Weird things are happening in the mortgage-backed securities market. Strong buying, in the 30 year-fixed rate loans, has dropped rates .25% since my last report, The ARM rates, however, have RISEN. A weird phenomenon, indeed. I’m only quoting two loan programs (the others make no sense):
Mortgage rates for August 29, 2008. Loan amounts up to $417,000:
5/1 ARM 5.750%
30 Year Fixed 6.125%
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 (858)-777-9751.
Short-term, this is about as good as it gets. I think we’ll see some higher rates, in the next 7-10 days, with rates coming back down to this level by the end of September. I’m befuddled for the 3 month trend so I’ll stay neutral.
MORTGAGE RATE TREND:
Next 7 days: Higher
Next 30 days: Neutral
Next 3 months: Lower? (I’m stumped)
Originally posted on MillionaireRealEstateLender.com
