Monday, March 22, 2010

Mortgage Rate Update -- Wells Fargo

Weekly Rate Update

All programs quoted are with zero points.

30 Year Fixed

To $417,000 - 5.000%
To $729,750 - 5.125%


Jumbo to $2,000,000 - 5.625%

5 Year Fixed

To $417,000 - 4.000%
To $729,750 - 4.375%
Jumbo to $2,000,000 - 5.250%


Rates have stabilized over the past few weeks and remain extremely buyer friendly. Fears that the Feds pulling out of the mortgage backed securities markets have been unfounded. Investors have not reacted to losing the largest purchaser on mortgage backed securities the way the markets had predicted. There is some sense of comfort to the markets that there are buyers waiting in the wings to pick up where the Feds leave off. Good news for buyers who are still on the fence. It appears that the markets will remain range bound for the next few weeks until the real impact of the Feds ending the MBS purchase program can actually be felt.

Economic News

Three economic releases this week—industrial production, the Philadelphia Fed index and the leading economic index—all support the view of continued economic growth. Meanwhile the housing starts data suggest that this recovery will be more modest than other recoveries.

Inflation remains low as measured by the Consumer Price Index. The details of this report highlight the slow pace of inflation, which partly reflects the ongoing housing correction. Medical price inflation continues to outpace the overall price index.