Rates were down .25% last week—dropping below 4%—on a surprise Fed announcement that they’d buy mortgage bonds to support housing. Below is a recap of last week and a preview of next week to see if rate lows will hold. How Rates Dropped Below 4% Markets got the expected Operation Twist announcement Wednesday—a Fed plan
WeeklyBasis
CONFORMING RATES ($200,000 to $417,000) 0 POINT: 30 Year: 3.875% (3.995% APR) FHA 30 Year: 3.75% (3.87% APR) 5/1 ARM: 3.0% (3.12% APR) SUPER-CONFORMING RATES ($417,001 to $625,500 cap by county) 0 POINT: 30 Year: 4.125% (4.24% APR) FHA 30 Year: 3.875% (3.995% APR) 5/1 ARM: 3.875% (3.995% APR) JUMBO RATES ($625,501 to $2,00,000) 1
Rates were up .125% last week, rising off record lows touched briefly the week before. Is this the start of a rising trend? Unlikely given weak U.S. economic fundamentals, but volatility will continue as markets reconcile U.S. data with Europe’s debt crisis. Below I cover how Europe affects U.S. rates, recap rates last week and
Below are how rates ended the last two weeks. They’re net even over the two-week period: down .125% week ended September 9 then up .125% week ended September 16. Rates shown in three tiers—loans to $417k, loans to $625k, loans to $2m—along with fine print on the rates shown. Reminder: the middle tier of rates
Rates dropped .125% last week. This after dropping three straight weeks beginning July 25 then staying flat two weeks. The downtrend began with awful Q2 (and Q1 revised) GDP, then a mediocre-at-best July jobs report, then S&P’s U.S. downgrade. Below are specifics on this rate downtrend, plus September’s rate outlook. RECORD LOW FOR 10YR NOTE
CONFORMING RATES ($200,000 to $417,000) 0 POINT: 30 Year: 4.125% (4.245% APR) FHA 30 Year: 4.125% (4.245% APR) 5/1 ARM: 3.0% (3.12% APR) SUPER-CONFORMING RATES ($417,001 to $625,500 cap by county) 0 POINT: 30 Year: 4.375% (4.495% APR) FHA 30 Year: 4.25% (4.37% APR) 5/1 ARM: 3.875% (3.99% APR) JUMBO RATES ($625,501 to $2,00,000) 1
Week-over-week, rates are even. But they’re slightly higher this morning than Friday as stocks extend Friday’s gains. Below is this week’s economic snapshot, click image for details. So far today we’ve had consumer spending and inflation as well as pending home sales. Spending was rebounding early summer but has backed off in past two weeks,
CONFORMING RATES ($200,000 to $417,000) 0 POINT 30 Year: 4.25% (4.37% APR) FHA 30 Year: 4.25% (4.37% APR) 5/1 ARM: 3.0% (3.12% APR) SUPER-CONFORMING RATES ($417,001 to $729,750 cap by county) 0 POINT 30 Year: 4.5% (4.62% APR) FHA 30 Year: 4.25% (4.37% APR) 5/1 ARM: 3.875% (3.99% APR) JUMBO RATES ($729,751 to $2,00,000) 1
Rates ended even last week, capping off a three week down trend. Below I discuss the direction of rates from these record low levels. But first, a word on rate headlines vs. reality. Nearly all ‘record low’ rate headlines hit Thursdays. That’s the day Freddie Mac releases its weekly rate survey covering the previous week.
CONFORMING RATES ($200,000 to $417,000) 0 POINT 30 Year: 4.25% (4.37% APR) FHA 30 Year: 4.25% (4.37% APR) 5/1 ARM: 3.25% (3.37% APR) SUPER-CONFORMING RATES ($417,001 to $729,750 cap by county) 0 POINT 30 Year: 4.375% (4.495% APR) FHA 30 Year: 4.25% (4.37% APR) 5/1 ARM: 3.875% (3.995% APR) JUMBO RATES ($729,751 to $2,00,000) 1
CONFORMING RATES ($200,000 to $417,000) 0 POINT 30 Year: 4.25% (4.37% APR) FHA 30 Year: 4.25% (4.37% APR) 5/1 ARM: 3.25% (3.37% APR) SUPER-CONFORMING RATES ($417,001 to $729,750 cap by county) 0 POINT 30 Year: 4.375% (4.495% APR) FHA 30 Year: 4.25% (4.37% APR) 5/1 ARM: 3.875% (3.995% APR) JUMBO RATES ($729,751 to $2,00,000) 1
Rates dropped .125% last week continuing an unpredictable three-week down trend. The first catalyst was awful GDP data two Fridays ago, then last Friday began with a questionable jobs report and ended with S&P downgrading the U.S. This picture I took best describes last week’s stunning volatility. Net result: mortgage bonds up, rates down. But
CONFORMING RATES ($200,000 to $417,000) 0 POINT 30 Year: 4.25% (4.37% APR) FHA 30 Year: 4.25% (4.37% APR) 5/1 ARM: 3.00% (3.12% APR) SUPER-CONFORMING RATES ($417,001 to $729,750 cap by county) 0 POINT 30 Year: 4.375% (4.495% APR) FHA 30 Year: 4.25% (4.37% APR) 5/1 ARM: 3.5% (3.62% APR) JUMBO RATES ($729,751 to $2,00,000) 1
CONFORMING RATES ($200,000 to $417,000) 0 POINT 30 Year: 4.25% (4.37% APR) FHA 30 Year: 4.25% (4.37% APR) 5/1 ARM: 3.00% (3.12% APR) SUPER-CONFORMING RATES ($417,001 to $729,750 cap by county) 0 POINT 30 Year: 4.375% (4.495% APR) FHA 30 Year: 4.25% (4.37% APR) 5/1 ARM: 3.5% (3.62% APR) JUMBO RATES ($729,751 to $2,00,000) 1
Rates dropped .125% last week after a string of bad economic reports. Rates touched all-time lows momentarily Thursday after a six-day mortgage bond rally, then retreated (but held 2011 lows) after a less bad July jobs report Friday. After Friday’s close, S&P downgraded U.S. debt one notch from AAA to AA+ with the promise of
Rates dropped .125% last week after a string of bad economic reports. Rates touched all-time lows momentarily Thursday after a six-day mortgage bond rally, then retreated (but held 2011 lows) after a less bad July jobs report Friday. After Friday’s close, S&P downgraded U.S. debt one notch from AAA to AA+ with the promise of
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