First Horizon Outer Banks interest rate update 12-7-07
Published December 9, 2007 by Shane CookThe next 4 days are going to be very interesting and nerve-racking for anyone who is watching the interest rate and stock markets. As many of you know the FED is meeting on December 11th to decide what to do about the economy and the possible lowering of Federal interest rates. Interest Rates have been dropping now for almost 2 weeks as negative economic data, and the possibility of a recession had driven 30 year fixed rates down to 5.5%. The curve ball came today when with it being the 1st Friday of the month, economic date was published and to everyone’s surprise it was good news. What this has done is it has made economists go back and re-examine if the FED will actually lower rates on December 11th. Now that this lowering is in doubt, the mortgage interest rate market is bracing itself for a non-lowering and this has translated into interest rate increases across the board. Rates will probably stay at this level until we see what happens at the FED meeting on December 11th. If they still decide to lower interest rates then we will more than likely see mortgage rates go back down, however if the FED decides to keep interest rates the same then these rates will more than likely stay the same or possibly go up a little higher (see headlines below for more info.) This is good news and bad news because even though we don’t want rates to go up, the better the economy is the quicker we will see an improvement in the housing market. And after all 5.875% with no points and .875% origination fee today is still not too shabby.
Have a great weekend, and call me anytime if you need anything. Always available, 207-2665
Jobs in U.S. Rise More Than Forecast, Signaling Spending Will Buoy Economy Employers in the U.S. hired more workers than forecast in November, lessening pressure on the Federal Reserve to cut interest rates by half a point next week.
Treasuries Drop as Investors Trim Bets on 50-Point Fed Rate Cut Next Week Treasuries fell, heading for their first weekly decline since October, as a government report diminished chances of a recession by showing employers added more jobs in November than economists forecast.
Shane Cook
Senior Mortgage Specialist
800-256-7887/Cell 252-207-2665
“A pre-qualification you can trust”
Total Loan Denial Letters Issued After Pre-qualification YTD 2007: 0
All quotes listed below only require 10% down, and have no private mortgage insurance (PMI), for qualified borrowers. Quotes listed below are for 30 day locks. Add .125% of a percent for Interest Only.
Conforming: loan amount less than $417,000
Primary Residence and Second Homes
40 Year Fixed: 6.375% .625 origination
30 Year Fixed: 5.875% .875 origination
30 Year Fixed: 6.125% 0 origination fee
15 Year Fixed: 5.5% .75 origination fee
7 Year ARM: 5.875 % 1 origination fee
5 year ARM: 5.625% .875 origination fee
FHA 30 Year: 6.0 1 origination
VA 30 Year: 6.0% 1 origination
Investment Property
30 Year Fixed: 6.0% 1 origination
5 Year ARM: 6.0% 1 origination
Jumbo Loans: Loan amounts greater than $417,000 to $1.5 Million
Primary Residence and Second Homes
30 Year Fixed: 7.125% 1 origination fee
15 Year Fixed: 6.5% 1 origination fee
10 Year Arm: 6.625% 1 origination fee
7 Year ARM: 6.75% 1 origination fee
5 Year ARM: 6.5% 1 origination fee
Please call for custom quotes on Jumbo Investment Property loans and on loan amounts greater than $1.5 million. These interest rates vary greatly depending on loan amount, down payment, credit score
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