Good Afternoon,

First off, thank you to all of you for the business you have sent me this year, I  appreciate it and hope that I’ve provided you with a little entertainment if not good information over the year J

Shannon and I are hosting our families again this year so we’ll be spending this evening cleaning and prepping…yippee.  I will keep this week’s update short and sweet.  With the current market, rates are in a very good place but they will certainly start rising again eventually.  I’ll keep everyone apprised as usual.

The market has been holding fairly steady this past week and we have seen rates lower slightly from last week once again with the 30 year fixed going down to 4.50% and the fifteen year fixed at 4.25%.

Have a great Holiday, be safe!

Matt

Good morning,

I have attempted to explain my thoughts on why interest rates are currently lower than they should be and why that will change in the coming year.  Yesterday, I came across an article from CNN that goes a little further in depth in explaining it.  If you are interested in checking it out, feel free to read up.

The big economic news today was that new housing construction has dropped over 10% in October.  There seems to be some debate between economists on this being good or bad.  On one hand, you have the fear that this trend will continue and that meaning that the housing industry will be slowing down.  The other side of the coin is that with fewer new homes to buy, this could lead to more existing homes being purchased.  Will either happen?  Probably a little of both but only time will tell how dramatic this number ends up being or if it just ends up being another stat for economists to debate over until a new number comes and piques their interest.

The market has been holding fairly steady this past week and we have seen rates lower slightly from last week with the 30 year fixed at 4.75% and the fifteen year fixed at 4.25% although they are looking to head back up by the end of the day again.

Have a great week!

Matt

Happy Veteran’s Day!

First and foremost, I want to send out my thoughts and wishes to our troops, especially with the recent tragedy at Fort Hood. 

For those of you who haven’t heard, the Homebuyer Tax Credit has been officially extended until the end of June.  One key component of this is the additional incentive added for homebuyers who have not purchased a home in the past five years.  Previously ineligible, they are now offered up to $6,500 as a tax credit if they buy in this extended time frame as well.  Although I think this is a great gesture for current homeowners, I feel that few will be able to take advantage in such a short time frame unless they were already working on selling their current home.

The market has been holding fairly steady this past week and we have seen rates creep back down from this time last week with the 30 year fixed at 4.875% and the fifteen year fixed at 4.375%.

Until next week,

Matt

Good Morning,

I was able to watch the Vikings/Packers game from an unusual spot this weekend, the hospital.  A small kitchen accident resulted in a few stitches to my hand. Luckily, they had a TV in the room to keep me occupied.  As a Vikings fan, I am glad that they got the win but I still would have no problems taking on Aaron Rogers for our Quarterback either.  Favre is a good Q but boy does he come with a lot of drama and media circus people. 

So on to the market.  We have been seeing rates creep up slightly over the past week.  We fully expect to see this trend continue and here is why: The Federal Reserve’s Mortgage Backed Security Program has spent almost $980 Billion of the approved $1.25 Trillion.  What this means is that the Fed won’t be able to keep the false levels of interest rates we have seen for the past six months constant much longer.  They have been purchasing excess supply to keep prices stable for quite some time and as they get to the bottom of their fund, rates will undoubtedly rise. The only real question what levels they will rise too.

That’s all for now,

Have a good week.

-Matt

30 year fixed: 5.000%

15 year fixed: 4.375%

Good Morning,

I’m happy to say that I’m feeling much better than last week and dare say I’m 100% back to health.  You’ll see rates have held steady again this past week so on to other news.

It appears that the Senate will be approving the first time homebuyer tax credit extension.  They were unable to finish the vote yesterday so details are still to be decided and finalized as far as any changes and dates for the new extension but anything short of a vote to deny sparks a good sign for it’s passage going forward. We should have a definitive answer by next weeks update. 

As expected, new home sales are being reported as encouraging with inventory levels dropping to 7 months across the country compared to over 12 back in January. Many believe that the homebuyer tax credit has helped get the home market moving again. 

That’s all for now,

Have a good week.

