Interest Rate Update from Shane Cook at First Horizon 2-25-2008
Published February 26, 2008 by Shane CookInterest Rates have followed their upward trend over the past week as inflation worries continue to drive mortgage rates up. This week interest rates for both Fixed Rate Mortgages and Adjustable Rate Mortgages increased roughly 1/2% over last weeks interest rates. I believe this is going to continue to be the short term trend for mortgage rates, and am hoping that when the FED lowers the discount rate (predicted to be by 1/2%) at the next meeting that will start taking mortgage rates in the down direction again for a while. Only time will tell. On the positive side the industry report for existing home sales was published today, and sales were higher than economists had predicted for January. They still declined but at a slower rate, and is a potential sign that we are getting closer and closer to the proverbial bottom of the housing market.
I will be in the office all week at 800-256-7887 or on my cell at 252-207-2665. Call me anytime, if I can be of service in any way.
Treasury Two-Year Notes Can’t Escape Inflation as Fed Mulls Rapid Reversal Treasury two-year notes are about to become the next casualty of Federal Reserve Chairman Ben S. Bernanke’s interest-rate cutting campaign.
Agency Mortgage Securities Spreads Over Treasuries Rise to Eight-Year High The extra yield that investors demand to own agency mortgage-backed securities over 10-year U.S. Treasuries rose to an eight-year high as record spreads on other debt hurt demand.
Treasuries Fall as U.S. Home Sales Declined in January Less Than Forecast Treasuries fell as an industry report showing existing-home sales declined in January less than economists forecast and a rally in stocks reduced demand for the relative safety of U.S. government debt.
Shane Cook
Senior Mortgage Specialist
800-256-7887/Cell 252-207-2665
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Total Loan Denial Letters Issued After Pre-qualification 2005, 2006, 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: 6.5%
1 origination
30 Year Fixed: 6.5%
0 origination
30 Year Fixed: 6.25%
.75 origination
15 Year Fixed: 5.75%
1 origination
7 Year ARM: 5.375%
1 origination
5 Year ARM:
4.875%
1 origination
3 Year ARM:
4.375%
1 origination
FHA 30 Year: 6.0%
1 origination
VA 30 Year: 6.125%
1 origination
Investment Property
30 Year Fixed: 6.5%
1 origination
5 Year ARM: 5.375%
1 origination
Jumbo Loans: Loan amounts greater than $417,000 to $1.5 Million
Primary Residence and Second Homes
30 Year Fixed: 8.375%
1 origination
15 Year Fixed: 7.0%
1 origination
10 Year Arm: 7.25%
1 origination
7 Year ARM: 7.125%
1 origination
5 Year ARM: 7.125%
1 origination
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, etc.
Shane Cook
Senior Mortgage Specialist
First Horizon Home Loans
(Office) 800-256-7887
(Cell) 252-207-2665
(Fax) 866-669-5871
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