Let's Recap:

Last week the average 30-Year Fixed Rate dropped down to 6.67% from 6.69%.

The 15-Year Fixed Rate dropped to 6.34% from 6.37%.

The 1-Year ARM on the otherhand dropped to 5.65% from 5.66%.

Although interest rates didn't rally downward too heavily, it's better than the upward trend that we've been seeing over the past few weeks.

The Week In Review:

Durable goods orders as well as signs of continuing housing market weakness are the cause for the slight drop in mortgage interest rates last week.

Fed Funds Rate:

The Feds Fund Rate is currently holding at 5.25% and we believe that it will remain in it's current position after the next meeting scheduled for August 7th. Why? Well, although an economic rebound presses the need for a rate cut, moderation in core inflation presses the need for a rate hike.

The Week Ahead/Outlook:

We'll be looking at Manufacturing & Housing Reports (ISM Manufacturing Report on Monday & Home Sales Index Report on Tuesday) this upcoming week to deduce their impact on interest rates.

For a look at the Economic Calendar, you can visit http://www.bloomberg.com/ or <CLICK HERE>.

This Week's Product Hi-light:

Non-Prime Credit Comeback Program

This program allows your qualified non-prime borrowers to lower their interest rates by paying their monthly mortgage payments on time.

• Rate decreases .375% each year for a period of up to four years. Note that all payments must be made on-time in each eligibility period.
• Total interest rate reduction can add up to 1.5%
• The minimum starting interest rate is as low as 7.6% and can be potentially reduced to as low as 6.1% over the course of the first four years on the loan.  

This is a reward program that benefits borrowers for making on-time payments. The rate, payment and savings that could be derived are as follows:

Original Loan Amount:                           $190,000

Starting Fixed Interest Rate/(APR)       7.6%/(7.96% APR)

Term (Years):                                        30-Year

                             Interest Rate   |   Monthly Payment   |   Monthly Payment Reduction

Start Rate                          7.6%                 $1,341.54                        N/A

After 1st Year               7.225%              $1,292.91                       $49

After 2nd Year              6.85%                $1,244.99                       $97

After 3rd Year              6.475%               $1,197.81                       $144

After 4th Year              6.1%                  $1,151.39                       $190

***Note: For more information on this particular loan product, you can reach me directly at 866.934.3444 ext. 111.    

Other Articles of Interest:

100% Financing On Jumbo & Super Jumbo Loans w/No PMI - Here's How  

2nd Mortgages v. Home Equity Lines of Credit (HELOCs)

Thank You!

Ricardo Bueno - Residential | Commercial | Construction Investment Advisor

Ricardo Bueno is a Mortgage Advisor & Team Leader with Wilshire Financial, Inc. A diversified mortgage brokerage located in Pasadena, CA - The City of Roses!