Interest Rates Decline
January 15th, 2010 categories: Sacramento Mortgage Information
Didn’t I Say They Were Going Up?
Oh for heaven’s sake. In one of my most recent mortgage rate updates, I cited industry sources who plainly said that mortgage rates were on the way up and that the low rates we’ve been experiencing, due to a “robustly” growing economy would soon be over 6%.
Those damn pundits, as usual, have no clue! Why do I listen to them? You shouldn’t either. Anyone who tells you they know what’s going on should be avoided. Realtors especially. (did I say that out loud?)
Anyway..rates have gone back down after rattling around a bit higher since the beginning of December. The outlook? It’s clear I don’t know! So let’s go here..
If the economy improves and the indicators that are responsible for interest rates going up are there…guess what? Interest rates will go up. If the economy declines and the indicators that are responsible for interest rates going down are there…guess what? Interest rates will go down.
That said, it doesn’t always work that way due to government intervention so WHO KNOWS? At this point and all points along the way, anything can happen.
From The Horse’s Mouth
Frank Nothaft, VP and head economic honcho at FreddieMac.com had this commentary to add:
1) Interest rates for fixed rate mortgages eased this week. (Insightful!)
2) ARM’s were mixed. (?)
3) Rates are low, refinancing is up. Over the last 3 months, 75% of mortgage activity has been refinancing. (Interesting factoid)
4) The FED reported positive news in housing and the overall state of the economy on January 13th. Economic activity improved in 10 or the 12 districts measured. Home sales in the lower price ranges has increased. (We’re seeing that here..still)
Well once again Frank, riveting!
Rates were 5.06% for a conventional 30 year fixed rate mortgage. Last time this year they were around 4.96%.
Local Lender Quotes
This week our local lenders “lend” their insight to make this post what it is. (no pun intended!)
Pat Murphy, Guild Mortgage, 916-212-9451, Pat@patmurphyloans.com
The 30 yr fixed conventional rate has remained steady at 5.125% as of this morning. But as we know, rates do change constantly!
Want to know more about your choices in the housing market? Do you qualify? For how much? Should you rent or own? Is credit is a problem? If so, I can help review your situation and suggest ways to improve your score. Need help sorting through it all?
Contact me at (916) 212-9451 or pat@patmurphyloans.com.
Free Advice – Honest Loans – Pat Murphy!
Stephen Hart, Master’s Team Mortgage, 916-719-4295, StevenHart@helloworld.com
“Welcome to the wild roller coaster of the mortgage industry. Monday began with prices getting worse for interest rates, Tuesday saw price improvements, Wednesday we lost 31 of those points and today we start by gaining 12 points back.
This kind of market volatility is the biggest reason to work with a trusted mortgage professional who can keep you informed of what is happening with mortgage rates. With all of this volatility, mortgage rates are still in the low to mid 5’s for conventional and FHA loans under $417,000. Conventional and FHA loans above $417,000 up to $580,000 are in the upper 5’s. Homebuyer tax credits are still available, however, you must be in contract no later than April 30, 2010.
This just in, the Federal Government has put 15 lenders on a watch list for price gouging through their AMC’s (Appraisal Management Company). Go figure, a well intentioned regulation that has been poorly thought out and implemented. We will see how this one progresses.
Questions, comments, what does all of this mean to you? Call me, Stephen Hart, at 916-988-5858, I look forward to guiding you through the maze of obtaining a home loan. Make today an an amazing day!”
There you have it folks, insight from YOUR local lending resources. Please let us know if you have any questions and always remember, mortgage rate updates are always out dated the moment they are posted! Rates can change in every moment.
For current rates or home loan questions, please fill out the form below and we’ll get back to you today.
Thanks for visiting!
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Mortgage Interest Rates on the Rise
January 3rd, 2010 categories: Sacramento Mortgage Information
Rates Increase Over the Holidays – Merry Freakin Christmas!
Santa left a little unintended coal in our collective mortgage stockings this holiday season in the form of increased mortgage interest rates.
While the increase isn’t all that much honestly, I believe this will be a sign that could point to higher interest rates in the future. Our low “candy cane” rates may be coming to an end sooner than later.
Rates as of this posting, according to MortgageDailyNews.com, are at 5.2% for a 30 year fixed rate mortgage, down from 5.33% last week. Certainly higher than the 4.75% averages we were seeing prior to the holidays.
Here’s the kicker with the current rates;
To qualify for the current rate at between 5% and 5.25% you’ve got to have credit scores at or above 740.
That’s the news that usually left out of most lender advertising which would be kind of nice to know upfront, wouldn’t you say?
