No funny stories this week. Other than Pablo, the
toddler, telling me that ‘2 minutes and that’s it!’ at bedtime as the time for
me to sit by the bed before I say nite nite and close the door. Yes! Victory! I
used to have to sit with him for 45 minutes until he snoozed. It probably was
that it made (me!) feel better..not that he needed it. Anyway! I finally got
smart, and just got up and walked out the door.
He is surviving! And sleeping like a baby.
In summary, the Employment data was weaker than
expected, Japan expanded its bond-buying program, and tensions with North Korea
increased. As a result, mortgage rates ended the week slightly lower. J
Friday's
Employment report was
disappointing in nearly every area. Against a consensus forecast of 190K, the
economy added just 88K jobs in March. Average Hourly Earnings, a proxy for wage
growth, was flat from last month. Digging deeper, the small bit of good news
was that the data from the prior two months was revised higher by 61K jobs.
This was far outweighed, however, by the bad news in the details of the
Unemployment Rate. The Unemployment Rate unexpectedly dropped from 7.7% to
7.6%, but the decline was entirely due to people exiting the labor force. It is
good for the economy if the Unemployment Rate declines because more people get
jobs, but not if the cause is a shrinking labor force. Weak labor market data
reduces future inflation expectations, which is good for mortgage rates. In
addition, it likely extends the duration of the Fed's bond-buying program,
which is also good for mortgage rates.
Thursday, the Bank of
Japan announced that it will sharply ramp up its bond purchases to levels which
will add $1.4 trillion to its balance sheet over the next two years. Like the
Fed, the BOJ is buying bonds to help boost the economy. This added demand for Japanese bonds caused their yields to decline,
making US bonds relatively more attractive to global investors. This
benefited US mortgage-backed securities (MBS), which helped push mortgage rates lower.
Enjoy this beautiful
weekend!!!!! As always, we are here to pre approve your clients THOROUGHLY and
QUICKLY, so you can be under contract soon!
RATES
as of April 5th , 2013 (Down for the Week)
The following assumptions apply:
- 20% Down Payment (Conforming) / 25% Down Payment Jumbo
(Lower down payments available – call for details)
- 1% Origination Fee
- Escrows Required (if no escrow, higher fees may
apply)
- Purchase Transactions, Primary Residence (Refinances
have different rates)
- 30 day closing
- Credit Score 740 +
- Debt to income ratio <=40%
- Full Documentation of Income/Assets
|
Conforming
($200,000* - $417,000)
|
Jumbo
($417,001- $1,000,000*)
|
|
10
year (fixed) 2.375%
APR 2.486 %
|
15
year ( fixed )
3.000% APR 3.033%
|
|
15
year (fixed) 2.625%
APR 2.702%
|
30
year ( fixed ) 4.000%
APR 4.019%
|
|
30
year (fixed) 3.625%
APR 3.669%
7/1
ARM
2.375% APR 4.801%
|
5/1
ARM
2.500%
APR 5.610%
7/1
ARM
2.875%
APR 5.422%
|
|
5/1
ARM
2.500%
APR 5.636%
|
10/1
ARM
3.125%
APR 4.989%
|
|
|
|
|
FHA/VA
call for quote (max loan $270,000)
|
|
|
|
|
We do originate loans below
$200,000. These amounts are chosen to show the most favorable rates.
For other product
options or for loan amounts less than $200,000 or above $900,000 please call
for quote.
Call for details!
If you know of someone who
would appreciate my services, please contact me with their name and
number and I will be happy to help them!
Jennifer
Hernandez & Team
Kenny, Sandra,
Nancy, Jimmy, Heath, Norma, Jason, Stella & Monique
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