Fixed Rates Start to Improve Again. Feds Unintended Consequences.
Approximate rates for weekending 3/27/20
Cookie cutter (high credit, low loan to value) fixed rate loans started to improve again but there is still unprecedented uncertainty. Conforming ARM loans are not an option right now as there is no market for them.
The Fed have written a blank check to support the Bond and Mortgage Backed Securities markets, but this is not having the effect they may have planned. The Fed also announced deferred mortgage payments programs which will be a great help for those struggling with lack of income due to COVID. But it causes liquidity problems: while homeowners can miss payments, the servicers of loans still must make the payments on their behalf to the investors and often this is from the very same pot of cash that new loans are funded. Then we have the issues of the huge volume of loans that were submitted a few weeks ago when rates were at all time lows – lenders are trying to clear pipelines while getting supporting services (appraisals, verifications, notaries, recordings) in a timely manner is tough.
50% of experts think that rates will stay steady this week, 33% think they will go up and 17% down.
If you have any questions or would like advice tailored to your needs, I'd be very happy to help! And if you have any family or friends that you think might benefit from my services, I would be very grateful for the referral.
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Mark Smith
Victoria Capital
Los Gatos
408 353 9784
www.MarkSmithLoans.com
|
Program |
No Points (APR) |
1 Point (APR) |
Change on Week |
|
Conforming (<$510,400) |
|||
|
30yr Fixed |
3.125% (3.41%) |
2.875% (3.48%) |
-0.125% |
|
10yr ARM |
- |
- |
- |
|
7yr ARM |
- |
- |
- |
|
5yr ARM |
- |
- |
- |
|
15yr Fixed |
2.625% (2.87%) |
2.375% (2.89%) |
-0.375% |
|
High Cost Conforming (>$510,400<$765,600) * |
|||
|
30yr Fixed |
3.25% (3.37%) |
3.0% (3.39%) |
No Change |
|
5yr ARM |
- |
- |
- |
|
15yr Fixed |
3.0% (3.09%) |
2.5% (2.98%) |
-0.125% |
|
Jumbo (>$765,600) |
|||
|
30yr Fixed |
3.875% (3.98%) |
3.625% (3.88%) |
+0.125% |
|
10yr ARM |
3.75% (3.89%) |
3.375% (3.79%) |
+0.325% |
|
7yr ARM |
3.375% (3.39%) |
3.125% (3.40%) |
+0.25% |
|
5yr ARM |
3.25% (3.39%) |
3.0% (3.20%) |
+0.375% |
|
15yr Fixed |
3.875% (3.98%) |
3.5% (3.88%) |
+0.25% |
FHA LOANS AVAILABLE WITH JUST 3.5% DOWN to $765,600
No Points No Cost Also Available!
APRs calculated on Purchase loan amount of $350k (conforming), $600k (high cost conforming,) and $750k (Jumbo) 21- day lock, 60% LTV, impounds,780 fico.
This is not a commitment to lend. Rates are provided for informational purposes only. Please contact me for rates, products and costs for your individual situation.
*Assumes high cost areas, e.g., Santa Clara County and other Bay Area Counties
DRE: 01395052
NLMS:308562
