Rates Highest in Almost Two Years and FHFA Announce Second Home and High Balance Rate Hits.

 Approximate Rates for Week Ending 1/7/21

Rates increased rapidly this week in response to heavy selling of the bond market. The main reasons were optimism over the Omicron variant and the release of last Fed meeting minutes. Despite the recent uptick in Covid-19 infections,  the severity of the now dominant Omicron variant seems to be less than Delta giving hope that the disease will soon reach endemic status. The Fed’s minutes suggest that they will accelerate their bond and mortgage-backed-security balance sheet sell-off much quicker than expected once they start to increase short term rates.

In other news the Federal Housing Financing Agency (FHFA) announced they would be adding hits to high-balance and second home loans. This means there will be a bigger gap between regular and high-cost conforming rates and that, although not as expensive as investment property loans, second home loans will be high than those for primary residences.

If you have any questions or would like advice tailored to your needs, I would be happy to help! And if you have any family or friends that you think might benefit from my services, I would be grateful for the referral.

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Happy New Year!

Mark Smith
Victoria Capital
Los Gatos
408 353 9784
www.MarkSmithLoans.com

Program

No Points (APR)

 1 Point (APR)

Change on Week

Conforming (<$647,200)

30yr Fixed

3.125% (3.22%)

2.875% (3.02%)

+0.375%

10yr ARM

2.75% (2.83%)

2.375% (2.81%)

+0.25%

7yr ARM

2.625% (2.71%)

2.25% (2.71%)

+0.25%

5yr ARM

2.5% (2.57%)

2.0% (2.59%)

+0.25%

15yr Fixed

2.375% (2.45%)

2.125% (2.48%)

+0.25%

High-Cost Conforming (>$647,200<$970,800) *

30yr Fixed

3.375% (3.42%)

3.0% (3.41%)

+0.375%

5yr ARM

-

-

-

15yr Fixed

2.375% (2.39%)

2.125% (2.39%)

+0.125%

Jumbo (>$970,800) *

30yr Fixed

3.25% (3.29%)

2.875% (3.28%)

+0.125%

10yr ARM

2.625% (2.70%)

-

No Change

7yr ARM

2.5% (2.69%)

-

No Change

5yr ARM

2.375% (2.59%)

-

No Change

15yr Fixed

3.125% (3.18%)

2.75% (3.12%)

+0.125%

No Points No Cost Also Available!

APRs calculated on Purchase loan amount of $350k (conforming), $600k (high-cost conforming,) and $1m (Jumbo) 30- 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