We will be open Saturday to accomadate the overwelming demand to Apply and Lock into these historically low rates. 

Call 877-794 5363

Mortgage Bonds ended higher for the week today even while loosing a bit of ground today. The 3.5% coupon moved lower by 22 basis points  to end the week at 104.47, just below the all time closing price of 104.69, seen on Thursday.  Mortgage Rates which move in the opposite direction of Bonds have done very well with the 30 Year Fixed Rate at 3.57% and the 15 Year Fixed at 3.117%.

Mortgage Bonds and Mortgage Rates have done well partly due to the financial crisis in Europe. The Euro continues to decline and the US Dollar continues it’s move higher as  funding to some Greek banks was halted, making the situation more tense. The ECB will not bail out Greek banks at the detriment of their balance sheet.  Greece will need to recapitalize themselves.Spain could be next  “too big to fail” and “too big to save” country, due to their high debt and their troubled banking sector.  The big concern is contagion, especially here at home.

Looking ahead to next week there are few economic reports.  The Treasury will sell a total of $99B in Notes Tuesday and Thursday at very low rates. A poor buying session for these Notes could be bad for Bond Prices and Mortgage Rates. Technically, Bonds longer-term uptrend is still intact.  I continue to recommend Floating rates long term and locking short term.

It’s important to note that lenders are very busy writing mortgages at these low rates and are limited in taking on more volume, so they have little incentive to lower rates further.

Economic News

Home Prices Rise for Third Consecutive Month

In the 53 metropolitan areas surveyed by RE/MAX, home prices increased 3.2% from last month, and were up 5.9% from April 2011. Inventory also fell considerably over year-ago figures, indicating a potentially stronger market for home prices going forward.

More Good News For Housing

Is Housing on the mend? Housing Starts are up 30% over last year and rose last month 2.6%. Single Housing Completions are up over 20% compared to the same time last year.

Permits for New Construction are up 23.7% from last year.  Home Builder confidence hits a 5five year high.  Seriously delinquent loans are down to 7.4% from last years 8.32%.

Jobless Claims remained were reported at 370,000, they were expected to fall by 1,000.

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