Financial markets are taking pause today in honor of Good Friday. It was another dramatic week with Ben Bernanke playing John Wayne.
Last week, a share of Bear Stearns traded for thrice the price of the monthly HomeGain AgentEvaluator subscription, this week, it trades around the price of a Starbucks cup of coffee.
Fannie Mae and Freddie Mac agreed to buy a lot of mortgages, $200 billion worth to be precise. This buoyed up the mortgage bonds market and had a positive effect on most mortgage rates.
Let’s lock those rates, now.
I don’t see a whole lot more reward on the horizon and the risk of higher rates will increase next week.
ARM rates are out of whack, again, and the fixed-rate mortgages are the best priced. Today, the wholesale rate for a 30-year fixed-rate loan is 5.625%. If you called me, you would get that 30-year fixed rate loan for 1% of the loan amount plus $499 for an APR of 5.89%.
A 15-year fixed rate mortgage can be locked for 4.875% for an APR of 5.15%. That’s about .75% less than what rates were on March 10. My advice to stay calm, in the face of panic, and float rates, panned out.
If you need specific advice, about a mortgage, contact me here.