Wow, what one day can do to rates! Just went to a class and it seems if you want low Rates, you should act soon! Good Morning- Yesterday was rough for bonds and they are down to start the day. Looking back, that triple layer of support must have been made of that single ply, transparent toilet paper you find at a convenience store restroom and no matter how much you wad up, it just is not the same as the quilted double layer of Charmin Ultra and to put is simply, it just does not hold up very well. Bonds now find themselves in no man’s land looking for direction after the beat-down experienced yesterday. Existing home sales were down, jobless claims are up, and the Fed is cutting their bond buying, and stir it together and you get a soupy mess for mortgage bonds. I have attached an interesting report from Ellie Mae that shows the average data from DENIED loans year to date as well as the 2013 averages. I provide this information so you can put it in your bag of tricks to use if you have a client looking to use some 1-800 loan place or some on-line lender. For 2013, the AVERAGE credit score of a denied loan for a purchase transaction using a conventional loan with almost 20% down was a 725. Are you kidding me? We typically think of this being a solid borrower, and the average loan to value was 81%. These are loans that were denied!!!!!! I point this out because even your “solid” buyers need to use someone that really knows what they are doing so they don’t turn into one of these statistics. This clearly shows lending is still very tight these days, so your clients need to make sure they are dealing with a professional that knows how to structure the deal correctly because good loans get denied obviously. We are hoping mortgage bonds can stop the bleeding and rebound after yesterday’s slide. Program Rate Points APR Conforming 30 Year Fixed 4.625% -0.687 4.630% Conforming 15 Year Fixed 3.625% -0.294 3.691% VA 4.125% -0.177 4.279%
Posted on: Thu, 20 Mar 2014 22:08:58 +0000
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