Mortgage Myth Busters

Mortgage Market Report - Mortgage Interest Rates hit historic low for 2011

interest rates going lower - image from istockphoto

 

Mortgage Market Report - Interest Rates hit historic low for 2011

As of yesterday, mortgage interest rates were hitting historic lows for 2011. Today was the key focal point if rates were to continue to go lower based on non-farm payrolls and on unemployment.  As of this morning, the news is reporting that non-farm payrolls only increased by 54,000 in May, significantly less than 150,000 increase that the economists had been expecting. Regarding the private sector, private employers only added 83,000, instead of the 180,000 that was anticipated. And unemployment rose from 9.0% to 9.1% the month prior.

Depending on your credit scores, the type of mortgage, your down payment, and your loan amount, interest rates yesterday were from 4.375% to 4.875%. As of right now, the FNMA 30 year 4.0% coupon is up 41 bps at $101.22 and the US 10 y T-note is up 59 bps at $101.38.

 

 

 

Summary : What does this all mean for today?  That interest rates should be getting even better today. Another reason for the MBS’s and bonds getting better is because it looks more attractive for those countries overseas such as China, who look for good investments.

For those of us that keep track of this information, I had been advising clients to wait until today’s news, even though rates were the best that we had seen for 2011.  I will be locking in several borrowers today that will be closing in the next 10 to 30 days. Yes, there are a few indicators that could even drop rates a little more for next week. But in my experience, no matter how one might tend to read the markets and those indicators, just a small hiccup could reverse all of these gains. And what goes down, will go up, but ‘when‘ is the question. Some so-called experts will tell you to float cautiously, but with interest rates literally dropping about 3/8 of a percent just in the last two weeks, it’s my opinion that it would be a huge gamble to lose these excellent gains.

 

 

For more news like this, you can always go to the www.fhaloansfhamortgages.com 

 

 

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For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!

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Copyright © 2011 by Jeff Belonger of Infinity Home Mortgage Company, Inc

Comment balloon 5 commentsJeff Belonger • June 03 2011 10:23AM
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