Mortgage Rate Update 11/6/09

by Harriman Real Estate on November 8, 2009

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As expected at its Wednesday meeting, the Fed made no change in the fed funds rate. The statement kept the same language indicating that the Fed will hold rates at extremely low levels for an “extended period.” The Fed reported that economic activity has “continued to pick up” and that the housing market has improved. According to the Fed, inflation is likely to remain low due to unused capacity in the economy. Overall, there were no major surprises in the statement, and the Fed provided no firm guidance on the timing of future rate hikes. The statement noted that low inflationary expectations and high unemployment rates reduced the need to raise rates. Investors interpreted this to mean that these will be key indicators to determine when the Fed will begin to raise rates. As such, Friday’s Employment data provided no reason to expect a rate hike in the near future. The economy continued to lose jobs in October, and the Unemployment Rate shot up to 10.2% from 9.8% in September, which was the highest level since April 1983.

President Obama signed a bill Friday extending the $8,000 first-time homebuyer tax credit, making it applicable to contracts entered into by April 30, 2010, and closing by June 30, 2010. The bill also includes a new $6,500 tax credit for homebuyers who have previously owned a home, if that home was their primary residence for five consecutive years out of the last eight years. Both the $8,000 credit and the $6,500 credit have expanded buyer income limits, and the cost of the home being purchased is limited to $800,000.

For expert assistance with your financing needs, call our in-house mortgage executive, Rick Cannavaro, at (203) 672-2706.

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Here are this week’s rates:

Friday, November 6th, 2009

All rate quotes are for a 60-day lock with 0 points, 5% down payment, and a 720 FICO score.

Conforming limits are up to a $417,000 loan limit*

30 yr conforming fixed: rate = 5.000% APR = 5.282%

15 yr conforming fixed: rate = 4.750% APR = 4.954%

7/1 yr conforming ARM: rate = 4.875% APR = 5.225%

5/1 yr conforming ARM: rate = 4.375% APR = 4.614%

30 yr FHA Fixed : rate = 5.000 APR = 5.345%

30 yr CHFA w/ 1 pt : rate = 4.750% APR = 5.293%

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Jumbo loan limits range from $417,001 to $1,000,000*

30 yr jumbo fixed: rate = 5.500% APR = 5.752%

15 yr jumbo fixed: rate = 5.125% APR = 5.457%

7/1 yr jumbo ARM: rate = 4.875% APR =5.225%

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CHFA (Connecticut Housing Finance Authority) rates for the week of November 5 – November 11 , 2009

Homebuyer Mortgage Plan:
Interest rate: 4.750 % (APR range 4.850 – 5.250%)
Fees: Up to One Point (1% Origination Fee) * Payable to Lender
Term – 30 years, fixed rate

Downpayment Assistance Program (DAP)
(Rate listed is for DAP loans with Homebuyer Mortgage Program financing.)

Interest rate: 4.750 % (APR range 4.850 – 5.250%)
Fees: Up to $2000 Application Fee * Payable to Lender
Term – 30 years, fixed rate

(NOTE: If at any time the interest rate for the Homebuyer Mortgage Program exceeds 6%, the DAP interest rate will be capped at 6%.)

* Additional fees may apply

*Conforming loan limits listed above are for a single-family owner occupied residence.
Courtesy of The Harriman Team and William Raveis Mortgage

*All rates are subject to change. Minimum down payment and credit score requirements may apply. All information provided is deemed reliable but is not guaranteed and should be independently verified .

William Raveis Real Estate, 465 S. Main St., Cheshire, CT 06410