-Matt

30 year fixed: 4.875%

15 year fixed: 4.375%

Good Morning,

With rates unchanged and me sitting at home with a sinus infection, I’ll keep this one short and sweet.  Rates are below and we’re hoping they will hold here for the coming week.

Have a good week.

-Matt

30 year fixed: 4.875%

15 year fixed: 4.375%

Good Afternoon,

As expected, rates bounced back up quickly after matching near record lows last week.  A lot of this has to do with investors taking their gains and moving money elsewhere from Mortgage Backed Securities. The Earnings reports released from Intel and JPMorgan Chase also led to a boost in the stock market this morning.  This tends to be negative for MBS and interest rates in general.

No new word on the homebuyer tax credit although there are still talks of it being raised to $15,000 and applying to all homebuyers who plan on residing in the home being purchased instead of simply first time homebuyers.  This could end up being very good news for the mortgage industry but details have yet to be finalized.

Have a good week.

-Matt

30 year fixed: 4.875%

15 year fixed: 4.375%

Good Morning!

We have been fortunate to see rates drop even lower than last week.  This was mainly due to last Thursday’s jobs report being released with higher than expected numbers. Mortgage backed securities are now backing off the gains for the first time in a few days which means we should see rates move back up going into the end of the week.  One interesting thing to note (well interesting to me anyway); this marks the second time this year we have seen rates this low going back to May as the previous time we watched this level hit.  Anytime the rate gets below five, I suggest taking advantage before it is too late for anyone who missed the boat refinancing.

So, on to more important news than the weekly rate minutia; TWINS WIN!!!!  Shannon and I were lucky enough to pick up tickets to the game at her insistence and for her only game of the year, I like to think that my wife brought some good luck.  Whether or not the Twins can pull out the next series, that was a game for the ages. They made a fun final run in the dome. 

Have a good week.

-Matt

30 year fixed: 4.625%

15 year fixed: 4.25%

Good Morning!

It’s been a little while since we’ve seen interest rates dip below 5% in this current market climate.  We have seen time and time again over the past two years that when rates near this level, they tend to reverse fairly quickly.  This Friday will be the release of the monthly jobs report.  Traditionally, this has always indicated a trend in which way interest rates will be heading.  This year we have seen it act a little differently, the Jobs Report can signal a rise in interest rates but we have yet to see these numbers drive the market lower.

We’ll keep this one short and sweet.

Have a good week.

-Matt

30 year fixed: 4.875%

15 year fixed: 4.375%

Well, it’s a bit dreary out but for September 23^rd, I’m not complaining one bit.

Rates have been bouncing around since last Wednesday to end up just a tad bit lower than this time last week.

We could see some volatility later today as the Federal Reserve will release their latest policy statement today.  In tune with the past several statements, most economists are expecting the Fed to kept he Federal Funds rate unchanged.  This leaves us with the current key interest rate of 3.25%.  Investors will be looking for how the statement is worded to garner courage for their trading later in the day.  This will ultimately determine which direction we see interest rates go this afternoon. 

One misconception I have talked about in the past is something I always feel a need to revisit now and again as a reminder.  Many outside of the industry tend to believe that there is a direct correlation between the key interest rate and mortgage rates.  If the Federal Reserve lowered the key interest rate by .25%, the fixed mortgage rates would not lower by .25%.  The fixed rates are more directly tied to mortgage backed securities and the price that these securities can fetch when being sold on the open market. 

What would change would be a variable rate mortgage (such as a home equity line of credit from your local bank) because they tend to be tied to the key interest rate.  The reason for this is with this type of loan, the bank that offers it to you is borrowing their money from the Federal Reserve if needed at 3.25%.  Because they are not selling this line of credit to another bank, they are determining their interest rate based on what they have to pay to lend that money.  So if your line of credit is currently 3.5% and the Federal Reserve lowered their rate by .25%, then you would most likely see your Line of Credit lower by that same .25% to 3.25%.  This would work the same way if the Federal Reserve chose to raise the interest rate as well. 

If you want a longer winded explanation, feel free to let me know!

Have a good week.

-Matt

30 year fixed: 5.00%

15 year fixed: 4.625%