Thursday, February 17, 2011

What's the Rate?

Before I dive into the rates, reasons why, etc. there are some other newsworthy things to share:

As mentioned in the Go Show Tuesday... is a great tool.  By using the number for slydial (267-759-3425), it will allow you to dial directly into someone's mobile phone voice mail.  Yeah!  Don't have time to chat, but need to get a quick message to your client..... use this number and you are done in 2 minutes!

FHA:  Fees for FHA insurance going up again.  The monthly portion of FHA PMI was raised last summer by nearly double... now going up a small amount again.  That stinks.  Example:  on a $150k loan, the PMI cost will increase by $31/month.  That's the increase... not the total.

Here is how that computes:  a $150k loan would now (Starting in April) have $143/month PMI cost.  Just a year ago, that same loan would have had $68/month for PMI.  More than double... Guess how FHA/HUD are getting themselves out of a housing mess?  You got it.... on the backs of the new borrowers.

On a positive note, rates have shown signs of life in the late days of the week.  While rates are not falling, they have held steady with signs of positive movement appearing finally.  Reasons:  mixed economic news this week.  Inflation higher.  Sugar, cotton, corn all at high levels.  Gas still expensive.  Translation... costs will be going up.  This pressures rates higher.  On the other hand, turmoil in the middle east/northern Africa causes Wall Street to be cautious.  (helps rates stay down).  Also, unemployment still stubbornly high.  Employment is getting better, but not by much.  (also good for rates)

Rates as of today:

  • 30 Yr Conventional – 5.0%

  • 30 Yr VA – 4.75%

  • 30 yr FHA – 4.75%

  • 15 Yr Conventional – 4.25%

  • 5/1 ARM – 3.50%

  • USDA (zero down) – 5%

I will be in town this weekend, so drop me an email/call if I can help with any of your buyers.

-Brad  854-4457 (if you leave a voice mail at my office, I will be notified)

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