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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Housing Recovery Underway-3.872% APR 30 YR Jumbo Fixed

by NAMCO May 12, 2012

Euro drama and news of J.P. Morgan’s $2B losses continued to keep Mortgage Bond prices at all time highs, which is good for Mortgage Rates.  The 3.5% settled at 104.03 up 9bp.  I  recommend locking short term and floating longer term. Tips for Mortgage Shopping When shopping for mortgage rates it’s important to know that not all [...]

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by NAMCO May 5, 2012

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by NAMCO April 28, 2012

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Fed Meets Next Week- 3.366% APR Jumbo Fixed Rate 15 Yr.

by NAMCO April 21, 2012

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by NAMCO April 13, 2012

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by NAMCO April 6, 2012

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More Hints at QE3 and 3.483% Jumbo 10/1

by NAMCO March 31, 2012

Bonds started a move into positive territory (good news for mortgage rates) on Monday and followed through with the rally on Tuesday; marginally taking a step off the down escalator. Helping bonds prices improve was Tuesday’s  $35B 2-yr note auction, earning a B+.  Bonds finished the week below resistance at the 35-Day Moving Average and closed [...]

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by NAMCO March 24, 2012

Mortgage Rates and Bonds got a much needed boost Friday morning from the weaker than expected housing data, as new home sales unexpectedly Fell 1.6% in February to 313K units annually, estimates called for 323K units. Bonds Prices continue to be on a longer-term Down Escalator as they sit between resistance at the 100-day Moving Average [...]

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Fed Pres Says Raise Rates – 3.366% -15 Yr Fixed

by NAMCO March 17, 2012

Were you caught by surprise when the Bond market changed direction and Bond prices fell, pushing Mortgage Rates higher?  You wouldn’t have been if you read my Alert to Lock email on Wednesday. This reversal should remind us just how quickly things can change in the Bond Market.  Just when prices were trading in a sideways trend…people get complacent [...]

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