Reverse Mortgages Will Help 62 and Older Stay in Home Create Cash Flow

Mortgage rates moved lower today--somewhat significantly relative to recent examples--ultimately hitting the best levels in more than a week for most lenders.  Trump's tariff announcement served as a catalyst for market movement in both stocks and bonds (which underlie mortgage rates).  Investors currently view the proposed tariffs as something that would do more harm than good for the overall economy.  Economic growth generally corresponds with rising rates, so anything that calls it into question can have the opposite effect.

It's too early, at the point, to know if the tariff-related news will be a big deal for rates apart from today's headline shock value.  What we do know is that rates are officially putting up their best fight so far this year when it comes to pushing back against the dominant trend (the one that's carried average mortgage rates more than half a point higher).  While many lenders aren't in much better territory than Monday morning, lenders who released updated rate sheets this afternoon are in the best shape in more than 2 weeks.  We haven't been able to say "2 week lows" since early December.

Loan Originator Perspective

Bond markets posted modest gains today, but still remained below Monday's levels.  We may be establishing a new range here, which would certainly beat rates continuing higher.  I'm not ready to contemplate floating deals yet, since there's no apparent motivation for yields to fall, but at least we're not posting daily sell-offs either. Ted Rood, Senior Originator

We might actually have 2 green days in a row in the bond market.  It has been a while.  Bonds have still not broken any important levels, so i continue to favor locking.  I would wait until as late as possible as reprices for the better are a possibility. -Victor Burek, Churchill Mortgage

Today's Most Prevalent Rates

  • 30YR FIXED - 4.5-4.625%
  • FHA/VA - 4.375%
  • 15 YEAR FIXED - 3.875%
  • 5 YEAR ARMS -  3.5-3.75% depending on the lender
Posted by Anne James on March 2nd, 2018 10:13 AM


Fourth of July weekend ended a six-day drop in rates we hope continues Tuesday into the month. 3.75% became 3.5% for conventional loans and FHA/VA start at 3.25%. What does it mean if you’re buying a home? 3.625% Fannie/Conventional might give you .875% (or $3,500 paid of your closing costs on a $400,000 loan amount). Not bad.

FHA and Veterans can expect all closing costs paid at 3.625%--zero down for Vets, 3.5% for FHA buyers. Something to jump on now there are a few more homes joining the inventory in So. California.

While I have a buyer looking with her agent for four months now, Diana Arnold’s Inland Empire buyers always get their home within the first to second offer. In the eight years I’ve worked with her, Diana and I have not lost one home or loan for her buyers. Don’t forget first-time buyer programs like MCC, a tax credit that pays you back in cash on tax refund, 20% of your annual mortgage interest. The best program out there to help qualify for a little higher payment, offset that car payment or just help your monthly budget!—Anne E James is CEO/Broker of Reliance Mortgage Service and can be reached at 562-619-2058 or Anne has been in the mortgage lending business for 25 years.

Posted by Anne James on July 2nd, 2016 9:36 AM

By Paul Muolo

Thanks to the "Brexit" vote, the yield on the benchmark 10-year Treasury bond keeps falling, but mortgage brokers have noticed that their wholesale partners haven’t cut rates very much, at least not yet.

“Some have cut their rates, but not a huge amount considering that the yield [on the 10-year] went from 1.68 percent to 1.48 percent,” said Brian Benjamin, who runs Two River Mortgage & Investment in Red Bank, NJ. “Even so, at the end of the day everyone will tell you LLPAs [loan-level price adjustments] are still a major factor as many loans have lower downpayments.”

Marc Savitt, president of The Mortgage Center, Martinsburg, WV, said he didn’t see any wholesale cuts in rates on Friday and not much on Monday morning either. “Not yet,” he said.

Andrew Peters, CEO of First Guaranty Mortgage Corp., a retail and wholesale funder, said his shop is staying the course for now. He noted that FGMC is “focusing more on making sure we have the proper risk controls in place to deal with the market volatility over the coming months.”

Other areas of interest: Originations, Secondary/MBS, Mortgage Lending & Servicing, Trends & Profitability

Posted in:General and tagged: Refinancelower rate
Posted by Anne James on June 27th, 2016 11:10 AM


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