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  1. Mortgage Rates Continue To Sit At Near-Historic Lows

    By on May 27, 2010

    Extremely low mortgage rates are still available at Total Mortgage Services, LLC Thursday, as they continue to be offered at near-historic low levels.

    The 30-year fixed conventional mortgage is at a 4.375 percent rate and 4.583 percent APR. Additionally, the 30-year fixed jumbo mortgage is currently seeing a 5.125 percent rate and 5.336 percent APR, and the 30-year FHA is down at a 4.250 percent rate and 5.178 percent APR.

    On the financial front yesterday there was some decent economic data, as some signs of stability in Europe put pressure on bond prices, bumping yields upward by 3-6 bp across the curve. Also, new home sales were up to their largest point in two years, due largely to the first-time home buyer tax credit which expired at the end of last month.

    In other news, the five-year Treasury note auction found moderate demand and the first-quarter GDP growth estimate was lowered from 3.2 percent to 3.0 percent. Weekly jobless claims dropped slightly but were still elevated, and durable goods orders unexpectedly tailed off.

    Current mortgage rates are updated regularly at TotalMortgage.com, in addition to daily analysis on mortgage industry happenings and other economic news which the website offers.

    At 9:15 am on May 27, 2010, these mortgage rates were being offered at Total Mortgage:

    Loan Type Rate APR
    30-Year Fixed Conventional 4.375% 4.583%
    20-Year Fixed Conventional 4.250% 4.535%
    15-Year Fixed Conventional 3.875% 4.236%
    30-Year Fixed FHA 4.250% 5.178%
    30-Year Fixed Jumbo Mortgage 5.125% 5.336%
    15-Year Fixed Jumbo Mortgage 4.000% 4.352%
    5/1 ARM Conforming Mortgage 2.875% 3.323%
    5/1 ARM Jumbo Mortgage 3.500% 3.265%
    1/1 ARM Conforming Mortgage (0 Points) 3.150% 3.922%
    1/1 ARM Jumbo Mortgage (0 Points) 3.150% 3.794%

    For a full list of mortgage rates and mortgage products visit TotalMortgage.com for additional information.

    * All rates shown are for 30 day rate locks. Longer locks available. The APR for conventional loan amounts is calculated using a loan amount of $417,000, 2 points, a $495 application fee, $500 loan processing fee, $715 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, $500 loan processing fee, $715 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, $500 loan processing 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 and are subject to mortgage approval. All rates are subject to change without notice.

    Category: Mortgage Rates

  2. Mortgage Rates Likely To Drop Even Lower As Worries Grow Over Markets

    1 By on May 25, 2010

    Mortgage rates are likely drop today, which bodes well for home buyers who are in the market for a 30-year fixed conventional mortgage, 30-year FHA home loan or 5/1 ARM conforming mortgage.

    Stocks have opened considerably lower Tuesday, with continuing concerns about the European debt crisis and newer worries about the Korean peninsula, where tension is rising between North and South Korea. Stocks in the European and Asian markets were down 3 percent today.

    Bond prices rose slightly yesterday and yields on the long end of the curve managed to hit one-year low points. The long bond’s yield is nearing 4 percent and the two-year Treasury note is approaching its December low.

    At Total Mortgage Services, the  30-year fixed conventional is currently at 4.375 percent, the 30-year FHA is at 4.250 percent and the 5/1 ARM conforming mortgage is at 3.000 percent.

    Total Mortgage Services, LLC has some of the lowest current rates on adjustable-rate mortgages, 30-year fixed-rate mortgages, and FHA and jumbo home loans. Current mortgage rates are listed continuously on TotalMortgage.com, as well as daily analysis on mortgage industry news and trends.

    As of 9:30 a.m. on May 25, 2010, the following rates were listed at Total Mortgage:

    Loan Type Rate APR
    30-Year Fixed Conventional 4.375% 4.583%
    20-Year Fixed Conventional 4.250% 4.535%
    15-Year Fixed Conventional 3.875% 4.236%
    30-Year Fixed FHA 4.250% 5.178%
    30-Year Fixed Jumbo Mortgage 5.125% 5.336%
    15-Year Fixed Jumbo Mortgage 4.000% 4.352%
    5/1 ARM Conforming Mortgage 3.000% 3.367%
    5/1 ARM Jumbo Mortgage 3.500% 3.291%
    1/1 ARM Conforming Mortgage (0 Points) 2.950% 3.722%
    1/1 ARM Jumbo Mortgage (0 Points) 2.950% 3.722%

    For a full list of mortgage rates and mortgage products visit TotalMortgage.com for additional information.

