Market Update- Tuesday November 17th, 2009 11:13 AM ET
Current Trend Direction: Bond Prices Higher/Rates Lower
Risks favor: Carefully Floating
Current Price of FNMA 4.50% Bond $101.84, -3bp
Are the television business commentators looking at a different economy? You would think so as the media continues to paint a rosy picture, but Main Street isn't seeing any of it. For a more realistic sobering view, here's what Kansas City Fed President Thomas Hoenig had to say about the economy, "We still have significant weakness to work through in the economy in the US, and coupled with a rapidly rising level of debt and enormous moral hazard issues, we have a great deal of work ahead of us"
Fed Chairman Bernanke will be speaking on the economy at the Economic Club in Manhattan. The Chairman's comments yesterday sparked a rally in equities as he indicated no real concern for the devaluation of the dollar.
There are no treasury auctions this week. However, Thursday morning's announcement as to the size of next weeks auctions of 2, 5 and 7 year Notes could be a market mover.
We continue to cautiously float rates here and remain on guard.
30 Year Fixed Rates
4.75% APR 4.77%- No Points
30 Year Fixed No Income Check
5.625% APR 5.649% - No Points
30-Year Jumbo Fixed Rates to $729,000
5.125% APR 5.138% - No Points
4.875% APR 4.888%- 1 Point
30-Year Jumbo Fixed Rates to $1,000,000
5.75% APR 5.81%- 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
4.875% APR 4.69% - No Points
Tuesday, November 17, 2009
Thursday, September 24, 2009
Todays Market Update
Thursday September 24, 2009 5:30 pm ET
Current Trend Direction: Sideways
Risks favor: Carefully Floating
Current Price of FNMA 4.5% Bond:$100.94, +28bp
Mortgage Bonds ended higher on the day, up 28 basis points. This is attributed to the media's interpretation of yesterdays Fed meeting.
The Fed did not touch interest rates as expected. However the Fed said they are going to draw out the remaining commitment to buy Mortgage Backed securities through the first quarter of 2010. This tells us that the Fed most likely will not be purchasing more than the original $1,25T they are committed to. Rather, it tells us the Fed is attempting to provide a smoother transition to normal market conditions. It also tells us that mortgage rates will soon begin to move gradually higher instead of a large bump in rates.
Let's be clear, mortgage rates will gradually begin to climb. So it's important to note that if you have been sitting on the sidelines watching interest rates and being entertained by the volatility, the time to make your move is upon you.
In this morning's economic news, Initial Jobless Claims fell by 21,000 in the latest week to 530,000, which was below expectations of 550,000. While this was a better than expected read, it's still not exactly good news regarding the overall employment situation. Think about it...530,000 more people applying for unemployment benefits for the very first time really isn't something to get too excited about. Bonds worsened initially on the headline, but did finish the day up 28 basis points.
Existing Home Sales were reported at 5.10 million, less than expectations of 5.35 million and the first decline in five months. However, there was some good news in the report, as inventories of unsold homes fell to an 8.5 month level...the lowest inventory level seen since April 2007.
We remain cautiously floating interest rates here.
30 Year Fixed Rates
4.99% APR 5.00%- No Points
30 Year Fixed No Income Check
5.625% APR 5.65% - No Points
30-Year Jumbo Fixed Rates to $729,000
5.25% APR 5.258% - No Points
5.00% APR 5.013%- 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
4.875% APR 4.69% - No Points
Current Trend Direction: Sideways
Risks favor: Carefully Floating
Current Price of FNMA 4.5% Bond:$100.94, +28bp
Mortgage Bonds ended higher on the day, up 28 basis points. This is attributed to the media's interpretation of yesterdays Fed meeting.
The Fed did not touch interest rates as expected. However the Fed said they are going to draw out the remaining commitment to buy Mortgage Backed securities through the first quarter of 2010. This tells us that the Fed most likely will not be purchasing more than the original $1,25T they are committed to. Rather, it tells us the Fed is attempting to provide a smoother transition to normal market conditions. It also tells us that mortgage rates will soon begin to move gradually higher instead of a large bump in rates.
Let's be clear, mortgage rates will gradually begin to climb. So it's important to note that if you have been sitting on the sidelines watching interest rates and being entertained by the volatility, the time to make your move is upon you.
In this morning's economic news, Initial Jobless Claims fell by 21,000 in the latest week to 530,000, which was below expectations of 550,000. While this was a better than expected read, it's still not exactly good news regarding the overall employment situation. Think about it...530,000 more people applying for unemployment benefits for the very first time really isn't something to get too excited about. Bonds worsened initially on the headline, but did finish the day up 28 basis points.
