Friday’s Rates…conforming is up 0.25% from last Friday May 25, 2007
Conforming Mortgage Rates (loan amounts up to $417,000 for 1-unit properties). Conforming rate quote below based on sales price of $500,000 with 20% down payment, owner occupied with minimum credit scores of 680. Rates quoted are priced based on a 45 day lock with 1 point and there are no prepayment penalties on any of the rates quoted below.
30 Year Fixed: 6.250% (APR 6.389%). Payment per $1000 = $6.16
30 Year Fixed with 10 Year Interest Only: 6.375% (APR 6.389%). Payment per $1000 = $5.31
40 Year Fixed: 6.250% (APR 6.368% ). Payment per $1000 = $5.68
7/1 ARM: 5.875% (APR 6.011%). Payment per $1000 = $5.92
5/1 ARM: 5.750% (APR 5.885%). Payment per $1000 = $5.84
5/1 ARM with 10 Year Interest Only: 5.875% (APR 6.011%). Payment per $1000 = $5.92
JUMBO (Non-Conforming) Rates. Pricing is based on the same criteria above, with the exception that the loan amount is $417,001-$650,000 (20% down).
30 Year Fixed: 6.250% (APR 6.380%). Payment per $1000 = $6.16
30 Year Fixed with interest only payments: 6.250% (APR 6.386%). Payment per $1000 = $5.21
40 Year Fixed: 6.250% (APR 6.386%). Payment per $1000 = $5.68
5/1 ARM: 6.000% (APR 6.128%). Payment per $1000 = $6.00
5/1 ARM with 10 Year interest only payments: 6.00% (APR 6.134%). Payment per $1000 = $5.00
Please do not select your Mortgage Professional by interest rates alone and do not shop rates by APR. This is just a small sample available of rates and products. For a specific strategy for your mortgage needs, contact a qualifed Mortgage Professional.
Rates quoted are as of 11:00 a.m. PST and may change at any time.
Sphere: Related Content- Posted in : General Real Estate
- Author : Rhonda Porter
Comments»
Ouch, I hate seing that rocket ship graphic on an interest rate article!
The graphic worked! Rates are going up. We can thank our economy.
Next week will be a whammer too with the jobs report, Fed Meeting and other economic indicators scheduled.
Rhonda,
No matter how much you like the LO, paying even an 1/8 more for thirty years is nothing to sneeze at. I’ve stayed out of your “pick your LO not by rate” type advices in the past. But clearly living with the rate long term is not worth it.
Can’t they do both? How do they NOT shop by APR? Isn’t that the purpose of providing an APR in the first place? For comparison purposes?
How exactly IS a consumer supposed to pick an LO, if not by rate and APR. Surely you are not suggesting that it’s OK to pay an extra 1/4 point to get an ethical LO, are you? That’s like saying it’s OK to overpay for a house, as long as you trust your agent.
Can’t they have the best of both worlds? Low cost AND someone they trust, simultaneously?
Rates are still low. Subprimers aren’t here in Seattle, as those people are in less affluent, less educated cities. I do expect Seattle values to continue to go up, even though every other major city and town in the USA is in the dump.
I mean, we have Microsoft, Boeing and so many people are moving here… no way it can go down.
Ardell, APR is a flawed calculation (the intentions were good…the design and allowed variances are bad). Jillayne did a great post on APR http://www.raincityguide.com/2007/02/03/apr-just-one-part-of-the-mortgage-machine/
No…I don’t think a consumer should pay 0.25% more for an ethical Mortgage Professional. However, if they’re dialing for dollars, the LO who’s quoting 0.25% less may be a smooth talking liar.
This is why it comes back to working with a LO who has been referred to you whom you trust. If this LO has a proven record of providing the best rate with the proper program…then you don’t really need to shop.
Plus, the rate you’re shopping, unless you’re ready to lock in that moment, is not the rate you’ll wind up with. It’s just the rate at that moment.
The lowest rate on the worst product with a bad mortgage plan is expensive. Consumers having to refinance out of the mortgage earlier than expected because the one they obtained with their purchase had no strategy or consideration of their financial goals because the LO had the “low quote de jour” is costly. Refi’s aren’t cheap.
Should a buyer or seller work with the lowest priced real estate agent?
Richard, rates are still low. We are now at a 10 month high in interest rates where we had been pretty steady. My first house, the rate was 11%…and I was not subprime…I was an FHA buyer.
I anticipate Seattle’s values remaining strong, too. Our unemployment rate is also better than the national average. There are subprime borrowers here but not to the extent as other places in nation. We also have fraud, which impacts the market. Just a few weeks ago, King 5 aired a report about a LO who frauded two brothers locally using stated income loans for non-owner occupied properties. Now the brothers are doing what they can to fight foreclosure.
