THE BASIS POINT

Mortgage Rates: Week Ended May 3

After dropping four straight weeks and hitting lows of 2013 (but never closing at record lows), rates rose .125% today after the U.S. added more jobs than expected in April (+165k new nonfarm payrolls) plus March and February were revised higher (114k more than previously reported). Today’s rate spike reverses a monthlong dip that began when March’s jobs report (released April 5) was drastically below expectations.

Rates in 3 tiers shown below as of Friday’s close. Even if MBS markets are even Monday, today’s selloff was so sharp, I expect rates would be slightly worse again.

Also below are a few things: rate recap of last week and 2013 year-to-date, top positive/negative market events last week, and a link to my daily commentary with the MortgageNewsDaily MBS team, which is more action oriented for rate shoppers each day.

CONFORMING RATES ($200,000 to $417,000) 0 POINT:
30 Year: 3.5% (3.62% APR)
FHA 30 Year: 3.25% (3.37% APR)
5/1 ARM: 2.625% (2.745% APR)

SUPER-CONFORMING RATES ($417,001 to $625,500 cap by county) 0 POINT:
30 Year: 3.75% (3.87% APR)
FHA 30 Year: 3.25% (3.37% APR)
5/1 ARM: 2.875% (2.995% APR)

JUMBO RATES ($625,501 to $2,00,000) 1 POINT:
30 Year: 3.625% (3.745% APR)
10/1 ARM: 3.0% (3.12% APR)
5/1 ARM: 2.375% (2.495% 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%. 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.
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Reference:
2013 RATE RECAP

What To Expect Next Week After Friday’s Rate Spike (MortgageNewsDaily)

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

$MBB, $TLT