The week ended relatively strong for mortgage rates with the 10 year dropping back down below 2% and mortgage rates stabilizing in the 3.875-4% range. Most interesting is that the bond yield drifted down while the S&P closed at its highest level since 2008 and the Dow continues to flirt with 13,000. The reason? The Fed is buying 30 year securities for two reasons: First to continue to support the fledgling housing recovery and second to continue to convert more of the country's short term debt into low rate long term debt in the hopes of avoiding the mistakes of some of our European counter parts. As our economy starts to rebound, there is no question that inflation will become a definite factor. Had the Fed left much of our debt in short term bonds, we would need to continually re-structure it at the then current (higher) interest rates and that would increase our debt payments, making it harder to reduce the deficit. This way we lock in the lower interest rates for 30 years - just like a refinance. An excellent long term plan.
In other news, mortgage delinquency continue to drop but after the Christmas holiday hiatus on foreclosure starts, we did see the expected jump in foreclosure starts in January. The states with the highest percentage of non-current loans including foreclosures: Florida, Mississippi, Nevada, New Jersey and Illinois. The states with the lowest percentage of non-current loans: Montana, Alaska, Wyoming, South Dakota and North Dakota.
Virtually all the major mortgage players are warning of increased processing times due to swelling pipelines but we saw a 4.2% drop in mortgage applications last week.
Lastly, we have closed out our pipelines with Wells Fargo and are now doing all of our business through Premier. Please let us help you with great service. Have a great weekend.
Jed Marquis Premier Lending, LLC
"There's More to a Mortgage than the Payment!"
Direct 720 833-7964Cell
Apply online at: www.CallJedMarquis.com