From FreddieMac.com
The following commentary is the most recent from Frank Nothaft, VP of this and that @ FreddieMac.com:
1) Although rates have gone up, we’re still in one of the most affordable housing markets in history.
2) At today’s rates compared to the rates in 2000, you’ll pay 1/3 less for your mortgage than you did in 2000.
3) The housing market is improving nationally.
4) Housing prices have gone up for the 5th straight month. 11 cities have experienced “positive growth”.
See the context of Frank the VP’s notes here.
That’s the official word from the “suits”, and what follows is a quote from one of our trusted local lending resources.
Local Lender Quotes
My goal for 2010, at least one of them, is to include several more lenders to this weekly article. Wish me luck!
Pat Murphy, Guild Mortgage, (916) 212-9451, email pat@patmurphyloans.com
“The 30 yr fixed conventional rate has creeped up to 5.25% this week. It is hard to say whether this is a function of a perceived economic improvement or just because it’s the end of the month.
But the good news is that the Fed rate (the rate banks pay to borrow from the Federal Reserve) continues to remain low, and is expected to remain there until at least late this spring! So, while the rate is creeping, it is still a GREAT rate historically!
I am happy to answer your questions. Call me any time to ask about anything related to the market or loans 916-212-9451 or email pat@patmurphyloans.com.”
Thanks for visiting!
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Mortgage Interest Rates at HISTORIC Lows!
November 19th, 2009 categories: Sacramento Mortgage Information
Just When You Thought It Couldn’t Get Better!
Mortgage interest rates, especially the 15 year fixed rate mortgage, set another record over the
last week coming in at an astonishingly low 4.32%.
The majority of the loans written are 30 year fixed rate mortgages, either FHA or conventional financing, and those rates came down this week as well to 4.83% down from 4.91% last week.
This is the third straight week of declining mortgage interest rates and the lowest rates have been since May.
From Frank Nothaft, VP and Chief Economist of FreddieMac
1) Rates on the 15 year fixed rate mortgage is the lowest since records began in 1991.
2) New home building showed some weakness in recent months. Residential construction is down 10.6% between September and October. Home builder confidence is at low levels. (um, yeah?)
3) FHA and VA loans were also down with an average yield of 5.47% compared to 5.52% last week.
Local Lender Quotes
Pat Murphy, Guild Mortgage, 916-212-4951, Pat@patmurphyloans.com
The 30 yr fixed rate is below 5.0% again today at 4.75% AND the $8,000 First Time Homebuyers tax credit and $6,500 tax credit to homebuyers that have lived in their present home at least 5 years has passed both the House and the Senate and is now law!
Are you ready to take advantage of this opportunity?
Free Advice – Honest Loans
No question, this is a great time to buy. Getting into contract is a challenge on both sides of the fence. Persistence pays off and a smart approach plus persistence is a winning combination.
Let me know if we can help you. Contact us here.
Wishing you joy and abundance!
Thanks for visiting!
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Mortgage Rates Decline in Sacramento
September 10th, 2009 categories: Sacramento Mortgage Information
Mortgage Applications Up 17%
The average rate for a 30 year, fixed rate mortgage declined this week from 5.08% to 5.07% (WooHoo!) While not a dramatic decline, a tenth of a point is a tenth of a point!
Rates one year ago at this time were 5.93%. The difference between purchasing a $200,000 right now versus last year is quite nice.
At 5.93%, a $200,000 home last year would’ve cost $1382.44 per month. Now, the same home would cost $1,285.33.
This includes loan principal, interest, taxes and insurance. (Disclaimer: this is an estimate) That’s roughly $97 per month less and could purchase a months worth of latte’s from Starbucks for even the worst addict!
Incidentally, a $200,000 home is pretty nice in Sacramento right now. I have an investor who paid $132,000 for a home and rents it out for $1300, more than it would cost so own right now. Purchasing is cheaper than renting in many cases.
ATTENTION: If you’re a first time home buyer, as of today, you have 80 days to close on a home before the $8000 tax credit expires. See the countdown widget in the left sidebar to see how much time is left!
Economic Recovery Appears Close
Frank Nothaft, VP and Chief Economist said this week:
1) Mortgage rates remained historically low over the past two weeks.
2) Mortgage applications are up 17%, 23% jump in refinance demand.
3) Jobs and the Federal Reserve’s latest report suggest the economy may be on the road to recovery.
4) Most areas are reporting that housing prices are firming and remaining steady.
Local Lender Quotes
Pat Murphy, Guild Mortgage, 916-212-9451, pat@patmurphyloans.com
“Rates for a 30 yr conventional loan have been hovering around 5% all week, with buy downs still available to as low as 4.5%.