    * All rates shown are for 30 day rate locks. Longer locks available. The APR for conventional loan amounts is calculated using a loan amount of $417,000, 2 points, a $495 application fee, $500 loan processing fee, $715 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, $500 loan processing fee, $715 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, $500 loan processing 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 and are subject to mortgage approval. All rates are subject to change without notice.

    Category: Mortgage Rates

  3. Fed Won’t Sell Assets Until Interest Rates Are Raised

    By on May 24, 2010

    federal_reserve1The Federal Reserve released its 2009 annual report Monday and indicated it would not begin selling off any of the assets it bought in to boost the economy in 2009 until it has started to raise interest rates. This includes more than $1.1 trillion in mortgage-backed securities.

    The Fed will not sell the assets until the economy is clearly in recovery mode. This bodes well for people in the home buying market, as mortgage rates are likely to remain at appealing low levels.

    “The Federal Reserve currently does not anticipate that it will sell any of its securities holdings in the near term, at least until after policy tightening has gotten under way and the economy is clearly in sustainable recovery,” the Fed reported on its website today. “To help reduce the size of its balance sheet and the quantity of reserves, the Federal Reserve is allowing agency debt and MBS to run off as they mature or are prepaid”.

    Following the cut of interest rates to near-zero levels at the end of 2008, the Fed started buying mortgage-related debt to stimulate the slumping economy by providing liquidity to the markets in order to encourage lending. The Fed increased the amount of credit it made available to the economy from roughly $900 billion to about $2.3 trillion.

    As of last week, the Fed had $1.12 trillion in the holdings of mortgage-backed securities and $167.6 billion of agency debt securities. Selling these holdings would tighten both short-term and long-term interest rates.

    “Asset sales by the Federal reserve would serve to raise short-term interest rates and tighten monetary policy by reducing the level of reserve balances; in addition, such sales could put upward pressure on longer-term interest rates by expanding the supply of longer-term assets available to investors,” the Fed stated in its report.

    The Fed expects the recovery from the current recession to take a prolonged amount of time – as evidenced by the unemployment numbers that continue to rise and sagging home values – so low interest rates will likely remain in place for an “extended period”.

    Category: Mortgage Rates

  4. April Home Sales Rise With Boost From First-Time Home Buyer Tax Credit

    1 By on May 24, 2010

    People attempting to beat the first-time home buyer tax credit deadline of April 30 helped push existing-home sales up 7.6 percent last month to a seasonally-adjusted annual rate of 5.77 million units. That was an increase from the rate of 5.36 million units for March, according to the National Associate of Realtors.

    The first-time home buyer tax credit offered home buyers an $8,000 incentive if they had a deal signed prior to the end of last month.`

    Lawrence Yun, the chief economist for NAR, said the gain was widely anticipated. “The upswing in April existing-home sales was expected because of the tax credit inducement, and no doubt there will be some temporary fallback in the months immediately after it expires, but other factors are also supporting the market,” he said. “For people who were on the sidelines, there’s been a return of buyer confidence with stabilizing home prices, and improving economy and mortgage interest rates that remain historically low.”

    It’s also worth mentioning that the median existing-home price for all housing types was $173,100 in April – up 4 percent from the same time year ago, and that distressed home accounted for one-third of all the sales.

    Total Mortgage president John Walsh believes the tax credits had a positive impact on the U.S. housing market.

    “On the whole, the tax credit had a very positive effect on the housing market. It was a key factor, along with both mortgage rates and housing affordability being near record lows, that helped stabilize the housing market at a time when support was needed,” said Walsh. “Over the last few months, our company experienced a sharp increase in purchase loans that we attribute primarily to the tax credits.”

    Walsh has also surmised that it is now a good time for the housing market to function without any tax-credit support.

    “The credits had already been offered twice, and any time the government subsidizes a program for too long, there is a possibility to create market inefficiencies,” says Walsh. At some point, the housing market needs to stand on its own, and artificially supporting the market for too long may simply prolong the recovery process.”

    Home sale numbers will likely be robust through May and June as well, as people who had deals in place prior to the April 30 deadline have until June 30 to close on them.

    Home buying activity could slow down later in the summer, particularly if a tax credit isn’t reintroduced.

    Category: Mortgage Rates

  5. Mortgage Rates Still at 2010 Lows To Start Week

    By on May 24, 2010

    Mortgage rates remained steady at their lowest points of 2010 last week, but could start moving higher from their near-historic lows at some point in the foreseeable future.

