The great news is, mortgage rates have reached an all time low and it would be most sensible to lock in the rates now if it fits within your budget. We have not seen rates like these in 52 years – and we don’t know how long this opportunity will be available to well-qualified borrowers. The bottom line is, do not take a chance and play a waiting game if you are ready to buy and has found a property you like.
The following information is provided by one of my preferred lender Aaron Gordon of Countrywide Home Loans:
“As the government announces more purchases of mortgage-backed securities, rates continue to plummet.
Interestingly, if you are still sitting on the sideline waiting for rates to drop further, the head of Freddie Mac came out this week and said he believes rates are at the bottom and any further drop will be minimal.
Plan on around:
- 4.375% WOW! (APR 4.508) FOR A 30 YR FIXED CONVENTIONAL LOAN with ONE POINT, NO ORIGINATION!
- 4.750% (APR 4.862) FOR A 30 YR FHA / VA LOAN, WITH ONE POINT, NO ORIGINATION!
- 5.750% (APR 6.024) ON A 30 YR JUMBO LOAN OVER $417,000 with ONE POINT, NO ORIGINATION!
- 5.125% (APR 5.262) ON A 5 YR JUMBO AR M with ONE POINT, NO ORIGINATION!
NO ORIGINATION FEE ON ANY OF THE LOANS ABOVE. These rates are for purchases only. Refinance rates are slightly higher.
NEW GUIDELINE ANNOUNCEMENTS THIS WEEK:
FHA announced new limits to cash-out refinances. They used to allow cash-out up to 95%. It’s now been lowered to 85%. Here are the rules:
- Must have owned the property at least 12 months
- You cannot be behind in your mortgage.
- You cannot have a non-occupying co-borrower to qualify for the new cash out limits.”
Here are more good news from Paula Clark, also a preferred Home Mortgage Consultant from Wells Fargo Home Mortgage:
“Friday's news showed that consumers are being understandably cautious with their finances, as the Personal Savings rate remained above 4% once again in February and among the highest savings levels seen in a decade.
Meanwhile, the government continues to make bold moves to help our economy. On Monday, Treasury Secretary Geithner unveiled a plan to remove toxic assets from financial institutions by using money from the $700 Billion TARP fund. The government will help mitigate the risk by offering private investors Billions of dollars in low-interest loans to help finance the purchases. Indeed, it's a bold strategy - let's see if it pays off!
And...there's room for cautious optimism on the economy, as good news was noted on several fronts last week. The housing market received good news when both Existing Home Sales and New Home Sales came in stronger than expected. Additionally, Durable Goods Orders for February came in better than expected, showing the first increase in six months, and the Core Personal Consumption Expenditure Index (Core PCE) showed inflation is presently at tolerable levels. Plus, the US Dollar received a boost when China said it will continue to purchase US Treasuries.
Bonds were jostled around mid-week, but home loan rates ultimately ended the week very close to where they began...near historic lows.”
You can read Paula’s full bulletin at http://www.mmgweekly.com/w/w.html?SID=81ca0262c82e712e50c580c032d99b60
Paula can be reached at tel. 702.868.3920, Cell 702.277.3554, email at paula.l.clark@wellsfargo.com, or on the web at http://paulalclark.com/.
Overall, the market is showing some robust activities in the last weeks. We at The Dulcie Crawford Group are always at the forefront to bring you the latest updates and will be happy to answer any questions you may have and assist you in your homebuying process. Call us today!
