These Historic Rates Continue

I've been seeing 30 year fixed rates as low as 4.75% with 15's around 4%!  It's been this good for a while so what's going on?  The expression "misery loves company" has some meaning in this instance.  I mean the confluence of the European debt situation along with our stock market rollercoaster has put a lot of jitters in the general financial world.  This is bad for investors but good for interest rates as people/institutions gobble up our treasury offerings whose apparent safety is very attractive right now.  I mean we are in striking distance of the lowest rates in history.  What a time to act!!

Holy Cow, Have You Looked At Rates Lately?!!

Mama Mia, the European sovereign debt situation, namely Greece, has put a tailspin on the Euro and caused a "flight to quality" safe haven status for the our treasury offerings, in other words huge demand.

When this happens interest rates DROP.  I'm seeing 30 rates at 4.625% to 4.75% almost as good as the glory days two years ago. I'm also seeing 15 years at 4 to 4.125%!!

The banks also seem to be getting back into the JUMBO business with good fixed rates and exceptional ARMs.

Let me know if you want to take advantage of this special situation.

Cheers, Guy.

P.S. I passed my national exam last week now on to the state.

Tomorrow's the Big Day

Yes, according to the new federal S.A.F.E. act I will be taking my required national mortgage licensing test tomorrow morning.  Even though being a mortgage broker has been my profession for the past 14 years I will comply the new requirements.  This test covers mortgage knowledge, ethics, federal law and standard practices and consists of 100 questions of which one must score a 75 or higher.  Other requirements are 20 hours of education with an annual booster of 8 hours, the state test, background check, fingerprints and credit report.  I can't wait.  These requirements are in addition to the new RESPA requirements which went into force Jan. 2010 including the new Good Faith Estimate which in my opinion is much more confusing to the general public than the old one. What's the expression?  "we're from the government and we're here to help"!!??

Rates are still super low, in the 4's for a 30 and low 4's for a 15.

Would love to talk to you.

The Recipe For Mortgage Rates

Mortgage rates are the result of all financial data assimilated and boiled down to their essence.  Most importantly, the value of the dollar, the demand for our treasury bonds by investors including other countries, general economic conditions- usually good news drives rates up and vice versa, stability of the Euro (Greek crisis).  All of these underlying factors affect the price of mortgage backed securities off of which mortgage interst rates are determined.

Anyway, rates are still  DOWN due to the apparent "safe haven" status of the US bond market.  4.875% for a 30 year was seen today on most of our rate sheets with 15's in the mid-fours.

Cheers