WeeklyBasis 09/08/03: September Stock Selloff Helps Rates

Before rate comments this week, I wanted to let you know about the “Residential Pacific Mortgage 15 Day Close.” My internal bank (which serves only RPM loan agents) will close your loans in 15 days, or all mortgage banking fees will be waived. The rate snapshot below is for reference the week of September 8, 2003. Rates have improved by about 0.25% since last Monday. On a $600k loan, this is about $100 per month in savings. Macroeconomic picture: Historically, investors move from stocks to bonds in September, which drives rates down. However, economic projections for the next two quarters are positive, which means rates may come up-but it also means the job market will stabilize, supporting the purchase market.

Conforming ($50K – $322,700K) – NO POINTS
30 Year: 6.0% (6.14% APR)
15 Year: 5.375% (5.515% APR)
5/1 ARM: 5.0% (5.15% APR)

Jumbo ($322,701 – $650,000) – NO POINTS
30 Year: 6.375% (6.515% APR)
15 Year: 5.75% (5.89% APR)
5/1 ARM: 5.0% (5.15% APR)