Mortgage Bonds are trading slightly to the negative this morning, with stocks relatively flat as well. There is no significant economic data due out today, so it should probably be pretty quiet in the financial markets. At the pump, gas hit a 5 year low with a national average of $1.66 per gallon (just in time for holiday travel).
I don’t expect a lot of volatility this week since the exchange shuts down early for the holidays. As you get ready for this holiday season, remember the things most important to you, and if your answer has the word Xbox anywhere in it, you should re-evaluate. Have a Merry Christmas!!
- 4.750% 30 Year Fixed
- 4.750% 15 Year Fixed
- 4.875% 30 Year Fixed FHA
- 5.000% 30 Year Fixed VA
For more information about your loan, call Steve Russell with Primary Residential Mortgage at 850-221-8334. Or visit www.SteveRussellOnline.com.
Steve Russell
Mortgage Banker
Primary Residential Mortgage
850-497-6325 Office
850-221-8334 Cell
*Rates are subject to change without notice. Click here for the specifics on the rate quotes listed above.
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{ 8 comments… read them below or add one }
Those mortgage rates are what my guy was sending out this weekend as well, though here in New Jersey I was seeing gas at $1.41 a gallon on cc. Happy holidays from Morristown NJ.
How long do you think these rates will stick around? Can we expect them to be around when the selling season picks up?
Great insight! Keep the info coming- Angie @ Anchor Title Orange Beach
Hey Angie,
Thanks for stopping by. Do you want to put up some title information?
These are great rates. If they hold into April I think we will see a lot of activity and an increase in buyers. The rates seem to be a little higher in my area, maybe because of the high foreclosure rate = higher risk for lenders = higher rates.
Vicki, thanks for stopping by. The treasury department announced on December 16th that it would begin buying $500 billion in mortgage backed securities, and the bond market had it’s best day in almost a year just based on the news.
That buying began on Monday January 5th and will continue through June. Averaged out, this is about $4 billion per day that the Treasury Department will be buying which will lead to strength in rates going forward. Nothing is guaranteed, and rates change daily with quite a bit of volatility. But, it is likely that over the next 6 months, we will see the best mortgage rates that have ever existed.
Combined with home prices available, if this doesn’t move potential buyers off the fence, nothing will.
As for your area, rates are regionally specific. The rates I quote are based on Florida rates (which are lower than the national average).
Wow Steve, these rates look great. With all the lending being so tight right now, do you see the qualifications to get a loan becoming any easier? Since the bank statement programs have seemed to go away, I have a lot of self employed buyers that cant get the financing. Any solutions?
Jeff, The biggest advantage to being self employed is also its Achilles heel, the ability for creative accounting and writing off expenses to lower your tax liability.
Your choices are to:
1) take advantage of the upcoming tax season by keeping as much taxable income as you can, or
2) Take a hard money loan with 30% down payment and a 12% rate or
3) continue renting or remain in the home you have until you are ready to face the reality of choices 1 and 2.
The days of a true stated income program are over with little chance of revival in the foreseeable future.
I too have plenty of self employed customers, and there is no shortage of discontent between them about the current credit market. But, the reality is, and underwriter will look at “net” income to qualify…period. If they make $100k per year, but it takes $70k in expenses to get there, then they really make $30k per year, and that is what they will have to qualify on.
Sorry for the bad news, but we are in a new game with new rules.