No, 30-year mortgage rates are derived from MBS bonds not the 10-year bond rates. That being said, they tend to trade in tandum but they do diverge every now again (like they did when the Fed said they'd be buying MBS bonds). There's a thread on fatwallet that talks about mortgages and there's someone in there that posted how MBS bonds are doing on a daily basis.zubs said:
I have youth behind me. haha But I like how you fill the gaps on my threads to give a nice in depth touch to what I might have said. Your posts expand on my posts very nicely.Soylent Green Is People said:
When you see the person posting +8 or -5 (in 32 increments...+8/32 or -5/32) they are taking about the movement in price of the most relevant MBS bond (the 30-year Fannie 3.0% coupon at the moment). Also, just because the pricing of the MBS bond increases (and the yield falls) doesn't mean that lenders (some or all) will re-price their interest rate sheet.zovall said:I'm glad the pros have spoken
I use the charts on Mortgage News Daily to see MBS pricing (I think it is what SGIP is referring to). Note that you need to track the most applicable MBS. The link below tracks the 30 Year Fannie Mae 3.0% MBS:
http://www.mortgagenewsdaily.com/mbs/charts.aspx?Product=FNMA30&interval=5
And I believe this is the Fatwallet thread USC is referring to:http://www.fatwallet.com/forums/finance/788032/
Rates may stay very low for a long time but who knows what will happen?
I know that I didn't if you would have asked me years ago, but in the past year or so I've started to realize the FED wants to jump start housing so I figured 30-year rates might have an outside shot of getting to 3%. Will they get there or go a little lower? Who knows, anything is possible.irvinehusky said:The mortgage broker I used when I purchased the house quoted 3.375% 30 year fixed with $500 for the appraisal as the only cost. No impound, I can purchase own homeowner's insurance, no early payment penalty. That was about 2 weeks ago so things might have changed. I've been unscientifically taking screenshots of 30 year fixed rates from Provident Funding and Amerisave (not every day) for about the last week or so but the credits have shrunk about $3500. So, definitely going the wrong way right now, but still great.
I know many of you are in the process of closing on homes so you all must have gotten decent rates.
If you're refinancing, why are you? To squeeze out as much as you can (Greed is good)? Nothing wrong with that.
For me, I started out with the great ARM (5/7 year) strategy that USCTrojan described on these boards but with the 30 year rates down so much, lately I've been thinking I would like to remove the unknown after the fixed period. I hate to say it so I don't jinx myself...but it probably won't go much lower than now.
When I bought my first condo, the 30 year was about 12%. Even then, the rates dropped around when I purchased so I felt "lucky". Then, many years later, when one bank gave me a refinance quote much lower than others at 6.5%, I felt I was robbing the bank or they mistook me for a high roller or a scam. But it was Wells Fargo so that made me feel a little comfortable. Mid to low 3s? Who would have thought it would be possible?
irvinehomeowner said:
But $3800 is nice.woodburyowner said:I've done 2 refi's in the past 4 months. First one through Provident, I netted around 3k and second one, through BoxHomeLoans, I netted $800. Now I'm $3800 richer with a 3.5% interest rate on my agency jumbo loan.
irvinehusky said:Good grief,
My present loan is with Provident but as you probably know, they're a really pain in the you know what to get to closing. You must like
pain?
I'm not sure if it's the same with all the deals but I was told that once you lock, unless it goes down quite a bit, you're stuck. Well, locking works both ways. Maybe if it goes down to the high 2s we'll all be refi'ing again.
