Mortgage Rates: Week Ended February 8

Mortgage bonds (aka MBS) that rates are tied to opened materially worse (rates up) this morning, then reversed to regain about half of their losses. Rates closed today even vs. last week, marking two weeks full of wild daily rate swings that ultimately end even. Benchmark mortgage and Treasury securities that are important for consumer rates are trading at levels where there is room to drop a lot more if they dip even a little more. Rates will rise more if this happens.

Rates as of Friday’s close below, which are .375% higher than record lows last touched 1/15 and 1/16.

It’s worth noting that higher rates apply more to conventional loans in the first two “conforming” tiers below (the loans to $417,000 and to $625,500). The jumbo loans above $625,500 and the FHA loans are more steady because the MBS markets for those loans are a bit more favorable.

More details coming in my WeeklyBasis report. Follow on twitter to stay tuned.

In the meantime, below is a link to my daily commentary along with the MortgageNewsDaily MBS team and Barry Ritholtz’s quick list of the week’s good and bad U.S. economic events/data.

CONFORMING RATES ($200,000 to $417,000) 0 POINT:
30 Year: 3.625% (3.745% APR)
FHA 30 Year: 3.25% (3.37% APR)
5/1 ARM: 2.5% (2.62% APR)

SUPER-CONFORMING RATES ($417,001 to $625,500 cap by county) 0 POINT:
30 Year: 3.625% (3.745% APR)
FHA 30 Year: 3.375% (3.495% APR)
5/1 ARM: 2.75% (2.87% APR)

JUMBO RATES ($625,501 to $2,00,000) 1 POINT:
30 Year: 3.5% (3.62% APR)
10/1 ARM: 3.125% (3.245% APR)
5/1 ARM: 2.5% (2.62% APR)

Lower or higher rates apply to specific borrower and property profiles. Lower or higher rates available using tax deductible points or zero-cost transactions. These rates assume full doc pricing on Single Family Home purchase loans for borrower with 740 FICO score or greater, at least 20% equity (unless FHA), and 6-12 months reserves left over after close (retirement assets counted at 60% of value for reserves). ARM rates adjust the first month after initial fixed period shown, and once per year thereafter until year 30. Adjusted rate calculated by adding 2.25% margin to 1yr LIBOR index at time of adjustment. At first adjustment LIBOR+margin cannot exceed start rate+5%, subsequent yearly adjustments can never be greater than 2% per year, total of all adjustments for 30yr life of loan can never exceed start rate+5%. Jumbos shown as range since they’re less market sensitive and change randomly based on lender pricing competition. Rates based on loan amount ranges shown and rates available at the time of production. Rates aren’t a loan commitment nor a loan guarantee, and are subject to change without notice.

*Conventional Super-Conforming cap = $625,500. FHA Super-Conforming cap = $729,750.
Mortgage Rates Back In Line With Recent Highs (MortgageNewsDaily)

Succinct Summation Of The Week’s Events (Barry Ritholtz, The Big Picture)