Mortgage Market Report - Mortgage Interest Rates hit historic low for 2011

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Mortgage and Lending with Social Media - Infinity Home Mortgage Company, Inc

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Mortgage Market Report - Interest Rates hit historic low for 2011

As of yesterday, mortgage interest rates were hitting historic lows for 2011. Today was the key focal point if rates were to continue to go lower based on non-farm payrolls and on unemployment.  As of this morning, the news is reporting that non-farm payrolls only increased by 54,000 in May, significantly less than 150,000 increase that the economists had been expecting. Regarding the private sector, private employers only added 83,000, instead of the 180,000 that was anticipated. And unemployment rose from 9.0% to 9.1% the month prior.

Depending on your credit scores, the type of mortgage, your down payment, and your loan amount, interest rates yesterday were from 4.375% to 4.875%. As of right now, the FNMA 30 year 4.0% coupon is up 41 bps at $101.22 and the US 10 y T-note is up 59 bps at $101.38.

 

 

 

Summary : What does this all mean for today?  That interest rates should be getting even better today. Another reason for the MBS’s and bonds getting better is because it looks more attractive for those countries overseas such as China, who look for good investments.

For those of us that keep track of this information, I had been advising clients to wait until today’s news, even though rates were the best that we had seen for 2011.  I will be locking in several borrowers today that will be closing in the next 10 to 30 days. Yes, there are a few indicators that could even drop rates a little more for next week. But in my experience, no matter how one might tend to read the markets and those indicators, just a small hiccup could reverse all of these gains. And what goes down, will go up, but ‘when‘ is the question. Some so-called experts will tell you to float cautiously, but with interest rates literally dropping about 3/8 of a percent just in the last two weeks, it’s my opinion that it would be a huge gamble to lose these excellent gains.

 

 

For more news like this, you can always go to the www.fhaloansfhamortgages.com 

 

 

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Copyright © 2011 by Jeff Belonger of Infinity Home Mortgage Company, Inc

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Rainmaker
571,230
Scott Fogleman
Witt-Fogleman Team 434-941-8847 - Forest, VA
Witt-Fogleman, Inc. - Bedford, Lynchburg, and Roan

That is great news for those getting ready to purchase of refi... maybe its time I refied my home.....

Jun 03, 2011 10:24 AM #1
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Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Now if only buyers were motivated by mortgage rates, we'd be all set. But they seem to have other things on their mind, like job stability, and have become risk-averse enough that we just don't see a lot of buyer response to this kind of stimulus anymore.

Jun 03, 2011 10:29 AM #2
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John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru

Jeff - It's unfortunate that such attractive rates come at a time when few are willing/can afford to purchase; but at least those who qualify and who wish to refinance can take advantage of them.

Jun 03, 2011 10:32 AM #3
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Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
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SCOTT.... . it was even good last week....but if it makes sense to do it now, then one should do it and not wait any longer.

DICK... .  you hit the nail on the head... job stability...even though you hear some realtors doing well, the overall market is not as good as many would think. With the cost of living alone being high... gas prices... electric/gas, food, etc...it's harder for people to save or those that do, don't want to risk their savings right now.

JOHN.... .  I agree and I expected this... some so-called experts said that the 3rd and 4th quarters will be some of the best that we have seen in the last 5 years... I guess they just rolled the dice... because as you and I see it, no matter how low rates are or would go, the motivating factor is jobs, job stability, and cost of living... but yes, those that qualify and are ready, this is a great time for them. ps.. I haven't been around here as much.. did write 2 very good articles over 10 days ago.... we should catch up soon.. thanks

 

Jun 03, 2011 10:49 AM #4
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Tim Peterson
Wisconsin Realtor Safety and Concealed Carry Classes - Madison, WI
Realtor Safety Training Classes

Hi Jeff

wow that is great news. Like you said though the buyers seem to be holding back. I only have a few working right now and they are so cautious..Thanks

Jun 05, 2011 07:22 PM #5
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