This email was sent to you by:
Anonymous |
|
Mortgage News Daily
|
Message: YOUR MESSAGE HERE |
Email alerts, such as this one, are a
free service provided by Mortgage News Daily. If you would like to receive an alert when important news breaks please
register to join our community.
Register with Mortgage News Daily - Registration is free and offers many benefits.
Manage your Email Alerts - Once you're registered, you can manage all MND email alerts on one page, turning subscriptions on or off with one click.
About MND:
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.New Mortgage Rate Lows Lost as Stocks Rally and Bonds Correct
Mortgage rates had a great day yesterday. This is the message we communicated to readers...
ATTENTION: Mortgage Rates Hit New Lows
If
you've been floating your loan or have yet to apply for a refinance
because it just didn't seem worth the hassle, congratulations, mortgage
rates hit new lows today, it's now worth the hassle! If you've
refinanced in the last 20 months, there is a darn good chance your
refinance option is back in the money, again!
The best 30 year fixed mortgage rates have fallen into the 4.125% to
4.375% range for well-qualified consumers. Some lenders will even go as
low as 3.875% if the borrower is willing to pay points. Although the
4.125% quote isn't being offered by the large retail banks (sorry retail
L.Os), the smaller mortgage bankers and independent brokers do have
access to loan pricing that will allow them to offer new rate lows.
----------------
Today was not so great...
After
weeks of stagnation, stocks finally took their turn in the spotlight
today. As money moved out of the bond market and into equities,
mortgage-backed security prices fell and lenders were forced to reprice
for the worse. Consequently, consumer borrowing costs are higher than
they were yesterday afternoon. The damage was not terribly dramatic though...
The best 30 year fixed mortgage rates are still in the 4.125% to
4.375% range for well-qualified consumers, but less lenders are
offering rates below 4.25% today. If your lender is still willing to
offer a rate below 4.25%, your closing costs are about 25bps higher
today (0.25% of your loan amount). Actually, borrowing costs are about 25 basis points higher across the board.
While a better than expected
read on the manufacturing sector has been cited as the stock market's prime motivation and the bond market's sole source of weakness, we think other factors were at work.
Call it exhaustion, blame it on boredom, but it is a new month and
market participants took advantage of an opportunity to try something
different. The bond market rallied all
summer and has been viewed as "overbought" by many investors for the last two weeks. Unfortunately, weak economic data has prevented the bond market from correcting itself. Better than expected manufacturing data, a sector the market views as weak, gave investors the chance to let that correction take place today.
We're not panicking over this sell off. There has been no change in our fundamental economic outlook, we see no new reason to be optimistic about a rapid recovery. What we witnessed today was a technical adjustment, an adjustment that could reverse course on Friday morning if the Employment Situation Report fails to match economist expectations. It also an adjustment that could be built on if the employment report meets or surpasses forecasts. Either way, the market remains non-committal and fluctuations are expected to occur within a range. The overall outlook remains highly supportive of low mortgage rates.
Now that doesn't mean we're all aboard the float boat though. If you've been offered a rate at or below 4.25% and can still execute it, we think you should cash in your chips and lock your loan. If you've lost this quote and are back to square one, we think you can afford to float as long as you're not on a deadline. Your borrowing costs might rise a few basis points in the near term, but we think you'll have another opportunity to lock in at today's pricing, and potentially yesterday's pricing, sometime in the next month.
Remember our advice. This is extremely important!
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.
More from MND:
If you would like to opt-out of receiving email forwards from this person please click here to remove your email address.
This email was sent to you by:
|
Mortgage News Daily
|
 |
Anonymous Anonymous |
|
Message:
YOUR MESSAGE HERE
New Mortgage Rate Lows Lost as Stocks Rally and Bonds Correct
Mortgage rates had a great day yesterday. This is the message we communicated to readers...
ATTENTION: Mortgage Rates Hit New Lows
If
you've been floating your loan or have yet to apply for a refinance
because it just didn't seem worth the hassle, congratulations, mortgage
rates hit new lows today, it's now worth the hassle! If you've
refinanced in the last 20 months, there is a darn good chance your
refinance option is back in the money, again!
The best 30 year fixed mortgage rates have fallen into the 4.125% to
4.375% range for well-qualified consumers. Some lenders will even go as
low as 3.875% if the borrower is willing to pay points. Although the
4.125% quote isn't being offered by the large retail banks (sorry retail
L.Os), the smaller mortgage bankers and independent brokers do have
access to loan pricing that will allow them to offer new rate lows.
----------------
Today was not so great...
After
weeks of stagnation, stocks finally took their turn in the spotlight
today. As money moved out of the bond market and into equities,
mortgage-backed security prices fell and lenders were forced to reprice
for the worse. Consequently, consumer borrowing costs are higher than
they were yesterday afternoon. The damage was not terribly dramatic though...
The best 30 year fixed mortgage rates are still in the 4.125% to
4.375% range for well-qualified consumers, but less lenders are
offering rates below 4.25% today. If your lender is still willing to
offer a rate below 4.25%, your closing costs are about 25bps higher
today (0.25% of your loan amount). Actually, borrowing costs are about 25 basis points higher across the board.
While a better than expected
read on the manufacturing sector has been cited as the stock market's prime motivation and the bond market's sole source of weakness, we think other factors were at work.
Call it exhaustion, blame it on boredom, but it is a new month and
market participants took advantage of an opportunity to try something
different. The bond market rallied all
summer and has been viewed as "overbought" by many investors for the last two weeks. Unfortunately, weak economic data has prevented the bond market from correcting itself. Better than expected manufacturing data, a sector the market views as weak, gave investors the chance to let that correction take place today.
We're not panicking over this sell off. There has been no change in our fundamental economic outlook, we see no new reason to be optimistic about a rapid recovery. What we witnessed today was a technical adjustment, an adjustment that could reverse course on Friday morning if the Employment Situation Report fails to match economist expectations. It also an adjustment that could be built on if the employment report meets or surpasses forecasts. Either way, the market remains non-committal and fluctuations are expected to occur within a range. The overall outlook remains highly supportive of low mortgage rates.
Now that doesn't mean we're all aboard the float boat though. If you've been offered a rate at or below 4.25% and can still execute it, we think you should cash in your chips and lock your loan. If you've lost this quote and are back to square one, we think you can afford to float as long as you're not on a deadline. Your borrowing costs might rise a few basis points in the near term, but we think you'll have another opportunity to lock in at today's pricing, and potentially yesterday's pricing, sometime in the next month.
Remember our advice. This is extremely important!
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.
If you would like to opt-out of receiving email forwards from this person please click here to remove your email address.