The Industry Report

Daily Mortgage Rate Update: September 9, 2008

Yesterday was one heck of a day in the mortgage industry! News of the Freddie Mac/Fannie Mae bail-out brought on lower interest rates and why wouldn't it...with a significant reduction in risk, both lenders and investors are feeling ever so confident. Here's where we currently stand...

Current Mortgage Rates: [Updated]

Conforming Loan Amounts = Loan Amounts Below $417,000
($400,000 Loan Amount | 80% CLTV | 680+ FICO)

30-Year Fixed Rate Mortgage
5.75% (5.853 APR)

15-Year Fixed Rate Mortgage
5.375% (5.547 APR)

5/1 Adjustable Rate Mortgage
5.375% (5.450 APR)

7/1 Adjustable Rate Mortgage
5.875% (5.978 APR) 

*Disclaimer: Equal opportunity lender. Interest rates are subject to change upon changing market conditions and are also subject to change upon borrower qualification. Contact me directly to verify pricing.

Contact me for pricing on Adjustable Rate Mortgages as well as for pricing on loan amounts above $650,000.

Lock/Float Recommendation: The conservative nature in me says if 5.75% works, lock it! There's room to float, for now, but check back in and/or contact me to verify pricing and look for any changes to rates.
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Additional Articles of Interest:

Is Mortgage Insurance (MI) Tax Deductible?

Gift Money for Down-Payment

Daily Mortgage Rate Update: August 20, 2008

Rumors of a Fannie/Freddie bail-out are shifting investor's money out of stocks and into bonds. Fed President Gary Stern believes that Fannie & Freddie should change their business models and focus on servicing lower- to middle-income home buyers (this would help reduce the size of their loan portfolios).

Remember, Stocks and Bonds compete for the same investment dollar. This means that investors can choose to invest their money in the Bond Market or they can choose to invest their money in the Stock Market.

When there exists additional money being invested into these vehicles (Bonds via Mortgage-Backed Securities), interest rates no longer need to be as high in order to attract the investment (in other words, rates don't need to be sold at a higher premium, a.k.a. higher rate, to attract investors). Thus, INTEREST RATES ARE LOWER and Lenders see better pricing on their rate sheets! [Read: The Economics of Interest Rates & How They Work]

Lock/Float Recommendation: Float cautiously; for now.

For specific rate information you can call 323.572.8322 or e-mail rbueno@worldwidecredit.com

Daily Mortgage Rate Update: June 6, 2008

Jobless Claims came in yesterday lower than expected; this is typically bad for interest rates. Just have a look...today's 30-year fixed rate mortgage sits at 6.25% here in Los Angeles. That's up from 5.99% just about a week ago.

The rest of the news on tap for today is the Employment Situation. Typically, the lower the number here, the better your Los Angeles mortgage rates. See, non-farm payroll employment tracks the number of paid employees working both part-time and full-time. By tracking this jobs data investors are able to effectively gauge the level of "tightness" in the job market. And if it's evident that wage inflation is a threatening factor, mortgage rates will rise. But we want them to fall, so again, the lower the number the better your mortgage rate.

For now, let's lock-in your mortgage rates at application! And stay tuned for more info...

Current Mortgage Rates:

Conforming Loan Amounts = Loan Amounts Below $417,000
($400,000 Loan Amount | 80% CLTV | 680+ FICO)

30-Year Fixed Rate Mortgage
6.25% (6.379 APR)

15-Year Fixed Rate Mortgage
5.75% (5.875 APR)

5/1 Adjustable Rate Mortgage
5.375% (5.498 APR)

7/1 Adjustable Rate Mortgage
5.625% (5.749 APR) 

*Disclaimer: Equal opportunity lender. Interest rates are subject to change upon changing market conditions and are also subject to change upon borrower qualification. Contact me directly to verify pricing.

Contact me for pricing on Adjustable Rate Mortgages as well as for pricing on loan amounts above $650,000.

Lock/Float Recommendation: Lock-in your mortgage rate at application!

Daily Mortgage Rate Update: May 28, 2008

U.S. stocks closed on gains at the closing bell yesterday. If you recall, Stocks and Bonds compete for the same investment dollar which means that investors can choose to invest their money in the Bond Market or they can choose to invest their money in the Stock Market.

