Rain City Guide

Friday’s Rates following the Jobs Report

Rhonda Porter on 06 5, 2009

Mortgage rates are still low but climbing quickly.  This morning’s Job’s Report was better than expected reporting “only 345,000″ jobs lost instead of the anticipated loss of 504,000 jobs.  However the real figure to pay attention to is our unemployment rate of 9.2%.    With the stock market continuing to improve and the better than expected economic indicators; mortgage backed securites are getting hit hard.  

The New York Fed purchased another $25.8B in mortgage backed securites to attempt to keep rates at their artifical lows…it makes me wonder how much higher today’s rates would be if when they run out of the allocated funds or if they just decide to change plans and stop buying MBS.

Mortgage rates continue to be quite volatile–lately lenders have been issuing an average of 4 rate sheets per day…by the time I publish this post…rates may have changed!  You’re seeing a lot of red arrows with the increased rates…check out where rates were this time last year.

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 740 or higher, “full doc” purchase with a sales price of $500,000 and a loan amount of $400,000 single family dwelling (non condo).  This scenario includes reserves (taxes & insurance) not being waived.   Rates quoted are priced based on a 30-40 day closing with no prepayment penalties on any of the rates quoted below.

30 Year Fixed @ 1 Pt: 5.250% (APR 5.397%).    0.375% to rate from last week’s post.   0.625% to rate in 2 weeks.

15 Year Fixed @ 1 Pt: 4.750%  (APR 4.995%).    0.25% to rate.  0.50% to rate in 2 weeks.

7/1 ARM 5/2/5 CAPS w/1 Pt:  5.000% (APR 6.489%) 0.50% to rate. 0.625% to rate in 2 weeks

5/1 ARM 5/2/5 CAPS with 1 Point:  4.375% (APR 6.564%) ~ Priced with 0 Points: 4.750% (APR 6.616).  New addition to this weekly post.

Conforming High Balance Rates. Pricing is based on the same criteria above except where the loan amount is $417,001 – $567,500for properties in King, Snohomish or Pierce Counties; specifically priced for a sales price of $625,000 and a $500,000 loan amount.    

30 Year Fixed @ 1 Pt: 5.375% (APR 5.515%). 0.375% to rate from last Friday’s rate post.  0.625% to rate in 2 weeks.

Jumbo/Non-Conforming.  Loan amounts up to 1 million for ARMs and 1.5 million for the 30 year fixed.  The quotes below are based on 740 or higher credit scores with 80% loan to value with a loan amount of $650,000.  30 day locks.

30 Year Fixed:  6.125% at 1 point (APR 6.268). 0.125% to rate.

7/1 ARM @ 1 Pt:  5.375% (APR 6.919%). 0.500% to rate.  0.625% to rate in two weeks.

5/1 ARM @ 1 Pt:  5.250% (APR 6.891%).  Same as last week’s rate post.

FHA. Pricing based on credit score of 620 or better and loan amounts up to $417,000 for FHA in King, Snohomish and Pierce Counties. 

30 Year Fixed @ 1 Pt: 5.375% (APR 6.215%).   0.25% to rate.   0.50% to rate in 2 weeks. 

FHA-Jumbo/High Balance. Pricing based on loan amounts from $417,001 – $567,500 for King, Snohomish and Pierce Counties.

30 Year Fixed @ 1 Pt:  5.375% (APR 6.212%).  0.25% to rate.   0.375% to rate in two weeeks.

FHA 203 (k) Rehab-Streamline.   Pricing criteria same as FHA above.

30 Year Fixed @ 1 Pt:  5.500% (APR 6.346%).  0.25% to rate.

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.

30 Year Fixed @ 1 Pt:  5.375% (APR 5.486%).  0.25% to rate.  0.375% to rate in two weeks.

USDA Rural Housing.   100% financing with income limits and properties must be located within a specific area (this program is generally available in rural towns with populations of 10,000 or less).   For eligibility, click here.

30 Year Fixed @ 1 Pt:  5.500% (APR 5.828%).   Same as last week’s rate post.

Prime Rate (what HELOCs are based on):  3.25%

This is just a small sample available of rates and products.  This is not a guarantee nor is it a commitment of interest rate.    Rates are as of Friday, June 5, 2009 at 8:30 a.m. and may change at any time.  Available programs may change at anytime as well.    Check out RCG’s Mortgage Info page for live rate quotes via my Twitter feed.

About the Author: Rhonda Porter

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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 has a CMPS designation and is a Licensed Loan Originator 510-LO-32047. Rhonda is also the Chairperson for the Social Media Committee for WAMP (Washington Association of Mortgage Professionals). She was recognized in Seattle Weekly's Best of 2009 issue as the Best Twitting Mortgage Broker (check at her Twitter @mortgageporter) and Sellsius 2007 Top 12 Women Real Estate Bloggers and 2007-2008 Maginficent 7 Consumer Articles. 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.