Mortgage Rate Sheet for 9.5.14

by | Sep 6, 2014 | Blog, Realtors

Do I Have an Impound Account

Economic news: The first Friday of the month we always get the previous month’s employment data.

 The Federal Reserve is putting a lot of weight on this data in their assessment of the overall economy.

 Think of it this way: if they don’t feel the employment numbers are good enough, which would be a good assessment, then they will keep rates down. If they keep rates down, the stock prices will stay up (because their debt is cheap, which makes their bottom line look better for attracting investors).

So what did we learn this week?
After July job creation was down 55,000 from June, now August job creation was down another 70,000.
Economists were expecting 225,000 jobs to be created in August and the number came in at 142,000.
We have a downward trend at a time when we need to create jobs, so people will spend money to get the economic engine going.
The consensus is that we need to see 250-300,000 jobs created per month to get back to where we were, and therefore towards a healthy economy.
Something I find interesting is how the news touts the lower unemployment of 6.1%, down from 6.2% last month, as progress. What the talking heads on TV or radio leave out often is that this apparent good news does not include those who have stopped looking for a job.
The Labor Participation Rate tells us what percentage of eligible workers are working. This number is now 62.7%, the lowest since 1978. Think about that: more than 32% of people who could work are not. And this number is growing.
What does this mean to you?
If we have more people unemployed, then more people need help with basic needs. That means those working will have to contribute more to those social services, and therefore pay more taxes.  If people are paying more in taxes, they can afford less towards a house payment or rent.  
We have a gift right now with interest rates so low along with lower taxes. I encourage everyone, while properties are affordable through low-interest rates, to act now. 
To learn more, and my source for data here, go to the Bureau of Labor Statistics www.BLS.gov.

Your Weekend Rate Sheet:

Your buyer’s interest rates can be locked in over the weekend, so if you have a client who is close to having an accepted offer and is nervous about rates we can lock in the interest rate. Remember, we also have the float down: if rates improve more than .25% after lock-in and after full approval, your client gets the lower rate. All rates are quoted at a 45 day lock in and assume a 720 credit score with 20% down, except for FHA and VA.

Program Rate Cost
MULTI Family /apartment buildings 4.3%    7/1 arm 0 points
Conforming** 30 year fixed 3.99% 1 point
Conforming 15 year fixed 3.0% 1 point
Loan from $417,001 to $2,000,000  30 year fixed 4.125% 1 point
FHA under 417k 30 yr  3.75% Buyer will receive up to $4200 in credit.
FHA over 417k 30 yr fixed 3.875% Buyer will receive up to $6250 in credit
VA 3.75% VA NO/NO
Conforming 5 years fixed 2.625% 1 point
JUMBO over $625,500 7/1 fixed/ARM 3.25% 1 point

** Conforming means loans under $417,000. Conventional means Fannie Mae and Freddie Mac.

1 point is 1% of the loan. Programs quoted as having 1 point also have the option of 0 points and the option of the 0 cost loan.

This rate sheet is intended for real estate professionals only and is not to be disseminated to the public as it does not meet federal disclosure law requirements.  All rates and programs subject to change without notice.

Have a great weekend.

Cheers!