11/18/2008 8:50 a.m.
The market started out at 6bps and has stayed in the positive direction. MBS are near the 200 day moving average.
11/14/2008 8:30 a.m.
We began at 9bps this morning, currently up to 28 bps.
11/12/2008 8:45 a.m.
The market opened this morning at 35bps positive. And while mortgage bonds are looking good so far, stocks are experiencing a small hurt as earnings reports from big consumer retailers come in low. MBS are still in positive territory after opening high but may fluctate still. We recommend carefully floating.
11/11/2008 8:30 a.m.
The Market is closed today in observance of Veteran's Day.
11/10/2008 8:45 a.m.
The market opened at 6bps positive. The Bonds are hovering close to both the 50 day moving average and the 200 day moving average. A move in either direction could determine where rates may be going in the coming weeks.
11/07/2008 8:35 a.m.
The Jobs Report showed the Unemployment Rate higher than anticipated at 240,000 jobs lost in October, where only 200,000 was expected. Typically this kind of report would influence the Fed and urge a Fed Funds rate cut. But now we're at just 1% and the Fed doesn't have a lot of room for lowering it right now. So although this isn't great news for stocks, it may be good news for mortgage bonds. The bond market opened at -19bps this morning
11/06/2008 8:30 a.m.
The morning opened -34 bps but has worked up a little bit and sitting at -28bps now. The Jobs Report is due out tomorrow, and expected to have an impact on the market, so we'll watch for news of the results tomorrow.
10/30/2008 7:30 a.m.
MBS opened up at -9bps this morning. The Fed did cut the Fed Funds Rate Wed by .50% making it 1%. And although this will affect the Prime rate, it does not have a direct impact on the mortgage rates. Mortgage rates are determined by money flowing in and out of the bond market. As investors buy and sell bonds in the bond market, the rates will fluctuate. And as we have seen over the last few weeks, the bond market is changing daily. We'll continue to watch and keep you updated with how the mortgage rates change and what the Bond Market is doing.
10/29/2008 7:25 a.m.
The morning opened at a positive 47bps. The Fed is meeting today and may be cutting the Fed Funds rate again. Typically when the Fed Funds rate is cut it means Mortgage Bonds drop and rates go up. But today's market is anything but typical. We suggest floating until the meeting today. But be prepared to lock if the MBS are negatively impacted after the announcement.
10/28/2008 7:40 a.m.
MBS opened down again this morning opened down at -12bps. Rates did feel a negative impact yesterday. Currently a conventional Fix 30 with 20% equity, excellent credit and no cash out is in the range of 6.375 with 1 point or 6.75 with no points.
10/27/2008 7:30 a.m.
The morning opened down - 6bps for MBS and have currently dropped to -53. This week there will be quite a few economic reports coming out, which will most likely have a strong impact on the rates. But more impactful may be the Fed Fund meeting scheduled for Wed at 2:15 ET.
10/24/2008 7:40 a.m.
Mortgage Bonds have stayed above the 200 day moving average, but opened at -19bps.
10/23/2008 7:30 a.m.
MBS opened this morning at -19bps but still remain above the 200 day moving average floor. We recommend closely floating, as long as the MBS stay about the 200 day moving average.
10/22/2008 7:25 a.m.
The market has opened again in the positive. That is great news.
Current rates are:
30 year fixed at 5.75% with 1 point
15 year fixed at 5.5% with 1 point
30 year fixed FHA at 6% with 1 point.
NO COST REFI AT 6.375% FOR 30 YEAR FIXED
10/21/2008 1:30 p.m.
This morning's market opened with MBS unchanged after yesterday's rally. We'll be carefully floating rates as we watch the market.
10/20/2008 6:30 p.m.
Mortgage Rates have finally come back down once again. They are not currently as low as they were during the month of September but we are getting close once again. Now is a great time to be watching closely if you are doing a mortgage or know of anyone who is. The Bond Chart below shows the trend of mortgage rates and how volatile they have been. Please take a look at the chart.
Today Mortgage Bonds broke through the 200 day moving average which is great news for rates. You can seen where the blue line crossed above the blue line today. On 09/16 rates were at 5.5% with 1 point and today we sit at 5.875% with 1 point. So...in my opinion we have some more room for improvement. I will continue to watch it closely. If you have any questions let me know.
10/20/2008 7:30 a.m.
