April 19, 2013

Mortgage Rates: Week Ended April 19

April 19, 2013

Mortgage Rates: Week Ended April 19

Rates ended the week even, which makes the second week in a row rates have been about .25% lower than they’ve been most of 2013. Rates touched record lows January 15-16 but have otherwise been .375% higher all year until two Fridays ago. We’re now about .125% above record lows.

The Boston bombing (which got resolution tonight as suspect 2 was captured) was the biggest unexpected macro event of the week but had little impact on bond/rate markets. The current mortgage bond rally and corresponding rate dip was triggered by a poor March jobs report two weeks ago and supported by weaker U.S. economic fundamentals.

Rates in 3 tiers shown below. Also below is a quick recap of the week’s events and a link to my daily commentary with the MortgageNewsDaily MBS team, which is more action oriented for rate shoppers each day.

Also it’s worth noting that MBS analyst Matt Graham at MortgageNewsDaily has been nailing all of his rate market calls. Here’s his 10yr Note yield analysis (with charts), which is an important benchmark for the direction mortgage bonds that lenders use to price consumer mortgage rates.

CONFORMING RATES ($200,000 to $417,000) 0 POINT:
30 Year: 3.375% (3.495% APR)
FHA 30 Year: 3.25% (3.37% APR)
5/1 ARM: 2.5% (2.62% APR)

SUPER-CONFORMING RATES ($417,001 to $625,500 cap by county) 0 POINT:
30 Year: 3.625% (3.745% APR)
FHA 30 Year: 3.375% (3.495% APR)
5/1 ARM: 2.75% (2.87% APR)

JUMBO RATES ($625,501 to $2,00,000) 1 POINT:
30 Year: 3.625% (3.745% APR)
10/1 ARM: 3.0% (3.12% APR)
5/1 ARM: 2.375% (2.495% APR)

Lower or higher rates apply to specific borrower and property profiles. Lower or higher rates available using tax deductible points or zero-cost transactions. These rates assume full doc pricing on Single Family Home purchase loans for borrower with 740 FICO score or greater, at least 20% equity (unless FHA), and 6-12 months reserves left over after close (retirement assets counted at 60% of value for reserves). ARM rates adjust the first month after initial fixed period shown, and once per year thereafter until year 30. Adjusted rate calculated by adding 2.25% margin to 1yr LIBOR index at time of adjustment. At first adjustment LIBOR+margin cannot exceed start rate+5%, subsequent yearly adjustments can never be greater than 2% per year, total of all adjustments for 30yr life of loan can never exceed start rate+5%. Rates based on loan amount ranges shown and rates available at the time of production. Rates aren’t a loan commitment nor a loan guarantee, and are subject to change without notice.

*Conventional Super-Conforming cap = $625,500. FHA Super-Conforming cap = $729,750.
Mortgage Rates End Week At Best Levels Of The Week (MortgageNewsDaily)

Succinct Summation Of The Week’s Events (Barry Ritholtz, TheBigPicture)