Mortgage rates improved, this first week of July, from a horrible June. If you followed the drama last month, fears of defaults and inflation ticked off a rise in mortgage rates of up to 6.0%. As brutal as June, 2009 was, July is giving us back most of what we lost last month. Still, I'm locking loans at application (listen to my two-minute report) because I've changed my bias to locking rather than floating.
The July exuberance may be unfounded:
Thirty-year bond yields rose from near the lowest in seven weeks before the $11 billion sale of the securities. Stocks gained. Yesterday’s $19 billion sale of 10-year notes drew the most bids on record from investors seeking refuge from an economy whose recovery may take longer than expected.
The bond market may have gotten ahead of itself. Mortgage rates look REALLY attractive at 5%; I think this is about as good as it gets for the summer.
Mortgage Rates for July 9, 2009:
Conv 5.0% (no points)
FHA 5.0% (.5 points)
VA 5.0% (.75 point)
All loan quotes assume a 740 credit score, full income documentation with acceptable debt-to-income ratios, and required down payments (20% for conventional, 3.5% for FHA, and zero-down for VA). We will charge a 1% origination fee plus a $695 processing fee.
Is that a good deal? Look at this big bank's mortgage rates. posted in its lobby:
Apply online now. It's really simple and should take about 20 minutes.
