Archives for June 2012

Mortgage Interest Rate Update 06.20.2012

Mortgage interest rates continue to be stable.  We’ve seen a bit of volatility in the MBS market but overall lenders have done a good job with keeping rates stable.  Europe and the US economy continue to way most on bonds.  Refinance and purchase applications are up with a bulk of the applications being those looking to refinance into a lower rate.  The 10-year treasury remains below 1.80% and stocks have rebounded the last 7-10 trading days.  In some surprising news many lenders are reducing or even eliminating their FHA streamline production.  The reason?  The biggest lenders out there are saying the demand is far greater than their capacity.

Mortgage interest rates should remain stable in the near future however they’re are no guarantee’s.  Always remember this:  rates go up much, much faster than they come down.  If you are looking to refinance your current California mortgage into a lower rate it might be a wise idea to lock in sooner rather than later (especially if you are seeing a significant drop in rate).

Mortgage Interest Rate Update 06.12.2012

Over the last several weeks mortgage rates have been stable with a few little dips down, and a bump up or two every so often.  No move has seen a real push either way (this is with the most aggressive lenders in the country).  The more conservative lenders out there have been steadily moving down to essentially catch up with the most aggressive lenders.  Be careful when you read about surveys that claim rates went down (or up).  Reason is these surveys are based on averages for hundreds of lenders.  So even if the survey shows rates went down (or up) your most aggressive lenders might have done the opposite or nothing at all. How is that possible?  If you have a survey of 500 lenders and your top 50 (the most aggressive) raised rates just a bit, but your more conservative lenders (450 of them) lowered rates then your survey will show rates went down.

Refinance applications continue to be strong and applications for purchase continue to lag.  Going into the summer I would expect to see a big jump in purchase applications.  Lenders are starting to get swamped with submissions so turn times for approvals are going to be longer than usual.  HARP 2.0 continues to show moderate demand.