Mortgage Rates


#264

My preapproval that got renewed last week said 4% as well, but this is for primary.


#265

#266

Although linked to a WaPo article, the original source is Freddie Mac - here: http://www.freddiemac.com/pmms/

Couple of very important contextual items about this article:

  1. This data is a week old. so today is +.125% higher for the most part.
  2. This data assumes .50 in points to get that rate. Want a zero point cost loan? +.125% to your rate
  3. It’s all about Conforming Loan Rates. Most Banks use their Jumbo products in lieu of Conforming whenever possible so -.375 in some cases.

So… a zero point Conforming is closer to 4.875%-4.750%, with Jumbo rates ranging in the 4.625%-4.500% range. Buying an investment home? Brace for low to mid 5’s now. The trend at present is not a home buyers friend. Many clients are taking short term shelter in 5 and 7/1 year ARM products, waiting for the next pushdown in rates. Some say it could be sooner than later for this to happen. We’ll see…

Thanks for reading,

LoansbyJW


#267

Agreed! I took the 7 years fixed option…


#268

John,

Basically, mortgage follows 10 year rate which is market driven.Is this adjusting (expecting) next week rate hike?


#269

10yr T is an indicator of the direction mortgage rates are being driven, but not necessarily a 1-1 analog. Prices for Mortgage Backed Securities (MBS’s) Bank profit margins, and other factors go into creating the rate that’s delivered to the consumer. For example, refinance mortgage loans tend to have a higher rate than purchase loans. The speads between the two loan types vary daily from as little as .125 to as much as .375 no matter which direction the 10yr T is headed…

When the Fed moves the rates they control, some mortgage rates are impacted - ARMs first, Fixed rates later. The trend at present is higher, driven by anticipated Fed moves, but also capital flows from Mortgages to Stocks. Great that AAPL went up today, but so did Mortgages, trying to pull investment dollars back to their corner.

Thanks for reading,

LoansbyJW


#271

For 30 years fixed 4.65%
For 15 years fixed 4.11%
ARM is 3.92%


#272

With no cost and no points? Which bank/lender if you can share.


#273

That data is from the Freddie Mac Primary Mortgage Market Survey. If you read this after 9/26/18 the data will change, likely for the worse.

Depending on property type, loan to value, and banking relationships, most of the “biggies” are about .125 to .25% better than Freddie Mac’s average numbers. As noted before YMMV.

Thanks for reading,


#274

Ok, hope we pass this test…


#275

Better keep that 2.5% loan, dragonboy…


#276

What are the current rates cash out refinance.

Do you guys have recommendations. I already messaged @sfdragonboy for her contact. Can you share your experience.


#277

I do not know current rates, but check with Bank of America, they do cash out for investment properties, possibly lowest ever I heard (mine was done 6 months before at 4.25% investment cash out)


#278

Lowest 4.125% from WFC.


#279

when was it ?


#280

Few weeks ago


#281

Loading up on aapl?


#282

Secret.
Remember the blood in the street principle :grinning:
I want more blood :face_with_hand_over_mouth:


#283

Finally…

https://www.cnbc.com/2018/11/08/fed-leaves-rates-unchanged.html