Weekly Mortgage Update
The recent ½% drop in rates gives a buyer 10% MORE HOUSE for the SAME MONTHLY PAYMENT!!!!
The reason for this is still the ‘flight for safety’ as Europe’s troubles aren’t going away. Money was already pouring into the US bond market as a safe haven from the Euro-zone (which caused rates to fall), but now even MORE money is pouring into the bond market as Europe’s troubles have spooked our stock market and created a sell off. What this means is that the US bond market (including mortgages) is a giant “parking lot” for the world’s money, which is keeping rates in the 4’s. But once fears subside, like when the Super bowl ends, the parking lot will empty quickly. Rates will adjust back up, and that extra 10, 20, or 30 THOUSAND DOLLARS of homes that buyers could have bought for the same payment will be GONE.
It is also a great time to refinance if you are not wanting to buy!
State Bond Authority made an announcement today that they will be reducing the rate on the 2010 A program to 5.25% with 3.5% Down Payment Assistance starting with reservations 5/27 and loan all ready registered can not get this rate.
This week rates ranged between 4.625% to 4.875% depending on program, credit and points.
Ted Clay
Sr. Loan Consultant
Office: 405-341-8644
Cell: 405-826-1320