Conforming rates are slightly up from last week, and we may be in for mortgage rates hikes. The stock market is up over 500 points from last Monday, as corporate earnings reports have been showing a solid second quarter. Usually, rates rise as the stock market rises. Furthermore, Bernanke is making his appearance in front of the House Financial Services and Senate Banking Committees this week. He is expected to announce the Fed-fund rate probably won’t be touched for the time being, but may prep committee members (and investors) that the Fed won’t be as strong of a participant in buying Treasury debt and mortgage-backed securities: another sign that there will be upward pressure on rates.
In the meantime, new Housing and Economic Recovery Act (HERA) disclosure “improvements” go into effect July 30. Just a “heads up”: If all goes well in underwriting, and if all documentation is presently clearly, and if there are no questions on the appraisal, it might be possible to close a mortgage loan in 30 days. Otherwise, from purchase agreement to closing may extend 45 days or longer for loans submitted after July 30. Not pleasant news.
Ginger Sullivan – Anasazi Mortgage