By Andy Harris, President of Vantage Mortgage Brokers
VMG Weekly Rate Tracker – 01/28/2015
NMLS# 35986 
VMG Weekly Rate Tracker- Your Local Mortgage Leaders (sharing is caring)
DATE: Wednesday, January 28th, 2015
TIME: 5:30 PM PST
STATES: OREGON & WASHINGTON
CHANGE THIS WEEK: IMPROVEMENT (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 – Wednesday Jan. 28th
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WEDNESDAY AFTERNOON UPDATE:
The FOMC meeting of the year has adjourned with no change in key short-term interest rates. There were a couple of changes in the common verbiage used in recent statements regarding inflation projections and the timing of the Fed’s first rate hike. The biggest changes indicated the Fed believes the recent drop in gas prices will keep inflation below their target rate for a longer period than previously thought. Inflation hitting the Fed’s preferred rate was needed before they started raising key rates. That change in verbiage now has some analysts thinking the first rate hike may come later in the year than previous estimate of spring.
The effect on the markets has been mixed. Stocks set lows of the day after the announcement and are still near those levels with the Dow down 29 points and the Nasdaq unchanged from yesterday’s close. The bond market is rallying, now up 35/32 (1.71%), which should improve this afternoon’s mortgage rates by approximately .250 of a discount point from this morning’s pricing.
Tomorrow’s only economic data is last week’s unemployment numbers at 8:30 AM ET. They are expected to show that 300,000 new claims for unemployment benefits were filed last week. This would be a decline from the previous week’s 307,000 initial claims. The higher the number of new claims, the better the news it is for mortgage rates as rising claims is a sign of employment sector weakness. However, because this report tracks only a single week’s worth of new claims, it usually takes a surprise spike or drop for it to noticeably affect mortgage rates.
There are also two relatively important Treasury auctions tomorrow. The Fed will auction 5-year and 7-year Treasury Notes tomorrow (5-year sale was previously set for today). If the sales are met with a strong demand from investors, the broader bond market may improve during afternoon hours. If they draw a lackluster interest, they could lead to bond selling and higher mortgage rates. The 5-year auction results will be posted at 11:30 AM while the 7-year will come at 1:00 PM ET.
Harris Consulting, Inc. DBA Vantage Mortgage Group, Inc.
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