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Rate Lock Advice & Mortgage Market Update

By
Mortgage and Lending with LoanOfficerSchool.com NMLS 291249

PM Rate Lock Advice & Mortgage Market Update

DAILY RATE LOCK ADVICE
April 16 2010, 1:25 PT
Lock Advice is Updated Several Times Daily

Rate lock Advice for loans that must lock today:  FLOAT
Mortgage Backed Securities (MBS) prices are up +11/32 which could trigger another round of improved pricing.  Some lenders earlier repriced for better.
Mortgage Rates run opposite MBS prices

Long Term Mortgage Rate Lock or Float Advice:  FLOAT With Caution.
Mortgage rates have been mostly down for the past two weeks temporarily reversing the upward rate trend for the previous 30 days.

MORTGAGE MARKET NEWS
March Housing Starts rose 2% to an annual rate of 626K units, above the consensus forecast of 610K, and the highest level since October 2008. Building Permits, a leading indicator, also exceeded expectations.  While this is good news for the economy it did not effect mortgage rates..

The Index of Consumer Sentiment fell to 69.5 this month, well below forecasts 75.0, meaning that consumers felt much worse about their own financial situations than many had thought.  That usually translates into consumers delaying large purchases and limits economic growth.  This news helped MBS markets because Bad economic news is good news for the bond market and mortgage rates.

  • National Average Fixed Rate Mortgage 
    Unchanged at 5.13% on Apr.16
  • MBS Yields Opened at 4.802% Down 0.034%.
  • 10 Year Treasury Currently 3.860% Down -0.02%
  • DJI Stocks closed at $11,018.66,  Down -125.91, -1.13%
  • European and Asian Markets Closed Down -1.492%
  • Nymex Crude Oil Currently $83.12 Down $2.39

  • Bernanke confident on recovery  AP Associtated Press
  • VA Loans Show Good Intel Is Best Defense The Department of Veterans Affairs' loan guarantee program-which requires no downpayment-has performed much better than, say, the troubled Federal Housing Administration program.  National Mortgage News
  • Employers added most jobs in 3 years in March STLToday
  • B of A agrees to cut loan amounts for underwater borrowers. National Mortgage News
  • Maybe there is help for Jumbo Loans. Broker Universe
  • Mortgage Brokers are the cheapest conduit to bring loans to market according to FHA Commissioner, David Stevens TBWS
  • OneWest Bank's sweetheart deal with our Bank Owned Government (BOG) Must See Video

California Rates 04-16-10, 9:55 PT
30 Year Fixed to $417,000
Rate 4.75%  Point 1.25, APR 5.007%
APR Based on $350,000 Loan at 80% LTV
Above Rate can be locked  for 30 days.
Click for Quotes on FHA and VA loans With Detailed Cost Estimates.
 No Application or Credit Report required

Compare Rates from Major Lenders Survey


 

Constantine Isslamow
RE/MAX Eastern Realty Inc. Brokerage - Peterborough, ON
"Training and Accountability"

Thank you for posting and sharing your very informative article.

Wishing you continued success.

Apr 16, 2010 08:45 AM
Bill Ladewig
LoanOfficerSchool.com - Escondido, CA
Experience Is Your Advantage

Constantine, thank you for your comment.

Apr 16, 2010 08:58 AM
Ted Tyndall
Davidson Realty Inc. - Saint Augustine, FL
I will help You find the Home YOU want to Buy

Thanks Bill. I enjoy seeing weekly information on the market.

Apr 17, 2010 06:11 AM