26 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.Email This Post To a Friend.
Today’s Mortgage Rates Consistently in the 4.875% to 5.0% Range
August 26, 2009
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