February 1st Market Update: Why aren't we seeing lower rates?

Good afternoon,

The market for Mortgage Backed Securities (MBS) this week has been absolutely stellar. From the Federal Reserve’s announcement last week coupled with continuing worries about the Greece Debt problem and poor economic reports all coming within days of each other. This is a week where we should see rates drop even lower. So why aren’t they any lower than last week?

Here’s where my market update from two weeks back comes into play. If the Guarantee Fee had not changed, interest rate pricing with all banks would not have changed from their prior pattern, which means we could have reasonably seen interest rates lower another .25% or so from here. When the MBS market retreats to the levels we saw at this point last week, you can expect to see higher rates than we are seeing now and saw at this time last week.

Have a great week!

Rates: 30 year fixed at 3.625% and the 15 year at 3.00%, FHA: 3.625%: As always rates change with individual credit scenarios and programs, with credit in the mid 700s and a 20% down payment these rates are what you should be seeing. These are not quotes, merely a guideline for comparison.

Matt

Matt Royer
Mortgage Consultant, CMC | Homes Mortgage
NMLS# 366970

612-232-7646 c
651-770-0637 o
651-294-1001 f

www.MattRoyer.com
mroyer@homesmortgage.net