I just received an email from our mortgage rep outlining the following update:
Last week, in just two days, the 10 year yield jumped a total of 31 basis points, mortgage rates were up 20 basis points. Market volatility is at extreme levels as uncertainty over the stimulus package, whether taking bad assets of the books of banks will actually work to open credit markets, investors moving more towards high grade corporates as the Feds want inflation back to target levels of +2.0%. They are now at (negative) -0.48%. The budget deficit is now projected to surpass $2 Trillion this year….and the Feds unsettled the markets further by talking of buying treasuries to keep interest rates low! The enormity of all of this is difficult for the average consumer to even begin to comprehend, but one thing is certain…the people I am talking to don’t want a stimulus package passed with a lot of “pork” which will damage the economy even more. It is ALL interconnected, which was obvious with last week’s fluctuations of mortgage rates. Who agrees that freeing up the credit markets will help stimulate the economy?
The good news is: Sunbelt Lending IS making loans and rates are still the lowest they have been in years! …and although the market is volatile, if you are waiting for them to go lower…it may not happen any time soon.
Currently we can offer a 30 year fixed rate conforming loan at 5.25%. Jumbo 30 year loans are at 7.25%. The 15 year fixed rate is at 5.5%. Perhaps the best Jumbo program is a 5/1 ARM at 5.75%. Please call Kelly Rebimbas if you have any questions or comments. Her direct number is 239-273-5239.
*Rates are subject to change due to market fluctuations and borrower’s eligibility.