LOWEST INTEREST RATES IN 2 MONTHS!!

LOWEST INTEREST RATES IN OVER 2 MONTHS

February 3rd, 2014

Interest rates are on quite the hot streak with weakness in global equity markets causing investors to seek the safety of Mortgage Backed Securities. The DOW Jones is down over 5% on the year, and the MBS market has closed better each week in 2014.

Last week the MBS market closed + 39 bps on the week – improving rate pricing about .25 pts over the previous week.

The fascinating part of this recent rate down turn is the FED has continued to taper their stimulus and interest rates are still improving. On Wednesday, the FED announced another 10 million drop in asset purchasing and Janet Yellen officially took over for Ben Bernanke heading the FEDERAL RESERVE BOARD. The FED tapering is hurting the stock market, which in turn is helping interest rates. It appears the market did so much in 2013 to brace for the FED tapering, that when it actually happened, the increase in rates was already accounted for.

We now mark the 5th week in a row rates have improved. The improvement has been very gradual with no huge drop in rates in any week. I think we are bound to get a pull back soon, and I recommend taking these gains and locking in. Rates are at their lowest levels since November 20th.

This week is employment report week. The January jobs report will be released on Friday morning. The report typically causes a lot of rate volatility and shapes where interest rates will go over the next month. The December employment report was substantially below expectations which has helped interest rates so far in 2014.

Have a great week!!

BEST VALUE OF THE WEEK:

20 Year Fixed at 4.125% with 0 points

10 Year Fixed at 3.125% with 0 points

TODAY’S RATES:

30 year fixed:      4.25% – .73 points,      4.5% – 0 points,       4.625% – $0 costs

20 year fixed:      4% – .7 points,       4.125% – 0 points,       4.25% – $0 costs

15 year fixed:       3.375% – .44 points,       3.5% – 0 points,       3.625% – $0 costs

10 year fixed:       3% – .51 points,        3.125% – 0 points,        3.5% – $0 costs

5/1 ARM:       2.75% – 1 point,        3.125% – 0 points,        3.5% – $0 costs

7/1 ARM:      3.125% – .92 points,      3.375% – 0 points,      3.625% – $0 costs

30 year fixed FHA:       3.75% – .35 points,       3.875% – 0 points,       4.125% – $0 costs

15 year fixed FHA:      3.25% – 0 points,      3.5% – $0 costs

30 year fixed VA:      3.75% – .29 points,       3.875% – 0 points,       4.125% – $0 costs

Today’s Mortgage Interest Rates. February 3rd 2014 30 year fixed rates, February 4th 2014 30 year fixed rates, February 5th 2014 30 year fixed rates, February 6th 2014 30 year fixed rates, February yth 2014 30 year fixed rates, February 8th 2014 30 year fixed rates, February 9th 2014 30 year fixed rates, February 10th 2014 30 year fixed rates.  Scottsdale, Arizona Mortgage Banker.  Arizona home loan rates.  California Home loan rates,  Colorado home loan rates.  McCormick Ranch Mortgage Direct Lender.  FED taper January 29th, 2014.

LOWEST INTEREST RATES IN OVER 2 MONTHS