Rates Jump Unexpectedly. 
Approximate rates for week ending 2/19/2021

There was a sharp and unexpected increase in rates this week. The upward pressure on rates caused by the steady increase in bond yields over the last few weeks was, up until now, largely ignored – but the pressure finally was too much this week. There was previously a cushion between what rates should be based on the 10 year treasury and what they were. This cushion is now gone, and it may be that the normal strong correlation between bonds and mortgage-backed-securities will return.

Whether this is a blip or the start of something more sustained we do not know – but once again we get evidence that rates rise like a rocket and settle like a feather. But they are still very low – maybe this can be a warning for those that have not got around to a new loan yet!

62% of experts think that rates will go up this week, 31% think they will stay steady and 8% think that they will go down.

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.

Please follow me on Facebook and Twitter.

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

Program

No Points (APR)

 1 Point (APR)

Change on Week

Conforming (<$548,250)

30yr Fixed

2.75% (2.77%)

2.625% (2.78%)

+0.25%

10yr ARM

-

-

-

7yr ARM

-

-

-

5yr ARM

-

-

-

15yr Fixed

2.125% (2.27%)

1.875% (2.29%)

+0.125%

 High-Cost Conforming (>$548,250<$822,375) *

30yr Fixed

2.875% (2.93%)

2.625% (2.92%)

+0.25%

5yr ARM

-

-

-

15yr Fixed

2.125% (2.21%)

1.875% (2.32%)

No Change

Jumbo (>$822,375) *

30yr Fixed

3.25% (3.31%)

2.75% (3.35%)

+0.125%

10yr ARM

2.875% (3.02%)

-

-0.125%

7yr ARM

2.625% (2.79%)

-

No Change

5yr ARM

2.375% (2.59%)

-

No Change

15yr Fixed

2.875% (3.01%)

2.625% (2.95%)

No Change

FHA LOANS AVAILABLE WITH JUST 3.5% DOWN to $822,375

Conforming with only 5% down

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