Current Mortgage Rates | Mortgage Rates | Friday, February 3, 2012

February 6, 2012 0 Comments

Yesterday Freddie Mac’s Primary Mortgage Market Survey saw hit new record lows, with the average rate on a 30 year fixed rate mortgage hitting 3.87%. Based on the events of this morning, I do not think we will see a new record next week.

Mortgage rates are rising on the basis of a relatively strong jobs report this morning. Unemployment dropped to 8.3% in January, and we added 243,000 jobs. Employment in November was adjusted upward from +100k to +157k, while December’s numbers were revised upward from +200k to +203k. While this looks good on its face, when you look a little deeper, there are some problems here. The labor force participation rate fell to 63.7, which is a 30 year low, and the number of people that dropped out of the labor force fell by 1.2 million, which is a record. So unemployment is falling, due at least in part to the fact that the number of unemployed people being counted is reduced.

Still, stocks are rallying early, while mortgage backed securities and treasury bonds are getting crushed. While rates will rise today, I expect that we will see them adjust back downward next week, as soon as people remember that Europe is a mess, and there still appears to be a ways to go before a Greek debt settlement is reached. Further, it seems likely that Portugal, and maybe other European nations with unmanageable debt loads will follow Greece’s example and ask their bondholders to take significant haircuts. I think the European situation will keep rates from really spiking in the near future.

Some of Our Most Popular Rates and Products*:

Mortgage Product	Mortgage Rates	APR
30 Year Fixed Conventional Mortgage	3.625%	3.657%
20 Year Fixed Conventional Mortgage	3.625%	3.780%
15 Year Fixed Conventional Mortgage	3.125%	3.322%
30 Year Fixed FHA Mortgage	3.625%	4.975%
15 Year Fixed Conforming Jumbo	3.500%	3.670%
30 Year Fixed Conforming Jumbo	4.375%	4.474%
5/1 Adjustable Rate Mortgage	2.375%	2.437%
5/1 Adjustable Rate Conforming Jumbo Mortgage	2.750%	2.711%

***Mortgage rates change often. The above rates were quoted at 1:15 P.M., on February 3, 2012. Call 877-868-2503 for more details.***

Today’s News and Links:

BLS: NFP jumped 243,000 in January, unemployment fell to 8.3 percent. November was adjusted from +100k to +157k, and December was revised upward from +200k to +203k. Positive report, right? But then check this out:

ZeroHedge: Record 1.2 million people fall out of labor force in one month, labor force participation rate tumbles to fresh 30 year low. Smells fishy.

Naked Capitalism: Investors (and others) realizing their ox is about to be gored in mortgage settlement. This settlement is a raw deal.

Dave Dayen: Enforcement process for foreclosure fraud settlement process outlined. “At least somebody should pause and look at this settlement and what is actually happening to absolve one of the biggest consumer frauds in US history”.

Housing Wire: Vegas default notices down substantially following tough lender law. NODs down 82% from December 2010-December 2011. When you make it a felony to foreclose on a property without proving you hold the mortgage, foreclosures plummet. What does this say about all the foreclosures that occurred before this law passed?

Bloomberg: Nationwide title clearing sued by Illinois over foreclosure documents.

RortyBomb: Dissecting Romney’s statement: what are problems the middle-class has that the poor don’t?

Washington Post: Obama administration to move forward with closing Fannie Mae, Freddie Mac. I’ll believe this when I see it.

NYT/Dealbook: Lax oversight blamed in demise of MF Global. You don’t say?

BBC: Treasure hunter claims $ 3bn WWII-era find off US coast.

Slate: Colbert v. the Court. Colbert takes on Citizens United.

* All rates shown are for 30 day rate locks. Longer locks are available. The APR for conventional loan amounts is calculated using a loan amount of $ 417,000, 1 point, a $ 495 application fee, $ 400 appraisal fee, $ 799 underwriting fee and a $ 16 flood certification fee. The APR for jumbo loan amounts is calculated using a loan amount of $ 500,000, two points, a $ 495 application fee, $ 400 appraisal fee, $ 799 underwriting fee and a $ 16 flood certification fee. The APR for FHA loan amounts is calculated using a loan amount of $ 295,000, two points, a $ 495 application fee, $ 450 appraisal fee, $ 715 underwriting fee and a $ 16 flood certification fee. Some rates and fees may vary by state. All interest rates listed are for qualified applicants with 720 or higher FICO and 80 LTV and are subject to mortgage approval with full documentation of income. All rates are subject to change without notice. All rates shown are for 30 day rate locks with 1 point unless otherwise noted.

Total Mortgage consistently offers some of the lowest current mortgage rates, jumbo mortgage rates, and fha mortgage rates in the country.