FHA Interest Rates Rallying

Filed under FHA Interest Rate by on March 11, 2011 at 7:59 am {no comments}

had been in an ugly trend from October until just a few weeks ago. We’d seen rates rise by nearly a full 1.00%.

With the spring buying market already heating up, had definitely taken a hit over the past 4-5 months. However, it probably still made sense to buy with the long-term just making today’s more attractive than those of the future.

That was until today’s mortgage rates decided to improve. I’m not a huge fan of the PMMS report. It is woefully delayed, publishing Thursday rates that are tallied from Monday to Wednesday. This week’s conforming rates held at 4.88%. There isn’t a direct equivalent tool for tracking interest rates, but they’ve been slightly lower. (more…)

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November Home Values Up 0.7%

Filed under Home Price Index by on January 29, 2010 at 7:47 am {no comments}

Home prices ticked up 0.7% in November.  The Federal Housing Finance Agency tracks this data and, like , it runs on a two-month delay.

That is perhaps the biggest issue.  The Realtor data shows 80% of Pending Home Sales close within 60 days meaning that the home price figures are always about a full sales cycle behind.

Over a year, the data can be fairly useful.  The facts are that home prices are up and home supplies are down over the past 12 month.

There are three main reasons to buy a home today:

  2. Home prices are low
  3. are low

We’re inside of 90 days on the expiration of the tax credit, we’re already seeing home prices move higher, and are going to rise at the termination of the Fed’s purchase program.

Homes may not be this affordable for quite some time.

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FHA Loan Rates Improving Today

Filed under FHA Interest Rate by on December 7, 2009 at 11:02 am {no comments}

Last week saw rates take a bruising after chasing all-time lows right near Thanksgiving.  The interest rate was pushed higher, but still opens this week under 5%.

It is hard to keep in context how low are.  We went up .25% and are still below 5%.  That’s great news today.  It’s scary news into the future.

The economic data continues to point towards a slowly rising economy with sporadic pockets of bad news.   Every time that the Federal Reserve says “inflation,” rates go up .125%.

Today’s mortgage rates still sit more than 1% away from their ‘normal’ levels.  If you are looking at refinancing an , this is a great time for it.  If you are looking at buying a home, today’s FHA make it much more affordable than it would be in a year.

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Switching to 4.0% Coupon

Filed under FHA Interest Rate by on December 1, 2009 at 8:12 am {no comments}

This is great news.  When we look at , we track a GNMA mortgage bond.

Recently, we’ve been using the 4.5% coupon.  With rates dropping so rapidly, we’re switching over to the 4.0% coupon as that is more closely related to the security that lenders are using to set interest rates.

Mortgage bonds are flat to open today.  It could get a little dicey as fears over the Dubai debacle are subsiding.  With the high quantity of securities bought during this recent flight to safety, we could have a situation where the rate could correct pretty quickly.

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