Mortgage rates rose last week, finally giving way to several months worth of relatively positive economic data. Will rates continue on their upward trend this week? There are several factors that are going to come into play.
There is not a ton of economic data this week. There are three housing-specific reports – Housing Starts on Tuesday, Existing Home Sales on Wednesday, and New Home Sales on Friday. Additionally, Initial Jobless Claims are published on Thursday. If we see continued economic growth in the published data, we could very easily see rates continue rising this week.
Given the relative lack of reports this week, we could see other pieces of news have a larger than expected impact on the markets. Once again, debt problems are beginning to crop up in Europe. This time Portugal is the country that is front and center. Yields on Portuguese 10-year bonds are now running north of 13%, and there is speculation that Portugal will need more money to meet its financial obligations. In addition to this, there are renewed protests and strikes over austerity measures in Greece. If the situation in Europe devolves further, we could see mortgage rates improve.
This week could be telling for the future of mortgage rates. If we see the upward trend reinforced, it could be a sign that we have left record low rates behind for the time being.
A Few of Our Popular Rates and Products*:
|Mortgage Product||Mortgage Rates||APR|
|30 Year Fixed Conventional Mortgage||3.750%||3.865%|
|20 Year Fixed Conventional Mortgage||3.500%||3.661%|
|15 Year Fixed Conventional Mortgage||3.125%||3.329%|
|30 Year Fixed FHA Mortgage||3.750%||5.092%|
|15 Year Fixed Conforming Jumbo||3.500%||3.670%|
|30 Year Fixed Conforming Jumbo||4.375%||4.474%|
|5/1 Adjustable Rate Mortgage||2.500%||2.476%|
|5/1 Adjustable Rate Conforming Jumbo Mortgage||2.750%||2.711%|
***Mortgage change frequently. These rates were quoted at 12:40 P.M., on March 19, 2012. Call 877-868-2503 for more details.***
Today’s News, Links, and Things I’m Reading:
Housing Wire: Maryland Legislation For Foreclosure Registry Gains Traction.
Washington Post: Monti to Meet Labor Unions Amid Fresh Warning on Euro Crisis. Despite the temporary resolution of the Greek debt issue, things are still very bad in Europe and in need of fundamental change.
Reuters: Apple to Initiate Dividend, Share Buyback. Evidently Apple is sitting on $100 billion in cash.
NYT: Making Sure Your Exit Music is Loud and Clear.
Mashable: AT&T Loses Throttling Case, Pays $935 to Customer. Yeah, that $935 fine is going to teach them a lesson. Now if everyone that gets throttled were to receive a check for $935, that might do something.
NYT: The Banks Win, Again. It’s amazing what lobbyists and a relatively small amount of money can accomplish.
ProPublica: Senate Bill Could Roll Back Consumers’ Health Insurance Savings. Once again, behold the power of lobbying.
Calculated Risk: HARP Update: Fannie Mae Updates Desktop Underwriter. HARP 2.0 is about to start up.
Miami Herald: The Kennedy Assassination: Did Castro Know in Advance?
Popular Science: The Most Amazing Science Images of the Week, March 12-16.
The Atlantic: The Man Who Broke Atlantic City. This is an awesome story.
Slate: Hemingway – How the Great American Novelist Became the Literary Equivalent of the Nike Swoosh.
Washington Post: U.S. Accelerating Cyberweapon Research.
Reuters: NY Mets Owners in $162 Million Madoff Settlement: Judge. The Mets are a disaster.
* All rates shown are for 30 day rate locks. Longer locks are available. The APR for conventional loan amounts is calculated using a loan amount of $417,000, 1 point, a $495 application fee, $400 appraisal fee, $799 underwriting fee and a $16 flood certification fee. The APR for jumbo loan amounts is calculated using a loan amount of $500,000, two points, a $495 application fee, $400 appraisal fee, $799 underwriting fee and a $16 flood certification fee. The APR for FHA loan amounts is calculated using a loan amount of $295,000, two points, a $495 application fee, $450 appraisal fee, $715 underwriting fee and a $16 flood certification fee. Some rates and fees may vary by state. All interest rates listed are for qualified applicants with 720 or higher FICO and 80 LTV and are subject to mortgage approval with full documentation of income. All rates are subject to change without notice. All rates shown are for 30 day rate locks with 1 point unless otherwise noted.