Mortgage Interest rates have come way down since economic dated revealed in May portended a slowing US economy. GDP was down, other economic indicators like unemployment moved in the wrong direction and some inflation indicators were up. Not a good combination for our future.
The benefit to the mortgage market however is that investors moved away from risky assets like stocks and dove into fixed income investments like treasuries and mortgage back secirities driving yields down. The Ten year treasury was flirting with a 2.85% yield in the last several weeks.
Those yields translated to Acadia Mortgage offering a 30 year fixed rate at 4.375%. The lowest rate we have offered this year and the lowest rate since last November of 2010. This rate is exclusive of any Fannie Mae loan level price adjustments for loan to value or credit score.
Quantatative Easing will come to an end as planned at the end of June just two days away. We expect that the loss of this program is already in the markets numbers.
MBS prices fell a good deal today and yields/rates moved up accordingly. At the close of business, 30 year fixed rates stood at 4.625%. A bounce in treasury prices tomorrow or the next day may have us down at 4.5% again--- just hold on!!
