Daily Mortgage Market Guide for 01/15/09
Rates are up today. The Treasuriers are selling off right now taking mortgage backed securities with them.. stay tuned because it will change. Tomorrow Citi and BofA may announce earnings.
What does all this Treasury MBS sell buy stuff mean?
If you need to sell something then you will need to also offer the buyer some benefit in order to get them to buy. The more enticing you make the thing you are selling the easier to sell. How do you make investments more enticing? Increase the rates of return. If you want to sell investments, make the rate of return ( interest rate offered ) higher.
As Investors avoid or push away from these investments, the sellers of these products must increase the rates to attract Investors back.
As you can see from the chart, its been a bumpy day so far. Expect around 5.375% average for a 30 year fixed platinum conventional mortgage.
IMPORTANT CHANGES: You might also want to visit Fannie Fees to see the new loan borrowing charges that Fannie Mae has begun to implement. These charges are additional points borrowers will pay for conventional loans if they fall into one of the catagories: credit score, loan to value, type of property, etc... beware of rate quotes that sound too good to be true.
Most rates advertised are "floating" not locked for platinum borrowers. A Platinum borrower offers 20% property equity, 720+ credit score, sound income and savings.
