Archive for 'HomePath'
Market Update on Interest Rates – New Lows
Posted on October 7, 2010, by jhester, under Benson NC Mortgages, Buyers, Fayetteville NC Mortgages, FHA, First Time Home Buyer, HomePath, Interest Rates, Jacksonville NC Mortgages, Main Section, Raleigh NC Mortgages, Refinance, USDA Home Loans, VA Loans, Wilmington NC Mortgages.
Here’s an update on what is happening in the securities market which affects interest rates for mortgage loans in Wilmington, Jacksonville, Fayetteville, Benson and Raleigh, North Carolina as well as the rest of the nation. The market affects interest rates for FHA, VA, Conventional, USDA, HomePath Loans, and NC Housing loans for first time home buyers and those wanting to purchases or refinance as well.
5 year treasuries set a new record low, yielding 1.122%. The old low was set in December 2008 at 1.18%. 10 year notes traded as low as 2.36% before giving up some ground to finish at 2.39%. Real money accounts stepped up to buy, especially once the ADP report showed continuing pain in the employment sector. Rumor also had it that a West Coast Hedge Fund (Pimco?) was in the market buying 2 billion 10 year notes as their position was believed to be underweight that duration. Mortgage backs performed like dogs, widening out to treasuries while closing up 10/32’s on the day. Since we priced plus 8/32’s today, the market is a little rich to our pricing which should help you with overnight expectations. We see traders and money managers taking a neutral bias, waiting for pullbacks (consolidation) in the market to buy. We like the range on the 10 year between 2.34% and 2.42% so on balance, you’re close to the top and the best mortgage pricing we’ve seen. Keep in mind that tomorrow will be “square up day” where trading is typically quiet before a big release like Friday’s Employment Report.
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