America's #1 Mortgage Rates Report: June 12, 2008

By
Mortgage and Lending with San Diego VA Home Loans/858-777-9751

Mortgage rates are headed higher.  Lock all rates at application, regardless of closing date.

The trend is clear; the Fed believes it has done all it can to stave off the banking crises and is now focusing its efforts on inflation.  This morning, retail sales were up and the dollar is strengthening.  If stagflation is the fear, the current strategy of targeting core inflation may be abandoned for the more radical Paul Volcker-style approach to tame inflation. 

While I believe the higher mortgage rate cycle will be shorter than the 80-s style interest rate hikes, it's clear to me that Bernanke is talking differently than he did in 2006 and 2007.  The effect?  We could see mortgage rates rise as much as 2% in the next two years.  I still believe that a five year ARM will offer the best solution because interest rates move in cycles; I think we'll see mortgage rates under 6% again in 2011.  Today?  The trend looks like we're headed higher.

What then, should be your strategy?

1- If you were thinking of refinancing your home loan, apply now.  There will be little periods of weakness in rates this year and you should jump on any chance you have to get a 5/1 ARM under 6% or a 30 year fixed rate under 6.5%.

2- If you can't get the home loan you want today, get your documentation to me anyway. Secure an approval that is good for 90 days and wait for those periods of weakness to lock in the right rate.

3- If you were thinking of buying a home, mortgage rates are about as good as they'll get for the next two years.  Get pre-approved, contact your REALTOR and start looking.

 

Brian Brady

(858)-777-9751

brian(at) californialoanconnection (dot) com

 

For faster service, apply online, fax your most recent paystub, 2007 and 2006 W-2 form, and most recent bank statement to 858-605-4230, and call me immediately.

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Rainmaker
826,128
Fran Gaspari
Patriot Land Transfer, Inc. - Limerick, PA
"The Title Man" - Title Insurance - PA & NJ

Brian, The problem with 'bottom feeders' is they wait too long for the 'good stuff' to sink!!! Thanks,   Fran

Jun 12, 2008 03:51 AM #1
Rainmaker
283,861
Dave Woodson
Dave Woodson - Chesterton, IN
Not the Average Agent

excellant advice, Brian, I just informed someone today that I cannot get them what they want, but I am sure we will be there in 90 days

Jun 12, 2008 07:25 AM #2
Rainer
25,107
Bryan Flynn
Regency Mortgage Corporation - Worcester, MA
Central Mass and Worcester Mortgages

great advice here Brian.....its been a crazy 8 days or so in the bond market

Jun 12, 2008 01:15 PM #3
Rainmaker
551,512
Lynda Eisenmann
Preferred Home Brokers - Brea, CA
Broker-Owner,CRS,CDPE,GRI,SRES, Brea,CA, Orange Co

Hi Brian,

I heard about the rates early this a.m. and I'm not surprised at all. And I agree for a re-fi, sooner rather than later imho.

 As for those ugly times with rates in the 80's I remember them well. My highest (with a buyer) was 17 1/2% on a first t.d. It also happened to be someone who purchase a home on my same street. Second t.d.'s were even higher then, some just over 20%.

We thought we were on easy street when they got back to single-didgets!

Jun 12, 2008 02:55 PM #4
Rainer
48,039
Jolynne Photography, Creative Wedding Photography, Family Portraits, Bar Mitzvahs
Jolynne Photography - Hemet, CA
Bat Mitzvahs, Senior Pictures, Event Photography

Hey there...good stuff. I featured you in the Mortgage Pro Week In Review.

Jun 16, 2008 01:26 AM #5
Rainer
7,287
Kate Pokroshinskaya
Royal - The White House, DC

I appreciate this rather useful post and suggest to use its output in the practice, for instance, using http://www.fizber.com/sale-by-owner-home-services/mortgage-calculators.htm/ - online mortgage calculatoron the website of Fizber.

Jun 19, 2008 02:08 AM #6
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Brian Brady

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