The morning opened with MBS at 16bps up, and they are currently at 47bps in the positive. There are no reports due out today but at 10am EST Ben Bernanke, Fed Chairman, will be speaking to the House Budget Committe providing an update as to the financial status and current crisis. This may have an impact on the market once completed.
10/17/2008 7:30 a.m.
Mortgage Bonds opened this morning again in the positive, starting at 16bps. That is comforting news in this unpredictable market.
10/16/2008 7:35 a.m.
The market opned up in the positive at 9bps up today. There was positive movement yesterday resulting in rates getting slightly better, although still in the high 6's. If the positive momentum continues we might see middle to low 6's again soon. We'll continue to watch and post any updates.
10/15/2008 7:30 a.m.
MBS open at -25bps this morning. Fed Chairman Ben Bernanke is scheduled to speak today at 12:15 ET and will be discussing the overall outlook of the US economy, which may have an impact on the market.
10/14/2008 11:30 a.m.
Mortgage Rates have continued to rise today. Just a week ago a Fix-30 was at 5.5% with 1 point. Rates today are at 6.375 with 1 point for a Fix-30 based on 20% equity, a 750 FICO score and no cash out. This is the epitome of volatility in the market, both with MBS and stocks, as every day we see new highs and new lows and market changes on a daily basis. We'll keep an eye on the daily movement of the MBS, but this is an example of how quickly rates can go up. Email us if you'd like to be added to our Rate Watch List!
10/14/2008 7:30 a.m.
The market opened this morning at 9bps up, but this may be the high of the day. We want to cautiously float this morning, and see if MBS will go up any throughout the morning.
10/13/2008
The Markets are closed today in observance of Columbus Day.
10/10/2008 7:35 a.m.
The Bond Market opened today at -59bps putting rates for a Fix 30 at 6.625 for 20% equity and 740+ credit, primary home with no cash out. The DOW is headed back up this morning, even though in negative territory, it's has seen some positive direction today. And oil prices have dropped, currently at $79/barrel, so that is a positive part of today's market. The Market will be closed on Monday 10/13 for Columbus Day, so there will be no update Monday morning.
10/09/2008 7:40 a.m.
MBS opened this morning -47bps after an unpredictable day in the market yesterday. The Mortgage Bonds are staying near the 200-day moving average support floor. As long as prices stay about this support floor we can continue to watch carefully and float. If prices go under this support level it may suggest the start of higher rates in the times ahead. Rates for a Fixed 30 with excellent credit and at least 20% equity in the home are hovering around 6.25-6.375.
10/08/2008 7:35 a.m.
Both stocks and MBS have been going back and forth and up and down. MBS have been trading in both positive and negative directions already this morning, as high as 16bps up and as low as -34bps down and back up to 9bps during the time to write this update. This is due in part to The Federal Reserve and a global coordinated emergency interest rate cut this morning that included the European Central Bank, Canada, UK, Switzerland, and Sweden. The Fed Funds Rate was lowered by 50bps to 1.5% and the discount rate was also cut by 50bp to 1.75%. We want to float for now, as we watch the MBS, but will be ready to lock if things turn south.
10/07/2008 5:30 p.m.
Mortgage Rates stayed the same throughout the day. Mortgage Backed Securities closed down 19 bps which could possibly mean higher rates tomorrow morning depending on what MBS do before 8:15 a.m. tomorrow morning. The DOW component in the stock market closed down for its 5th consecutive day losing 508 points closing at 9,447 which is a 5 year low. I did hear the posibility that the FED could lower another 75bps on the FED FUNDS RATE which is tied to PRIME. 30 year fixed remains unchanged today.
If this happens that would mean we could offer a 4% variable rate home loan and might be a great opportunity for short term lending needs home owners might have to get a very low rate.
10/07/2008 7:25 a.m.
After a tumultuous day in the markets yesterday the MBS opened at -6bps and have been fluctuating already this morning. Stocks are trying to stabilize themselves after being down yesterday. Fed Chairman Bernanke is set to speak today regarding the economy today at 1:15 EST. For now we suggest carefully floating, but both the stock and bond markets have been jumping all over the map this morning. We'll keep a close eye on the movement of the MBS!
10/06/2008 6:00 p.m.
Mortgage Rates improved today after a crazy day in the markets. The stock market rallied back to close down 370 points to close at 9,955. First time the DOW has been under 10,000 in 4 years. Mortgage Backed Securities lost a Little of the gains by day end but rates did improve which is good news!
RATES BELOW ARE QUOTED WITH 740+ CREDIT SCORES AND LOAN TO VALUES BELOW 80% TODAY.