Wonder what rate the slimy LO quoted to them? DFI just revoked his LO license as well.
>values remain strong
I couldnt’ agree more. Low unemployment is always a sign that recession is far away, not even in the picture. The airline industry (boeing) will be strenghened by the new chinese fat cat travelers coming here to invest in our great land. The latest retail sales figures are just a blip, and mostly are affecting the lower class, who really have no bearing on housing prices. Same goes for gasoline… the wealth class here in Seattle won’t feel a thing, even if it goes to $10 gallon.
I also doubt energy issues would be an issue because we are mostly hydro here, so rising oil and nat. gas prices won’t effect us.
In short, with our ties to asia and steady stream of high tech, high paying jobs, there will be plenty of people that can afford the prices around here. No doubt in my mind.
can you include 30yr fixed rate with no points as well?
30 year fixed with no points (and same criteria above, except for the 1 point) = 6.5% Note Rate (APR 6.546%).
richard said…
“I couldnt’ agree more. Low unemployment is always a sign that recession is far away, not even in the picture.”
Hahaha.. Oh boy. Remind me not to send my kids to the university you got your Econ degree from.
Actually, it’s the opposite, and has been for EVERY recession since WW2. Look it up if you don’t believe me but history shows that before every recession unemployment was at a cyclic low 12 months prior.
“Should a buyer or seller always work with the lowest priced real estate agent”?
Every consumer should look for the lowest price that gives them everything they need and want.
If someone knows everything there is to know about loans and the loan process, has a credit score of 810 and 30% down, they should not pay as much as someone going zero down, stacked costs, a 640 credit score and a skazillion questions.
If someone wants to buy THAT house, has no questions (or few) has no financing problems and is a slam dunk, then they should pay less than someone who wants a needle in a haystack and will take 5 months and 2,000 questions and is a nail biter to boot.
Not everyone needs the same service. Everyone should pay the least amount that is also a fair price for what they need. They shouldn’t be looking to take unfair advantage, nor show they be willing to over pay.
Bill - I assumed richard was doing his best Steven Colbert immitation; tongue planted firmly in cheek. But I could be wrong.
Ardell, it’s tricky for me being shopped. Unless I have a credit report, I assume average credit (or what ever the borrower tells me) and full doc. As you dig deeper with a client, you find out that either they’re not what they think they are and loan is challenging or they are extra work than a typical transaction. Or…you have the high credit score slam dunk. I just closed one of those and when I locked the rate, I went skinnier than when I priced the rate. They were an easy transaction, they supplied documentatin immediately.. and priced it accordingly. I think I’m pretty fair.
To judge a LO by rate is not what it’s about in my book. I say this even though I do believe my rates are lower than most.
Again, they should be selecting a person and not a rate because they’re not even getting that rate unless they are locking in at that moment.
Hi Richard,
We have MANY MANY MANY MANY subprime mortgage lenders all over Seattle and across the state. “Those people” who receive subprime loans live all over Seattle and all across the state.
Countrywide is one of the largest subprime lenders. Every big player has a subprime division.
Hi Ardell,
A person who is shopping for the lowest rate and lowest fees and lowest payment is going to have a hard time finding all three along with exceptional service. It is like asking for a diamond from Tiffany’s and paying a WalMart price. There are too many moving part to the mortgage machine beyond control of the humans operating the machinery.
The best consumers should aim for is a “fair” loan, and a fair loan process.
Consumers do not trust their loan originator all that much (I’ve been saying this for a long time) which is why, Rhonda, consumers are shopping by rates and fees.
Consumers: don’t expect your fees to be zero. Businesses don’t provide their services for free. A no fee loan just means the bank is going to charge you a higher interest rate, or, like the current Bank of America promo, they are going to bombard you with sales pitches for all their other bank products. I anticipate this to be a short lived promotion.
Consumers don’t expect your interest rate to be zero. Banks don’t give out zero interest loans, but your mommy might.
Consumers don’t expect your monthly payment to be zero. Low initial monthly payments are hiding a black death spiral mortgage product.
If you want to live someplace where the monthly housing payment is relatively low, move back in with your parents. Other choices require money.
I heart The Colbert Report.
Richard- are you serious? if so I’ve got $10 gas available for you.
Ardell- What if you saved 1/8 point in rate and didn’t close on time, lost the house, and earnest money?? btw-None of my loan clients has ever known everything there to know about loans.
Jillayne and Rhonda- Thanks for the TRUTH.
REQUEST- CAN WE BAN ALL MENTIONS OF NORDSTOM, WALL-MART, K-MART, FRED MEYER, DOCTORS, DENTISTS, LAWYERS ETC…
WE DON’T SELL SHOES OR CLEAN TEETH OR GIVE LEGAL ADVICE..IF SOMEONE CHARGES MORE OR LESS THAN YOU THAT IS THEIR CHOICE…LET THE MARKET DECIDE.
NEW SUBJECT REQUESTS:
TRANSPARENCY VIA TECHNOLOGY- WHY HIDE DAYS ON MARKET?
LOAN OFFICER LICENSING- OVERDUE- MORTGAGE FRAUD IS NATIONAL PROBLEM.- SEE AZ. CASH-OUT SCAMS.
THE PROBLEM WITH GOOD FAITH ESTIMATES- THEY ARE ESTIMATES..IF THE LO CAN’T GUARANTEE CLOSING COSTS..RUN.
Bill Waters/ Biliruben,
When I read the first sentence of Richard’s (#7) comment, I was going to pounce all over it. After reading the next few statements, I concluded it was a tongue-in-cheek comment. Nobody is THAT deluded or THAT stupid.
I wanted to comment on the unemployment rate…Today on the Mike Medved show (770AM 12-3pm), he was decrying how 72% of the American public thinks the country is on the wrong track. I called in and talked to him. I was hammering away on the speculative bubbles and subsequent bailouts that have been present since Orange County blew up in 1995. I wanted to make the point that unemployment is much higher than reported.
The “headline number” is 4.4%. In actuality, if you read the report and continue two lines below the “official” number, you will get the actual number. The actual number is called “U-6.” The US unemployment rate is 8.2% - a number that helped Jimmy Carter into Habitat for Humanity back in 1980.
The unemployment report, table A12 has these numbers. The methodology that we use to score how well Europe does with their unemployment has us with barely a 100bp advantage over what they have (even with cradle-grave socialism, and a horribly disfunctional Muslim sub-population).
The US government just removes people from the available pool of unemployed, and lowers the rate. They also monkey around with inflation numbers with hedonic adjustments and wholesale removals of such vanity items like food, energy, and the price of purchasing a house - not that American families need to eat, drive, heat/cool their homes etc. Rents are included (32% of the population) while home debtors (68% of the population) are excluded. If prices on Mercer Isl. move from $400K to $900K, but rents go from $1700 to $1550, the gov’t says it is cheaper to live on MI. (I am not making this up.)
Radio talk show hosts are sometimes barely more informed than Rosie O’Donnell, yet they can carry an aura of a guru. CNBC works the same way, as it seems most of the hedge fund managers of late.
There is more than the headline number. Thursday’s new home report showed a 16 year spike in home sales for 4/07 when compared to 3/07. Yet if you read the report, the year-over-year numbers showed a HUGE decrease in activity, ALONG WITH AN HISTORICAL DROP IN MEDIAN HOME PRICE! All of the sales volume strength was in the Northeast. The West got hammered.
Today’s existing homes report showed the 9th consecutive monthly drop in home prices.
Lastly, unemployment (U-4 or U-6) are LAGGING indicators. Unemployment ALWAYS is low at the beginning of a recession. It takes a few quarters for business to jettison employees. Unemployment is not a reliable indicator for forcasting recessions (we are already in one, btw).
Ardell/Rhonda/Reba/Jillayne…keep up the good work.
All the best,
E
Rhonda,
Come to think of it, going back over anytime I have picked an LO for myself, I picked by the person and trusted them to do their best for me. I mostly trusted them to make sure I got the house
So when it sounds odd from an agent standpoint when you say pick the person rather than rate shop, that is what I personally have always done. I did the same thing with my insurance. In fact I pick clients that I trust too. hmmm…must be something to that then.
Thanks E.
Good to see you. I haven’t been around Seattle Bubble much since they stopped the daily open threads.
I’ve done radio a couple of times now, and don’t even have the “talking between the breaks” part down yet
Having had the experience, you sometimes get the impression that maybe no one is really listening anyway. It doesn’t have the same energy as speaking live to people in an audience.
Ardell, I know I must sound like the fox in the hen house when I say don’t always believe the LO who’s quoting the lowest rate…you simply can’t. I’ll stand by consumers getting referrals from people they know and trust who have had successful experiences with their LO. I think they should also google their LO (much like how Karen is verifying her future roommate) and interview them. Just like working with an agent, once into a transaction they are working with this person for 30-45 days (less or much more if they take more time to buy).
