By Andy Harris, President of Vantage Mortgage Brokers
VMG Weekly Rate Tracker 02/03/2015
NMLS# 35986 
VMG Weekly Rate Tracker- Your Local Mortgage Leaders (sharing is caring)
DATE: Tuesday, February 3rd, 2015
TIME: 5:00 PM PST
STATES: OREGON & WASHINGTON
CHANGE THIS WEEK: SLIGHTLY WORSE (from last Wednesday)
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 SUCH AS 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 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 – Tuesday Feb. 3rd
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Tuesday’s bond market has opened in negative territory as profit-taking from the recent rally continues. Early stock gains of 184 points in the Dow and 16 points in the Nasdaq are also contributing to bond losses. The bond market is currently down 23/32 (1.75%), which should push this morning’s mortgage rates higher by approximately .250 of a discount point.
December’s Factory Orders data that was posted at 10:00 AM ET this morning actually gave is favorable results. The report showed a 3.4% decline in new orders at U.S. factories for both durable and non-durable goods. This was much weaker than the 2.0% decline that was expected, indicating the manufacturing sector was softer in December than many had thought. Since signs of economy weakness make bonds more attractive to investors, this was technically good news for mortgage rates. Unfortunately, this was not enough to offset the overall negative tone in the bond market.
Tomorrow’s only report worth watching is the ADP Employment report that is set for release at 8:15 AM ET. This release has the potential to cause some movement in the markets if it shows much stronger or weaker numbers. It tracks changes in private-sector jobs of the company’s clients that use them for payroll processing. While it does draw attention, it is my opinion that it is overrated and also is not a true reflection of the broader employment picture. It also is not very accurate in predicting results of the monthly government report that usually follows a couple days later. Still, because we see a reaction to its results, it is being addressed. Analysts are calling for it to show 230,000 new private-sector jobs were added last month.
Thursday will be a light day in terms of economic releases, but traders will be preparing for Friday’s major news. We will get January’s Employment report early Friday morning. Tomorrow morning’s ADP report may influence how some investors and market participants prepare for Friday. Therefore, a sizable variance from forecasts tomorrow may snowball into Thursday’s pre-Employment report trading.
Harris Consulting, Inc. DBA Vantage Mortgage Group, Inc.
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