Friday’s Rates
Rhonda Porter on 09 12, 2008
Mortgage rates continue to be very volatile. They are improved from last week’s rate report yet higher than the low point (mid 5’s for 30 year) earlier this week. If you’re considering a mortgage, you need to be in position to lock with low rate opportunities are present. So far today, one of the more conservative lenders I work with has issued 3 different rate sheets. Next week we have plenty on the table with both the Consumer Price Index and the FOMC meeting taking place on Tuesday. Hang on to your hats, or better yet, don’t gamble your rates–LOCK! 
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 mid-low credit score of 720-739, “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 45 day lock with no prepayment penalties on any of the rates quoted below.
30 Year Fixed @ 1 Pt: 5.750% (APR 5.902%) 
0.25% to rate
30 Year Fixed with 10 Year Interest Only @ 1 Pt: 6.250% (APR 6.393%) by 0.125%
15 Year Fixed @ 1 Pt: 5.375% (APR 5.626%) by 0.125%
5/1 ARM – LIBOR @ 1 Pt: 5.375% (APR 6.951%) by 0.25%
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; specifically priced for a sales price of $650,000 and a $520,000 loan amount. NOTE: The Conforming-Jumbo loan limit will be reduced to $522,100 effective January 1, 2009.
30 Year Fixed @ 1 Pt: 5.875% (APR 6.020%) by 0.25%
30 Year Fixed with 10 Year Interest Only @ 1 Pt: 6.500% (APR 6.639%) unchanged
5/1 LIBOR @ 1 Pt: 6.00% (APR 7.191%) by 0.125%
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 @ 1 Pt: 7.375% (APR 7.535%) by 0.125%
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.
30 Year Fixed @ 1 Pt: 5.875% (APR 6.676%) by 0.25%
FHA-Jumbo. Pricing based on loan amounts from $362,791 – $567,500 for King, Snohomish and Pierce Counties. NOTE: The FHA Jumbo loan limit will be reduced to $522,100 effective January 1, 2009.
30 Year Fixed @ 1 Pt: 6.250% (APR 7.009%) unchanged
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 @ 1 Pt: 6.000% (APR 6.316%) by 0.125%
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, September 12, 2008 at 1:30 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.
About the Author: Rhonda Porter
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Rhonda
What a great post, thanks for pointing out the recent changes to rates. Awesome
Chris the implementer
Chris, I post rates every Friday at Rain City Guide. Thanks for stopping by.
Rates have improved considerably today, approximately 0.125%, based on the tanking stock market’s reaction to the Lehman BK.
A good idea to check with your favorite lender if a refi may benefit you.
One reason for starting a refi now sooner than later is if your values are depreciating (as Tim wrote about a few posts ago). Even if you feel your home is worth a pretty penny, unless 3 others just like yours in your neighborhood have sold for a pretty penny in the last three months, it may not appraise as high as you’d like it to.
Mortgage rates and programs are impacted by loan-to-values.
Roger, we don’t really encourage soliciting business here at Rain City Guide.
Rhonda:
I assumed most reader’s favorite lender would be you, and I am pretty sure your rate sheets were better today than Friday.
Telling readers that rates dropped significantly nationwide since Friday does not seem like soliciting, it seems like informing.
However, no offense or solicitation was intended.
And I heartily agree with your comment #4, which also seems to suggest, “get it, while the gettin’ is good”.
If it’s justified, I may be posting a mini-rate update tomorrow…with our losses in the stock market and the FOMC meeting–it’s guaranteed to be a very volatile day.
Currently, 30 year fixed conforming is at 5.5% priced with 1 pt (5.649 apr)–pre-FOMC. I’ll check back should we have dramatic changes.
Markets are pricing in a 0.25% cut today from the Fed…we’ll know soon what the FOMC’s move is (if any).
Rhonda:
“Markets are pricing in a 0.25% cut today from the Fed…we’ll know soon what the FOMC’s move is (if any).”
What do you mean by that, in terms of rates for the 30 yr fixed?
I see it as rates would have been even lower this morning, with market uncertainty forcing a flight to the relative safety of bonds, but the threat of a Fed rate cut is counterbalancing that, thus they remained about the same.
Also, it looks like the overnight rate jump
http://www.bloomberg.com/apps/news?pid=20601087&sid=a4eoKQyhoMWM&refer=home
has already wiped out any potential gains in short money ARMS. There is barely a difference in rates for the 5yr ARM compared to the 30 yr fixed.
Is that the way you are interpreting this?
Roger, I’m referring to the 30 year fixed.
I should clarify #11, by “markets” I’m referring to stocks and bonds. We’ll see reaction once the FOMC decision is announced in about one hour.