Current Mortgage Rates | Mortgage Rates | Thursday, February 2, 2012

February 6, 2012 0 Comments

Mortgage rates are improving somewhat this morning, despite a positive initial unemployment claims report (recall that mortgage rates usually get worse on good news). In all likelihood everybody is awaiting tomorrow’s non farm payroll report, and we won’t see a lot of movement one way or the other today. According to Bloomberg, the consensus expectation for NFP is that we will see a 135,000 increase, and that the unemployment rate will stay the same. Realistically, we need to start seeing numbers of +300k before seeing any significant decline in unemployment, and I don’t think that will happen anytime soon.

As always, the situation in Greece and the possibility of some kind of implosion of the Eurozone is helping to keep rates depressed. Now there is the growing concern that Portugal and other European countries may follow in the footsteps of Greece and default on their debts as well (I don’t see why they wouldn’t). I saw some truly staggering numbers about European youth unemployment yesterday, and in light of this, and the huge debt loads of peripheral European countries, I am having trouble envisioning a positive outcome to this whole mess.

In other news, President Obama announced a new refinancing program yesterday. Again. I don’t think this has any chance of passing through Congress, and even if it does, I don’t think it does anything to address the real problems that are killing the housing market (specifically, the $ 700+ billion in negative equity spread through the sector). The plan would help those who are underwater and current on their mortgages. This is marginally helpful at best, but does nothing to help those that are behind on their mortgages and underwater, and lets the foreclosure crisis rage on. This program may help some small number of people (if it ever gets enacted), but is more election year talking point than real plan.

If you need a new mortgage, give us a call at 877-868-2503. We have some of the best rates in the industry and are often able to close loans in 21 days or less. Whether you want to buy a new home or refinance your current one, we can advise you on choosing a new mortgage that will help you secure your financial 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 2, 2012. Call 877-868-2503 for more details.***

Today’s News and Links:

Credit Slips/Alan White: The permanent foreclosure crisis and Obama’s refinancing obsession. “Pacta sunt servanda and the housing market and broader economy be damned”.

Housing Wire: Senate joins House in effort to cut pay at Fannie Mae, Freddie Mac. The GSEs need to be reformed, but this is penny-wise and pound foolish. It is possible that the top execs at the GSEs should be fired, I won’t pretend to know, but capping the maximum pay at $ 275,000 will make it difficult to compete with private firms for the smartest people. This is a PR move, and it is the kind of nonsensical stuff I’ve come to expect from Congress.

NYT: Secrecy shrouds “Super PAC” funds in latest filings. No matter what your political affiliation, I don’t know how this can be defended as a good idea.

William K. Black: Holder & Obama’s propaganda is “belied by a troublesome little thing called facts”. No doubt.

Business Insider: European youth unemployment. These numbers are staggering. Nearly 50% of employable people under 25 are unemployed in Greece and Spain.

NYT: As Greece nears a big debt deal, investors now fret that Portugal will ask for the same. Yup. Then Italy, Spain, Ireland…

LA Times: Republicans’ economic ideas may not sell in hard-hit Nevada. Nevada got destroyed by foreclosures and plummeting home values, so this is no surprise, and I don’t blame them one bit.

MSNBC: From founders to decorators, Facebook riches. The graffiti artist who painted Facebook’s original headquarters took stock options. Could be worth $ 200m.

Department of Labor: Weekly initial unemployment claims decline by 12,000 to 367,000.

Bloomberg: Euro falls on Greek debt concern. I am sick of hearing about Greece. They’re going to default by March 20, and that is all there is to it. They might as well go big – you can’t leap across a chasm in two jumps.

* 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.