WOW...Thank goodness for half days on the day before Thanksgiving. Otherwise I would have been in my office watching my hair fall out from the horrific performance of the bond markets. Rates increased a full quarter point (some lenders more) on Wednesday. We picked up some of those losses on Friday but not all of them. It will be interesting to see how this week plays out with regard to mortgage rates. I had chalked up the Wednesday ride to the usual near holiday trading day on Wall Street, but now I am not so sure. For those not familiar with the near holiday trading day, here you go:
Any day near a holiday is notorious among traders. First of all, lots of experienced Mortgage Backed Securities (MBS's) and stock traders take the day off. In general, December is year-end and many annual bonuses have been earned so there is little motivation to take risks or make moves. At the same time mortgage loan shoppers should know that there can be large desperation trades to recover losses or adjust balance sheets prior to year-end reporting. This can make for large and quick movements in rates. For the five weeks traders and investors tend to go along with the herd. Preservation of existing gains takes precedence.
I will post more later in the week regarding the movement of interest rates. As you can imagine the email inbox is quite full after a four day weekend!
Current rates are hovering around 4.25%-4.5% for the best qualified customers on 30 year notes.
Important Mortgage Rate Disclaimer: Loan originators will only be able to offer these rates on agency conforming loan amounts to borrowers who are have a middle FICO score over 740 and enough equity in their home to qualify for a refinance or a large enough savings to cover their down payment and closing costs. If the terms of your loan trigger any risk-based loan level pricing adjustments (LLPAs), your rate quote will be higher. If you do not fall into the "perfect borrower" category, make sure you ask your loan originator for an explanation of the characteristics that make your loan more expensive. "No point" loan doesn't mean "no cost" loan. The best 30 year fixed conventional/FHA/VA mortgage rates still include closing costs such as: third party fees + title charges + transfer and recording + escrows (things like upfront MIP (if required), property taxes, homeowners insurance, accrued interest)".
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment