By Andy Harris, President of Vantage Mortgage Brokers
VMG Weekly Rate Tracker – 01/21/2015
NMLS# 35986 
VMG Weekly Rate Tracker- Your Local Mortgage Leaders (sharing is caring)
DATE: Wednesday, January 21st, 2015
TIME: 12:30 PM PST
STATES: OREGON & WASHINGTON
CHANGE THIS WEEK: SLIGHT IMPROVEMENT (from last Tuesday)
SUGGESTION: LOCK – Keep a close eye and get updates from your Loan Consultant (see below for more commentary)
VMG CLIENT’S FIXED RATE PRICING OPTIONS (rates subject to change)
Contact Loan Consultant for customized QUOTE.
You can also run your scenario in our online PRICING ENGINE.
GREEN = LENDER CREDIT BACK TO YOU (to apply to any 3rd party closing costs or prepaids) BASED OFF % OF LOAN AMOUNT
RED = OPTIONAL BUY-DOWN BASED OFF % OF LOAN AMOUNT
CONTACT US FOR ADDITIONAL PROGRAM QUOTES (OTHER FIXED TERMS, ARMs, JUMBO, USDA, ETC.)
*Rates change daily. Conforming interest rate samples based off $260,000 loan amount, 80% Loan to Value, 740 or higher FICO score, with impounds on a 30 day rate lock period and $895 underwriting fee if not covered by lender rebates. FHA/VA based off 3.5% down payment, but other same variables. Costs or credits shown pertain to interest rate and do not include any other applicable 3rd party title and escrow charges or prepaid tax and insurance reserves which may or may not apply. Lock period suggested depends on current loan volume and lending climate at time of loan application and approval. Other risk-based pricing adjustment may apply. The displayed annual percentage rates (APRs) include total points and additional prepaid finance charges but do not include other closing costs. On adjustable-rate loans, rates are subject to increase over the life of the loan. Learn more about assumptions and APR Information. Loan pricing may only be locked through a home loan consultant to be effective. Rates will depend in part on your unique credit history and transaction characteristics. Please email or call for updated pricing at anytime as rates and pricing are subject to change. This information does not constitute a loan commitment or approval.
Rate Lock Advisory – Wednesday Jan. 21st
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Wednesday’s bond market has opened flat with today’s only relevant economic data showing stronger than expected results. The stock markets are showing minor gains with the Dow up 4 points and the Nasdaq up 29 points. The bond market is currently nearly unchanged from yesterday’s close (1.79%), but we will likely still see an increase in this morning’s mortgage rates of approximately .125 of a discount if comparing to yesterday early pricing due to weakness in afternoon trading.
The Commerce Department said that new housing construction starts rose 4.4% last month, exceeding forecasts. That makes the data technically negative for the bond and mortgage markets, but this report is not considered to be highly important and the variance from expectations was not significant. Therefore, the net impact this news had on this morning’s rates was minimal.
Also worth mentioning today are rumors that the European Central Bank (ECB) already has decided what action they will take to boost economic activity in the Euro region. Supposedly they are going to start buying 50 billion euros worth of bonds per month starting in March. The rumor has the program expected to continue until the end of 2016. This move was widely expected in the global markets, but there has been some debate about the size of the campaign and the monthly purchase amount. Keep in mind that this is just a rumor at this time and will not be confirmed until early tomorrow morning our time when the official announcement is released.
The only economic data being posted tomorrow that has the potential to affect mortgage rates is last week’s unemployment numbers at 8:30 AM ET. They are expected to show that 302,000 new claims for unemployment benefits were filed last week, down from the previous week’s 316,000 initial claims. Rising initial claims indicates employment sector weakness, so the higher the number the better the news it is for bonds and mortgage rates. Although, because this is only a weekly snapshot, it usually does not cause much movement in mortgage pricing unless it shows a significant variance from forecasts.
Harris Consulting, Inc. DBA Vantage Mortgage Group, Inc.
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