RATES IMPROVE AS WE CLIMB THE WALL OF WORRY

RATES IMPROVE AS WE CLIMB THE WALL OF WORRY

Mortgage rate atmosphere has gone from one period of fear and data uncertainty the last few weeks and transitioning into some interesting setups heading into and out of the Halloween holiday.   The government shutstorm concluded on Thursday with the end of the debt ceiling stalemate.  The ceiling has been raised until February 7th of next year.   With that uncertainty behind us, now comes the greatly anticipated September Unemployment and NFP report on Tuesday, October 22nd.  For more on the week ahead look here.

Since the September 18th decision to leave the asset purchase program in place, we have had disruptions in government services coupled with the danger of debt default.  The recent instability fades the specter of the Fed announcing a tapering of current asset purchase programs at the upcoming October 29-30th meeting.   The 1st week November we see the October data and NFP number coming on November 7th.

The mortgage market has been thirsting for robust data.   The NFP data gives us and policy makers a gauge on the health of our currently fragile economy.  Expectations range between 170K and 190K new jobs created.   Any number outside this band is sure to move mortgage rates.  We’ll wait and see where the market takes us after this Tuesday.  Look for an update here at Mr. Top Step at the end of this week and how we set up going into Halloween week.

Current conforming 30 year best execution lies at 4.25%.  My rate sheet begins the week looking like this:

5YR ARM.......3.00% (3.068% apr)
7YR ARM.......3.375% (3.444% apr)
10YR ARM.....3.875% (3.939% apr)
30YR FIXED...4.125% (4.197% apr)
15YR FIXED...3.25% (3.375% apr)

based on $250K single family purchase price with 20% down and 740 credit score, rates subject to change rates change daily.

For now, mortgage rates are looking good!  Scary good!

If you would like to contact Gil about questions about mortgages, you can call him at 312-961-4510 or email him at gil@midwest-lending.com.  To find out more about him and the people he works with, please go to www.gilvalentine.com  Gil is a licensed Loan Officer, NMLS#1019717

Midwest Lending Corporation 1732 West Hubbard #2A Chicago IL 60622. Illinois Mortgage Licensee#MB6759631 NMLS#204212 Equal Housing Lender