California Mortgage Rate Update for the Week of 06/04/12:
Last week I told you that investors might yawn at a bad jobs report. Boy, was I wrong! Well, in all fairness, it was a terrible report, and few could find a silver lining in the job outlook or even the broader economy. So it was "deja vu all over again," and rates improved substantially on Friday. That said, Monday morning finds some of the improvement taken back by lenders and increased volatility in the bond markets. But in my mind, this just further reinforces the need to have conviction and lock a rate when they're good. Don't deliberate, as the forces that work against you are more powerful than you know, and certainly not easily controlled.
Economic highlights for the week: Not much in the way of reports or data this week, so expect the interplay between stock and bond markets to govern the mortgage pricing available to you. Europe remains a mess and as all smart economic commentators have noted, it ain't going away. Compounded by signs of weakness in the US, the talk of QE3 is again gaining momentum.
Lock advice: You might think that with increased pessimism and even the heightened volume on more Fed easing I would take a float position, but I'm going to stick with a LOCK bias for now. Sure if you have unlimited time and can hold out for lower rates, feel free, but the rest of us should be seizing strong days and not looking back. The 10-year Treasury note is at historic lows and we've never seen mortgage rates at these levels either. You just can't make a strong case to hold out for more.
Remember, we now offer the HARP2.0 refinancing options for those who are underwater on their homes. Contact me with any scenarios.
For specific pricing on your scenario, or to get pre-approved without obligation for any of these loan products below, you can: