As of Friday, March 5th:
As you've heard me say many times over the past few months, we expect that the Federal Reserve's exit from the Mortgage Backed Securities (MBS) purchase program may cause some volatility in mortgage rates. They will be finished with this purchase program at the end of March. If your clients are currently in contract, they can protect themselves from this possible volatility by locking in their rate now.

Although there will be a period of uncertainty with rates initially, we believe that the long term outlook is favorable and that mortgage rates will remain low for awhile. There are many large investors who have short positions in MBS and will be eager to buy on any type of under performance resulting from the Federal Reserve's exit (if the MBS fall in price, these investors can buy them for less than he or she sold them; making a profit). We believe these money managers will have an incentive to continue the purchasing of mortgage backed securities which creates demand and therefore should keep rates low.

This is good news for a strong purchase money market in 2010. And, with new jumbo lenders coming back into the market and interest rates behaving I am excited about the opportunities that exist for all of us in the months to come.

Now, on to the rates we've been seeing:

·         30 year conforming             4.75%      1 pt.

·         30 year high balance           5.125%      1 pt.

·         30 year FHA                        4.75%        1 pt.

·         30 Yr. FHA high balance     4.75%       1 pt.

·         5 year jumbo                       4.25%       1 pt.

·         7 year jumbo                       4.875%      1 pt.

·         10 year jumbo                      5.25%     1 pt.

·         30 year jumbo                     5.50%     1 pt.

Regards,
Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

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