Weekly rates + Market Update + Termination of Canadian Foreign National Program

1) We are still able to close FHA's down to a 580 Fico

2) Unfortunately, we were only given a 12 hour notice on 3/31 that the Canadian Foreign National Program has been terminated. Nova is looking for another outlet for these loans.

Mortgage bond prices fell last week applying upward pressure on mortgage interest rates. The bond market continued to come under pressure from significantly stronger stocks. The DOW shot towards the 8,000 mark despite data releases that showed continued economic weakness. Most worrisome were the many reports that indicated people continue to lose jobs. Consumers find it difficult to spend without a job or with the fear their job may be in peril. The weaker than expected consumer sentiment data provided evidence of that fear.

Inflation is typically the most important focus for the mortgage interest rate market. Inflation remains a concern as the Federal Government continues to print and spend money in an effort to spur the economy. Unfortunately, mortgage interest rates also continue to be pushed around by gyrating stocks and weak demand as performance uncertainty looms and the Fed has become the primary buyer of mortgage-backed securities. Most of the recent increases in interest rates have come following stronger stocks. The Fed continues to pump billions of dollars into the market to try to keep mortgage interest rates relatively low and steady. Up until this past week they have done a pretty good job of accomplishing that task. Remember, the Fed is not the only player in the game and selling pressure continues.

Analysts will monitor this next week’s consumer credit levels. There is much debate in the financial community about the future. Economists, market analysts, and traders all seem to have a different opinion about the future state of the economy and especially whether or not we have hit the bottom of the economic slide. One thing most market participants agree on is both the bond and stock markets are going to see additional volatility.

So far the Fed has been able to keep mortgage interest rates relatively low while not destroying the functioning secondary market where investors buy and sell mortgage bonds. The potential negative is that the Fed has become the primary purchaser of these bonds. In the short term take advantage of these advantageous rates. There is uncertainty how things will play out once the Fed begins to unwind those positions in the futures.

For assistance over the weekend, you can reach me on my mobile at 480-225-2987 for pre-qualifications and 2nd opinions on loan scenarios.

Rates for April 3rd, 2009. Rates Change Daily. Call for current pricing. #0902429
PROGRAM
30 Year Fixed Conventional 4.875%, 4.988% APR
30 Year Fixed Interest Only 6.00%, 6.113% APR
15 Year Fixed Conventional 4.375%, 4.488% APR
7/1 LIBOR ARM Conventional 4.50%, 4.613% 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 5.00%, 5.252% 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 4.75%, 4.851% APR
7/1 Treasury ARM 5.00%, 5.252% APR
*30 Day Locks

ONE-TIME CONSTRUCTION
Conforming & Jumbo (to $8,000,000)
3/1 LIBOR ARM (Conforming) 5.50%, 5.882% APR
5/1 LIBOR ARM (Jumbo) 6.25%, 6.632% 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.