Athen Apaquette

Here’s your weekend rate sheet and economic update.

Cheers!

Economic news: This week was fairly quiet ahead of the holiday, but generally the last week of the month is light in economic news. Therefore there is nothing to make the markets react.

However, the first week of the month is full of economic data that can cause the markets to react.

We got news Monday that July new home sales were down 2.4%, which is not a good indicator for the economy.

On Wednesday, we saw that the 5 year note sale drew better than expected bids, which is a good sign.

If investors think that rates are going up short term, they do not buy bonds now; they might wait for that higher rate, which means higher income.

On Thursday, August 28th we saw a weak 7 year note auction. It’s interesting that investors were not willing to buy those longer obligations; they may be hedging their bets that short terms is good and 7 years is too far out. They think rates would be higher by then, or going up enough for a wait-and-see attitude.

Friday, August 30th the July personal income numbers came out indicating that personal income went up .2%. YEAH, but spending went DOWN .1%.

It’s good that people are cautious with their money, but then again, it’s BAD they aren’t pumping their cash into the economy.

Even though this is a mixed bag of news, it’s mostly to the non-inflationary side, and well as being fairly even or neutral.

Next week should have some interesting news and surprises, which hopefully will bring down rates another .25%. 

If you are unsure: LOCK IN, since we can always float you down. 

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 thefloat 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 3.25%    7/1 arm 0 points
Conforming** 30 year fixed 3.875% 1 point
Conforming 15 year fixed 2.875% 1 point
Loan from $417,001 to $2,000,000  30 year fixed 4.00% 1 point
FHA under 417k 30 yr  3.586% Buyer will receive up to $4200 in credit.
FHA over 417k 30 yr fixed 3.75% Buyer will receive up to $6250 in credit
VA 3.5% VA NO/NO
Conforming 5 year fixed 2.5% 1 point
JUMBO over $625,500 7/1 fixed/ARM 3.125% 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.