Posts Tagged ‘bond market’

4
Feb

Mortgage Rates February 4, 2009

   Posted by: Cal    in Gulf Coast Mortgages

Welcome to www.MyGulfCoastBeachTeam.com ! Please feel free to leave a comment and also visit our sister site www.GulfShoresLife.com ! Thanks for stopping by!

There is a lot of volatility in daily trading in the mortgage bond market, and since the main stream media always gets it wrong, I have included visual aids for you to see exactly what mortgage professionals see.

What you see below is a 30 day chart of the FNMA 4.5% mortgage bond trading activity.  The activity on the bond market is what dictates retail mortgage rates, and the retail mortgage rates that are passed on to consumers are generally .5% to 1.0% higher than the "coupon" rate of the bond itself.  We are now following the 4.5% coupon bond because the activity in the 4% bond has trickled and

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30
Jan

Mortgage Rates January 30, 2009

   Posted by: Cal    in Gulf Coast Mortgages

The bond market had a rough day yesterday and yet it has had little affect on today’s mortgage rates.  This is likely due to previous rate increases to try and slow down the overwhelming rush to refinances that has underwriting backed up for weeks.

Something interesting is happening with the FED’s buy back program for mortgage backed securities.  As mortgage bonds are traded, they come at certain "coupon" rates and are sold in .5% intervals.  For instance, right now we are watching the 4% Fannie Mae

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28
Jan

Mortgage Rates January 28, 2009

   Posted by: Cal    in Gulf Coast Mortgages

Today marked the first FED meeting since December 16th when they announced the FED would be aggressively buying mortgage backed securities through the first 6 months of 2009. 

The news was as expected with rates remaining unchanged and a commitment to keep them unchanged until further notice.

The bond market reacted negatively to the news as it is seen as a positive for the economy.  Bond traders are selling this afternoon

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23
Jan

Mortgage Rates January 23, 2009

   Posted by: Cal    in Gulf Coast Mortgages

According to FED member Frederic Mishkin in an interview on CNBC this morning, we could see inflation begin to creep into the economy based on all the government programs on the drawing board.

If there is anything that will scare away bond investors…it is the word inflation.  This combined with the summer driving season right around the corner which will inevitably lead to higher oil and gas prices means that we will likely see much higher mortgage rates in

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14
Jan

Mortgage Rates January 14, 2009

   Posted by: Cal    in Gulf Coast Mortgages

The Retail Sales report for December came out today with much worse than expected numbers.

Because of this, the Dow is off over 200 points at the time of this posting, and mortgage bonds remain flat on the news. Normally, news like this would send a rush of buyers into the bond market, but that has not been the case so far today, further challenging conventional wisdom in forecasting. Stay tuned as tomorrow will be another big day in the news with the release of the Core Producer Price Index (PPI), Initial Jobless Claims for the first week of January and the Philadelphia FED Index (the outcome of which will have a high level impact on the markets). If you would like to get pre-approved for a purchase or refinance, please call 850-221-8334 anytime. Rates as of 10:10 AM 1/13/2009


30 Yr Fixed Mtg 4.625%
15 Yr Fixed Mtg 4.375%
30 Yr FHA 4.500%
30 Yr VA 4.750%
Reverse Mortgage Call For Rates

Steve Russell Mortgage Banker Primary Residential Mortgage 850-221-8334 Cell 850-497-6325 Office Steve@steverussellonline.com www.SteveRussellOnline.com * All rates assume the purchase of a single family primary residence with at least 20% down payment, 740 credit scores, and verifiable income and assets. Rates vary based on borrower profile and property type. Rates are subject to change without notice. All rates also assume a 1% origination fee. Loans with no origination fee and no points may be available.

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Mortgage bonds were off to a rough start this morning at the open.   But, at the time of this posting, they have recovered much of the early morning losses in trading.   No significant economic data is due out until Wednesday January 14th when the retail sales report and crude oil inventories becomes available.

Because of this, the bond market will likely take the lead from stocks and world news over the next 48 hours.

If you would like to get pre-approved for a purchase or refinance, please call 850-221-8334 anytime.


Rates as of 9:10 AM 1/12/2009


30 Yr Fixed Mtg 4.750%
15 Yr Fixed Mtg 4.500%
30 Yr FHA 4.875%
30 Yr VA 4.875%
Reverse Mortgage Call For Rates

Steve Russell
Mortgage Banker
Primary Residential Mortgage
850-221-8334 Cell
850-497-6325 Office

Steve@steverussellonline.com

www.SteveRussellOnline.com

* All rates assume the purchase of a single family primary residence with at least 20% down payment, 740 credit scores, and verifiable income and assets.  Rates vary based on borrower profile and property type.  Rates are subject to change without notice.  All rates also assume a 1% origination fee.  Loans with no origination fee and no points may be available.

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17
Dec

Mortgage Rate Locks Are For Real

   Posted by: Cal    in Gulf Coast Mortgages

I think many borrowers are under the impression that a “rate lock” is just a verbal agreement that the loan officer and customer make and after saying it out loud and clicking your heels twice, the rate is locked.

In reality, there is a process involved with locking a rate that involves pulling credit, running the application for an approval, registering a loan number, and then running the file through a “pricing engine” to get and secure the actual rate lock based on market conditions.

Today, I had a customer that had been non-committal for the last couple of days shopping for the best rate.

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Christmas is near and Santa’s elves are hard at work delivering low mortgage rates for all the good boys and girls.  The Fed meets tomorrow and Wednesday with the expectation of dropping the federal funds rate by .50% virtually a lock.  In addition, analysts say there is nearly a 70% chance they will drop the federal funds rate by .75%.  Since the Federak Funds Rate is already at 1%, they are getting closer and closer to paying financial institutions to take money (wink, that will never happen).

Since the immediate reaction in the mortgage market to a reduction in the federal funds rate is often negative, be prepared for some volitility in the mortgage bond market this week.  The rates below are as of 4:00 Central Time on 12/15/08:

  • 5.000%  30 Year Fixed
  • 4.875%  15 Year Fixed
  • 5.000%  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.

*Rates are subject to change without notice.  Click here for the specifics on the rate quotes listed above.

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