Pa Mortgage Pros Blog. Time rates. Market tips.

Mortgage Blog

Waiting for a certain rate?

January 25th, 2008 1:35 PM

You can ask us to watch rates for you. But as a back up you can also watch them live so that when they drop you can call us, likely before we have a chance to notify everyone on a rate watch list, and before rates go back up (as they did on 1/23).

Currently on 1/25/08:

The yield on the 30 year bond is 3.6% on http://money.cnn.com/. You can check that regularly and it's updated live time.
A 30 year mortgage rate with 0 points is 5.5
A 15 year is 5%.

If you are waiting for a .25% mortgage rate drop, when the bond yield drops that much, to about 3.4%, call us and see what the mortgage rates are.

Any time you receive a rate quote, you can check what the bond yield is and do the same thing.

When bonds move more than 7/32 throughout the day (you will see it next to the yield on CNN's site) lenders will start adjusting the points (or cost)associated with each rate in the middle of the day. Once the points move .5, then rates will be a full .125% different. If you see the yield going up more than .1% you may want to hurry and lock. Rates are issued each morning by lenders and generally points are tweaked with each 7/32 bond market change. Mid day changes happen often.

You can also check our our daily rate lock advisory that we subscribe to from market experts (it has been very reliable): http://www.pamortgagepros.com/Mortgage-Rate-Lock-Advice.htm

You can sign up to have it emailed to you regularly as well.

Good luck and I hope you get the rate you want. The saying goes "Pigs get fat, but hogs get slaughtered". The media has been wrong on predicting the market about 50% of the time.

Please feel free to comment on this if you find this useful (or not).

UPDATE 2/18/08:

The bond yield is up to 3.78 and that corresponds to an interest rate today of 6%. A .18% change in the yield affected rates by .5%.

Posted by Christine Bell, CRMS on January 25th, 2008 1:35 PMPost a Comment (1)

Real Estate Professionals available to serve PA homeowners

January 26th, 2008 6:35 PM

Please post your contact info, web address, and anything you think is important for Pennsylvania home buyers or home owners.

Posted by Christine Bell, CRMS on January 26th, 2008 6:35 PMPost a Comment (3)

New Jumbo Loan Limit?

January 25th, 2008 10:48 AM

In the news today:

The stimulus package proposes raising that cap to $625,000 for twelve months in order to make it easier for buyers to get or refinance mortgages - especially in high-cost regions...

Posted by Christine Bell, CRMS on January 25th, 2008 10:48 AMPost a Comment (0)

No doc construction loan

January 23rd, 2008 7:12 PM

Our no doc construction loan is a big seller. It is for anyone building a home, no general contractor required, investment property okay. You don't even need good credit. You just need a down payment. Equity in a lot can cover that requirement.

Posted by Christine Bell, CRMS on January 23rd, 2008 7:12 PMPost a Comment (0)

Timing the market - rates

January 23rd, 2008 7:09 PM

The phones are ringing non stop since the rate drop. Rates are down to 5.25% for a 30 year fixed. The consensus amoung many who call is that they should wait as they believe with the economy that rates will drop further. There is a good chance of that but you just can't predict what the market will do. Any expected rate cuts are already factored into the mortgage rates.

Posted by Christine Bell, CRMS on January 23rd, 2008 7:09 PMPost a Comment (0)