Giving Money Away

Mortgage rates rose late this week as investors favored the security of treasuries over mortgage backed securities.  One of the main reasons is the fear of deflation. Deflation makes debt payments more difficult each year. Treasuries are backed by the US government, which can print more money when needed. Companies and homeowners don’t have that luxury. This casts doubt over the performance of corporate and mortgage bonds. This is one reason Treasury rates have fallen significantly while mortgage rates have not been as fortunate. 

Mortgage bonds have been volatile and further improvements are not a given despite the recent Fed efforts to purchase mortgage bonds. The good news is that mortgage interest rates remain historically low. Freddie Mac reported the average 30-year fixed rate fell to 4.96% from 5.01%. 

Here are our weekend rates:

 Conf 30 year fixed to 4.875%

Conf 30 year fixed ($417,000-$535,900): 5.125%

FHA 30 year fixed: 5.0%

Jumbo 30 year fixed ($528,750+) with Wells Fargo Banking Relationship: 6.375%

 All rates reflect 1 origination, 0 discount points. Please note rates do vary by credit score, loan amount, and loan to value.

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