Weekly Florence Oregon Mortgage News
Mortgage News
Mortgage rates got a little better on Wednesday and Thursday, and leveled off today. We're seeing the 3 year and 5 year ARM loans coming back down to much better rates.
Some of the initial rate drops this week were spawned by the ongoing run up in the price of crude oil. Now, I have said many times that the bond market generally goes down when there is a perceived threat of inflation, thereby raising mortgage rates, and this is true. However, what we saw this week was a little different. Investors became very concerned that the inflationary affects that fuel prices are having on consumer goods would cause consumers to curtail spending. This in turn could cause the stock market to decline, so they began moving their funds from the stock market to the “safe haven” of gov't backed bonds, driving bond prices up and mortgage rates down.
This is a very simplistic explanation of a very complex phenomenon, but we just never know what kind of weird ideas come into play in the economy. So, by the time someone finishes explaining these things, there is something else entirely different influencing the economy. It's minute by minute, and totally unpredictable.
The poor turn times we were seeing from the lenders got much better for a while. But now they've gotten worse again. Especially the FHA and VA loans. Gov't loan turn times are now hitting 6-8 days in underwriting because of the huge demand for these loans for the “weak” borrowers. Most lenders however, are trying to make necessary changes, but it will take time. So, keep that in mind when you are writing up offers that you know will require one of these loans. The closing date should reflect the possibility of extended times.
Have a terrific weekend, and a very happy Mother's Day.
The following rates are based on 30 day locks with no discount points, as of this morning. They are not come ons, they are the rates your buyers will most likely get from a reputable lender, regardless of what is advertised. Certainly there are other specialized programs available, depending on the qualifications of the buyer.
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30 year fixed conforming = |
5.875% |
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15 year = |
5.375% |
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3/1 ARM = |
5.500% |
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5/1 ARM = |
5.375% |
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Jumbo fixed = |
6.875% |
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Jumbo ARM = |
6.500% |
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FHA/VA 30 year fixed = |
5.875% |
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Prime rate is currently = |
5.000% |
Authored by Lorin Wamsley, CMPS - Senior Mortgage Consultant, Precision Funding
Phone: 541-681-8787
Dennis Pease - RE/MAX Integrity Real Estate Broker invites you to see more Florence Oregon Real Estate information and All the Area Real Estate Listings. If you are looking for a mortgage consultant, call Lorin at the number above and tell him Dennis sent you.
Date: Saturday, May, 10th 2008 @ 03:17:34 AMViews: 35
This blog entry currently has 2 comments posted.
Michael Oliver
We have also seen the government loans taking a while and being harder to get.
Homes
That's sweet. I am not looking to buy per say in Florence, but I am looking to visit and I like to see the country especially the west coast trying making a rebound.
I am coming out there from Texas, for the Olympic trials this year (Eugene)