January 20, 2012 by Leave a comment

Mortgage rates increased yesterday, rising off their all-time lows, and I expect that rates will either stay the same or rise slightly today.  Stocks rallied yesterday on decent earnings reports and somewhat firm economic data (although housing starts declined somewhat, initial jobless claims improved significantly).  Stocks are rising while mortgage backed securities and treasury bonds are selling off again today.  There are rumors that Greece is close to a deal with its creditors (although it seems as though that deal will include a significant haircut for investors in Greek debt), which could be buoying stocks today.  There was also an article in the Wall Street Journal by Jon Hilsenrath that suggests that the Fed will hold off on a third round of quantitative easing, at least for the near future.

The next FOMC meeting occurs on January 24-25, and the Fed is expected to more clearly communicate its objectives as part of a new policy of transparency.  It is most likely that the Fed will engage in QE3 if the economy falters, and recent economic reports seem to indicate that the economy is slowly improving.  Many Fed officials have indicated over the past few months that QE3 would come in the form of MBS purchases, which would drive rates lower, and the market knows this.  Almost certainly the expectation of QE3 is already baked into the price of MBS and treasury bonds.  If the situation in Europe improves, and if inflation stays around 2%, the Fed could back off another round of MBS purchases.  I suspect that the seemingly decreased probability of QE3 is part of the reason for the recent sell-offs.

In any case, now is a great time to lock in a rate that is still near record lows.  Call us today at 877-868-2503 to speak with a fully licensed mortgage professional.  Lower home payments could be as simple as a phone call.  

Some of Our Most Popular Rates and Products*:

Mortgage Product Mortgage Rates APR
30 Year Fixed Conventional Mortgage 3.625% 3.741%
15 Year Fixed Conventional Mortgage 3.000% 3.205%
30 Year Fixed FHA Mortgage 3.625% 4.976%
30 Year Fixed Jumbo Mortgage 4.625% 4.742%
5/1 Conforming ARM Mortgage 2.375% 2.916%
5/1 Jumbo ARM Mortgage 2.625% 2.996%

***Mortgage rates change often. The above rates were quoted at 1:00 P.M., on January 20, 2012. Call 877-868-2503 for more details.***

Today’s News and Links:

NY Times: A reprieve for unemployed borrowers.

HousingWire: Mortgage originations down 20% at big four banks in 2011.  I don’t think we will see much of a rebound in 2012, either.

Yahoo: Rate on 30-year mortgage down to record 3.88 pct. Record low rates are becoming fairly routine at this point.

Zerohedge: Guess the politician… and follow the money.  This is sad and unacceptable.  We need publicly financed campaigns.  Immediately.

Reuters: Greece, creditors move closer to deal in race against time.  March 20th is the big default date.

LA Times: U.S. website blackout draws praise in China.  At some point, you would imagine there will be significant changes in China.  How long can you keep 1.2 billion people from freedom?

The Big Picture: Residential write downs, starts, remodels. “The usual bottom callers are out yet again, unrepentant and shameless after getting it wrong for 5 consecutive years”.

Yves Smith is on fire today.  Below are three pieces all worth reading:

Call your attorney general today to oppose big Obama push to get mortgage settlement deal done.  

Bending the rule of law to help the banks: effort to draft a national foreclosure statute underway.  

Is the “it takes forever to foreclosure” meme a big bank flattering exaggeration?

Bloomberg: News Corp. “startling” e-mails trigger computer search for hacking clues.

NY Times: Italy finds a heroic foil for its scorned captain. The transcripts of the back and forth between the captain and the coast guard were pretty damning.

Felix Salmon: How much do Apple employees earn?

* 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.

Total Mortgage consistently offers some of the lowest current mortgage rates, jumbo mortgage rates, and fha mortgage rates in the country.


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