Existing Home Sales were reported at 5.10 million, less than expectations of 5.35 million and the first decline in five months. However, there was some good news in the report, as inventories of unsold homes fell to an 8.5 month level...the lowest inventory level seen since April 2007.
We remain cautiously floating interest rates here.
30 Year Fixed Rates
4.99% APR 5.00%- No Points
30 Year Fixed No Income Check
5.625% APR 5.65% - No Points
30-Year Jumbo Fixed Rates to $729,000
5.25% APR 5.258% - No Points
5.00% APR 5.013%- 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
4.875% APR 4.69% - No Points
Thursday, September 10, 2009
Todays market Update
Today's Market Update- Thursday September 10th, 2009 1:05 PM ET
Current Trend Direction: Bond Prices Higher-Interest Rates Lower
Risks favor: Carefully Floating
Current Price of FNMA 4.50% Bond $101.22, - +53bp
Mortgage Bonds are higher on the heals of today's auction of 30-year bonds. The auction went of slightly better than expected. This week's auctions have gone rather well and have showed decent foreign appetite for our Bonds. This may not last very long as interest rates around the world begin to tick higher, offering investors a more attractive place to put their money, which in turn would force the US to offer higher rates on our Treasuries in order to compete and attract investment.
With the summer now behind us and the kids back in school, it's time to take care of the thing's we have put off. This is an excellent opportunity to obtain some of the lowest mortgage rates seen in a while.
We continue to cautiously float rates here.
30 Year Fixed Rates
4.99% APR 5.013%- No Points
30 Year Fixed No Income Check
5.625% APR 5.65% - No Points
30-Year Jumbo Fixed Rates to $729,000
5.25% APR 5.263% - No Points
5.00% APR 5.013%- 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
4.875% APR 4.69% - No Points
Current Trend Direction: Bond Prices Higher-Interest Rates Lower
Risks favor: Carefully Floating
Current Price of FNMA 4.50% Bond $101.22, - +53bp
Mortgage Bonds are higher on the heals of today's auction of 30-year bonds. The auction went of slightly better than expected. This week's auctions have gone rather well and have showed decent foreign appetite for our Bonds. This may not last very long as interest rates around the world begin to tick higher, offering investors a more attractive place to put their money, which in turn would force the US to offer higher rates on our Treasuries in order to compete and attract investment.
With the summer now behind us and the kids back in school, it's time to take care of the thing's we have put off. This is an excellent opportunity to obtain some of the lowest mortgage rates seen in a while.
We continue to cautiously float rates here.
30 Year Fixed Rates
4.99% APR 5.013%- No Points
30 Year Fixed No Income Check
5.625% APR 5.65% - No Points
30-Year Jumbo Fixed Rates to $729,000
5.25% APR 5.263% - No Points
5.00% APR 5.013%- 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
4.875% APR 4.69% - No Points
Wednesday, August 5, 2009
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.
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.
Monday, August 3, 2009
Today’s Market Update- Monday August 3 rd, 2009 3:16 PM ET
Current Trend Direction: Sideways
Risks favor: Carefully Floating
Current Price of FNMA 4.50% Bond $100.03, -59bp
Mortgage Bonds are sharply lower today since prices on Friday could not break above the
100-day Moving Average. Stocks continue to move higher and is adding selling pressure to Bonds.
There is a big week of market moving news ahead with the Personal Consumption Expenditure Index report tomorrow and Fridays Jobs Report. Another big mover may be Thursday’s announcement regarding the next round of Treasury Auctions for the following week.
With little being done by the banks and the government regarding the middle to high end real estate and mortgage market, we continue to offer some of the lowest rates on these loans. Right now is a good time to call us for a free consultation.
30 Year Fixed Rates
5.25% APR 5.27%- No Points
30 Year Fixed No Income Check
5.875% APR 5.90% - No Points
30-Year Jumbo Fixed Rates to $729,000
5.25% APR 5.27%- 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.
Current Trend Direction: Sideways
Risks favor: Carefully Floating
Current Price of FNMA 4.50% Bond $100.03, -59bp
Mortgage Bonds are sharply lower today since prices on Friday could not break above the
100-day Moving Average. Stocks continue to move higher and is adding selling pressure to Bonds.
There is a big week of market moving news ahead with the Personal Consumption Expenditure Index report tomorrow and Fridays Jobs Report. Another big mover may be Thursday’s announcement regarding the next round of Treasury Auctions for the following week.
