A quick weekly overview of where the mortgage markets are, where they have been, and where they are expected to go.
- Looking Back: Volatility continued to swing the market wildly, but in the end produced only a mild downturn in pricing–by the week’s end, prices were 47 bps worse than where when they started the week.
- Right Now: For the “ideal” borrower (i.e. down payment on a purchase or equity for a refinance of at least 20%, FICO score of 740 or higher, and paying 1 discount point, with loan amounts of $417k or less on a 30-year fixed-rate mortgage) in the DC area, rates are currently in the 5.250% to 5.500% range.
- Moving Forward: Next week is expected to have less volatility, with little significant economic news expected; rates will be driven primarily by performance of stocks. In Bankrate’s weekly survey of mortgage analysts about where they expect rates to move in the next 45 days, only 23% predicted that rates would go up, while 39% predicted that rates would stay roughly level, and 38% predicted that rates would go down over that period; it’s not a ringing endorsement for rates going down, but 77% of those surveyed do at least feel confident that rates aren’t going to go UP in the next few weeks. In the shorter term, rates will continue to see high volatility, but there are opportunities for good rates to pop up periodically as a result of that volatility. Borrowers who are floating their rate right now and who have a moderate tolerance for risk may be able to float their loan a little longer and lock in a better rate.
These updates are intended to give you a very quick snapshot of current mortgage rate trends. As a result, they are full of simplifications and assumptions; if you are currently in the process of purchasing or refinancing a loan, make sure to talk to your mortgage loan consultant about your specific scenario and the factors that affect it. If you aren’t working with a loan consultant yet, feel free to contact us and we’d be glad to meet with you for one of our free, no-obligation mortgage scenario consultations. And if you’re a data junkie and want to follow the gyrations of the mortgage markets in real time, learn about the shorthand that we use in discussing mortgage pricing and then follow us on Twitter.
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- Mortgage Market Update 8/7/09
- Mortgage Market Update 7/24/09
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- When Should You Lock In The Rate On Your Mortgage?
- FHA/VA Adjustable-Rate Mortgages Can Be A Great, Safe, Deal
- A guide to the Twitter hashtags that we use.
