Weekly Rates + Important Fico Score Reminder

Just an FYI: We just received word that our most leniant investor will be changing it's FHA fico score requirements to 580 sometime next week from 540. If you have any clients on the fence with credit scores below this level, now is the time to buy!!! Their lock needs to be secured to a property in order to be grand- fathered into the old 540 guideline prior to the deadline. I will be notifying the clients as well ASAP.

Mortgage bond prices fell last week pushing mortgage interest rates higher. A Freddie Mac report of increased defaults sent bond prices crashing and interest rates higher mid-week. The Treasury auctions generally showed mediocre foreign demand and the overall additional debt supply also pressured mortgage bond prices lower. Most of the data continued to show economic weakness but there was a slight up tick in the consumer sentiment number that was not bond-friendly.

Now for good news. FHA announced this week an increase in lending limits for both traditional loans as well as Reverse Mortgages. Pima County was raised from $271,050 back up to $316,250. Maricopa was raised to $346,250. Click here for HUD's website for all other counties in AZ.

This is welcomed news for your buyers looking to put down as little as 3.5% and for your sellers in these higher priced ranges. This will open up more properties that will be available for FHA financing. Keep in mind, Nova still does offer 95% financing for conforming limits up to $417k

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.

Rates for February 27th, 2009. Rates Change Daily. Call for current pricing. #0902429
PROGRAM
30 Year Fixed Conventional 5.00%, 5.113%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 4.125%, 4.238%APR
5/1 LIBOR ARM Interest Only 4.25%, 4.363%APR
30 Year FHA/VA 5.25%, 5.502%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.