Today’s Mortgage Rate is Below 5% for Well Qualified Buyers

September 1, 2009

Daily Mortgage Updates

A&N Mortgage Logo01 September 2009 ? This morning mortgage bonds opened up 3bps, then went on a turn for the worse as stocks rallied. However the stock market rally was brief and now the Dow is down 161. This is a significant reduction to the stock market, so bonds rebounded nicely and are now up 16bps. There was an array of news including better-than-anticipated housing and manufacturing news. Pending home sales increased 3.2%, more than double the 1.5% that was expected. This is the sixth consecutive month of gains in the pending home sales. I must advise that caution will need to prevail with this report, as many buyers moved up the buying process to take advantage of the $8,000 tax credit and the low mortgage rates. This can mean that we will be in for a significant dip in the housing data when the tax credit expires.

In the manufacturing sector, the ISM reading came in at 50.2; a reading over 50 typically means there is an indication of growth. This is the first reading over 50 since January 2008. Again caution must be used as inventories have been depleted while companies try to maintain sales and profitability by depleting their inventories. This could be a blip in the reading since inventories may have to be restocked. We will get a better indication if this number can remain constant or have slight growth.

The 30-year rate for well qualified buyers is currently at 4.875% to 5% on the 30 year and 4.375% to 4.5% on the 15 year. (Mortgage rate is for a Single Family Home, 740+ credit score, 40% down payment, full documentation, escrow required.)

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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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