2011 July | Texas Jumbo Mortgage Loans

Archive for July, 2011

Weekly Texas Jumbo Mortgage Rate Update – July 22, 2011

Average rates for the benchmark 30-year fixed mortgage as reported by Freddie Mac stood at 4.52% this week. This represents a change of +.01% over last weekâ€™s average.

The average for the 15-year fixed amortization equaled 3.66%, also increasing .01% on the week. Both averages are within .02% of 2011 weekly lows.

Mortgage backed security prices have rebounded this week as fixed rate investors worldwide are favoring US Treasuries over Euro back offerings. Economic chaos across Europe appears to be influencing bond traders more than the potential for American debt default looming August 2nd if a political compromise is not reached.

Today, Home Loan Specialists is posting par rates of 4.25% on 30-year fixed conventional and FHA loan programs. 15-year conventional rates are listed at 3.5% with 10 year rates available as low as 3.25%.

Texas Jumbo Loan Rate Watch – The Lesser of Two Evils

The lesser of two evils is giving Texas jumboÂ homeowners another clear shot at refinancing to a lower rate, a shorter term, or both.

The two evils are: the impending US budget crisis which, if the debt ceiling isnâ€™t increased by August 2^nd, will threaten to cause the government to default on credit obligations; and the rapid deterioration of several fragile European economies including Greece, Spain, Italy, and Ireland.

Fixed-income investors are choosing to favor dollar-based securities over those backed by the Euro.Â As demand for (US Treasuries et al) has risen, bond prices have increased, thereby pushing rates back down below rolling 12-month averages.

Jumbo loans (>$417,000) are also at bargain basement levels with 30-year fixed terms in the low 5%s and 15-year at 4.25% to 4.5%.15-year programs are available at 3.5%
30-year fixed mortgages (at par) can be locked in the 4.25% to 4.5% range
10-year amortizations as low as 3.25%
Even more attractive are 3 year ARMs in the mid 2s
Investors can also reap these benefits with rates that are only .5% to .75% higher than the par rates stated above available on primary residences.

Once an agreement on the US budget is reached, all bets will be off.Â If the highly contested debate ends with a compromise that leaves any lingering scent of possible inflationary pressure, bond prices will likely fall and rate increases will likely be dramatic and instantaneous.