Mortgage Market Week in Review (as of July 29, 2011)
By Gina Kemsley of Terra Mortgage Banking
Mortgage Bonds are getting a boost today on news that a Debt Ceiling contingency plan is being brought forth by the Treasury Department. This good news is moving rates lower. The Treasury’s plan would guarantee present holders of US debt will receive interest payments on time before the Treasury makes any other payments — even if the debt ceiling is not raised. As a result The Bond market is sensing the government will do whatever it needs to avoid an outright default – hence the positive rate movement.
INDUSTRY NEWS
On October 1st, the temporary maximum loan limit for conforming (FNMA & FHLMC) mortgages and FHA insured loans is scheduled to drop to a maximum of $625,500 for most Bay Area Counties (Sonoma: $520,950, Napa: $529,950).
As the expiration nears, the market will focus more and more on jumbo financing and we want you to know that Terra Mortgage Banking is one of the few (if only) North Bay Mortgage Bankers who underwrite our own jumbo loans in-house up to $1.5M. This means your jumbo loan will receive the same expedited service you have come to depend on from Terra for your conforming loans.
Bottom Line: Terra’s expedited closing times give Realtors and their clients a competitive advantage when writing offers. Please contact Gina Kemsley today with questions or helping with getting a loan.
CURRENT INTEREST RATES | JULY 29, 2011
CONFORMING RATES
($200,000 – $417,000) 0 POINT
• 30 Year Fixed: 4.500% (4.58% APR)
• 5/1 ARM: 3.125% (3.20% APR)
JUMBO RATES
($729,751 – $2,000,000) 1 POINT
• 30 Year Fixed: 4.875% (5.02% APR)
• 5/1 ARM: 3.250% (3.39% APR)
CONFORMING (HIGH-BALANCE) RATES
($417,001 – $729,750 cap by county) 0 POINT
• 30 Year Fixed: 4.625% (4.69% APR)
• 5/1 ARM: 3.375% (3.44% APR)
RATE TRENDS
Rates are DOWN compared to last week.
Rates are DOWN compared to last month.
Rates are UP compared to one year ago.
Gina Kemsely, Terra Mortgage Banking can be reached at 415-464-3144 or gkemsley@terramb.com
