstanding regular (up to $417,000) mortgage rates currently running about 4.875%, the banks are beginning to come back to JUMBO (over $417,000 up to 1.5M)  mortgages with quite good rates.  We are seeing 30 year fixed jumbos at about 5.625% and jumbo ARMS at 4.875% (30 year loan with the rate fixed for the first 5 years)!! 

Back to regular rates,15 years are running about 4.125%.  Again these rates will creep up starting soon.

My wine pick for this broadcast is Marietta Old Vine Red, Lot 51. (at the Liquor Barn)

Cheers, Guy.

Your Guy In The Mortgage World

Well,

Let's start with interest rates. Today I saw 30 year fixed rates still at 4.875% (subject to underwriting) with 15 year rates at close to 4%!  You can get below 4% with a 5 year ARM (30 year loan with the rate fixed for the first 5 years) if your time frame is short.  Again, the Fed. has said they will slowly withdraw support (keeping these rates low) in the near future so if you have been considering a refinance, don't wait forever.

Those tax credits, $8000 for first time buyers and $6500 for buyers are due to expire the end of April (conract date) and close by the end of June.

There are really good buying opportunities out there including short sales.  A short sale is where the bank is willing to sell the property for less than what is owed on it.  We are processing one on a house worth $520,000 and the bank is letting it go for $390,000.   Foreclosure Myths: 77 Secrets to Making Money on Distressed Properties, also try the Fannie Mae web site and RealtyTrac.com both good sources.

Last night I had Trader Joe's "Thousand Layer Crackers".  These come individually wrapped and are outragously delicious!  Try them for a real treat.  Even better with a little melted blue cheese on them.

Happy St. Patty's Day to all!

Your Rates For March 3, 2010

This week's low rates continue with:

30 fixed, 4.875%, owner occupied
15 year fixed, 4.5%, owner occupied
5 year ARM, 4%, owner occupied

...yes we have great jumbos in the 4's and 5's....

(rates subject to underwriting and market fluctuations)