Friday’s Rates
Rhonda Porter on 09 4, 2009
Happy Labor Day. Speaking of labor, the Job’s Report disclosed we’re edging closer to double digits with unemployment is up to 9.7%, the highest levels in 26 years. Non-farm payroll jobs lost in August was reported at 216,000; slightly better than expected. People who would like to work full time but are only able to work part time (under-employed) increased to 16.8% from 16.3%. As I’m getting ready to push the publish button on this post, the DOW is up 75 and MBS are down a bit (FNMA 30 yr 4.5% down 19bp from this morning). We could see intraday rate sheets for the worse any moment.
Don’t forget that today is a “furlough” day for King and Snohomish Counties. This means that no recordings will take place for purchases and refinances. And Monday, of course, is a holiday which I hope you all enjoy. In November, we are going to see how our counties have scheduled more furlough days around holidays–November is going to be brutal for closings–especially if you’re working with buyers who are counting on closing by November 30 for their $8,000 tax credit. PLEASE CONSIDER WRITING YOUR CONTRACTS WITH CLOSING DATES NO LATER THAN NOVEMBER 16 IF YOU’RE COUNTING ON YOUR FTHB CREDIT. Yes…I’m shouting…sorry! 
With MDIA, HVCC, tighter underwriting guidelines, a shorter month due to furloughs/holidays AND the increased volumes lenders, credit lines and escrow companies will be dealing with, you do not want to set yourself up for heartache if your transaction ends up delayed past November 30.
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 Point: 4.875% (APR 5.030%). Same as posted on last week’s rate post..
15 Year Fixed @ 1 Pt: 4.375% (APR 4.637%). 
0.125% to rate.
10/1 ARM 5/2/5 CAPS w/1 Pt: 4.375% (APR 5.731%). 0.125% to rate.
7/1 ARM 5/2/5 CAPS w/1 Pt: 4.000% (APR 6.016%). 0.125% to rate.
5/1 ARM 5/2/5 CAPS with 1 Point: 3.625% (APR 6.295%) 0.25% to rate... ~ Priced with 0 Points: 4.000% (APR 6.346%) 0.125% to rate.
Conforming High Balance 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 $625,000 and a $500,000 loan amount.
30 Year Fixed @ 1 Pt: 5.000% (APR 5.146%). 0.125% to rate.
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 Year Fixed at 1 point: 6.125% (APR 6.268). Same.
7/1 ARM 5/2/5 CAPS @ 1 Pt: 5.375% (APR 6.674%). 0.125% to rate.
5/1 ARM 5/2/5 CAPS @ 1 Pt: 4.750% (APR 6.706%). 0.125% to rate.
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: 5.000% (APR 5.984%). 0.125% to rate.
FHA-Jumbo/High Balance. Pricing based on loan amounts from $417,001 – $567,500 for King, Snohomish and Pierce Counties with a 660 or higher mid-credit score.
30 Year Fixed @ 1 Pt: 5.125% (APR 5.967). 0.125% to rate.
FHA 203 (k) Rehab-Streamline. Pricing criteria same as FHA above with loan amounts up to $417,000. This scenario is based on a $400,000 base loan amount.
30 Year Fixed @ 1 Pt: 5.250% (APR 5.999%). 0.125% 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: 5.000% (APR 5.285%). 0.25% to rate.
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. 60 day lock is quoted as USDA is a longer transaction to close.
30 Year Fixed @ 1 Pt: 5.250% (APR 5.568%). 0.125% to rate.
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 September 4, 2009 at 8:00 a.m. and may change at any time. Available programs may change at anytime as well. To see rates that I’m quoting “live” click here.
For purposes of this post: “1 point” is 1% of the loan amount and would be reflected in line 801 or 808 (depending on whether the loan is brokered or not). Unless the rate is bought down; there are zero discount points referenced which would be reflected on line 802 of the GFE/HUD-1 Settlement Statement. Zero points means no points are paid on lines 801, 802 or 808 (this applies to all rates quoted on this post).
NOTE: Rhonda Porter and Mortgage Master Service Corporation are not affiliated with any real estate brokerages.
About the Author: Rhonda Porter
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Hi Rhonda,
Touche’ on your post. A comment about USDA… they are really backed up…. If you are a able to qualify for USDA you should write your offer up this week and get your loan in line because it may take until the end of November to get it closed! Loans are taking much longer to close now and we are getting last minute hitches from all of our lenders. Seems like they all want to reunderwrite before issuing closing documents.
Cathy, thanks!
Very true about USDA…I’ve actually been working on an USDA purchase and it is a very long transaction….which is why I made the comment about the longer lock period. I do every thing I can to make sure that the borrower and RE agents understand this too–we have no control, once it’s in USDA’s hands for underwriting, to expedite the transaction. They just plug away at their own pace.
It hope to meet you at either one of the RE Barcamps coming up (Seattle’s is Tuesday) and/or WAMP’s Lender’s Connect/Expo so I can put a face behind your comments.
Can you comments on what’s going to happen with the conforming high balance loans up to $567K. Are those set to expire at the end of the year. If so, what will the market be like for someone who wants a $500K loan with 20%+ down?
Thanks!
Great question, DrShort. Right now all we know is that we have $567,500 as the high balance loan limit in our area until the end of the year. We should know more around early November as we get closer to year end.
If you remember last November, we went from $567,500 to $506,000 leaving many folks in a bind. Loan limits are typically based on a certain percentage of median home prices… it will be interesting to see if the are reduced again or if they keep them at current levels.
I do not predict the high balance limits being raised…it’s kind of too bad since folks with non-conforming (aka jumbos) have little to no help with their mortgages.
Thanks, very helpful!
I see all the talk of the $8K credit expiring, but for someone like me the loan limits going down is much more concerning.
I agree–it left many people I was working with in suspense last year and it took forever to revise it. FHA had it figured out before Fannie/Freddie and then you had to wait for lenders to implement it. It was a mess. I hope this is being considered right now by the “powers that be”. It would be nice just to leave the limits where they are for one more year.
When the reverted back to 2008 limits last year, not all counties in Washington qualifed for the high balance–they had it in 2008 but lost it when the revision came (it wasn’t a complete if you had it in 2008, you will in 2009)…they’re stuck w/$417k and no high balance limit.
You know as soon as I hear any peep about the 2010 loan limits, I’ll post it.
Rhonda,
When they reduced the limit it was $506,000 or so. Wouldn’t the answer to Dr. Short’s question be for $500 loan with 20% down, even if the limit reduces back to the previous reduction, that would be OK? Or do you think there will be “no” high limit? Is that remotely possible?
Isn’t worst case scenario it goes back down from $567,500 to $506,000 again?
Well, it would nice if we could assume that $500k will be within the high balance conforming limit–we don’t know that yet. We won’t know until much later this year.
Think about this, in 2009 based on the median home prices in our area when they factored the high balance limit, it was $506,000. Congress had to pass legislation to restore our area to the $567,500 limits of 2008 which took MONTHS for lenders to adapt.
If the 2010 high balance limit (assuming we have a high balance limit) is based on median home values, it will most likely be less than the $506k original loan limit of 2009 based on values before.
Concerning, isn’t it?
We don’t even know if $417k will be the “conforming” limit for 2010! It’s only assumptions at this point.
LOL! It’s like the answer to “Will the $8,000 credit be extended?” Answer: “we don’t know nuttin’”
…you got it! And it all unfolds (or comes together) at the end of the year. It’s tough…people who need $567,500 should not assume it will be there. We’ve seen what happens just from last year which was a cluster $@%#% with the loan limits.