Wednesday, September 26, 2012

Mortgage Rates Even Lower

Mortgage rates have moved lower every day this week.  Today's move was even more pronounced than yesterday's, carrying rates decisively into NEW all-time lows.   Today's data and events during the domestic market session were of little concern to Secondary Mortgage Markets, which began the day in stronger territory thanks to the overnight sessions in Europe and Asia.  From there, MBS (the "mortgage-backed-securities") that most directly influence rates) essentially held stead for the rest of the day, allowing lenders the ability to pass on more of the improvements.
The continued push into lifetime low territory lets us know that lenders are actually doing a fairly aggressive job of moving rates lower.  Adding to that sense of aggressiveness is the fact that most lenders have priced in the recent increase to Guarantee Fees which equates roughly to .125% higher rates.  For thefirst time ever, best-execution on 30yr Fixed Conventional Loans is 3.375% at a majority of Lenders, and even lower rates are viable choices at a few lenders for a few scenarios.

Check out these UNBELIEVABLE rates:
  • 30YR FIXED - 3.375% - 3.5%
  • FHA/VA - 3.25% - 3.5% (varies more between lenders than conventional 30yr Fixed)
  • 15 YEAR FIXED -  2.75% - 2.875%%
  • 5 YEAR ARMS -  2.625-3.25% depending on the lender