There are two big events that will dominate economic headlines this week and set the stage for the direction of mortgage rates for the near future. The first is this month’s payroll report, due at the end of the week. Employment numbers have been slowly improving over the past few months, and a bigger than anticipated number could cause rates to spike. The consensus prediction on Bloomberg is for a gain of 204,000 jobs in February.
The second big event involves – surprise – Greece. This Thursday is the due date for Greece’s swap-offer deadline. 75% of private borrowers need to vote in favor of the deal in order for it to move forward. The details are complicated, and quite frankly, somewhat boring, but the point is this: there is the potential for a major market moving event on Thursday. It is very difficult to predict what will happen here, but if this deal falls apart, there will be major ramifications on our financial markets.
I think the whole week will be a run-up to these two events, and I don’t believe that we will see much movement in rates until Thursday. We will see the standard fluctuations in rates, but I think they will remain largely range bound as everyone holds their breath for Thursday.
While we do not know what is going to happen, there is the distinct potential that we could see higher rates at week’s end. If you’re looking to get a new mortgage in the near future, it may make sense to lock your rate now to avoid the risk of rising rates.
Some of Our Most Popular Rates and Products*:
|Mortgage Product||Mortgage Rates||APR|
|30 Year Fixed Conventional Mortgage||3.625%||3.741%|
|20 Year Fixed Conventional Mortgage||3.500%||3.661%|
|15 Year Fixed Conventional Mortgage||3.125%||3.331%|
|30 Year Fixed FHA Mortgage||3.625%||4.975%|
|15 Year Fixed Conforming Jumbo||3.500%||3.670%|
|30 Year Fixed Conforming Jumbo||4.375%||4.474%|
|5/1 Adjustable Rate Mortgage||2.375%||2.752%|
|5/1 Adjustable Rate Conforming Jumbo Mortgage||2.750%||2.711%|
***Mortgage fluctuate all the time. The above rates were quoted at 1:10 A.M., on March 5, 2012. Call 877-868-2503 for more details.***
Today’s News, Links, and stuff I’m reading:
WSJ: Fed Takes a Break to Weigh Outlook. If I had to guess, I would say that QE3 is more likely than not. I think the expectation is baked into the price of MBS and bonds to the point where if it doesn’t happen (if the Fed explicitly rules it out), we will see a spike in rates. The WSJ article says that “Fed officials aren’t very worried about inflation right now”. I wonder if those Fed officials have been to the grocery store lately, because prices certainly seem to be rising there.
Barry Ritholtz: U.S. Economic Recovery: Signs of Acceleration? There are signs that things are getting better, but housing continues to be a problem.
Credit Slips: No Mortgage Deal but Banks Get Free Pass. Still no settlement term sheet. I believe it was due at the end of February.
Washington Post: Holder Expected to Explain Rationale for Targeting U.S. Citizens Abroad.
NYT: Finding Your Book Interrupted… By the Tablet you Read it on. This does happen. For me, the jury is still out on reading books on tablets.
Reuters: Out of Intensive Care, Europe Risks Chronic Illness. I’m not even convinced that the Euro Zone is “out of the emergency ward”, as this article stipulates.
Bloomberg: Greek Debt Swap Will Test Europe’s Crisis Control. Thus far their crisis management has been somewhat lacking. I’m not sure why it would suddenly get better.
Housing Wire: Barclays: Housing Supply Could Normalize in 2014. I will take the over on this one.
Las Vegas Sun: State AG Says Settlement Won’t Stop Investigation. Nevada AG Catherine Cortez Masto on the foreclosure settlement.
ProPublica: Fed Shrugged Off Warnings, Let Banks Pay Shareholders Billions. In late 2010, the FDIC did not want the biggest banks to pay dividends. The Fed allowed them to do so anyway.
CNN: Observers Slam Russian Vote as Putin Declares Victory. “The point of an election is that the outcome should be uncertain. This was not the case in Russia.” Was there anybody that thought this was going to be an actual fair election?
Trib.com: Wyoming House Advances Doomsday Bill. “Wyoming would need to implement its own military draft, raise a standing army, and acquire strike aircraft and an aircraft carrier.”
* 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.