February 16, 2013

Mortgage Rates: Week Ended February 15

February 16, 2013

Mortgage Rates: Week Ended February 15

Mortgage backed securities that rates are tied to were up slightly on the week (benchmark Fannie 30yr 3% coupon down 4 ticks or 13 basis points), making rates close Friday even to up slightly versus last week. Extreme volatility of the previous two weeks eased just a bit, but the trend of bigger daily swings ultimately ending in higher rates is still in tact. The trend of Jumbo loans above $625,500 and FHA loans not rising is also still in tact because secondary markets for those loans are a favorable than those for the first two “conforming” tiers of loans to $417,000 and to $625,500.

Rates as of Friday’s close below, which are .375% higher than record lows last touched January 15-16.

More details coming in my WeeklyBasis report. Follow me to stay tuned: Twitter and Stocktwits.

In the meantime, below is a link to my daily commentary along with the MortgageNewsDaily MBS team and Barry Ritholtz’s quick list of the week’s good and bad U.S. economic events/data.

CONFORMING RATES ($200,000 to $417,000) 0 POINT:
30 Year: 3.625% (3.745% 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: 3.75% (3.87% APR)
FHA 30 Year: 3.375% (3.495% APR)
5/1 ARM: 2.875% (2.995% APR)

JUMBO RATES ($625,501 to $2,00,000) 1 POINT:
30 Year: 3.5% (3.62% APR)
10/1 ARM: 3.125% (3.245% APR)
5/1 ARM: 2.5% (2.62% 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%. Jumbos shown as range since they’re less market sensitive and change randomly based on lender pricing competition. 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 Unchanged To Slightly Higher Heading Into 3-Day Weekend (MortgageNewsDaily)

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