    Bond prices fell moderately Friday, while stocks, the Euro and non-gold commodities all moved higher at the end of last week. The Euro fell in early trading today, after the Spanish central bank’s takeover of savings bank CajaSur. The move indicates how weak the banking sector is in some European states.

    There wasn’t any significant financial news over the weekend, though the economic calendar for this week will be active, with the Treasury set to auction of two, five, and seven-year notes beginning tomorrow. Additionally, existing homes sales data comes out this morning, followed by Case Shiller home prices on Tuesday.

    Total Mortgage Services, LLC offers some of the lowest current rates on 30-, 20 and 15-year fixed-rate mortgages, FHA and jumbo home loans, as well as 5/1 and 1/1 ARM conforming mortgage. Current mortgage rates are updated regularly on Total Mortgage’s website, as well as daily analysis on mortgage industry news and trends.

    As of 9:30 a.m. on May 24, 2010, the following rates were listed at Total Mortgage:

    Loan Type Rate APR
    30-Year Fixed Conventional 4.375% 4.583%
    20-Year Fixed Conventional 4.250% 4.535%
    15-Year Fixed Conventional 3.875% 4.236%
    30-Year Fixed FHA 4.250% 5.178%
    30-Year Fixed Jumbo Mortgage 5.125% 5.336%
    15-Year Fixed Jumbo Mortgage 4.000% 4.352%
    5/1 ARM Conforming Mortgage 3.000% 3.367%
    5/1 ARM Jumbo Mortgage 3.500% 3.291%
    1/1 ARM Conforming Mortgage (0 Points) 2.950% 3.722%
    1/1 ARM Jumbo Mortgage (0 Points) 2.950% 3.722%

    For a full list of mortgage rates and mortgage products visit TotalMortgage.com for additional information.

    * All rates shown are for 30 day rate locks. Longer locks available. The APR for conventional loan amounts is calculated using a loan amount of $417,000, 2 points, a $495 application fee, $500 loan processing fee, $715 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, $500 loan processing fee, $715 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, $500 loan processing 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 and are subject to mortgage approval. All rates are subject to change without notice.

    Category: Mortgage Rates

  6. Mortgage Rates Still Down As Home Loan Demand Wanes

    By on May 20, 2010

    Current mortgage rates continue to hover at 2010 low points today and the National Mortgage Bankers Association reports mortgage purchase applications fell to their lowest level in 13 years last week.

    The primary reason for the recent dearth of applications is the expiration of the first-time home buyer and repeat home buyer tax credit, which ended on April 30. Most people who have been in the market for a home purchase in recent months scrambled to beat the tax credit deadlines.

    Nonetheless, the low rates still make this an opportune time for home buyers who are still in the market to purchase a new home, or are considering refinancing their existing mortgage.

    Total Mortgage Services, LLC currently has the 30-year fixed conventional mortgage at 4.375 percent, the 20-year fixed at 4.250 and the 15-year fixed at 3.875 percent. The 30-year fixed FHA sits at 4.375 percent. These are the lowest rates of 2010.

    The 30-year fixed jumbo is at a 5.125 percent rate and the 5/1 ARM conforming mortgage is currently sitting at 3.000 percent.

    Total Mortgage is listing some of the lowest current rates on 30-year fixed-rate mortgages, FHA mortgages, jumbo mortgages and adjustable-rate mortgages in the industry and originates loans in over 20 states. Current mortgage rates are updated continuously on Total Mortgage’s website, in addition to daily insight and perspective on mortgage industry news and trends.

    As of 9:30 a.m. on May 20, 2010, the following rates were listed at Total Mortgage:

    30-Year Fixed Conventional 4.375% Rate 4.583% APR
    20-Year Fixed Conventional 4.250% Rate 4.535% APR
    15-Year Fixed Conventional 3.875% Rate 4.236% APR
    30-Year FHA 4.250% Rate, 5.178% APR 4.250% Rate 5.178% APR
    30-Year Fixed Jumbo Mortgage 5.125% Rate 5.336% APR
    15-Year Fixed Jumbo Mortgage 4.000% Rate 4.352% APR
    5/1 ARM Conforming Mortgage 3.000% Rate 3.367% APR
    5/1 ARM Jumbo Mortgage 3.500% Rate 3.291% APR

    For a full list of mortgage rates and mortgage products visit TotalMortgage.com for additional information.

