Today’s Mortgage Rates Consistently in the 4.875% to 5.0% Range

August 26, 2009

Daily Mortgage Updates

A&N Mortgage Logo26 August 2009 ? Bonds opened up 3 bps this morning and had a nice rally yesterday afternoon. This has currently put rates at 4.875% to 5.% on the 30-year fixed and 4.375% to 4.5% on the 15-year fixed ( assuming 60% LTV, $417,000 loan amount, Single Family Home purchase, 740+ credit score). Mortgage-backed bonds are currently down 12bps and are being pressured by a rally in the stocks, which came after positive news from home sales which came in at 433,000 versus the expected 390,000. The inventory of homes on the market was 7.5 months in July versus the 8.8 in June. Again, yesterday we mentioned these numbers are not surprising because of the incredibly low mortgage rates and the soon-to-expire $8,000 tax credit for first time buyers; all qualifying purchases must close by November 30th, 2009. Today the bond market may also get pressure from Treasury’s auction of $39 billion worth of 5-year notes and Thursday’s sale of $28 billion of 7-year notes. We will see if the bonds can remain stable during these two auctions. If the bonds go negative, there will be a slight impact on mortgage rates. However rates are extremely good right now?if you have a loan in process and have not locked this would be a good time to check in with your mortgage professional.

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About Chris DePaepe

Chris is a lifelong Chicagoan who was born and raised on the Northwest side. She has a business degree from Rosary College in River Forest and a MBA in finance from DePaul University. She has been in the mortgage industry since July of 1996 and understands the importance of educating clients about the process of purchasing or refinancing a home. Chris?s education and customer service separates her from her competition, from taking an application at 11 p.m. to doing a closing in the convenience of your home, customer service is her #1 priority! With her extensive financial education she is able to pass along critical information to potential clients about mortgage interest and the differences between a 30, 25, 20 and 15 year loan. Chris will run every amortization chart and spend a great deal of time explaining the savings on your mortgage interest by showing actual examples. Also, most first time buyers do not understand the tax advantage of owning a home and she will break that down and show the actual tax advantage of owning a home versus renting. Chris prides herself on taking the time to fully educate every buyer so they are aware of the process from the beginning to the end without any surprises. Whether you are looking to refinance or purchase a home, understanding today?s market is extremely important to getting your loan approved. You can contact Chris 24/7 at chrisd@aandnmortgage.com, 773-305-7016, or 773-848-4144.

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