AM RATE LOCK & MARKET ADVISORY - January 6, 2012

 MORTGAGE LOCK ADVISORY 

January 6, 2012, 6:45 AM PST

Click for Lock Advice Updated Several Times Daily  

Mortgage Interest Rate lock Advice for locks within 7 days:  LOCK

Mortgage Points based on 3.5% Mortgage Backed Securities are down 0.01 point. 

30 Day Mortgage Interest Rate Lock or Float Advice:  FLOAT with Caution

There is not conclusive evidence to lock but, In this uncertain market the best advice is to lock at historic low rates.

MORTGAGE MARKET INDICATORS
National Average Fixed Rate Mortgage 3.95%   
MBS (3.5%) - 102.92, High: 103, Low: 102.72   
DJI Stocks currently $12,372.41,  Down $-43.29, Change -0.35%   
Asian & European Stock Market Indexes Down -0.153%   
Nymex Crude Oil Currently $102.11 Up $0.30

LPS reports mortgage delinquencies are going nowhere  by Jacob Gaffney
The latest mortgage monitor from Lender Processing Services shows the level of homeowners 90 days or more behind on their house payments stayed essentially flat over the second half of 2011. Read More in Housing Wire

Tax Cut Extension Now Officially Raising Mortgage Rates

They did it again: Permanent Rate Increase allows Termporary Tax Cut
As part of the temporary resolution to the recent battle over the Tax Cut Extension that took place in the last weeks of December, Congress decided that mortgage borrowers should foot part of the bill. Technically, Congress increased the "Guaranty Fees" that Fannie Mae and Freddie Mac charge to lenders that securitize MBS (Mortgage-Backed-Securities) with the Agencies, but ultimately, this cost must either be absorbed by lenders, passed on to consumers, or some combination of the two. Read More Mortgage News Daily.