Some Reduction in Rates as Fed Holds their Course. Home Equity Loans Growing in Popularity.
Approximate Rates for Week Ending 1/31/2025
Rates have settled since my update with 30yr fixed dropping 0.25% to 0.125%. The Fed kept short-term rates steady at their meeting last week: the economy is doing well, and the labor force is balanced so there is no urgency to decrease rates. The outlook is that there will be no significant change either way for a while with rates reacting to daily economic news with range bound fluctuations.
Cashing out for home improvements, debt consolidation or other investment opportunities can often make sense. This activity has been hampered recently as borrowers are reluctant to swap their first loan low rates to a much higher cash out rate. One solution is a fixed rate Home Equity Loan to unlock home equity with a fixed monthly payment while keeping the current first lien loan.
47% of experts think rates will go down next week while 40% think they will stay steady and 13% think they will go up.
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Mark Smith
Victoria Capital
Los Gatos
408 353 9784
www.MarkSmithLoans.com
LOWER HOME AFFORDABLE RATES FOR FIRST TIME HOMBUYERS (FTHB) SUBJECT TO INCOME LIMITS
No Points No Cost Also Available!
|
Program |
No Points (APR) |
1 Point (APR) |
Change since last update |
|
Conforming (<$806,500) |
|||
|
30yr Fixed |
6.5% (6.60%) |
6.25% (6.61 %) |
-0.25% |
|
30yr FHA |
6.0% (6.31%) |
5.625% (6.44%) |
-0.125% |
|
30yr FTHB |
6.5% (6.60%) |
6.25% (6.69%) |
-0.25% |
|
10yr ARM |
N/A |
N/A |
- |
|
7yr ARM |
6.375% (6.51%) |
6.0% (6.49%) |
-0.125% |
|
5yr ARM |
N/A |
N/A |
- |
|
15yr Fixed |
6.0% (6.11%) |
5.625% (6.09%) |
No Change |
|
High-Cost Conforming (>$806,500<$1,209,750) * |
|||
|
30yr Fixed |
6.625% (6.78%) |
6.25% (6.74%) |
-0.25% |
|
30yr FHA |
6.125% (6.31%) |
5.875% (6.14%) |
No Change |
|
30yr FTHB |
6.625% (6.72%) |
6.375% (6.81%) |
-0.125% |
|
5yr ARM |
N/A |
N/A |
- |
|
15yr Fixed |
6.25% (6.28%) |
5.75% (6.11%) |
No Change |
|
Jumbo (>$1,209,750) * |
|||
|
30yr Fixed |
6.5% (6.69%) |
6.25% (6.82%) |
-0.125% |
|
10yr ARM |
6.625% (6.79%) |
6.25% (6.82%) |
No Change |
|
7yr ARM |
6.375% (6.51%) |
6.125% (6.61%) |
No Change |
|
5yr ARM |
- |
- |
No Change |
|
15yr Fixed |
6.5% (6.69%) |
6.25% (6.82%) |
-0.125% |
Conforming Rates and APRs calculated on Purchase loan amount of $600k (conforming), $900k (high-cost conforming,) and $1.25m (Jumbo) 30- day lock, 60% LTV, impounds,780 fico.
FTHB (First Time Home Buyer) conforming rates based on purchase loan amount of $750,000 with 20% down, High Cost Conforming $1m with 20% down. Subject to Income Limits
FHA Rates and APRs Calculated on Purchase Loan amount of $700k (Conforming) and $1m (High Cost), 30-day lock, 96.5% LTV, 720 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
