Market Update
Friday February 19th, 2011 6:30 PM ET
By John Sauro
Mortgage Bonds Rebound
After hitting near 12-month lows last week, Mortgage Bonds have rebounded off those levels and broke through resistance at $96.78 on Monday. The 4% coupon closed up 3bp on Friday to end at 97.56 near the high for the week. This is positive as investors feel that a short term bottom is in place from February 9.
The Future of Mortgage Rates
As I mentioned in past updates, the long term trend for interest rates is still to move higher, although, these markets do not move in a straight line, and that provides for low rate opportunities in the short term. The trick is, knowing when to lock.
You can benefit from our daily monitoring and knowledge of these markets and can be provided with timely advice for when to lock in a rate. Currently, 30 Year Fixed rates are 4.99% for loans up to $417,000 and 5.125% for Jumbo’s to $729,000. My bias is toward floating rates here, as we anticipate possible higher prices for mortgage bonds, Lower interest rates for mortgages.
No Income Check Loans
Yes, No Income Check loans are still available. At least until the Dodd-Frank Financial Regulation goes into effect. Look, these loans, done for the right individual’s tend to be the highest performing loans in our lenders portfolio. Why? Because your not going to get one with 10 or 20% down. Typically, you can borrow up to 60% of the homes value for loans up to $750k and 55% up to $1M. Stated income is also available and allows for a bit more borrowing at 70% to $750k and 55% to $1M. You must be self employed, have great credit and strong cash assets.
Rates are actually very attractive; 30 Year fixed-5.75% up to $729k and 5.875% up to $1M. Arm’s are also available; 5/1 Arm 4.50% up to $1M.
Interest Only Payments are available on all our loans.
John Sauro’ Interview on Yahoo Tech Ticker Show
Aaron Task, Dan Gross and John Sauro, of the Government Affairs Committee for NAMB-The Association of Mortgage Professionals & President of North Atlantic Mortgage Corp. discuss Housing and Mortgage Backed Securitization.
Update on FINREG (Financial Regulation)
Protect your homes value and your right to affordable home financing.
Last week the Congressional oversight plan stated it will hold hearings on the Fed Rule 226 regarding industry compensation.
Go to www.RepealFinreg.com and see why these regulations will further cripple the lending and housing markets.
Several Trade Organizations are preparing to initiate a law suit against the Federal Reserve to seek an injunction to delay FR 226.