slightly today. Bond markets were
slightly weaker today while stocks surged on optimism over Wednesday’s
conclusion to the EU summit which some hope will contain a “solution” to the
seemingly imminent Greek default.
So no… Rates are not in the 3’s, nor is there any
guarantee from the government that they will be. The expansion of the government’s refi
program doesn’t make any promises about rates either. Preliminary
details were out today and the main thing to be aware of is this: the
changes being discussed ONLY apply to ELIGIBILITY. There’s no mention whatsoever of any
government mandated interest rate for the refi program.
anything, the additional economic optimism over a slightly higher percentage of
the population being able to refinance and prevent foreclosure points to HIGHER
rates if the economic effects of the program are even measurable at all-a matter
still open to debate. Bottom line for today,
rates are slightly higher, and the only thing that will bring them down in the
short term is either some really awful economic data or a really anticlimactic
conclusion to the EU Summit on Wednesday.
But before you consider what today’s
rates are, here’s a Good Article on “How to Shop
for a Mortgage” from last week.
- BESTEXECUTION 30YR FIXED – Mostly 4.25% today
- FHA/VA –
More 3.875% today, 3.75% still out there for some.
- 15 YEAR FIXED
– Mostly 3.5%
- 5 YEAR ARMS – low
3% range, huge variations from lender to lender.
Ongoing Guidance While Best-Ex Is At
Or Below 4.25%:
Guidance: While we’re encouraged by rates’ recent ability to draw a
line in the sand at 4.25%, we can’t rule out upside risks from European
headlines or domestic economic surprises. With the increased volatility
in the outlook, we’d lean more toward locking, EVEN THOUGH that volatility can
swing both ways. The possibility that rates get lower in spite of the
increased disposition to lock is part of the frustration of dealing with
volatility. But better safe than sorry.