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What Makes Mortgage Rates Go Up Or Down?

admin — Fri, 30 Oct 2009 21:33:49 +0000

Ok…so on Monday, mortgage rates were up at the start of the day.

Then rates went down in the afternoon. On Tuesday, mortgage

rates went down three times during the day. On Wednesday,

rates went up twice. On Thursday, rates went down initially and

then they went up big time. What makes rates react like a Yoyo?

It really starts with the Mortgage Bond Security market. This is

the secondary market that buys and sells mortgage bonds. When

the market is open the price of mortgage bonds moves constantly,

just like the stock market.

In mid-morning the wholesale banks offer pricing to brokers in

one thousand increments between 1/8^thsof a percentage point.

On a particularly volatile day, the banks may re-price their offers

to brokers two, three or even four times, up or down. That is why

you may get four different price quotes from the same broker

over the course of one day.

What moves the Mortgage Bond Security Market? Financial

reports, gut feelings, profit taking, risk aversion, fear, greed. All

of the same things that move the stock market.

What will rates be next Monday? They will be up or down, but

they probably won’t stay the same.

Posted by Terry Brunner. Terry is a Senior Loan Officer with Horizon

Financial. Terry can be reached toll free @ (877) 627-9211 x150 or

email TBrunner@HorizonFinancial.org. Visit Horizon’s website at www.horizonfinancial.org

Will Congress Extend Homebuyer Tax Credit?

admin — Thu, 29 Oct 2009 18:35:03 +0000

For weeks there has debate on whether or not this program would be extended for first time buyers. It looks as if the program has support to continue, though it has not been brought to a vote as of yet.

Today the Senate has announced plans to extend the credit until April 30 while expanding it to include higher-income Americans and some who already own homes. The current creit applies to individuals who earn 75,000 or less and couples who earn $150,000 or less, the new plan would raise that to $125,000 and $225,000 respectively. Another addition to the bill would give a $6,500 credit for home buyers who have lived in their prior residence for at least 5 years.

The Obama Administration fully supports this recommendation and they are hoping to see it come to a vote in the coming days. We will let you know if this comes to pass.

Posted by Randy Ratchford/Randy can be reached toll free 877-627-9211 ext.107 or email RRatchford@HorizonFinancial.org

Is Your Adjustable Rate Mortgage (ARM) Going To Reset In The Next Year?

admin — Fri, 28 Aug 2009 18:57:24 +0000

If you have an Adjustable Rate Mortgage that is going

to reset in the next year, now may be the time to consider

refinancing.

With the staggering amount of government spending

taking place there is a danger of increased inflation

and inflation is bad news for bond rates. As inflation

increases bond rates and mortgage rates go up.

Current fixed rate mortgages are historically low for

conforming loan amounts. Take a close look at your

situation and consider refinancing now versus waiting

and taking a chance that mortgage rates will be substantially

higher a year from now.

This is particularly true if you have a Jumbo ARM.

Investors have no appetite for fixed rate JUMBO mortgages

at the moment and there is very little market for them.

As a result JUMBO mortgage rates are very high.

However, there are some great alternatives for JUMBO

mortgages that may allow you to obtain a great rate until

the JUMBO mortgage market comes back into favor.

Posted by Terry Brunner. Terry is a Senior Loan Officer with Horizon

Financial. Terry can be reached toll free @ (877) 627-9211 x150 or

email TBrunner@HorizonFinancial.org. Visit Horizon’s website at www.horizonfinancial.org

Greenville County Down Payment Assistance

admin — Fri, 28 Aug 2009 18:18:06 +0000

If you are in the market to purchase a home it really is a great time to buy. Housing affordibility is at an all time high due. With the $8000 tax credit set to expire on 11-30-2009 people are rushing to get pre approved in order to take advantage of this great program.

If you find yourself in a position of thinking you may not be able to take advanage of buying at the moment because of lack of funds do not hesitate to inquire about what down payment assistance may be available for you.

There are some great programs geared specifically towards hospital workers and teachers as well as Greenville county residents in general. Let your mortgage professional see what you may be eligible for. These great programs are available and most people are not aware of them. If you were thinking of making that move and were not sure if you were quite ready to do so check with your mortgage professional and see what assistance you could possibly be eligible for.

Posted by Randy Ratchford..Randy is a Partner/Sr. Loan Officer with Horizon Financial…Randy can be reached toll free @877-627-9211ext107 or email RRatchford@HorizonFinancial.org

5-1 Jumbo Arms

admin — Thu, 20 Aug 2009 18:46:35 +0000

If you currently have a mortgage with a balance over $417,000 your loan would be considered a Jumbo mortgage. If you have tried to refinance in the past year you may be shocked to find out what the rates are on these loans. These loans are not underwritten by Fannie Mae or Freddie Mac standards so the rates have gone up dramatically over the past year.

There are some very competitive rates for some certain programs and one program is the 5-1 adjustable rate mortgage. This rate is fixed for 5 years and can adjust after the 5th year, this may not be a long term solution but it does offer a very competitive rate for qualified individuals. These rates will be in the low to mid 4’s for the qualified borrower. If you have been looking to refinance your Jumbo loan this may be a great alternative to explore.

Posted by Randy Ratchford…Randy is a Partner/Sr. Loan Officer with Horizon Financial…Randy can be reached toll free 877-627-9211 ext.107 or email RRatchford@HorizonFinancial.org

Greenville SC Housing Market Holding Steady

admin — Thu, 23 Jul 2009 15:54:52 +0000

The Greater Greenville housing market has managed to be one of the best in the country over the last year. According to the Brookings Institution’s quarterly MetroMonitor as having the fifth best year over year price appreciation in housing among the 100 largest metropolitan areas in the country.

According to the MetroMonitor analysis, Greenville’s housing prices were up 3.1% for the first quarter.

With the $8000 tax credit for first time homebuyers and continued near record low rates this is an excellent time to look at hom ownership. It is always a good idea to obtain a pre qualified approval before your new home search and with the tax credit and lower borrowing costs, there may never be a better time to move.

Posted by Randy Ratchford. Randy is a Partner/Senior Loan Officer with Horizon Financial. Randy can be reached toll free @ 877-627-9211 ext.107 or email RRatchford@HorizonFinancial.org Source: Statistics provided from The Greenville News Real Estate Forum 7-19-2009