Mortgage Rates Report

Mortgage markets are taking pause today, in honor of Good Friday.  It was another dramatic week with Ben Bernanke playing John Wayne.  Last weekend, Bernanke brokered a deal that handed Bear Stearns over to Jamie Dimon and JP Morgan Chase. Last week, a share of Bear Stearns traded for the price of a tankful of gasoline, 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 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.