Today's Market Update

Today’s Market Update- Monday August 5th, 2009 2:35 PM ET
Current Trend Direction: Bond Prices lower-Interest Rates Higher
Risks favor: Carefully Floating
Current Price of FNMA 4.50% Bond $99.75, -+6bp
It’s been a wild ride for Bonds so far. Bonds started the day down 50bp, then improved by 75bp only to pull back and are now up only 6bp.
Clearly this is a reaction to the added supply from the Treasury who announced today they will be auctioning off an extra $75B next week. Why is this important to those seeking a home loan? The added supply of Treasuries and lack of the demand to buy them will move interest rates higher. However, while mortgage rates have risen, they are still historically low. A year ago the average 30-year fixed rate mortgage stood at 6.52%.

There are many horror stories about the big lenders and their inability to move loans through their system in a timely manner. Additionally, be careful when being quoted an interest rate. If the quote is much lower than the average, chances are it’s not accurate. Also, lenders like to quote 10-15-day rates. A 10-day rate is lower than a 30-day rate and so on. You’re not going to close in 10 or 15 days, so these rate quotes are useless unless you intend to float (not lock) your rate at time of application.

The most important aspect of getting a home loan today is dealing with experienced professionals that understand the policies and procedures of this ever changing landscape.

Important note:
The information provided in the “Market Update” is very helpful to those who are considering financing. On average, our clients lock into lower rates because of this timely information and because the knowledge and expertise of the professionals at North Atlantic Mortgage Corp.

30 Year Fixed Rates
5.50% APR 5.52%- No Points
30 Year Fixed No Income Check
5.625% APR 5.65% - No Points
30-Year Jumbo Fixed Rates to $729,000
5.375% APR 5.40%- 1 Point
30-Year Jumbo Fixed Rates to $1,000,000
6.00% APR 6.01%- No Points
5/1 Jumbo Arm to $1,500,000
4.50% APR 4.54% - No Points
7/1 Jumbo Arm to $1,500,000
5.00% APR 4.69% - No Points
Call for rates on more loan programs not listed here.