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Mortgage News Daily combines the expertise of some of the housing industry's leading minds with the power of social media to offer an always lively, constantly evolving web community. MND communicates breaking news, streams video, and provides expert opinion and commentary to a community of interested market professionals and curious consumers.Mortgage Rates Mixed After Scattered Lender Reprices
Much like yesterday, mortgage rates rallied early this morning
following weak housing data.
Much like yesterday, mortgage rates came under pressure in the lunch
hours today as mortgage-backed securities prices fell from intraday
highs.
Much UNLIKE yesterday, mortgage rates never recovered from that weakness heading into the market close today.
The bad news isn't all that bad though....
While several lenders did reprice for the worse this afternoon, the
majority of rate sheets escaped unscathed. This leaves mortgage rates
close to the most aggressive levels of our lifetime. As for the lenders
who did reprice for the worse (the bad news), adjustments to loan
pricing simply cancelled out the improvements seen this morning, leaving
consumer borrowing costs unchanged on a day over day basis. Unchanged is
better than higher right?
BEWARE: if mortgage-backed securities prices decline in the morning, the lenders who did not reprice for the worse today will have to account for twice as much weakness tomorrow.
The most aggressive 30 year fixed mortgage rates, conventional and
FHA, remain in the 4.250% to 4.500% range. If your loan pricing is subject to minimal "risk based" loan
level pricing adjustments, a few lenders are offering 4.125% for less
than two points at closing. A few might even offer 4.00%.
If you have a strong indication of
how long you intend to mortgage your property, you may want to consider
an ARM, as long as the fixed period is longer than 5 years. Otherwise I
would steer clear of ARMS because fixed rate quotes are just too
cheap! If you're currently paying "interest only" on your loan,
congrats! You don't need to come off the fence just yet, rates should be
low for some time.
The "best executed" lock/float strategy comes down to finding an
originator who knows the loan market, studies underwriting guidelines,
and just plain old gets the J.O.B done. You have to let the loan officer
earn their commission. That's how you "ride the float boat" in this
environment...make sure you have a damn good skipper. Plain and
Simple.
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This email was sent to you by:
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Mortgage News Daily
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Anonymous Anonymous |
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Message:
YOUR MESSAGE HERE
Mortgage Rates Mixed After Scattered Lender Reprices
Much like yesterday, mortgage rates rallied early this morning
following weak housing data.
Much like yesterday, mortgage rates came under pressure in the lunch
hours today as mortgage-backed securities prices fell from intraday
highs.
Much UNLIKE yesterday, mortgage rates never recovered from that weakness heading into the market close today.
The bad news isn't all that bad though....
While several lenders did reprice for the worse this afternoon, the
majority of rate sheets escaped unscathed. This leaves mortgage rates
close to the most aggressive levels of our lifetime. As for the lenders
who did reprice for the worse (the bad news), adjustments to loan
pricing simply cancelled out the improvements seen this morning, leaving
consumer borrowing costs unchanged on a day over day basis. Unchanged is
better than higher right?
BEWARE: if mortgage-backed securities prices decline in the morning, the lenders who did not reprice for the worse today will have to account for twice as much weakness tomorrow.
The most aggressive 30 year fixed mortgage rates, conventional and
FHA, remain in the 4.250% to 4.500% range. If your loan pricing is subject to minimal "risk based" loan
level pricing adjustments, a few lenders are offering 4.125% for less
than two points at closing. A few might even offer 4.00%.
If you have a strong indication of
how long you intend to mortgage your property, you may want to consider
an ARM, as long as the fixed period is longer than 5 years. Otherwise I
would steer clear of ARMS because fixed rate quotes are just too
cheap! If you're currently paying "interest only" on your loan,
congrats! You don't need to come off the fence just yet, rates should be
low for some time.
The "best executed" lock/float strategy comes down to finding an
originator who knows the loan market, studies underwriting guidelines,
and just plain old gets the J.O.B done. You have to let the loan officer
earn their commission. That's how you "ride the float boat" in this
environment...make sure you have a damn good skipper. Plain and
Simple.
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