January 24, 2012 by Leave a comment

The Greek debt situation remains the biggest influence on financial markets.

Stocks are down today on negative news out of Greece.  The situation is complicated, but in a nutshell the holders of Greek debt, the Greeks, and the IMF/EU/ECB cannot come to an agreement that is mutually acceptable to all parties involved.  Greek bondholders do not want to accept a haircut as well as a interest rate on new bonds below 4%, while the European monetary powers feel that Greece needs replacement bonds to bear an interest rate below 4%.  At the end of the day, Greek bondholders are going to take a massive haircut, one way or the other. The Greeks are going to default, either in an orderly manner or a disorderly manner, and we could very well see Ireland and Portugal follow suit. I don’t suspect that the markets are going to take this well.

Right now the bond market and mortgage backed securities markets are pretty much flat, and I expect that they will bounce around today, but remain largely range-bound. It is likely that mortgage rates will probably stay in their current range today.  We could see some volatility before tomorrow’s FOMC announcement, but I don’t think anyone is anticipating that the Fed will announce another round of quantitative easing.  The biggest announcement will be the new interest rate and inflation goals, but I don’t think we will see a huge impact on the market one way or the other.

Rates are still sitting close to record lows, so if you are trying to refinance your mortgage or purchase a new home, now is an excellent time to lock in a very low rate.  To speak with one of our licensed mortgage professionals about our rates and products, call us now at 877-868-2503.  Solidify your financial future today.  

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 3.625% 3.780%
15 Year Fixed Conventional Mortgage 3.000% 3.205%
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% 2.437%
5/1 Adjustable Rate Conforming Jumbo Mortgage 2.750% 2.711%

***Mortgage rates change often. The above rates were quoted at 1:15 P.M., on January 24, 2012. Call 877-868-2503 for more details.***

Today’s News and Links:

The Big Picture: Another bad bank/housing deal coming our way. “This deal manages to do just about everything wrong it possibly could.”  This deal is horrible.

Naked Capitalism: Thanks NC readers! Tom Miller says no mortgage deal imminent.  So there may or may not be a deal out there.

NPR: Foreclosure robo-signing deal worries N.Y. official. I really hope Eric Schneiderman sticks to his guns.  Fingers crossed.

Mike KonczalSome notes on a potential foreclosure fraud settlement. This should anger people in the way that PIPA/SOPA did.

Dave Dayen: Mitt Romney’s intriguing comments on foreclosures and strategic defaults. Hmm, sounds like Mitt the businessman just advocated strategic default.

Reuters: The Greek debt talks fall apart. The Greeks, the Greek bondholders, and the EU, ECB, and IMF cannot agree.  Default is coming one way or another, March 20th.

ProPublica: In the gusher of Super PACs, even one named “the internet”. Public campaign financing now.

HousingWire: ASF panel: Expect bulk sales and GSE longevity. “They say Fannie Mae and Freddie Mac will be around for quite some time despite congressional efforts to wind down the government-sponsored enterprises”.  I think all the wind down talk was simply a talking point.  Anyone who has really looked into it knows that it is nearly impossible to get rid of the GSEs without major structural changes to the housing market, most likely including eliminating pre-payable 30 year mortgages.

LA Times: Starbucks to add beer, wine to menu at select coffee shops. Evidently they’ve been selling wine and beer at some locations in Seattle and Portland since 2010.  Who knew?

BostonRealEstateNow: Retaining walls. Before I built a wall I’d ask to know/What I was walling in or walling out.

Washington Post: Federal Reserve to disclose more details on plans for low interest rates.

* 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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