Sunday, May 12, 2013

Economic Focus Real Estate Lending

Economic Focus

Okay, this week has really defined the trend for mortgage rates, or at least for the short term.  The rates shown below look just like last Friday's; but that's because the pricing hasn't really changed drastically, but next week could easily show rates higher.  Most of the movement came from a fair amount of optimism in the markets.  This optimism, real or imagined, was due primarily to a better than expected report on new claims for unemployment, and the fact that there were very few reports issued this week.

There are several important releases due out next week, so depending on how they are received we will likely see more volatility in the markets.  Again, mortgage rates will not prevent buyers from buying, but the perception of increasing rates could stir them into action.  I hope you are working on listings!!

Just a reminder that in three weeks (6/3/13) the new FHA guideline goes into effect, which will require your buyers to keep the over blown mortgage insurance in place for the life of the loan.  So, if you have FHA buyers sitting on the fence, you might try clubbing them with this bit of information.  If the FHA case number is assigned before 6/3 the old guideline is in effect, but the case number has to be pulled with a property address.  So find them a house!
The following rates are based on 30 day locks with no discount points and credit scores of 740 or better, as of this morning.  They are not come ons, they are the rates your buyers will most likely get from a reputable lender, regardless of what is advertised.  Certainly there are other specialized programs available, depending on the qualifications of the buyer.  The 30 Yr Fixed Non-Owner rate is based on 25% down payment.  This is where the best rates come in for investors


Rate
APR
30 year fixed conforming =
3.625%
3.693%
15 year =
2.875%
2.929%
3/1 ARM =
2.750%
2.884%
FHA/VA 30 year fixed =
3.250%
3.961%
30 Yr Fixed Non-Owner =
3.875%
3.937%
Prime rate is currently =
3.250%