Mortgage rates began the day flat to slightly lower before market weakness in the afternoon caused many lenders to release negatively revised rate sheets. Not all lenders took part in the “reprice,” but the net effect is an average Best-Execution rate with borrowing costs very similar to those seen on Friday with some lenders slightly higher in cost while others remain slightly lower. The most prevalent Best-Execution rate continues to be 3.625%.Click here to read more.
Archive for category: Mortgage Loans
Mortgage rates surged higher at their quickest pace since late January on Wednesday eclipsing the previous highs of the year seen around the same time. For many lenders–and for the first time since mid 2012, this takes Best-Execution for 30yr Fixed, Conventional Loans back up to 3.75%. Some lenders remain at 3.625% and lower rates are still quite viable in certain situations. As always, remember that what we refer to as “best-execution” can vary depending on personal preferences. Also, it’s important to remember (when we’re talking about Best-Ex being at different levels between lenders) that it doesn’t necessarily mean the lender with the lower best-ex is better priced than another–simply that the their adjacent rate offerings (usually .125% higher and lower) are not as efficient in terms of borrowing cost vs payment. Click here to read more.
Mortgage rates did a complete 180, reversing yesterday’s improvement, and taking rates back in line with recent highs. That sounds fairly ominous, and in the sense that further weakness would mean new multi-month highs, it is. But less ominous is the fact that rates continue to operate in a narrow range where the only major day to day changes have been seen on the COST side of the equation. There’s further explanation in our daily link to “best-execution” rates, but the other side of the equation is the RATE itself. Those have been steady over the past two weeks with 30yr Fixed, Conventional Loans at 3.625%. Click here to read more.
Mortgage rates began the day much improved compared to Monday’s latest offerings, but the gains mostly evaporated by the end of the session. The mortgage-backed-securities (MBS) that most directly affect rates, had been steadily improving since sustaining major damage from Friday through Monday morning. Those improvements carried through to this morning’s rate sheet print times, but trading levels began to deteriorate shortly thereafter. Stock prices and Treasury yields rose. MBS fell (falling prices mean rising rates), and throughout the course of the day, most lenders recalled rate sheets for negative reprices. The result is a 30yr Fixed Best-Execution level that remains at 3.625% with a few lenders still marginally lower in costs vs yesterday. Click here to read more.
Mortgage rates were mixed, leaning toward slightly improved to begin the holiday-shortened week. Several lenders’ rate sheets were slightly worse than Friday’s while a majority were unchanged to slightly better. A worse-than-expected report on Existing Home Sales helped interest rates hold their ground. Despite the moderate improvement overall, it hasn’t been enough to affect the Best-Execution levels for 30yr Fixed, Conventional loans, which continue to hover near 3.5% since Thursday. Click here to read more.
Mortgage rates were higher on average on Wednesday, though some lenders didn’t move with the rest of the pack. On one end of the spectrum, a few lenders were unchanged vs yesterday, but the bigger deviations from the pack were at the other end where several lenders moved rates significantly higher from Tuesday’s latest offerings. Those, however, are the exception to the rule as the average lender was just slightly higher in cost today with Best-Execution remaining at 3.375% for Conventional 30yr Fixed loans. Click here to read more.
Mortgage rates moved slightly lower again today, marking the third straight session of recovery after being launched higher last week. The magnitude of that launch is a matter of perspective, though 30yr Fixed Best-Execution never made it over 3.5%. Today’s improvements bring the average rate sheet back into 3.375% territory, but lenders remain on both sides of that (fewer at 3.25%, more at 3.5%). Not every lender improved, and not every improvement will have dropped the quoted rate by the standard .125% increment. That means that many scenarios will see this improvement as a reduction in closing costs (or increase in lender credit). Click here to read more.
Having been in the reverse mortgage industry for over 12 years, I have had the privilege of assisting hundreds of senior homeowners obtaining the peace-of-mind they desire in retirement. However I never would have thought I’d help one senior in particular that is dear to my heart, my mother. Here is her reverse mortgage story.
Unfortunately my father passed away about 3 years ago at age 70. He had been retired from Boeing since he was 55. It was truly great man and was actually not supposed to live passed 35 but he proved the doctors wrong. I know how lucky I was to have him see me get married and spend time with my wife and I before he passed.
One of things my father always made sure he did was to save. Not knowing what may happen, he wanted to leave as much money as possible to my mother to ensure her stability. His savings and retirement portfolio was left to my mother however we did not realize the financial impact of losing his monthly social security benefits. My mother unfortunately had to alter her retirement distributions to make up some of the loss in this income.
Earlier this year, her financial planner estimated that her portfolio would only last another 9 years! Alarmed, they discussed her options; either increase her part-time work hours, lower her distribution and lose her independence, or sell her home, move, & invest the monies. The last option that she brought up, to my mother’s surprise, was a reverse mortgage.
Her financial planner knew I was a reverse mortgage advisor so she suggested we all get together to go over how she could use a reverse mortgage comprehensively with her other retirement instruments. By the end of our discussion, we had put a plan in place that would lower her distribution and extend the life-expectancy of her retirement portfolio. We would make up difference of the lower distribution through a monthly withdraw from the reverse mortgage proceeds. In addition, we could set up a line-of-credit that she would utilize for emergencies or future needs.
She noted she was a little nervous when she decided to obtain her reverse mortgage but became more comfortable as she realized the positive change it would be making in her life. She has now had her reverse mortgage for few months and is happier than she has been for a long time.
She stated to me the other day that she doesn’t worry as much she used too. She was very stressed about the long-term financial issues she was going to face. However with the reverse mortgage, she knows that she can stay in the home and use her equity to her advantage. She no longer allows her finances to dictate what she can and cannot do and enjoys herself and lives her life more freely.
Since she’s obtained her reverse mortgage, she has more peace-of-mind and is the happiest I’ve seen her since my father passed. She’s been able to visit her brother in Eastern Washington more, make her annual trip to the Quilting Fair in Sisters, OR with her sister, and has just finished updating her bathroom and now has plans to change her kitchen countertops and paint. She can go to JoAnne’s Fabrics and pick out whatever she wants. And most of all, she’s enjoying her time with her new baby boy, Cooper.
The power of the reverse mortgage for her is more than the financial impact. It’s allowing her to live comfortably without as many worries. She has the peace-of-mind that my father wanted and saved for all those years. She and my father paid for their home. Now their home will be paying her. ~Written by Brian Cook
Mortgage rates moved higher at the quickest pace in weeks on Tuesday as politicians convey an increasing sense of compromise regarding Fiscal Cliff negotiations. The broader move higher in rates had been somewhat gentler until today, beginning with the jobs report on December 7th. From there, the changes in Fed policy convey last Wednesday kept the pressure on, but it wasn’t until yesterday and today that a shift in tone on the Fiscal Cliff pushed the 30yr Fixed “Best-Execution” level firmly into 3.375% territory, with some more conservatively priced lenders at 3.5%. Click here to read more.
Mortgage rates are little changed from Monday. Some lenders’ rate sheets are slightly improved versus yesterday’s, but a majority offered just slightly weaker rates. Today’s political and economic events in the US were of little consequence to bond markets, including the secondary mortgage market. Instead, interest rates were broadly higher right out of the gate due to overnight pressure from positive developments in Europe. That said, and to reiterate, the overall movement was quite small and markets generally maintain a tight, sideways stance ahead of tomorrow’s FOMC Announcement. Best Execution remains between 3.375% and 3.25% depending on the lender and scenario.Click here to read more.