With little being done by the banks and the government regarding the middle to high end real estate and mortgage market, we continue to offer some of the lowest rates on these loans. Right now is a good time to call us for a free consultation.
30 Year Fixed Rates
5.25% APR 5.27%- No Points
30 Year Fixed No Income Check
5.875% APR 5.90% - No Points
30-Year Jumbo Fixed Rates to $729,000
5.25% APR 5.27%- 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.
Tuesday, July 21, 2009
Mortgage Market Update
Today’s Market Update- Friday July 21st, 2009 1:40 PM ET
Current Trend Direction: Sideways
Risks favor: Carefully Floating
Current Price of FNMA 4.50% Bond- $100.16 +59bp
Mortgage Bonds are up 59 basis points after being up as high as 80 basis points earlier.
Stocks started the day up and have since fallen into negative territory.
As I have mentioned many times in the past, Mortgage Bonds typically move in the opposite direction of stocks. So when you see the Dow moving higher you can usually (not always) assume that Mortgage rates are moving higher as well.
Fed Chairman Ben Bernanke testified on Capital Hill today. Bond traders, fearful of the dreaded inflation word were relieved when Bernanke said “Expectations for a lethargic recovery should keep a lid on inflation this year”.
We suggest continuing to carefully float interest rates as Mortgage Bonds hover above their 50-Day Moving Average.
30 Year Fixed Rates
5.25% APR 5.27%- No Points
30 Year Fixed No Income Check
5.875% APR 5.90% - No Points
30-Year Jumbo Fixed Rates to $729,000
5.25% APR 5.27%- 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
Current Trend Direction: Sideways
Risks favor: Carefully Floating
Current Price of FNMA 4.50% Bond- $100.16 +59bp
Mortgage Bonds are up 59 basis points after being up as high as 80 basis points earlier.
Stocks started the day up and have since fallen into negative territory.
As I have mentioned many times in the past, Mortgage Bonds typically move in the opposite direction of stocks. So when you see the Dow moving higher you can usually (not always) assume that Mortgage rates are moving higher as well.
Fed Chairman Ben Bernanke testified on Capital Hill today. Bond traders, fearful of the dreaded inflation word were relieved when Bernanke said “Expectations for a lethargic recovery should keep a lid on inflation this year”.
We suggest continuing to carefully float interest rates as Mortgage Bonds hover above their 50-Day Moving Average.
30 Year Fixed Rates
5.25% APR 5.27%- No Points
30 Year Fixed No Income Check
5.875% APR 5.90% - No Points
30-Year Jumbo Fixed Rates to $729,000
5.25% APR 5.27%- 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
Thursday, July 16, 2009
Mortgage Market Update
Today's Market Update- Thursday, July 9th, 2009 11:15AM ET
Current Trend Direction: Sideways
Risks favor: Floating Rates
Current Price of FNMA 4.50% Bond- 100.78, -16bp
Bonds got a nice boost yesterday from a strong 10-Year Note Auction, giving them a strong 66bp gain on the day and giving them a convincing break above the tough ceiling of resistance, the 50-day Moving Average. Interest rates are lower but, can reverse sharply as technical indicators show bonds are "overbought". Hence, we are cautiously recommending floating interest rates here and be ready to lock in at a moments notice.
Economist and Author Harry Dent said in his July Forecast "This may be the last chance to refinance mortgages for lower fixed rates for the next 3 to 5 years". His forecast calls for stocks and treasury yields to rally, followed by a falling stock market and rising interest rates.
30 Year Fixed Rates
5.125% APR 5.148%- No Points
30-Year Jumbo Fixed Rates to $729,000
5.25% APR 5.35%- 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
Current Trend Direction: Sideways
Risks favor: Floating Rates
Current Price of FNMA 4.50% Bond- 100.78, -16bp
Bonds got a nice boost yesterday from a strong 10-Year Note Auction, giving them a strong 66bp gain on the day and giving them a convincing break above the tough ceiling of resistance, the 50-day Moving Average. Interest rates are lower but, can reverse sharply as technical indicators show bonds are "overbought". Hence, we are cautiously recommending floating interest rates here and be ready to lock in at a moments notice.
Economist and Author Harry Dent said in his July Forecast "This may be the last chance to refinance mortgages for lower fixed rates for the next 3 to 5 years". His forecast calls for stocks and treasury yields to rally, followed by a falling stock market and rising interest rates.
30 Year Fixed Rates
5.125% APR 5.148%- No Points
30-Year Jumbo Fixed Rates to $729,000
5.25% APR 5.35%- 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
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