READ: The Economics of Interest Rates & How They Work

As money moves out of the Bond Market, lender's often issue a reprice for the worse (even if it's only a few basis points). Speaking of which I'm going to recommend locking-in your mortgage rate at application in light of the deterioration in the Bond Market after yesterday's news. What's more, the Durable Goods Orders came in negative today though not as bad as analysts expected; the news comes in with a slight decline for Bonds (mortgage rates are up a few basis points).

HERE ARE YOUR CURRENT MORTGAGE RATES TO START THE DAY:

Conforming Loan Amounts = Loan Amounts Below $417,000
($400,000 Loan Amount | 80% CLTV | 680+ FICO)

30-Year Fixed Rate Mortgage
5.990% (6.117 APR)

15-Year Fixed Rate Mortgage
5.5% (5.624 APR)

5/1 Adjustable Rate Mortgage
5.375% (5.498 APR)

7/1 Adjustable Rate Mortgage
5.625% (5.749 APR) 

*Disclaimer: Equal opportunity lender. Interest rates are subject to change upon changing market conditions and are also subject to change upon borrower qualification. Contact me directly to verify pricing.

Contact me for pricing on Adjustable Rate Mortgages as well as for pricing on loan amounts above $650,000.

LOCK/FLOAT RECOMMENDATION: Lock-in your mortgage rate at application!

Daily Mortgage Rate Update: May 14, 2008

Today's big news in the mortgage markets is release of the Consumer Price Index; this is the most widely followed measure of inflation. As the rate of inflation changes, the markets will accordingly adjust interest rates (this includes your mortgage rates).

CPI rose lower than expectations giving us a slight Bond rally (which is often good for interest rates; a.k.a. lower rates) however...currently, Fed officials are still cautioning impending inflation saying that the markets are still unsettled. From Bloomberg:

"The central bank can't be ``complacent about inflation,'' Janet Yellen, president of the Fed Bank of San Francisco, said in a speech yesterday. Recent measures of consumers' outlook for prices ``highlight the risk that our attempts to deal with problems in the real economy could lead to higher inflation expectations and an erosion of our credibility,'' she said."

This news should alert us to lock-in mortgage rates at application since the threat of rising interest rates is possible.

Current Mortgage Rates:

Conforming Loan Amounts = Loan Amounts Below $417,000
($400,000 Loan Amount | 80% CLTV | 680+ FICO)

30-Year Fixed Rate Mortgage
5.875% (5.990 APR)

15-Year Fixed Rate Mortgage
5.375% (5.486 APR)

5/1 Adjustable Rate Mortgage
5% (5.109 APR)

7/1 Adjustable Rate Mortgage
5.5% (5.612 APR) 

*Disclaimer: Equal opportunity lender. Interest rates are subject to change upon changing market conditions and are also subject to change upon borrower qualification. Contact me directly to verify pricing.

Contact me for pricing on Adjustable Rate Mortgages as well as for pricing on loan amounts above $650,000.

Lock/Float Recommendation: Lock-in your mortgage rate at application!

 

Daily Mortgage Rate Update: May 9, 2008

The Balance of Trade was slightly lower for last month...two European banks left rates unchanged to fight against inflation yesterday...new prices of oil and continuing problems within the insurance industry have not been helping Bonds Prices here in the U.S.

What does all of that mean? It means here are your rates today with a recommendation to Lock!

Current Mortgage Rates:

Conforming Loan Amounts = Loan Amounts Below $417,000 ($400,000 Loan Amount | 80% CLTV | 680+ FICO)

30-Year Fixed Rate Mortgage
5.625% (5.725% APR)

15-Year Fixed Rate Mortgage
5.125% (5.275% APR)

*Disclaimer: We are an Equal Opportunity Lender. Interest rates are subject to change upon changing market conditions and are also subject to change upon borrower qualification. Contact me directly to verify pricing.

Contact me for pricing on Adjustable Rate Mortgages as well as for pricing on Jumbo Mortgages (loan amounts above $650,000).

Check back daily for pricing changes!

Lock/Float Mortgage Rate Recommendation: Bond prices are down so Lock your mortgage rate! 

No Big Changes to Mortgage Rates This Week

Freddie Mac released their Primary Mortgage Market Survey today...

"No Big Changes In Mortgage Rates This Week"

From the survey:

"'Once again, mortgage rates held relatively steady this week amid release of subdued economic data," said Frank Nothaft, Freddie Mac vice president and chief economist. "For example, pending existing home sales hit the lowest value since its introduction in January 2001, presaging additional weakness in single-family home sales over the upcoming months. Further, the economy lost 80,000 jobs in March, more than the market had anticipated, and the prior two months were revised downward as well.