30 year fixed with NO POINTS AT 5.75%
30 year fixed at 5.5% with 1 point.
15 year fixed closed at 5.375% with 1 point
15 year fixed closed at 5.75% with NO POINTS
10/06/2008 7:25 a.m.
The morning opened with Mortgage Backed Securities up 72bps, meaning we could see rates improve by .125 or possibly .25 from where they were Friday. Stocks opened low and continue to go lower this morning. We recommend floating as rates could get a little better and we could see a Fix 30 at 6% with no points.
10/03/2008 5:30 p.m.
October Special: FREE 1/0 BUYDOWN FOR FHA/VA LOANS
THAT MEANS THAT THE FIRST YEAR ON A 30 YEAR FIXED FHA AND VA LOAN THE RATE IS 1% LESS FOR NO COST.
Mortgage Rates improved slightly this afternoon to 6% with .25 points and good credit. Today I added a black line through Mortgage Backed securities by connecting the dots for each day. It is much easier to see what mortgage rates have done from 09/03 - 10/03. The DOW lost 157 points today based on the continued loss of jobs and the uncertainty of our market. This helped Mortgage Backed Securities slightly today as you can see in the Bond Chart below.
10/03/2008 11:30 a.m.
Mortgage Bonds have been bouncing all over the place this morning as we awaited the house to pass the rescue plan this morning. Now that is has been passed stocks move higher on the day and bonds level out at zero this morning. The jobs report showed 159,000 jobs lost recently making a total of 760,000 jobs lost in the year 2008 and putting unemployment at 6.1%. Wells Fargo acquires Wachovia today for 15.1 billion dollars or $7 per share. Overall mortgage rates stay unchanged this morning.
10/02/2008 2:30 p.m.
Mortgage Backed Securities closed up 28 bps this afternoon slightly higher than than the update this morning. As I suggested in the update on 09/30 MBS bounced off of the 200 day moving average and have now broke through the 25 day moving average. Part of the reason for improvement today was due to the 348 point loss in the stock market to close at 10,482. Warren Buffet made comments that if our economy was a battleship it would be in danger of sinking. It will be interesting to see if the House approves the revised rescue bill tomorrow and if so how will that affect mortgage rates and stocks. The 30 year fixed stayed at 6.125% today but is very close to improving to 6% or perhaps 5.875% if we get a good spike in mortgage backed securities tomorrow. As always we will stay in touch with what is happening with mortgage rates. Today I provided a chart that shows a 1 year snap shot of mortgage rates.
10/02/2008 7:30 a.m.
Mortgage Backed Securities are up 25bps. Rates could stay at 6.125 for a Fixed 30 with no points pending the activity of the rest of the day. The Senate passed the $700 Billion rescue plan with a huge margin, Wednesday, and now it's up to the House for the next step on Friday.
10/01/2008 7:35 a.m.
The morning opened with MBS at 34bps and moving up. Stocks opened lower as mortgage bonds pushed higher. We could see rates dropping back down to the 6.125 for a Fix-30 with no points. The Bond sell off yesterday was stopped by the 200 day moving average, which provided a strong floor of support.
09/30/2008 02:30 p.m.
Mortgage Backed Securities closed -97bps today causing the 30 year fixed to jump up to 6.25% today with NO POINTS with excellent credit and low ltv's. The DOW closed 485 points higher today and oil went up $5 today to close at $101 a barrel. Both of these two factors drove mortgage rates up today .25%. Take a look at Mortgage Backed Securities below. They dropped to a floor of support on the 200 day moving average. I am hoping we will bounce off of that floor of support by week end. The all important Jobs Report and Unemployment Rate will be released on Thursday and that could help rates.
09/30/2008 7:30 a.m.
The morning opened with MBS down -34 bps, so we could see an increase of rates by .125 making the 30 year fixed at 6.125% with no points. Stocks rebounded this morning after an extremely unpredictable day yesterday. Tomorrow two reports are scheduled to come out which could have a high impact on mortgage bonds. We recommend carefully floating, but being prepared to lock.
09/29/2008 5:30 p.m.
