Thursday, February 10, 2011

What's the Rate?

What's the Rate - Vol. 2,  2/10/2011

Not a good week for rates.  Let me try to reset the week for you:

Jobs Report last week:  Fewer jobs created than expected, but Unemployment Rate dropped to 9%. (how does that happen?)  Mixed news, and rates didn't know which way to go.

This week, more talk of inflation fears and the Dow holding above 12,000 has given a lift to rates as money seems to be moving into more speculative investments that yield a better return than a fixed rate bond (or mortgage).   While this hurts homebuyers that are hoping to obtain rock bottom rates, its a positive sign for the economy in general!  Forecast is for more of the same next week, but not expecting rates to go past mid 5% range until later this year. (30 yr rates)

General rates as of today:

  • 30 Yr Conventional – 5.125%

  • 30 Yr VA – 4.875%

  • 30 yr FHA – 4.75%

  • 15 Yr Conventional – 4.50%

  • 5/1 ARM – 3.50%

  • USDA (zero down) – 5%

*Remember rates are affected by many factors such as: credit score, time before closing, down payment amount, etc.)

If you need my help this weekend, I'll be in town.  Just reach out and I'll do what I can!

Brad Arendt   854-4457

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