Investors are keeping their eyes on the pulse of the Federal Reserve, watching to see if there is even a hint that the federal funds rate will increase in spring 2015. The federal funds rate is what banks use to borrow money from each other. The federal funds rate has been kept near zero since the financial meltdown in 2008, but can’t be kept there forever. Banks then offer consumer and commercial loans based prime rate, which has a (profit) margin added to the federal funds rate. Prime rate is published by The Wall Street Journal, as determined by a consensus rate of multiple US banks.
Mortgage rates are bond-market driven, rather than directly tied to the federal funds rate. However, the Fed uses bond-buying/selling techniques (such as the Quantitative Easing programs) to keep mortgage rates where the Fed wants to see mortgage rates. As well, the Fed’s Open Market Committee meetings will release economic projections, which will impact investor attitudes and investment strategies. For now, I believe we can plan on 30-yr rates remaining stable – at their current low points – through the end of the year.
In the meantime, you may also want to refer www.nmmortgage.expert/ DailyRateLockAdvisoryfor this week’s thoughts of float/lock strategies). We always advise borrowers to play “safe than sorry”, but are happy to recommend safe “rate float” strategies.
THE MORTGAGE PLACE RATES*
FOR Primary Residence (purchase only)
As of 11/18/2014
*Programs require borrowers meet specific qualifications, not
limited to credit scores, income, debt ratios, and other lender guidelines
FIXED RATE Mortgages to $417,000 (Conforming)
w/ 1 Point
APR
w/ no Point
APR
30-YR
3.875%
3.998%
4.00%
4.040%
15-YR
3.00%
3.215%
3.25%
3.320%
FIXED RATE Mortgages $417,001 – $2,500,000 (Jumbo)
w/ 1 Point
APR
w/ no Point
APR
30-YR
4.25%
4.356%
4.375%
4.397%
15-YR
4.00%
4.187%
NQ
—
ADJUSTABLE RATE Mortgages to $417,000
w/ 1 Point
APR
w/ no Point
APR
5/1 ARM
3.00%
6.262%
3.375%
6.617%
7/1 ARM
3.375%
6.287%
3.625%
6.522%
ADJUSTABLE RATE Mortgages $417,001 – $2,500,000
w/ 1 Point
APR
w/ no Point
APR
5/1 ARM
3.375%
6.595%
3.75%
6.949%
7/1 ARM
3.50%
6.383%
4.00%
6.853%
Mortgages up to $2,500,000, other ARM Products & Interest Only programs are also available – Please call for quotes.
Ginger Bowe Sullivan
The Mortgage Place
1640 Old Pecos Trail, Suite E
Santa Fe, NM 87505
Email: ginger@nmmortgage.expert
Website: www.nmmortgage.expert