Mortgage rates have been rising nonstop since the end of last week. If you are considering a refinance or taking the plunge and buying a new home, you’d better get moving. I just had a prospect shop rates and terms for his new home over the last couple of weeks and just called back; he finally decided on a lender and wanted an updated rate quote to lock his loan. Needless to say, he was terribly disappointed…the rates we originally spoke about on a 30 year fixed rate a couple of weeks ago was in the high 3’s, my quote yesterday was 4.25% (4.45% APR ).
The yield on the 10-year Treasury note has climbed from 2.01 percent to 2.38 percent in a week. When rates were at/near their bottom, the 10-year yield stayed below or close to 2 percent. It’s been five months since the yield reached the high it is at now.
Mortgage rates normally follow the direction of bond yields. Freddie Mac’s required net yield also is an indication of where rates are headed. Freddie’s yield rose from 3.36 percent to 3.63 percent in a little more than a week.
Industry “experts” believe yields will continue to rise. “The 30-year fixed could climb up to 4.5 percent or even 5 percent.” That would be a significant jump if you look back a few weeks ago, when the 30-year rate was in the high 3’s.
Why have rates been moving up? The general consensus is that the economy is strengthening; investors are dumping the safety of bonds and going for the prospect of higher returns via stock and equity investment. They are riskier, but the returns are higher.
MORTGAGE INTEREST RATES for March 21, 2012:
- Conventional 30-Year Fixed 4.250%/ 4.45% APR
- Conventional 15-Year Fixed 3.375%/ 3.519% APR
- Conventional 5/1 ARM 2.75%/ 3.018% APR
- FHA/VA 30 Year Fixed 4.00%/ 3.241% APR
- Jumbo 5/1 ARM 2.875%/ 3.135% APR
- Jumbo 15 yr Fixed 3.50%/ 3.755% APR
- Jumbo 30 yr Fixed 4.875%/ 5.132% APR
*The above mortgage rates are based upon an 80% LTV, o/o single family with FICO scores of 720.
Paramount Mortgage is a locally owned Mortgage Banker celebrating our 41st year. Great rates and programs are secondary to what is most desired in a lender relationship: Integrity, Communication and Customer Satisfaction. Be to check out our website: www.paramountmortgage.com
For more information or if you have questions on mortgage rates you may contact me by phone at my direct line, (314) 372-4319, email at firstname.lastname@example.org or you can visit our company website at http://www.paramountmortgage.com.