Rates and Market update

With all the up and down this week in rates and economic news from raising the debt ceiling limit - to employment numbers, - I wanted to wait for a re price for the better (due this afternoon) based on the jobs report - it just seems a bit insane - for lack of a better word for my linear thinking logical mind - that there are fewer jobs - more houses available for purchase - and lowest mortgage rates in decades - because/when there are fewer jobs the investment money moves from the Stock Market to Bond Market for security - the lesson is - if you want to own a home, primary, second home or investment property - and you have income and down payment money - this is the time to buy!

Turmoil and change has been a constant in the mortgage industry and we've always worked our way out of it. Much of what drives our industry is not of our own making or easily managed but we somehow find a way to develop products that both serve the customer and keep our doors open.  It is easy to vilify the mortgage industry, even when the root causes lie far afield as it was with Enron's collapse due to accounting issues. Caution, be careful of what you wish for - you may actually get it. For political, economic and accounting - remember: capital will flow into an arbitrage opportunity, be it a rate arbitrage or a credit arbitrage, until that arbitrage opportunity no longer exists, after which it will not flow at all.  Many, if not most, of the proposals floated to reform real estate finance seemingly forget this basic fact and, if implemented, would be pro-cyclical  - meaning they would serve to provide too much mortgage capital during boom periods and too little during times of slowdown.  Before we wish away Fannie or Freddie or GNMA, we'd be wise to remember this...


30 year fixed - 4.50% - .50 points for rate
20 year fixed - 4.250% - 0 points for rate
15 year fixed - 3.750% 0 points for rate
10 year fixed - 3.250% 0 points for rate
5/1 ARM - 3.00% - 0 points for rate
7/1 ARM - 3.50% - 0 -points for rate
Jumbo - over 729,000
30 year fixed - 4.99% .50 points for rate
15 year fixed - 4.50% .50 points for rate
5/1 ARM - 3.50% - 0 points for rate
7/1 ARM - 4.00% - 0 points for rate

FHA/VA
30 year fixed - 4.375% - .375% points for rate
5/1 ARM - 3.250% .125% points for rate
7/1 ARM - 3.625% - .250 points for rate