Most don't realize that without all the Feds efforts mortgage interest rates would be much higher and economy worse off that were we are today.  Today processes are at work to bring the mortgage market back.  As much as most want to say how hard it is to get a loan there is a reason for this.  Investors who buy mortgages need to feel confident that the loans they are buying are good quality(solid appraisals, good credit, stable income).  We desperately need these investors to come back into the market and begin to buy these securities.  Simply put if they don't buy - mortgage rates will need to rise to a level that makes it attractive.  We need to do our part to make sure the mortgages they buy are the best quality.   

The Fed said they are going to ration out the remaining commitment of Mortgage Backed Security purchases through the first quarter of 2010. There will be no additional buying, but instead, a longer weaning off of the program. There was some speculation about the Fed increasing the amount of buying above the $1.25T committed to, and last week's statement is the Fed's nice way of saying "no." They will not be buying more in quantity, but what they will do is attempt to provide a smoother transition to normal market conditions.

It is a given that once the Fed ceases its purchases, that interest rates will most likely climb higher...most likely back above the 6% area. Next year this time we could be in the mid to low 6's.  So instead of a hard transition with a large bump in rates, the Fed is attempting to allow rates to gradually rise. This means that waiting to purchase or refinance will very likely mean a higher interest rate.

Now is the time to take action. 

 

 

MORTGAGE RATES 

Loan Programs

Interest Rates*

30 Year Conv.

Mid - low 5's

30 Year FHA/VA

 Mid - low 5's

Rural Development

Mid 5's

5/1 Arm Conv.

 Low 4's

5/1 Arm Jumbo

Mid 5's

Please contact us for specific situations and specific rates.

*Risk Based Pricing will affect rate offered.

 

MORTGAGE RATE TRENDS



DAILY RATE LOCK ADVISORY


 


  For an in depth explanation and daily update click on The Daily Rate Lock Advisory. 


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Joe Farro 
Premier Capital Mortgage
(678)289-6600

 

 

 

Mortgage Market Update - FHA Appraisal Changes / HVCC Strategies
09/21/2009
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With all the HVCC changes to conventional loans - FHA released some of their new appraisal guidelines. Lets look at them FHA Appraisal Changes 1- Changes effective January 1st, 2010 2- Mortgage brokers and commission based lender… more
Mortgage Market Update - HOA's On Who's List?
09/15/2009
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Delays in closings are the number one cause for a client to be disappointed with the process of purchasing a home. This year with all the foreclosures, shorts sales and changes in the industry we now have another item to pay… more
Mortgage Market Update - Truth in Lending and your Closing Date
09/02/2009
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I have already heard of a couple of a closings that have been affected by the new truth in lending requirements now required. When a lender discloses an initial truth in lending in todays market there now is a requirement that the… more
Mortgage Market Update - Can I afford $3, 000 more in my Sales Price?
08/25/2009
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This is a simple one that many still struggle with. Just he other day had a Realtor want me to specifically give an exact dollar amount for a prequal. For the record, this is impossible in that every property is different based on… more
Mortgage Market Update - Where's my Check?
08/18/2009
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After completing a job everyone likes to get paid as it is part of the reward. It can be a very frustrating thing not to get paid when your suppose to. Over the last few years this has increasing been a more important subject as… more
Mortgage Market Update - The Loan Officer Application for Realtors!
08/11/2009
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Home financing is still considered to be 50% of the home buying process. Once a home has been selected the next step or the buyer is to obtain financing. If you are not able to come to terms on a home loan your contract can die. Over… more
Mortgage Market Update - Navigate the Maze!
07/29/2009
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The business of realestate continues to become more challenging as more regulatory oversight takes action. There no shortage of changes in the mortgage industry that affect every active Realtor and mortgage professional. In the… more
Mortgage Market Update - HERA HOEPA continued!
07/26/2009
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The changes in the industry have been fast and furious and do not look like they are going to slow down any time too soon. From some of the responses we have received over the last 2 weeks I can tell that some are not fully aware… more
Mortgage Market Update - HERA HOEPA and Your Lender!
07/21/2009
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It sort of feels like cramming for a test back in college - you knew it was coming but had to deal with other important matters and now its the night before and your now just getting prepared to study. Many real estate professionals… more
 

Joe Farro

Mc Donough, GA

More about me…

Premier Capital Mortgage

Address: 360 Corporate Center Court Suite B, Stockbridge, GA, 30281

Office Phone: (678) 289-6600

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This weekly update contains current information that is geared to help real estate professionals work with clients and provide information.



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