August 7, 2009

The 10 yr bond which has influence on mortgage rates has been in a steady climb this week and we have seen rates follow.  Last week the 10 yr bond was in the 3.5% range and today it is currently trading around 3.85%.  Consequently, mortgage rates have climbed.  I don’t know where we are headed but the last time the 10 yr bond ran to the 4% range, 30 year mortgage rates went to 5.875%.  Fortunately, rates receded back into the 5.25% range, but have been on another climb since then.
 
Today’s rates:
30 yr conventional           5.625% 0+0  (740 FICO, loan amount >$125,000)
15 yr conventional           4.875% 0+0  (740 FICO, loan amount >$125,000)
 
FHA
30 yr                                      5.625% 0+0  (660 FICO, loan amount >$120,000)
15 yr                                      4.875% 0+0 (660 FICO, loan amount >$120,000)
 
Another option for a conventional product:
If you have a buyer that is only planning on living in the home for a few years (relocation, planned move up):
5/1 ARM with 30 yr amortization               4.625% 0+0         (740 FICO, loan amount >$125,000)