Mortgage Market Update

January 31, 2009

Friends in Real Estate,

Mortgage rates continue to stay low due to the government purchase of mortgage backed bonds.

Expect slow underwriting due to the huge numbers of refinances. Plan on 45-60 day closings and be happily surprised if your lender can close sooner. If your contract is on a short sale, closing 4-6 months is not uncommon because banks are swamped with short sale requests.

Appraisals are getting even closer scrutiny. This week I had one with 5 excellent comps, all within the 6-12 month sale requirement. The underwriter requested a 6^th comp sold within the last 3 months. Underwriters are paying very close attention to the CURRENT market, not so much to what happened 6-12 months ago.

Here's a sample of Primary Home Purchase money rates today, up to 0+1, with escrows for a borrower with median credit of 720-760. These are subject to vary based on loan amount, occupancy, LTV, credit quality and other factors.

Conforming (using 250K as amt)

30 yr fixed 5.00%

15 yr fixed 4.75%

5/1 ARM, 30 yr am 4.625%

Jumbo (using 650K as amt)

30 yr fixed 6.875%

15 yr fixed 5.25%

5/1 ARM, 30yr am 4.75%

Super Jumbo (using 1M amt)

30 yr fixed 7.125%

15 yr fixed 5.25%

5/1 ARM, 30 yr am 4.875%

Compliments of Ashleigh Sumlin, Bradford Mortgage Company 704-373-2289