Current Mortgage Rates for Tuesday, February 28, 2012
This week is highlighted by a lot of economic reports that could potentially cause mortgage rates to rise. This morning, three reports were released, and two of the reports were weaker than anticipated. As a result, we will likely see mortgage rates stay flat or improve somewhat.
Durable Goods orders were shown to have declined by 4% in January, which is the largest decline in three years. While this is worse than expected, it is important to realize that Durable Goods orders tend to be very volatile month-t0-month. This report, while very weak, is not the end of the world. The S&P/Case-Shiller Home Price Index was also released this morning, and it showed that home prices in December fell by 4% from the previous year, and by 1.1% from November. I believe that we are in for even more home price declines in the coming year in most markets. I will have more on this later, but there is a massive amount of shadow inventory fed by foreclosures (and more foreclosures are on the way), and there is still a paucity of demand for homes. Lastly, Consumer Confidence increased by more than anticipated in February. Confidence is at a one year high, but I don’t know how long that is going to last if gas prices continue to spike.
These three negative reports should prevent rates from rising today. Despite the reprieve, I still believe we could see rates rise gradually in the near future. GDP is reported tomorrow, and there are a variety of economic reports due out on Thursday. Favorable numbers could cause rates to rise.
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 1:00 P.M., on February 28, 2012. Call 877-868-2503 for more details.***
Today’s News and Links:
WSJ: For the costliest homes, foreclosure comes slowly.
ProPublica: What do republican presidential candidates say on foreclosure crisis? Not much.
BBC: S&P declares Greek “selective default” after bailout. I feel like the ratings agencies are the ultimate Monday Morning Quarterbacks.
Calculated Risk: Durable goods orders decline 4% in January. This is down from a 2.3 percent gain the month before. This is the biggest decline in three years, but durable goods orders can be volatile month-to-month.
Felix Salmon: It’s time for OpenTable to think about diners. I, too, hate calling restaurants to make reservations.
Adam Levitin: Robosigning 2.0: coming to a foreclosure review near you. As always, good stuff from the Professor.
Esquire via Longform.org: What do you think of Ted Williams now? This is generally recognized as one of the best Esquire articles of all time, along with Frank Sinatra Has a Cold.
Dave Dayen: Walker won’t contest signatures in Wisconsin, recall virtually assured. This recall election is going to define the term “bitterly contested.”
Bloomberg: U.S. home prices decline 4%, more than forecast. Year-over-year losses of 4% in December.
Liz Goodwin: Fighting drugs and border violence at Arizona’s Organ Pipe Cactus National Monument. I think I will be skipping this particular national park.
* 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.