Mortgage Rates Come Under Pressure, No Data
Posted 03-19-2010 at 08:28 AM by VictorBurek
Mortgage rates backed up a few basis points yesterday following the release of the size of next week’s Treasury supply. The other economic releases came in close to expectations resulting in no reaction from the markets. All lenders did reprice for the worse increasing consumer borrowing costs anywhere from an .125 to a .25 in discount. Par was still holding in the 4.75% to 5.00% range.
After yesterday’s plethora of data, today brings us no economic reports.
Reports from fellow mortgage professionals indicate lender rate sheets to be worse today. The par 30 year conventional rate mortgage has risen to the 4.875% to 5.125% range for well quailed consumers. There are still a few lenders offering 4.75%. To secure a par interest rate on a conventional mortgage you must have a FICO credit score of 740 or higher, a loan to value at 80% or less and pay all closing costs including an estimated one point loan origination/discount/broker fee. If you are seeking a FHA loan, there are still many lenders offering 4.75% as par. Government loans allow for lower FICO scores but do come with higher costs.
If you didn’t follow my advice on locking yesterday, you will pay the price this morning with either a higher rate or additional costs. If your lender is still offering 4.75% today, I would hurry and lock that up. If your lender has increased the rate by .125% over yesterday, I would than recommend floating over the weekend as I feel you should be able to get that same rate Monday. Plus, this gives you the opportunity of a better rate next week. Mortgage rates have once again tested the 4.75% level and were unable to move lower.
Have a great weekend, be back to you on Monday with a look at the week ahead.
After yesterday’s plethora of data, today brings us no economic reports.
Reports from fellow mortgage professionals indicate lender rate sheets to be worse today. The par 30 year conventional rate mortgage has risen to the 4.875% to 5.125% range for well quailed consumers. There are still a few lenders offering 4.75%. To secure a par interest rate on a conventional mortgage you must have a FICO credit score of 740 or higher, a loan to value at 80% or less and pay all closing costs including an estimated one point loan origination/discount/broker fee. If you are seeking a FHA loan, there are still many lenders offering 4.75% as par. Government loans allow for lower FICO scores but do come with higher costs.
If you didn’t follow my advice on locking yesterday, you will pay the price this morning with either a higher rate or additional costs. If your lender is still offering 4.75% today, I would hurry and lock that up. If your lender has increased the rate by .125% over yesterday, I would than recommend floating over the weekend as I feel you should be able to get that same rate Monday. Plus, this gives you the opportunity of a better rate next week. Mortgage rates have once again tested the 4.75% level and were unable to move lower.
Have a great weekend, be back to you on Monday with a look at the week ahead.
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