Mortgage Rate Update

Bonds sold off a bit yesterday and terms in general were a bit worse today than the previous day.  ISM’s Manufacturing PMI came in at 54.8 for April and that was above the estimate of 52.9.   Construction spending was up slightly.  When looking into a new mortgage, borrower’s that have loans that are backed by Fannie Mae or Freddie Mac may be eligible for special terms under the HARP 2.0 program.  Under this program borrowers may qualify for a new fixed or adjustable rate mortgage even if they owe more than the home is worth.  Furthermore the borrower may be able to close his/her loan without having to do an appraisal.  General documentation to qualify is needed and the usual time frame to close the loan is 30 days.  As mentioned borrowers can obtain either a fixed rate mortgage or an adjustable rate mortgage and this if for primary residences and investment properties.