Lock or Float?


money house 

I don’t believe rates will run away, but there is nothing that would suggest rates will improve from current levels, so I urge clients to lock in rates early in the process of applying for new mortgages.

Mortgages improved Friday afternoon as tensions grew in Egypt and investors put more money into safety bets such as bonds and mortgages.  This morning, we’re opening stable to closing levels on Friday, however, pressure remains and some of the gains in treasuries have been given back. 

As incomes slowly creep back up, Americans are spending more freely and saving less. Personal income rose 0.4% in December, following a 0.4% increase in November, according to data released Monday by the Commerce Department.  Both measures beat expectations. Income was expected to increase by 0.5% in the month

The mortgage and bond markets continue to digest improving economic data from recent weeks coupled with talks of inflation and uncertainty surrounding how the Fed’s QE2 will impact long dated fixed rates. 


FHA rates are still very attractive allowing “jumbo” clients to purchase a home priced at $723,000 with 3.5% down and a 30 year fixed rate below 5%.  (FHA loan limit in San Diego County is $697,500). You won’t have to worry Private Mortgage Insurance and their very restrictive debt to income requirements or the higher credit score needed to secure PMI approval.

For a snapshot of today’s rates, please visit my website.




Monday, January 31st

8:30ET   Personal Income/Spending

9:45ET   Chicago PMI


Tuesday, February 1st  

10:00ET   Construction Spending

10:00ET  ISM Manufacturing Index

3:00ET     Auto/Truck Sales


Wednesday, February 2nd

7:00ET    MBA Mortgage Applications 

7:45ET   Challenger Job Cuts

8:15ET     ADP Private Employment  150k


Thursday, February 3rd

8:30ET   Weekly Jobless Claims   410k

8:30ET   Productivity and Unit Labor Costs

10:00ET    Factory Orders

10:00ET    ISM Services Index


Friday, February 4th

 8:30ET   Monthly Employment Report   125k/9.6% 



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