Weekly Rates + Market Commentary + Program Update

We still can get your FHA loans done in 2 weeks when needed and we can go down to a 540 fico score!!

For housing stimulus updates, click here.

Mortgage bond prices rose last week pushing interest rates lower. Stocks struggled throughout most of the week, which helped funnel some funds toward bonds. The Treasury auctions dominated trading along with headlines questioning the efficacy of continued bailout efforts. Fortunately the Fed continued to buy mortgage bonds with purchases of about $23.2 billion February 5 through February 11. This buying helped buoy mortgage bond prices.

Continued stimulus spending developments dominate the financial headlines. Political party and intra-party disagreements are a daily occurrence as the merits of the proposals both future and past are debated. The debate involves who should get the money, how the money will be tracked, what ultimate effect will the money have on employment, and much more. Even with the stimulus, past and future, most signs point towards continued economic uncertainty.

One positive development for lower mortgage interest rates appears to be the purchasing of mortgage bonds by the Fed. This is separate from the stimulus spending that regularly makes the news. The Fed continues to buy billions of dollars of mortgage bonds. While the ultimate outcome is debated, the short-term reality is that the Fed’s purchasing has helped mortgage interest rates at the very least remain historically low. Whether the Fed can accomplish their goal of driving interest rates lower is still uncertain, but they obviously are trying. We know everyone would like to see lower rates but remember that stability is equally important. Sustained low rates generally are better than rapid fluctuations down and then quickly back up. Keep in mind that market conditions as of late have been choppy and unpredictable. Any future data releases showing a rebound in the economy as well as the Fed's promise to buy Mortgage Bonds could lead to mortgage interest rate volatility, so lower rates are not a given.

Please call me over the weekend at 480-225-2987 if you need 2nd opinions on loan scenarios or for quick pre-qualifications. Or, you can go directly to my website at http://www.creativefinanceaz.com/


Rates for February 13th, 2009. Rates Change Daily. Call for current pricing. #0902429
PROGRAM
30 Year Fixed Conventional 4.875%, 4.988%APR
30 Year Fixed Interest Only 6.375%, 6.488%APR
15 Year Fixed Conventional 4.50%, 4.613%APR
3/1 LIBOR ARM Conventional 4.625%, 4.738%APR
5/1 LIBOR ARM Conventional 4.50%, 4.613%APR
5/1 LIBOR ARM Interest Only 4.75%, 4.863%APR
30 Year FHA/VA 5.50%, 5.752%APR
*30 Day Locks

JUMBO $417,001+
30 Year Fixed (to $600K) 5.75%, 5.851%APR
15 Year Fixed (to $600K) 5.625%, 5.726%APR
5/1 Treasury ARM 5.375%, 5.476%APR
7/1 Treasury ARM 5.625%, 5.726%APR
*30 Day Locks

ONE-TIME CONSTRUCTION
Conforming & Jumbo (to $8,000,000)
5/1 LIBOR ARM (Conforming) 6.50%, 6.882%APR
5/1 LIBOR ARM (Jumbo) 6.875%, 7.132%APR
*60 Day Locks

6,9,12 and 24 month construction phases available. Construction phase interest only rate = PRIME (5%) + up to 1.25%. Perm. rates guaranteed through construction.Prior to modification, a free one-time float down is available. (30 Year Amortization)
For Realtor purposes only; not for distribution to potential borrowers. Rates are calculated based on no discount points and one origination fee. Conforming rates based on loan amounts greater than $200,000, minimum FICO score 720.