Mortgage Rate Update
Mortgage Rate Report Ÿ October 19, 2009 |
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| Loan Program | Conventional | Conv > $417,000 | FHA/VA | FHA > $417,000 |
30 Year Fixed | 4.875% | 5.25% | 4.875% | 5.00% |
15 Year Fixed | 4.375% | 4.625% | 4.50% | 4.50% |
3/1 ARM | 3.625% | 4.25% | 3.75% | 3.75% |
5/1 ARM | 3.375% | 4.25% | 3.875% | 4.00% |
7/1 ARM | 3.875% | 4.50% |
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The above scenario assumes credit scores greater than 740, 20% down-payment, 25-day lock period, and 1 origination point. |
| USDA Rural Housing† | CDA | VHDA | |
30 Year Fixed | 5.00% | 5.625% | 4.75% | |
The above scenario assumes credit scores greater than 700, 20% down-payment, 25-day lock period, and 3 origination points. † The above scenario assumes credit scores greater than 660, 3% down-payment, 25-day lock period, and 1 origination point. |
| Non-Agency/ Jumbo | |
30 Year Fixed | 6.25% | |
5/1 ARM | 4.50% | |
The above scenario assumes credit scores greater than 800, 25% down-payment, 25-day lock period, and zero origination points. |
Market Comment |
Mortgage bond prices fell sharply last week driving mortgage rates higher. Rates were under pressure from better than expected economic news and rising stocks. Retail sales, weekly jobless claims, and industrial production data were all better than expected. The improved economic outlook had investors flocking to buy stocks, which helped the Dow Jones index to close over 10,000. For the week, interest rates rose nearly 7/8 of a discount point. The producer price index data to be released Tuesday will be the most important data this week. Any signs of inflation will generally not bode well for mortgage bonds. The Fed "Beige Book" will factor into trading this week. Stock strength and dollar valuation will play a pivotal role in mortgage interest rates as well.  |