Austin Real Estate News

by Ben Morton

Rates ended up pretty steady this week; but that’s not to say there wasn’t any fluctuation.

We are continuing to see more and more interaction in the mortgage industry from Washington. The FHA limit has been pushed back up to $288,750. Even more exciting news is now a borrower can have 10 mortgage loans; this has been increased from 4. It’s going to be interesting to see how government interaction continues to change the mortgage industry as a whole.

For now, rates are as follows:

CONFORMING
30 Yr Fixed 5.000%, 1 pt.
15 Yr Fixed 4.875%, 1 pt.

JUMBO
7 Yr ARM 6.1, 1 pt.

Note: The Austin Mortgage Rate Update is provided by Ben Morton. Great Austin Properties, LLC does not receive any monetary gain nor do we guarantee the rates quoted above. We provide this information to you to help keep you informed of the Austin market.

by Ben Morton

Rates stayed relatively the same this week; however, notice the increase in the Jumbo ARM.

While Conforming rates stay low as the government continues to purchase 5.0-5.5% mortgage backed securities, Jumbo loans are still portfolioed and the rate reflects the lender’s risk. Part of the increase in rate, or risk, on Jumbo loans is that appraised values nationally haven’t gained much ground. So, down payment requirements on Jumbo loans has increased from 10% to 15%.

The economic stimulus bill passed and there is an up to $8,000 tax credit for first time home buyers; the bill does include income limitations to receive the credit.

For now, rates are as follows:

CONFORMING
30 Yr Fixed 5.000%, 1 pt.
15 Yr Fixed 4.625%, 1 pt.

JUMBO
7 Yr ARM 6.1, 1 pt.

Note: The Austin Mortgage Rate Update is provided by Ben Morton. Great Austin Properties, LLC does not receive any monetary gain nor do we guarantee the rates quoted above. We provide this information to you to help keep you informed of the Austin market.

by Ben Morton

Rates this week remain relatively unchanged.

That doesn’t mean there wasn’t any news.

The $15,000 Tax Credit Proposal has slowed back to it’s existing $7,500…I’m sure there will be more details. Consumer Sentiment came in way below expectations, but yet there was almost no impact on rates. At the same time, jobless claims were higher than expectations with the same result, or lack thereof. What this means is we are still seeing the government’s coupon purchase of mortgage backed securities having the highest impact on rates.

Thought For The Day:
Let’s also keep in mind the old Law of Supply and Demand. With so much demand for mortgage loans, it doesn’t necessarily mean the lowest rates!

For now, rates are as follows:

CONFORMING
30 Yr Fixed 5.000%, 1 pt.
15 Yr Fixed 4.625%, 1 pt.

JUMBO
7 Yr ARM 5.50, 1 pt.

Note: The Austin Mortgage Rate Update is provided by Ben Morton. Great Austin Properties, LLC does not receive any monetary gain nor do we guarantee the rates quoted above. We provide this information to you to help keep you informed of the Austin market.

by Ben Morton

Rates improved a bit this week.

We are certainly hearing alot about the proposed stimulus plan. Included in what we are hearing is, the Senate voted to include a tax credit up to 10% of the value of new or existing residences with a cap of $15,000. This is good, especially if rates keep going down. All we can do is wait to hear how Congress responds. Clearly there are major strides to spark the housing industry.

For now, rates are as follows:

CONFORMING
30 Yr Fixed 5.000%, 1 pt.
15 Yr Fixed 4.750%, 1 pt.

JUMBO
7 Yr ARM 5.550, 1 pt.

Note: The Austin Mortgage Rate Update is provided by Ben Morton. Great Austin Properties, LLC does not receive any monetary gain nor do we guarantee the rates quoted above. We provide this information to you to help keep you informed of the Austin market.

by Ben Morton

All economic signs point towards rates going down.The stock market is down, weak economic growth (GDP), and consumer sentiment is down. Although these would indicate a break in interest rates, we saw rates increase by .125% this week.

Why is this?

Clearly we are in uncharted waters with the opposing forces…declining economy and the stimulus package(s). The traditional economic announcements don’t have near the impact they used to. This week the Fed Funds rate was not lowered as it doesn’t have much more room to go at 0-.25%. Furthermore, the majority of the mortgage backed securities that the Fed is buying are 30 Yr. 5.0% and 5.5% coupons. That is why we’re seeing rates between these 2 numbers. A small percentage of the bonds being purchased are 4.5%, this allows the Fed to continue the purchase programs through June if need be. To sum it up, this practice prolongs the ability to sustain rates around 5% for a longer period of time, as opposed to 4.5% for shorter period of time.

For now, rates are as follows:

CONFORMING
30 Yr Fixed    5.125%, 1 pt.
15 Yr Fixed    4.875%, 1 pt.

JUMBO
7 Yr ARM    5.550, 1 pt.

Note: The Austin Mortgage Rate Update is provided by Ben Morton. Great Austin Properties, LLC does not receive any monetary gain nor do we guarantee the rates quoted above. We provide this information to you to help keep you informed of the Austin market.

by Ben Morton

Rates remain low, but not quite as good as last week. The Fed still has $450 billion to purchase mortgage backed securities which would lead towards interest rates going down. However, this week, earnings like GE and Google coming in at expectations provide resistance.

What can we expect? As the government announces another injection of funds into the mortgage market we can expect rates to go down. Something to consider is, as these stimulus programs continue it very well could lead to inflation later in the year. While things are very good right now, it won’t last forever; hopefully for most of the year, but…! The market is still volatile, so I recommend any purchase locks waiting on deck to lock when rates dip.

Rates as of Friday, January 23, 2009:

CONFORMING
30 Yr Fixed 5.00%, 1 point
15 Yr Fixed 4.75%, 1 point

JUMBO
7 Yr ARM 5.550, 1 point

Note: The Austin Mortgage Rate Update is provided by Ben Morton. Great Austin Properties, LLC does not receive any monetary gain nor do we guarantee the rates quoted above. We provide this information to you to help keep you informed of the Austin market.