E-
I actually checked out Seattle Bubble today to see if Richard was there spoofing RCG and his comments on this post. I’m not sure if Richard is for real or not. I’d like to give him the benefit of the doubt.
Your info is based on national (I know you’ll correct me if I’m wrong) figures…how about Seattle? So far, we are fairing better than the rest of the nation.
You’re right that whenever there are numbers, they can be distorted any way you want to come up with what ever answer you want. It’s math. Even with the stats, there can be a huge variance allowed for misreporting.
Ardell, I noticed not too long after you requested Friday Rates from me…that another blog up north is doing the same…probably a coincedence… however… if you check out the rates… they are slightly lower than mine (0.125%) but the fee is 0.5% higher.
http://www.johnsonteamrealestate.com/blog/index.php/2007/05/25/home-loan-rates-2/
Jillayne…there’s no mention of APR? Hmmmm.
Oh well…I’m calling it a night!
Rhonda,
Yes, the numbers are for the entire US. I don’t have PNW numbers, but the numbers are softening. They are following the same pattern that went through San Diego, Boston, Florida, and the rest of the country. I suspect that we shall see the same phenomena here when the mortgage finance sector completes its death rattle.
Things are better here than in most of the US, but they are still not what they need to be to justify what we have experienced over the past few years.
Thanks,
E
Thanks, Vern. Somehow I missed your comment and I’m just catching it now. Are you requesting posts on Licensing and GFE’s? I’ve done several at RCG on Licensing (with my usual soap box cry about how LOs who work for banks or credit unions are not a party to our state’s licensing) …I will do one on GFE and getting them guaranteed.
[...] A tip of the hat to Vern for requesting this topic. [...]
Yikes, the 30 year fixed average just went to 6.42%
NOT SO GOOD
The Jobs Report comes out tomorrow which has a huge impact on mortgage interest rates. If rates change, I’ll be updating it here at RCG tomorrow.
Rhonda: Over the rest of the year do you expect rates to come back down below 6%? or rise and go towards 7%?
Rising interest rates are BAD news for housing. With all the bad press on the bubble and price declines, the fed may just have to start cutting rates to save us from free fall.
In the short term (next few months) I think rates will gradually rise as the economy improves. Historically, 7% is still a low rate. I know not in the mind of the consumer…we’ve become use to rates in the 5’s.
[...] Friday’s Rates June 1, 2007 This afternoon’s rates are essentially the same as last Friday. In fact, the only difference is that the 40 year fixed rates (conforming and Jumbo) are both slightly higher. Since that’s the only significant change…I’ll pass on re-doing the Friday rates this week. [...]
Rhonda,
I would be very cautious about comporting any of your financial well being on the assumption the economy will be improving anytime soon. LEIs are down, housing (x-PNW) is down HARD, inflation is roaring, and the jobs report is pure make believe.
Ask yourself how the jobs report has reported almost 90K new jobs in the construction industry in the past two months, when the homebuilders are reporting horrendous results. How? That particular report uses the “birth-death’ model of calculating jobs. It is a government model that they use to impute jobs that may or may not exist. It is not taken from a survey. Their modeling has never been released to the public for review. We have to take their word for it.
What would be more believable: A weather report from an ACTUAL OBSERVATION by a qualified observer, or a weather report from some egghead in an office 3000 miles away using some computer modeling that he won’t share with anyone?
In every region of the country (x-PNW), housing is in full retreat. How can there be more construction jobs in that environment? Keep in mind that the report has a SIGNIFICANTLY higher amount of those jobs in the very sector that is pulling the rest of us down. Fishy?
Enjoy life. Make some money. Just be careful about assuming what you hear from the government, Wall Street, and CNBC is the truth. They all have a huge interest in covering up a deteriorating economy.
Generally, when someone has a motivation to lie, they will. If it is an institution, bank on it.
All the best,
E
Rising rates are no small thing. Even the 10year going to 5% is somewhat ominous.
There is more leverage in the credit and equity markets than you could possibly fathom. Buffett can’t get his mind around the amount of leverage and derivitives that are in play.
The more leverage that exists, the greater likelihood that a small, insigificant event could trigger a chain reaction and cause a massive liquidation. All crashes in equity markets start in the debt markets - ALL OF THEM.
If you have a position that is leveraged 50:1, then a 2% move in the position wipes out 100% of the original stake. Ponder that.
It is more than just the mortgage rate (10 year bond) moving up a few points. It can’t happen in this environment without causing a massive liquidation. Once one position unwinds, it will cause other weaker positions to unwind, which get the next tranche. Lather, rinse, repeat…
E