Interest Rates (went up)

Wow – after closing at the lowest levels since October, the Bond market took a BEATING yesterday. It has lost 363 points since last Thursday.

The primary cause is OVER-SUPPLY. It was a sell-off of Mortgage Backed Securities. Although the Feds have been buying up MBS for many months, it cannot offset the sell-off of supply forever. This is exactly the reason I have been saying all along, we will likely never see rates at 4.0%. The intention of the Feds was to prolong the time frame that rates stayed around 4.75% to 5.00% - not force a 4% rate.

Now the question is: will rates move back down to where they have been? The answer is not certain, but it will be VERY difficult to do so.

The market is very volatile today and moving down. We have just received an “alert to lock” due to deterioration.

What a crazy ride.

I will keep you posted. I am here for you.





CONVENTIONAL ( Loan amounts up to $417,000)

30 yr. Fixed – 5.375% APR 5.595%

15 yr. Fixed – 4.875% APR 5.095%



JUMBO (Loan amounts above $417,000)

30 yr. Fixed – 5.625% APR 5.845% (to $625,500 10% down) SL, Tooele, Summit Counties)

30 yr. Fixed – 6.000% APR 6.220% (to $700,000 20% down)

30 yr. Fixed - 6.250% APR 6.470% (to $850,000 25% down)



THERE ARE BIG VARIACES IN JUMBO PROGRAMS AND RATES.

CALL ME TO DISCUSS YOUR SCENARIO.





FHA (Loan Limits - SL $417,000, Davis $389,850, Utah $271,050)

30 yr. fixed - 5.250% APR 5.750% with 740+ FICO

30 yr. fixed – 5.250% APR 5.750% with 620+ FICO

15 yr. Fixed - 4.500% APR 5.000%



FHA JUMBO (above $417,000 to max limit – SL, Tooele, Summit Co)

30 yr. Fixed – 5.375% APR 5.875% with 740+ FICO

30 yr. Fixed – 5.500% APR 6.000% with 660+ FICO



UTAH HOUSING

30 yr. Fixed - 6.375% APR 6. 875%



RURAL HOUSING

30 yr. Fixed – 5.500% APR 6.000%



455 Home Run Grants remaining.





**Rates are subject to change with market and loan size.

**Rates are subject to credit qualifying and down payment.

**Rates are based on a 30 day lock period.

**Rates are based on a 740 FICO for Conventional Loans

**Rates are based on a 620/660/740 FICO for FHA Loans

Info provided by Graystone Mortgage, Inc