National Mortgage Rates Report: July 7, 2008

National mortgage rates for July 7, 2008. Loan amounts up to $417,000:

3/1 ARM 5.250%
5/1 ARM 5.500%
7/1 ARM 5.750%
10/1 ARM 6.000%
30 Yr Fixed 6.375%

All rates offered to the borrower with 1 point cost. Rate quotes assume a purchase transaction with a 20% down payment, 720 credit score, and full income qualification. Rates are subject to fluctuation. Custom rate quotes and rate lock advice are available by calling at the number below. read more

Posted by Brian J. Brady on Jul 07, 2008 under Mortgage Rates Reports

Comments (0) Share This Subscribe

National Mortgage Rates Report: June 12, 2008

Mortgage rates are headed higher. Lock all rates at application, regardless of closing date.

The trend is clear; the Fed believes it has done all it can to stave off the banking crises and is now focusing its efforts on inflation. This morning, retail sales were up and the dollar is strengthening. If stagflation is the fear, the current strategy of targeting core inflation may be abandoned for the more radical Paul Volcker-style approach to tame inflation.

While I believe the higher mortgage rate cycle will be shorter than the 80-s style interest rate hikes, it’s clear to me that Bernanke is talking differently than he did in 2006 and 2007.

The effect? We could see mortgage rates rise as much as 2% in the next two years. I still believe that a five year ARM will offer the best solution because interest rates move in cycles; I think we’ll see mortgage rates under 6% again in 2011. Today? The trend looks like we’re headed higher.

What then, should be your strategy? read more

Posted by Brian J. Brady on Jun 12, 2008 under Mortgage Rates Reports

Comments (3) Share This Subscribe

National Mortgage Rates Report: May 28, 2008

Mortgage rates jumped in the past 7 days because of rising oil prices. This is the staglationary fear I expected. Mortgage rates have increased to 6.0% (30 year fixed) today.

I expect mortgage rates to rise another .25% in the next 14 days for these reasons:

1. Possible uncertainty at the Federal Reserve Bank.
2. Oil above $125/barrel (which translates to $4/gal. gasoline at the pump)
3. Inflation affecting the European economy.

Bond traders hate uncertainty so we expect a lot of volatility through Labor Day. read more

Posted by Brian J. Brady on May 28, 2008 under Mortgage Rates Reports

Comments (1) Share This Subscribe

Lock All Mortgage Rates Immediately

This is a stagflation fear we’re seeing:

The central bank can’t be “complacent about inflation,” Janet Yellen, President of the Fed Bank of San Francisco, said in a speech yesterday. Recent measures of consumers’ outlook for prices “highlight the risk that our attempts to deal with problems in the real economy could lead to higher inflation expectations and an erosion of our credibility,” she said.

Yellen also said she anticipates inflation will slow as the labor market weakens and “commodity prices level off,” echoing comments by other policy makers.
Investors project the Fed will keep the benchmark interest rate unchanged at its next meeting on June 25. That would be the first pause since the central bank started cutting rates in September.

Rising prices from overseas, reflecting the drop in the dollar, are another source of read more

Posted by Brian J. Brady on May 14, 2008 under Mortgage Rates Reports

Comments (3) Share This Subscribe