Meanwhile, house sales prices have fallen in most metropolitan areas, although there have been price gains in some areas. Just over half of the 150 large cities across the nation experienced negative annual house price growth in 2007, according the National Association of Realtors. The largest yearly drop of 18.8 percent occurred in Lansing, MI, while Cumberland, MD, experienced the strongest growth at 19.0 percent.'"

Daily Mortgage Rate Update: April 7, 2008

We talk about the economics of interest rates and how they work because it's important to understand how certain economic indicators are going to impact your mortgage rate! Knowing when to Lock or Float your mortgage rate can often make the difference between $2,000+ dollars in savings.

Bonds closed 41bp up (which meant improved pricing on our rate sheets) on Friday and ended on a sideways trading pattern. So will rates hold for the week?

We have somewhat of a light week on the economic calendar. Probably the most important item this week is Tuesday's FOMC Minutes; there was two dissenting votes during last week's Fed decisions. We'll keep on eye on whether the FOMC Minutes cause any movement in the markets.

Current mortgage rates:

Conforming Loan Amounts = Loan Amounts Below $417,000
($400,000 Loan Amount | 80% CLTV | 680+ FICO)

30-Year Fixed Rate Mortgage
5.625% (5.752% APR)

15-Year Fixed Rate Mortgage
5.25% (5.374% APR)

*Disclaimer: World Wide Credit Corporation is an Equal Opportunity Lender. Interest rates are subject to change upon changing market conditions and are also subject to change upon borrower qualification. Contact me directly to verify pricing.

Contact me for pricing on Adjustable Rate Mortgages as well as for pricing on loan amounts above $650,000.

Check back daily for pricing changes!

Lock/Float Mortgage Rate Recommendation: Float your mortgage rate, but float cautiously.

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Daily Mortgage Rate Update: April 2, 2008

What are you hearing about the U.S. economy these days?

Buzz words like: depression, credit crisis, mortgage squeeze, price deflation, stagflation...and straight from the horses mouth (Ben Bernanke), recession!

Our Fed Chairman Ben Bernanke testified before a congressional panel today and his hearing is scheduled to continue through to tomorrow. Here's what he had to say, from Yahoo News:

"'A recession is possible...Our estimates are that we're slightly growing at the moment, but we think that there's a chance that for the first half as a whole there might be a slight contraction.'"

You can read the article from MarketWatch for more.

Monetary Policy dictates that in order to fight a recession, you need to increase the growth of money and credit into the economy. This reduces interest interest rates and spurs growth.

Here's where we stand with mortgage rates now:

Conforming Loan Amounts = Loan Amounts Below $417,000
($400,000 Loan Amount | 80% CLTV | 680+ FICO)

30-Year Fixed Rate Mortgage
5.75% (5.878% APR)

Jumbo Loan Amounts = Loan Amounts Between $417,000 to $650,000
($600,000 Loan Amount | 80% CLTV | 680+ FICO)

30-Year Fixed Rate Mortgage
8.25% (8.367% APR)

*Disclaimer: World Wide Credit Corporation is an Equal Opportunity Lender. Interest rates are subject to change upon changing market conditions and are also subject to change upon borrower qualification. Contact me directly to verify pricing.

Contact me for pricing on Adjustable Rate Mortgages as well as for pricing on loan amounts above $650,000.

Stay tuned for inter-day pricing changes tomorrow and in the week ahead...I'll keep you posted!

Lock/Float Mortgage Rate Recommendation: Float your mortgage rate, but float cautiously.

Falling interest rates should combat our impending recession. If you see a rate you're comfortable with, LOCK-IT and get-er funded!

Stay tuned for mortgage rates in the upcoming days.

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Daily Mortgage Rate Update: February 28, 2008

I'm keeping this short because there's a lot going on... Rates have improved significantly in the market today! (Approximately 35 basis points)

The conforming 30-Year Fixed Rate Mortgage is now pricing at 5.875% (5.995% APR).

 

You can contact me here for pricing.

You can apply online. Call me at (323) 810-2175 to verify your application.

Call me directly at (323) 810-2175 to take an application over the phone.

Have a great day and I'll keep you updated later in the day.