Mortgage Backed Securities traded in a huge range anywhere from 16 bps up to 128 bps. In the end MBS closed up 41 bps improving mortgages rates by .125% today putting the 30 year fixed loan with NO POINTS as low as 6%. I have never seen anything like it today. At the same time the stock market recorded the worse one-day close in history with the DOW losing 777 points today. This all came from the house voting down the proposed $700 billion dollar rescue plan today. One of the most important inflation reports (Core PCE which excludes volatile food and energy) was unchanged today but remains at 2.6% over the past year which is the worse it has been since 1995. Overall there are obviously many problems right now and it is our goal to report those effects on the mortgage market in our daily posts. Again if you have any questions please don't hesitate to give us a call.
09/29/2008 7:22 a.m.
Mortgage Backed Securities improved this morning bringing the 30 year fixed down as low as 6% with NO POINTS. US lawmakers will be voting today on what would be the largest government intervention in US history since the Great Depression. The details of the $700 Billion rescue plan have been agreed upon by Treasury chiefs, political leaders and government officials. Another announcement this morning from the FDIC stated Citigroup is set to acquire Wachovia banking operations, and will absorb $42 billion in losses. This comes as a blow to the stock market, already hurting at the days open. This news this morning is what helped mortgage rates improve. It has been a very volatile market so we will let you know if anything changes.
09/26/2008 4:45 p.m.
Mortgage rates remained the same today after another day of sideways trading for Mortgage Backed Securities (mortgage rates). Many investors are awaiting Congress's response to the $700 billion rescue plan before investing more money into Mortgage Backed Securities a.ka. Mortgage Bonds. Many had thought the plan had been funded, but not yet until a bipartisan congressional agreement is reached by Sunday afternoon. As stated earlier mortgage bonds remained flat today. 30 year fixed mortgage with excellent credit stays as low as 6.125% today with NO POINTS. Also the stock market gained 121 points today to close at $11,143. Today's chart shows mortgage rates trading stable this week which has been unusual as of late. This again is due to the meetings this week leading up to a decision on the rescue plan. Thanks and have a great weekend!
The chart below shows the rates and where the chart is in relation to that. As you can see we are hovering above the 200 day and 25 moving averages. These act as floors of support. Hopefully we will see Mortgage Backed Securities bounce off this level and see rates go back down. Phil White
9/26/2008 7:23 a.m.
More than 150 US economists and three Nobel Prize winners urged Congress to wait on the passing of the $700 Billion rescue plan until it can be studied more closely. Talks are resuming today. President Bush spoke this morning assuring the American people that even though there are differences of opinion over the details of the plan, there are no disagreements that some sort of large plan must be passed. The Mortgage Bond Chart is showing that Bonds are closing lower from where they open, and this is what we are seeing again today so far. There is a layer of support to the Bond, and while we do feel rates will improve over the long run, be prepared for high unpredictability and bumps along the way. More to come later today.
09/25/2008 3:00 p.m.
The stock market lost a little steam since this morning but still closed up 196 points today to close at $11,022. Mortgage Backed Securities have been trading sideways. The main reason this is happening right now is because of all the uncertainty the past few days during the discussions surrounding the $700 billion rescue plan. MBS again today traded in a wide range but closed 9 bps up which is good but pretty much flat today. The jobless claims rose another 32,000 in todays report which rises to 493,000. The jobs report is an important report when it comes to mortgage rates. Today was the jobless claims which is an estimate of the jobs report which comes out on October 3rd. MBS (mortgage rates) are trading just above an important 200 day moving average. My gut tells me we may bounce off of this floor of support as we continue to get negative economic reports in the near future. The chart below represents mortgage backed securities and each bar is the given day. as you can see that past 4 bars or days have been trading sideways. The blue line running across is the 200 day moving average which acts as a floor of support. Overall RATES STAYED THE SAME TODAY ONCE AGAIN AT 6.125% WITH LOW LTVS AND GOOD CREDIT.
09/25/2008 10:30 am
Stocks soar as both parties come to a deal on the $700 billion dollar bailout of plan. The Dow is currently up 279 points this morning. Money flows out of Mortgage Backed Securities and into stocks. Alert to Lock! MBS down 31 bps since early this morning. Mortgage rates potentially could rise .125% today if it continues in this direction. Rumors have it a 2nd stimulus package will be released in the next couple of days.
09/25/2008 7:19 am
Good morning. Mortgage Backed Securities are up 6bps this morning, higher than expected in response to economic news which was expected to be a little stronger. Durable Goods came in quite a bit lower then expected at -4.5% and the Initial Jobless Claims came in at it's highest number in 7 years at 493,000. This indicates continuing weakness in the labor market, which is expected to result in a week Jobs Report next week. Fed Chairman Ben Bernanke and Treasury Secretary Henry Paulson are continuing their requests to Capital Hill with the rescue plan at the proposed $700 Billion. President Bush stated that the rescue plan is crucial and committee spokesman Rep. Kanjorski said that the deal would benefit the economy and would be done by Monday morning when the stock markets open. Based on this, the stocks are growing stronger with the feel of the rescue plan in sight and being finalized.
