Mortgage Rate Update 9/11/09

In a light week for economic data, the Treasury auctions had the greatest influence on mortgage markets. Strong auction results, particularly for the 30-yr Treasuries, helped mortgage rates move lower during the week.

In recent months, mortgage rates have been heavily influenced by concerns about the enormous amount of debt the government needs to issue to fund the budget deficit. While recent Treasury auctions have seen stronger than average demand, investors remained cautious ahead of this week’s large supply of government debt. The risk is that investors will require higher yields to continue purchasing an expanding supply of bonds. Longer-term Treasuries are comparable investments to mortgage-backed securities (MBS), which largely determine mortgage rates, so the results from 10-yr and 30-yr auctions are particularly important. Strong demand from both domestic and foreign investors at this week’s Treasury auctions eased the concerns.

The data from the housing sector remained encouraging this week. The Mortgage Bankers Association (MBA) weekly purchase activity index rose by 10% to the highest level since early January. Combined with last week’s strong reading in the Pending Home Sales index, which showed its sixth straight monthly increase, the MBA data supports an improving outlook for new and existing home sales.

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, September 11th, 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 = 5.226%

15 yr conforming fixed: rate = 4.500% APR = 4.722%

7/1 yr conforming ARM: rate = 5.125% APR = 5.425%

5/1 yr conforming ARM: rate = 4.500% APR = 5.014%

30 yr FHA Fixed : rate = 5.000% APR = 5.205%

30 yr CHFA w/ 1 pt : rate = 4.750% APR = 5.033%

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

30 yr jumbo fixed: rate = 5.750% APR = 6.022%

15 yr jumbo fixed: rate = 5.500% APR = 5.725%

7/1 yr jumbo ARM: rate = 5.125% APR =5.405%

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CHFA (Connecticut Housing Finance Authority) rates for the week of September 10 – 16, 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 $200 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

Tagged as: 06410, Adjustable rate mortgage, CHFA, DAP, Federal Housing Administration, Mortgage, mortgage rates