Record Low Mortgage Rates Face Test on Friday
Posted To: Mortgage Rate Watch
Mortgage rates were largely unchanged today. The most aggressive conventional and FHA 30 year fixed mortgage rates remain in the 4.375% to 4.625% range. The "best execution" 30 year fixed rate mortgage is 4.375% plus one point for a very well-qualified borrower. If your loan pricing is subject to minimal "risk based" loan level pricing adjustments, a few lenders are offering 4.25% for less than two points at closing. The official Employment Situation report is slated to be released this Friday at 8:30am eastern. This event holds the most potential to move mortgage rates in the day's ahead. At the moment, conditions in the secondary market are not supportive of mortgage rates moving any lower. This implies anyone floating their loan on a short timeline, as in less than…(read more)
Best Execution Mortgage Rate Moves Lower. Jobs Data in Focus in Week Ahead.
Posted To: Mortgage Rate Watch
Mortgage rates went into the weekend at new record lows last Friday. This was the ALERT we published on Rate Watch… ALERT : There are some lenders out there, if the APP–to–CLOSING process is flawless, where a borrower could close at 4.25% right now, without paying more than 1 pt. But you're loan file is gonna have to be a real slam dunk. You must be the definition of "well-qualified". Mortgage rates moved lower as a result of continued high demand for agency mortgage-backed securities. We have described this demand as a "flight to safety" , but from another perspective, what it really boils down to is the highly-competitive loan origination environment. READ MORE A flight to safety happens when investors are nervous about owning risky assets like stocks, but do not…(read more)