Mortgage Rates Edge Higher

As the markets come back up to speed after the 3 day weekend mortgage rates are pricing higher than where they were last Friday.

Here's a snapshot:

• 30 year fixed around 5.875% with no points
• 15 year fixed around 5.5% with no points

Remember, with the recent tightening of underwriting guidelines and Fannie Mae's new pricing structure, there are more variables than ever to price out a conforming mortgage loan program.  Those rates listed above assume 20% equity, 720+ credit score, and a strong application.  Any variant from that baseline will bring higher rates & or costs.

A few weeks back I mentioned that the next little bottom for highly volatile mortgage rates would be about half the distance to the mid-January low of 5.25%.  That is precisely where they bottomed last week.

The question remains:  "who wants to buy mortgage debt these days?"

Financial markets are built on perceptions of value.  Right now, there is a major re-defining of these perceptions.

Until someone steps up in a big way and says, "I AM!", don't believe that these is a reason for a big move lower in mortgage rates.  There just isn't.

www.BrettGrendahl.com   

Comments

[Johnny]

Completely agree with. I also don't see any chances of mortgage rates dropping down and specially cause of Fannie Mae's new pricing structure it seems almost impossible.

Johnny
http://www.perfectmortgagelender.com/