If you have been hesitating, now is the time to call and find out your possibilities!
Remember, rates change constantly, so it’s a good idea to make a plan for your future today!”
The clock is ticking on you first time home buyers to take advantage of the $8K tax credit.
Need a lender? Give Pat a call. She can get you pre-qualified quickly and we can get you out there looking as quickly as possible.
Thanks for visiting!
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Sacramento Mortgage Rates Decline
August 21st, 2009 categories: Sacramento Mortgage Information
Rates At Lowest Level In 3 Months
FreddieMac.com reported today that the average interest rate for a 30 year fixed rate mortgage is at it’s lowest point in the last three months.
This week’s mortgage rate survey came in with an average rate of 5.12% for a 30 year fixed rate mortgage. In last week’s survey, the average rate was 5.29%. Last year at this time, the average rate was more than a point higher at 6.47%. Big difference!
Frank Nothaft, VP and Chief Economist at FreddieMac said this week:
1) Bond yields are down. (interest rates tend to follow bond yields)
2) Interest rates are at their lowest levels since May. (it’s time to buy, again!)
3) Low mortgage rates are helping to reinforce the housing market. (duh!)
4) New construction of single family homes is up for the 5th consecutive month, highest level since October, 2008.
5) Optimism has gone up for home builders. Builders are becoming more positive about the future.
Local Lenders Quotes
As you can see from the brief historical data given here, interest rates are subject to change on a moment by moment basis. They never stay the same for any length of time.
Please call the lender of your choice for the most current pricing and rates for the most up to date information available. Here are this week’s quotes from my most reputable lending sources.
Tim Clark, Capitol Mortgage, 916-960-0388, tclark@capitolmortgage.com
· Conventional 30 year fixed at 4.875% (yep, it’s real!)
· FHA 30 year fixed 5.25%
As an ex-US Navy submariner, I love helping fellow veterans. Vets can still get 100% financing!
I’m getting many calls on my FHA 30 Year Fixed loan with lower FICO scores (down to 580). They’re buyers that most banks/brokers won’t touch.
Pat Murphy, Guild Mortgage, 916-212-9451, pat@patmurphyloans.com
“Par for 30-year conventional loans today is 5.125%, with buy downs available to 4.625%.
Rates do change constantly and have been bouncing up more often than down lately, so it is a good time to get pre-qualified and meet your home financing goals while rates are still low.
Loans available for most credit situations – call me and let’s see what your possibilities are!”
Stephen Hart, Masters Team Mortgage, 916-719-4295, stephenhart@helloworld.com
“Hello home buyers, believe it or not, I still have conventional rates available for 30 year fixed in the high 4’s and low 5’s. We have seen mortgage market improvements but this segment of the economy is still very volatile.
This information notwithstanding, we are still in a buyer’s market with prices at very low levels and rates at historic lows.
This is definitely a great time to buy, especially for the first time home buyers eligible for the tax credit of up to $8,000. The transactions must close and record on or before November 30, 2009 to qualify for the tax credit.
Any questions, please call me at — 916-988-5858 and ask for Stephen — the lender with ‘Hart’.”
Please remember that rates change constantly. Please call for current pricing and rates.
Thanks for visiting!
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Sacramento Mortgage Rate Watch
June 25th, 2009 categories: Sacramento Mortgage Information
Rates Change Little This Week
Mixed economic data kept interest rates stable this week. Not much change from last week. The average for a 30 year fixed rate mortgage 
this week is 5.42% up from 5.38% last week. Although this is uptick, it’s still considered flat or stable movement.
Comments from Frank Nothaft, Freddie Mac VP & Chief Economist…
1) Mixed economic reports have held rates flat.
2) Existing home sales rose for the second consecutive month in May by 2.4%
3) The median sales price was 16.8% lower than the same time last year (there’s a shock!) 3.4% lower than in May of this year. (nationwide average) Sacramento median home price was down only 1.2% in May while California as a whole increased slightly.
4) The inventory of unsold homes has decreased 15.3% below levels of May 2008.
Good News
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Sacramento Mortgage Rate Watch
June 18th, 2009 categories: Market Commentary, Sacramento Mortgage Information
Mortgage Rates Ease Downward
According to the FreddieMac.com weekly mortgage survey, interest rates fell this week due to inflation numbers, which had been a concern, being lower than expected.
Interest rates on a 30 year fixed rate mortgage averaged 5.38% down from 5.59% last week.
From the FreddieMac.com website:
“Reports of benign inflation figures reversed the upward trend of mortgage rates this week,” said Frank Nothaft, Freddie Mac vice president and chief economist.
He also said:
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