Mortgage Rates Continue To Drift Higher

Common indexes used for Adjustable Rate Mortga...
Common indexes used for Adjustable Rate Mortgages (ARMs) over an 11-year period (1996-2006). Shown: 1-year constant-maturity Treasury (CMT) securities, the Cost of Funds Index (COFI), and the London Interbank Offered Rate (LIBOR). To determine the interest rate on an ARM, lenders add a few percentage points to the index rate, called the margin. (Photo credit: Wikipedia)

Mortgage News for Tuesday May 7, 2013

Mortgage Rates Continue Steady Drift Higher
Mortgage rates rose again today, continuing the steady move higher seen yesterday. In the bigger picture, Friday’s jobs report did the most severe damage, taking rates much higher on that single day than yesterday and today combined. Without any meaningful data to motivate movement, bond markets (which include the mortgage-backed-securities or MBS that directly influence rates) have been adrift so far this week–continuing to trade defensively–still rattled by Friday’s move.
Conventional 30yr Fixed ‘best-execution’ remains at 3.5% today, which is an eighth higher than the 3.375% achieved last week. That means that the actual interest rate quote you’d receive (or have received) isn’t likely to have changed today, but the costs involved with obtaining that rate moved higher for most lenders. Depending on your scenario, this could mean increased closing costs or a decreased amount of lender credit.
The week on Wall Street continues to be subdued in terms of market moving data tomorrow although there’s incrementally more potential for volatility. Namely, the 10yr Treasury auction in the afternoon may have an impact on MBS, which could in turn affect mortgage rates. The fact that we haven’t seen a firmer bounce toward higher rates has been somewhat reassuring so far this week, but it’s too soon to assume that the post-Jobs-Report move higher has fully run its course yet.

Mortgage Interest Rates*
Rates as of Monday May 7, 2013

Rates Loan Fee
30 Year Fixed Conventional 3.50% 1%
30 Year Fixed FHA/VA 3.25% 0%
USDA Rural 3.25% 0%
FNMA Home Path (95% LTV) 4.25% 1%

Rates Are A Market Snapshot And Are Subject To Adjustments Depending On Credit Scores, Loan To Values, Occupancy, etc.

Rates Are Subject To Change Without Notice

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