DAILY MORTGAGE INTEREST RATE LOCK ADVICE

DAILY MORTGAGE INTEREST RATE LOCK ADVISORY
June 27, 2011, 6:30 AM PST
Lock Advice is Updated Several Times Daily

Mortgage Interest Rate lock Advice for locks within 2 days:  FLOAT
Mortgage Points based on Mortgage Backed Securities are down 0.01 point.

Long Term Mortgage Interest Rate Lock or Float Advice:  FLOAT with Caution.
Long term: We may be near the end of a rally supported by European financial instability causing Europeans to invest in the safety of US bonds which supported mortgage prices.  Once the European market stabilizes we could see higher rates.

• MARKET INDICATORS
  30 Year Fixed Interest Rate - National Average  4.50%.      
  MBS (FNMA 30-year 4.5) - Current: 104.25, High: 104.25, Low: 104.16   
  DJI Stocks currently $11,956.72,  Up $22.14, Change 0.19%   
  Asia & Europe Indexes Down -0.318%   
  Nymex Crude Oil Currently $90.09 Down $1.07     
                        
  

MORTGAGE MARKET NEWS BRIEFS

ARMs Making a Comeback
The adjustable-rate mortgage (ARM) loan product has been laying low since the housing boom, but this once avoided loan product, popular before the financial crisis, is making a comeback. > Read More

Cash is King in Housing Market
Cash seems to be king in the frail housing market, dominated by cash buyers who are enticed by low prices and potential income, according to the National Association of Realtors. Last month, those who had cash in hand to buy a home accounted for 30 percent of existing home sales for the fifth straight month. This number is up from 25 percent in May of last year and 12 percent from 2009, according to the NAR. Most of these cash buyers are headed to areas that have been drastically hit by foreclosures and low home prices. » Read More