    * All rates shown are for 30 day rate locks. Longer locks available. The APR for conventional loan amounts is calculated using a loan amount of $417,000, 2 points, a $495 application fee, $500 loan processing fee, $715 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, $500 loan processing fee, $715 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, $500 loan processing 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 and are subject to mortgage approval. All rates are subject to change without notice.

    Category: Mortgage Rates

  7. Extremely low mortgage rates continue to hold steady

    By on May 19, 2010

    Mortgage rates continue to remain at exceptionally low rates at the start of business Wednesday. This is great news for people in the market looking to purchase a new home or seeking to refinance an existing mortgage.

    Last week at Total Mortgage Services, LLC, the 30-year fixed conventional fell from 4.500 percent to 4.375 percent, the 20-year fixed conventional was lowered from 4.375 percent to 4.250 and the 15-year fixed conventional dropped from 4.000 percent to 3.875 percent. The 30-year fixed FHA also went down to 4.250 percent from its previous 4.375 percent listing.

    The 30- and 15-year fixed jumbo mortgages, 5/1 ARM conforming or 5/1 ARM jumbo mortgage have all held steady at their respective rates the past couple weeks.

    Current mortgage rates are updated continuously on Total Mortgage’s website, in addition to daily insight and perspective on mortgage industry news and trends.

    As of 9:30 a.m. on May 19, 2010, TotalMortgage.com was offering the following mortgage rates:

    30-Year Fixed Conventional 4.375% Rate, 4.583% APR

    20-Year Fixed Conventional 4.250% Rate, 4.535 APR

    15-Year Fixed Conventional 3.875% Rate, 4.236% APR

    30-Year FHA 4.250% Rate, 5.178% APR

    30-Year Fixed Jumbo Mortgage 5.125% Rate, 5.336% APR

    15-Year Fixed Jumbo Mortgage 4.000% Rate, 4.352% APR

    5/1 ARM Conforming Mortgage 3.000% Rate, 3.367% APR

    5/1 ARM Jumbo Mortgage 3.500% Rate, 3.291% APR

    For a complete listing of rates and mortgage products visit TotalMortgage.com.

    * All rates shown are for 30 day rate locks. Longer locks available. The APR for conventional loan amounts is calculated using a loan amount of $417,000, 2 points, a $495 application fee, $500 loan processing fee, $715 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, $500 loan processing fee, $715 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, $500 loan processing 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 and are subject to mortgage approval. All rates are subject to change without notice.

    Category: Mortgage Rates

  8. Total Mortgage President John Walsh Analyzes Tax Credits And Housing Markets

    By on May 18, 2010

    Total Mortgage Services, LLC president John Walsh was recently quoted in a question-and-answer piece about the effects of the first-time home buyer and repeat home buyer tax credits, and how the housing market is likely to respond now that the programs are over.

    Walsh’s insightful analysis is currently posted on the Mortgage Orb website.

    Among the highlights from the article, Walsh says, “the tax credit had a very positive effect on the housing market. It was a key factor, along with both mortgage rates and housing affordability being near record lows, that helped stabilize the housing market at a time when support was needed.”

    Walsh also surmises that it may have been a good time to let the tax credits expire. “The credits had already been offered twice, and any time the government subsidizes a program for too long, there is a possibility to create market inefficiencies. At some point the housing market needs to stand on its own, and artificially supporting the market for too long may simply prolong the recovery process.”

    Among other highlights of the article, Walsh delves into his outlook on where home prices are headed, and whether or not he believes the home credits will be reintroduced at a later point in time.  The entire article is available at MortgageOrb.com.

    About Total Mortgage Services

    Total Mortgage Services, LLC is an industry leading direct mortgage lender and mortgage broker, with over 25,000 satisfied customers, and having funded over $4 billion in mortgage loans since 1997. Licensed in over twenty states, Total Mortgage offers a variety of mortgage products and programs including fixed-rate loans, adjustable-rate loans (ARMs), jumbo loans, FHA mortgages, and more. Visit the company’s website for today’s current mortgage rates.

    Category: Mortgage Rates

  9. Fannie Mae Sees Increasing Mortgage Rates Through 2011

    By on May 17, 2010

    mortgage-rates4Today Fannie Mae’s Economics and Mortgage Market Analysis Group published its May 2010 Economic Outlook, and the prognosis was mostly positive.  The report said that a strengthening labor market along with increases in consumer spending and manufacturing have set the scene for slow but steady economic improvement.  Their optimism was tempered by the uncertainty of the situation in Europe, a continued weak housing  market, and economic effects of the Gulf of Mexico oil spill.

