Mortgage Rates: Crude and Unemployed

Rhonda Porter on 06 6, 2008

Today’s Job’s Reports revealed the highest unemployment in twenty years.   Bad news with the Jobs Report is what’s keeping mortgage rates from teetering significantly higher since we’re dealing with record oil prices with the biggest one day gain ever!  Inflation is the arch enemy of mortgage backed securities (bonds).    Mortgage rates will continue to be volatile and change often due to all the commotion in the markets and our economy.  My recommendation (as it is 99% of the time) is to lock your mortgage rate and don’t play the floating/rate shopping game…while you’re at it, you might as fill up your gas tank, too.   

Conforming fixed rates are up 0.125% since last week’s post and are about 0.375% higher from two weeks ago.   If you want a PITI of $2000 and a 30 year fixed at zero points, your loan amount today will be around $320,580.   Two weeks ago, your loan amount based on the same criteria would have been $333,580 based on a rate 0.375% lower than today’s rate.   This is a difference of $13,000 in two weeks for what $2000 a month will finance for your 30 year fixed mortgage.   In January of this year, when rates were hanging around the mid 5’s, your $2000 a month would provide a mortgage around $352,250.   My opinion is that due to inflation, mortgage rates will continue to rise. 

Just a reminder, I’m pricing conventional mortgages based on zero origination/discount points.   You’re welcome to pay points to buy down your mortgage rate.  Typically, but not always, 1% of your loan amount will buy the interest rate down 0.25%.

Conforming Mortgage Rates (loan amounts up to $417,000 for 1-unit properties).  The conforming rate quote below is based on owner occupied with a minimum credit score of 720, “full doc” purchase with a sales price of $500,000 and a loan amount of $400,000.  This scenario includes reserves (taxes & insurance) not being waived.   Rates quoted are priced based on a 30 day lock with no prepayment penalties on any of the rates quoted below. 

30 Year Fixed @ 0 Pt:  6.375% (APR 6.433%)

30 Year Fixed with 10 Year Interest Only @ 0 Pt:  6.625%  (APR 6.679%)

15 Year Fixed @ 0 Pt:  6.000% (APR 6.093%)

5/1 ARM – LIBOR @ 0 Pt:  5.625% (APR 6.955%)  ~  5/1 ARM – LIBOR @ 1 Pt:  5.250%  (APR 6.903%)

Conforming-Jumbo Rates.   Pricing is based on the same criteria above except where the loan amount is $417,001 – $567,500 for properties in King, Snohomish or Pierce Counties.  (For other conforming-jumbo loan limits in Washington state, click here); specifically priced for a sales price of $650,000 and a $520,000 loan amount.

30 Year Fixed @ 0 Pt:  6.375% (APR 6.431%) 

30 Year Fixed with 10 Year Interest Only @ 0 Pt:  6.875% (APR 6.947%)

5/1 ARM @ 0 Pt:  5.625% (APR 6.946%)

JUMBO (Non-Conforming) Rates.   Pricing is based on the same criteria above, with the exception that the loan amount is $417,001-$650,000 (20% down).   The specific scenario used to price the rates below is a sales price of $850,000 with a loan amount of $680,000.

30 Year Fixed @ 0 Pt:  7.500% (APR 7.758%) ~ 30 Year Fixed @ 1 Pt:  7.125% (APR 7.298%)

FHA.  Pricing based on credit score of 620 or better and loan amounts up to $362,790 for FHA in King, Snohomish and Pierce Counties with 1 point.

30 Year Fixed:  6.250% (APR 7.032%). 

FHA-Jumbo. Pricing based on loan amounts from $362,791 – $567,500 for King, Snohomish and Pierce Counties.  For other loan limits in Washington State, click here.

30 Year Fixed: 6.375% (APR 7.160%)

VA.  Pricing based on credit scores of 620 or better based on loan amounts up to $417,000.   VA loan amounts over $417,000 are also available.  Contact your local Mortgage Professional for more information.

30 Year Fixed:  6.375% (APR 6.700%)

Prime Rate (what HELOCs are based on):  5.000%  

This is just a small sample available of rates and products.  Rates are as of Friday, June 6, 2008 at 12:00 p.m. and may change at any time.  Available programs may change at anytime as well.   This is not a guarantee nor is it a commitment of interest rate.   To see live rate quotes for various scenarios, check out my Twitter page.

About the Author: Rhonda Porter

Rhonda Porter began her mortgage career on April 1, 2000 at Mortgage Master Service Corporation, a family-owned correspondent lender that has been lending in the Pacific Northwest for over 30 years. Prior to mortgage, she was in title industry for 14 years where she managed an escrow branch and gained an invaluable insight to the real estate industry. Rhonda Porter is a Licensed Loan Originator MLO-121324. Inman News named Rhonda one of the Top 50 Online Influencers of 2009. She was recognized in Seattle Weekly's Best of 2009 issue as the Best Twitting Mortgage Broker http://www.twitter.com/mortgageporter) and Sellsius 2007 Top 12 Women Real Estate Bloggers and 2007-2008 Maginficent 7 Consumer Articles. Her peers recognized her with the Washington Association of Mortgage Professionals Distinguished Service Award in 2009. Rhonda originates mortgages for homes located in Washington State. You can reach Rhonda at rhonda@mortgageporter.com or by calling (206) 718-9488. NOTE: Rhonda Porter and Mortgage Master Service Corporation are not affiliated with any real estate brokerages.

Comments are closed.