It would be hard to find another time frame of mortgage rate prices moving in a more volatile fashion than this week. In less than an hour on Friday morning, prices moved up 14 ticks to 2 day highs and then down 23 ticks to 2 day lows. On Friday morning stocks appear to be stalling and bouncing lower after failing to break 1220. Bonds like it. 10's are down to 2.462 now. Keep in mind that quoted levels in these updates continue to be moving targets.
U.S. job growth accelerated more than expected in July. This could ease fears the economy was sliding into a fresh recession. U.S. payrolls increased 117,000 above market expectations for an 85,000 gain. The unemployment rate dipped to 9.1 percent from 9.2 percent in June. The payrolls count for May and June was revised to show 56,000 more jobs added than previously reported The report was the first encouraging piece of economic data in some time. Economists see the odds of a recession as high as 40 percent. Top policy makers at the Federal Reserve will sift through the report when they meet on Tuesday but are not expected to announce any new measures to support the sputtering recovery. The U.S. central bank has cut interest rates to zero and spent $2.3 trillion on bonds. Policy makers have said they want to see how the economy fares before taking any further action.
The Best Execution conventional 30-year fixed mortgage rate has improved to 4.250%. Some lenders are even offering 4.00% but that quote carries with it additional closing costs. On FHA/VA 30 year fixed Best Execution is now 4.00% with some lenders willing to go as low as 3.875% (includes additional closing costs). 15 year fixed conventional loans are still best priced at 3.75% but we've seen very aggressive quotes at 3.625% too. Five year ARMs are still best priced at 3.25. ARMs and 15 year quotes seem to have bottomed out.
It's important to point out an increased amount of variation in what individual lenders are quoting as their Best Execution rates. This is a factor of price volatility in the secondary mortgage market. Unfortunately when volatility picks up in the secondary mortgage market, the cost of doing business gets more expensive for lenders (hedging costs go up). Those added costs are usually passed down to consumers via extra margin in rate sheets.
Reuters Reports - Wells Fargo & Co (WFC.N) plans to pay $590 million to settle a class action lawsuit. The 2009 class action case was filed in a federal court in New York City. Wachovia (now Wells Fargo) misrepresented its residential-mortgage holdings in offering documents during the lead-up to the financial crisis. The settlement is not expected to hurt Wells Fargo's financial position, it said in its quarterly filing with the U.S. Securities and Exchange Commission. Darren Robbins, a lawyer for the plaintiffs, said that auditor KPMG LLP, another defendant in the case, agreed to pay $37 million to settle the case, bringing the total recovery for plaintiffs to $627 million. Robbins said it would be the largest recovery in a case stemming from the credit crisis. In February, a federal judge in Los Angeles approved a $601.5 million settlement of a class action lawsuit against Countrywide Financial Corp over allegations it misled investors about its financial condition and lending practices. The settlements are subject to court approval. The case is In re: Wachovia Preferred Securities and Bond/Notes Litigation, U.S. District Court, Southern District of New York, No. 09-06351.
30 year fixed - 4.250% + .0 points for rate
20 year fixed - 3.750% + 0 points for rate
15 year fixed - 3.375% + 0 points for rate
10 year fixed - 3.250% + 1.125% lender credit points for rate
5/1 ARM - 2.750% - 0 points for rate
7/1 ARM - 3.125% + 0 points for rate
FHA/VA
30 year fixed - 4.125% + 0 points lender credit for rate
5/1 ARM - 2.750 + 0 points for rate
7/1 ARM - 3.250 + .3750 lender credit for rate
Jumbo - over 729,000
30 year fixed - 4.875 % with 0 points for rate
15 year fixed - 4.375% + 0 points for rate
5/1 ARM - 3.250 % + 0 points for rate
7/1 ARM - 3.750% + 0 points for rate
10/1 ARM - 4.375% with + 0 points for rate
No comments:
Post a Comment