Estimated rates for the week of 10/13
30 yr conforming 6.25-6.50
30 yr jumbo 6.125 to $600k
7/1 ARM 5.625 - 5.75 for jumbo too
OR State Bond 5.750 Conventional or FHA
OR VA 5.50 but we hear it could increase very soon
As you can see by the above, rates have moved up. We have two competing themes for the rate markets. The first is the slowing U.S. and world economies. That should be helping to ease rates down. The opposing side is that the U.S. Treasury needs to borrow a lot of money to fund the recent legislative bills. Treasury has to come up with around a trillion dollars. Using those basic Economic 101 principles of supply and demand and that interest rates determine the price of money, rates have to go up. So far, the latter is what we are seeing. It's still extremely volatile out there but it does look like we have turned the corner on the panic in the financial world. There is still much work that needs to be done but at least the light is back on at the end of the tunnel.
Let me assure everyone who reads my Update that we are still able to close loans. Although underwriting guidelines have gone back to the old days, we haven't had any issues on getting the money to close transactions. None. The mortgage business is still fully operating and "business as usual' is what we see. With the events that occurred over the weekend, many pundits are thinking that the worse is behind. Still too early to call but it definitely appears that way. It looks like all of the developed countries (and many of the less-developed countries) are all on the same page now. There is no question that the events of the last few weeks are destined for the history books and that there will be significant changes as to how the business world will operate. With that said, I for one am done dealing with all of the stress that this has brought on. It's time to go back to business and do what we all do best! I think it's also time for us all to take a refresher class on the basics. Regardless of what business we are in, we all need to focus on those basic business principles that we first learned....good customer service, personal discipline, and hard work.
Enough of the pep talk speech. Have a great week.
Bob Chiodo, CFP
Equity Home Mortgage, LLC
12550 SW 68th Parkway
Portland, OR 97223
(503)670-7393
fax: (503)670-7062
*Rates quoted are for the use of Realtors and others in the real estate/financial service industries. They are not meant to be a quote for an individual situation. Rates change daily and those above are only listed to assist market participants by keeping them informed of current interest rates. Quotes are usually shown for a 30 day lock period and a 1% origination or discount fee.