We suggest cautiously floating rates right now, but being ready to lock at any time, as the overall feel may change. We'll keep watching and report on any updates and change. Thanks for reading.
09/24/2008 2:00 pm
Today the existing home sales report was released showing a 2.2% decline revised since the last report in August. The report also showed that existing home sales is down 10.7% since August 2007. In other news Warren Buffett's company Berkhire Hathaway is investing 5 billion dollars into Goldman Sachs. The stock market stayed relatively flat today on the news while uncertainty still lurks with plans of a $700 billion rescue plan in the works. Fed Chairmen Ben Bernanke and Treasury Secretary Paulson met again today before the Joint Economic Committee. Bernanke stated, "a rescue program could be win-win for taxpayers and financial markets". I got a chance to watch the meeting today and it was quite heated. Investors had to play Warren Buffett's $5 billion dollar investment into Goldman Sachs against the Treasury departments rescue plan and the uncertainty of it. The Dow closed down 29 points to close at $10,825. Mortgage Backed Securities (which converts to mortgage rates) traded in a wide range today and closed up 6 bps. In the end Mortgage Rates stayed as low as 6.125% today with NO POINTS and good credit. Currently MBS are trading above 2 floors of support. We are hoping for a bounce off of these floors. We will have a close watch on mortgage rates. If any of you have questions please feel free to contact me by email or phone. Thanks!
09/23/2008
There were no important economic reports released today. Because of this the Mortgage Backed Securities traded pretty flat today and no change in mortgage rates. 30 year fixed mortgage remained as low as 6.125% with excellent credit. Today Fed Chairman Ben Bernanke and Treasury Secretary Hank Paulson testified in front of the Senate Banking Committee. They are both looking for Congress to quickly approve their plan to correct the credit and housing crisis. It appears that congress is unsure of their rescue plan and is in no hurry to make a decision. The senate banking committee voiced concern for the plan this afternoon and because of that the stock market made a reverse and ended up down 161 points to close at 10,854. Mortgage Bonds closed up 12bps which doesn't really do anything for rates today but at least they didn't go up!
Tomorrow "Existing Home Sales" report for August comes out along with the "Crude Inventories" report. These two reports moderately affect rates. Thank you for reading.
09/22/2008 Mortgage Rates rise after another Volatile day in the market.
Volatility continues in the market today after the Dow closes 372 points down today to close at 11,015. Today crude oil spiked $16.37 a barrel closing at $120.92 along with gold soaring $44.30 per ounce to close at $909 an ounce. Many panicked after the governments plan would require U.S. treasuries to swap for illiquid mortgage debt and related securities from financial institutions to free up credit markets. My understanding is that illiquid mortgage debt is bad debt that will be taken off financial institutions books so that it can free up liquidity in the market so lenders can once again off more loan programs and products. Because of this news commodity prices rose today which is bad for inflation and fear of inflation for investors. This led to a sale off in Mortgage Backed Securities which fell 59 bps today to close at 99.4. What this means for mortgage rates is a .25% increase today in the 30 year. As I have mentioned in other posts when Mortgage Back Securities go down mortgage rates go up and vice versa. if you have any questions regarding this please feel free to contact me.
Overall......A spike in commodity prices is an inflationary fear. Inflation is bad for Mortgage Backed Securities which in turn causes mortgage rates to rise. Why? Because investors pulled money out of Mortgage Backed Securities with the fear of inflation today which caused it to close 59 bps lower and that equals approx .25% higher mortgage rates.
Phil White 480-430-3080
**PLEASE NOTE ALL RATES QUOTED ARE BASED ON SPECIFIC CRITERIA. PLEASE CONTACT US TO DISCUSS RATES FOR YOUR SCENARIO.





My wife and I went to many different banks and mortgage companies trying to find the right loan with the best rates. Phil was great! He was extreamly helpfull in everyway. He was more of a friend than a loan officer. He looked out for our needs and got us the loan that fit best. My family and I would like to say thanks Phil "T" White!
Posted by: Ryan Mell | September 23, 2008 at 09:09 AM