Currently viewing the category: "FHA Loan Rate"

FHA Loan Rate Recovers

On February 5, 2010 By

Expectations were for job creation of about 15k. We lost 20k jobs on the month. On this negative economic news, the FHA interest rate should have normally improved, but nothing is normal these days.

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Fed Indirectly Helps FHA Loan Rate

On December 17, 2009 By

There is no correlation between the Fed Funds Rate and mortgage rates.  There is a strong correlation between the Federal Open Market Committee’s statement and mortgage rates.

The FOMC meeting yesterday was the big news item of the week.   The tone was balanced and mortgage bonds have responded well today.  Rates are lower by .125%.

[...]

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Interest rates starting to correct

On December 2, 2009 By

We’re seeing some follow-through from yesterday’s big sell-off.  Presently, the GNMA 4% is off about 20 basis points.  That might or might not be enough to move rates a full .125%.

Gold hit another record, now up to $1,207/oz.

The ADP jobs report came in today.   The report was worse than expected in terms of [...]

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Rates Sell Off Today

On December 1, 2009 By

More to follow tomorrow.

We saw profits coming off the table and year-end positioning being set up.  We saw part of a correction today, the question is whether it will continue tomorrow.  We’ll keep you posted.

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FHA Loan Rate Hovers at 4.75%

On December 1, 2009 By

We’re starting to see a reversal today as the GNMA bond is under pressure.  The Dubai mess is unwinding and appears to be regional.  We’re getting blistering numbers in the housing market.  Add to this the fact that mortgage bonds appear to be overbought, we’re ripe for a reversal.

We’ll start today at 4.75% on [...]

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FHA Interest Rates Open Below 5%

On November 23, 2009 By

Another interest week as mortgage rates have a lot of information—in a very compressed holiday week.

Today:  Existing Home Sales, Up 10%+.  Homes are selling!! Tuesday:  Consumer Confidence, Home Price Index, Fed Minutes Wednesday:  New Home Sales, Personal Income and Outlays

The events that would cause the FHA loan rate to go up are more [...]

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30 Year v. 20 Year – Term Reduction

On November 19, 2009 By

Today, we’re looking at the value of term reduction on a mortgage loan.  Term (length of the loan) reductions can be a great vehicle to accomplish two goals:

Pay off the loan more quickly Reduce the total cost of interest over the life of the loan

In general, the mortgage interest rate goes lower as [...]

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FHA Interest Rates Hold Steady

On November 12, 2009 By

In spite of the stock market rally last week, the FHA loan rates have held right at the 5% range over the past week.

Given that the FHA loan requirements are some of the most flexible in lending, this is fairly incredible.   The FHA rates sit roughly even with Conforming loans right now.

For borrowers [...]

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Interest Rates Dropping

On November 5, 2009 By

We’ve had a flood of good economic news in the past day or two, but mortgage rates have held their own.

The Fed’s statement offered muted optimism that the economy is improving and that housing has stabilized.  Jobless claims were slightly lower and the stock market is rallying.

Still, mortgage rates have held steady.

The [...]

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News Influencing the FHA Interest Rate

On November 3, 2009 By

A very busy week starts rolling today.  The Fed starts the two-day meeting today and the Policy Statement is the big one tomorrow.  The Jobs data on Friday could also be a big mover.

Warren Buffet’s Berkshire Hathaway announced a $44 Billion acquisition of Burlington Northern Sante Fe Corp.  This is an extremely bullish play [...]

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