    Fannie Mae reports a steady increase in mortgage rates, and that 30-year fixed rate mortgages will hit 5.4 percent by the end of 2010 and 5.8 percent by the end of 2011. They also predict the yield on 10 year treasury notes, the basis for interest rates in the United States to increase steadily and reach 4.2 percent by the end of 2011.

    The report stated: “we have revised up our projected economic growth for the rest of the year based on strong momentum coming out of the first quarter and an improving job market, but our expectations for continued softness in housing, following the expiration of home buyer tax incentives stay in place”.  Recent reports have indicated that despite low mortgage rates, mortgage purchase applications plummeted following the expiration of the tax credit on April 30th.  Consumers who signed a purchase contract prior to April 30th still have until June 30th to close on their home and qualify for the tax credit.  For this reason, home sales will likely increase in May and June.  The real test for the housing market will come in July when the effects of the tax credit have totally evaporated.

    The report predicts the economy to grow at 3.6 percent through 2010, however unemployment will stay north of 9.6 percent through the end of 2010, and the jobless rate will still be as high as 8.6 percent through 2011.

    Regarding the federal stimulus, the Fannie report said: “The boost to growth from inventories will continue to diminish in coming quarters and any impact of the federal fiscal stimulus will fade in the second half of 2010.  In order for the expansion to be durable, final sales must strengthen to replace waning contributions from inventories and fiscal stimulus”.

    The report also warned that the European debt crisis “poses significant risk to the forecast” and that “no estimate of the magnitude of the effect [of shadow inventory on home sales and prices] is available”.  The report cautions that these situations in addition to the oil spill in the Gulf of Mexico “increase downside risks to the base forecast”.

    Do you agree with Fannie’s assessment of the economy?  Let us know in the comments section below.


    Category: Mortgage Rates

  10. Crisis in Europe Causes Short Term Mortgage Rate Decline

    2 By on May 17, 2010

    mortgage-rates2Markets continue to be jittery today as traders are concerned that a $1 trillion bailout package will not be enough to prevent defaults by debt-encumbered European nations.  The ramifications of default would be widespread, as the intertwined nature of European banking means that apparently stable German and French banks hold hundreds of billions of dollars in debt from troubled countries such as Portugal, Greece, and Spain.

    It is important to bear in mind that the bailout package was intended to protect French and German banks from default risk as much as help debt-ridden countries.  There are fears that soveriegn defaults could result in a dissolution of the Euro currency, which is already close to a four year low against the dollar.

    The debt contagion in Europe was the catalyst for a series of events that have resulted in mortgage rates dropping to the lowest levels in 2010.  The average rate on a 30-year fixed rate mortgage fell to 4.93 percent at the end of last week.

    Just a few months ago, it was considered fait accompli that the Federal Reserve would raise interest rates sometime before the end of the year.  Just a month ago, futures markets showed a 73 percent possibility that the Fed would raise rates by the end of 2010.  That number has fallen to 40 percent because of the crisis in Europe.

    Banks are reluctant to engage in overnight lending.  American Money markets have reduced lending to European banks and are demanding higher returns in exchange for increased risk.  As a result of this, the Federal Reserve opened currency swap lines with Europe last week. The currency swap lines provide the European Central Bank and other major European banks with liquidity and access to funding.  Analysts believe the Fed’s willingness to open swap lines shows they are focused on global recovery and not raising rates.

    Chicago Fed president Charles Evans has been in favor of low interest rates, with the warning they will increase over time.  Now he says “The risks, obviously, with the global situation make things a little bit more uncertain than we were expecting.  If anything, I’m even more comfortable with my assessment that [interest rate] accommodation continues to be appropriate”.

    Although rates have been driven to 2010 lows and the Federal Reserve appears unlikely to tighten monetary policy any time soon, events in Europe could indirectly cause mortgage rates to go up eventually.  As the supply of overnight loans for European banks has dried up, the overnight rate has increased.  One measure of the overnight rate, the London Interbank Offered Rate (LIBOR) is increasing steadily.  This could have direct implications on rates in the United States because LIBOR is the basis for many mortgage rates and credit card interest rates.

    The other ramification of increased short-term borrowing costs is that they might force lenders to cut back on lending, which would have an adverse effect on the global economic recovery.

    Are you bearish or bullish on interest rates?  Let us know in the comments section below.

    Category: Mortgage Rates

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