Rates were on a little bit of a roller coaster this week; they dropped and then came back to about where they were last week.
Jumbo’s came back in line. They are a strange bunch as they swing from the 6’s to the 8’s and it is tough to know when it will happen. SunTrust, Chase, Countrywide and Wells have their 30 yr in the 6’s while Citi, Taylor Bean, and Frankin American are all still in the 8’s.
ARMs are a bit interesting lately as their par rate is a bit high but a 1% Discount point buys the rate down over 1.25%. 1% Discount points generally only buy a rate down .25%.
FHA rates are lower than Conforming rates with only 3% needed as a down payment.
Regarding the Fannie/Feddie saga, if you missed my “Special Report” email on Monday, you can read it and any of my past emails on my blog at http://dzopf.activerain.com/ .
To summarize, Indy Mac was taken over by the FDIC because Sen. Chuckie Schumer, D-N.Y. made comments that caused thousands of customers to withdraw all their money and Indy ran out. This caused people to worry that the same thing could happen to Fannie and Freddie. The Fed stepped in and said that it can’t and won’t happen and everything cooled off by Wednesday.
Finally, don’t miss out on the “Open House Extravaganza” in the Governors Club this Sunday hosted by many different agent friends of mine. Judy Williams can do some amazing things with her break-and-bake cookies!!
Fed adopts rules to curb shady mortgage lending
http://money.cnn.com/2008/06/30/real_estate/vulture_investors_take_flight/index.htm?postversion=2008070507
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