February 2010 Mortgage Rate Update

Posted On: February 8, 2010 By: admin

A three month look at MBS (mortgage backed securities) tells us that prices today are at the highest point of the year thus far.  As mortgage backed securities increase, interest rates will continue to fall and may hit all-time lows in coming weeks.  Today’s question would be “What will send MBS’s prices even higher?”  The answer would be strong signs that the economic recovery is failing both at home and abroad.

Greece’s debt level is a high concern. Goldman Sachs was quick to point out that if Greece is handled incorrectly by the Euro Zone then a large portion of Europe’s GDP could be at risk.  That would be the catalyst that would encourage investors to pay higher prices for safer assets such as Treasuries and MBS and pull money from riskier assets causing rates to fall. and setting the economy back three months and erasing the hopes of a strong first quarter. 

Though the thought falling interest rates is attractive, be cautious of the banks putting their wallets away and shoring up for a rough spring.   With first-time buyer incentives ending in April, all-time low rates, and the most liberal lending environment in the last year, it may be wise to act now. 

Edward Mayor, Wyndham Capital Mortgage (704) 369-2629

Wyndham Capital Mortgage rates:

Conventional 30yr Fixed ………………..4.750%

Conventional 15yr Fixed…………………4.125%

Conventional 5/1 ARM……………………3.500%

FHA 30yr Fixed……………………………4.750%

FHA 15yr Fixed……………………………4.250%

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