January 26, 2013

Mortgage Rates: Week Ended January 25

January 26, 2013

Mortgage Rates: Week Ended January 25

The record lows of 1/15 and 1/16 may have been the last time rates touch the bottom. Mortgage bonds (aka MBS) have been selling since, pushing rates up to the highest levels since August. And more important, MBS technicals don’t bode well for a dip back to the lows. The more probable scenario looks to be a leveling off immediate term, then a resumption of MBS selling and higher rates.

Rates as of Friday’s close below, which are .25% higher than lows of 1/15 and 1/16 that markets had been trading around in the fourth quarter.

It’s worth noting that the higher rates apply to conventional loans in the first two “conforming” tiers (the loans to $417,000 and to $625,500). The jumbo loans from $625,501 to $2m and the FHA loans are more steady because the MBS markets for those loans are a bit more favorable (a post on this coming shortly).

Also below is a link to my daily commentary along with the MortgageNewsDaily MBS team.

CONFORMING RATES ($200,000 to $417,000) 0 POINT:
30 Year: 3.5% (3.61% APR)
FHA 30 Year: 3.25% (3.37% APR)
5/1 ARM: 2.875% (2.995% APR)

SUPER-CONFORMING RATES ($417,001 to $625,500 cap by county) 0 POINT:
30 Year: 3.75% (3.87% APR)
FHA 30 Year: 3.25% (3.37% 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: 3.25% (3.37% APR)
5/1 ARM: 2.625% (2.74% 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.
Rates Close Friday At Highest Level In Months (MortgageNewsDaily)

Wake Up Call: Free Refi Boom Almost Over (TheBasisPoint)