Local mortgage planner John Schutze gives his weekly market update:
“Mortgage rates end the week¦.DOWN!!
This morning¦according to the government, 95,000 jobs were lost in September. Economists expected a net loss of only 5,000. The silver lining is that private sector jobs grew by 64,000, but with huge government layoffs (mostly local govt™s) the net number was 95,000 total lost. This is a positive for the private-sector, but still trailed expectations.
More good news for rates¦this week, lots of news chatter was focused on the possibility that the Fed might dump more money into the economy. It™s being referred to as QE-2 (Quantitative Easing – Round 2.) The gov™t wouldn™t likely purchase mortgage bonds like the previous program. It™s more likely they will purchase Treasury Bonds, however this action would help keep mortgage rates at their current lows or push them lower.
30 Year Fixed: 3.875 %
15 Year Fixed: 3.5 %
FHA 30 Year: 4.0 %
VA 30 Year: 4.25 %
5 Yr ARM: 3.0 %
Jumbo 30 Year Fixed: 5.125 %
Jumbo 5 Yr ARM: 4.25 %
30 Year Home Equity: 4.125 %
The above rates are based on a $120,000 Loan Amount with a 1% Origination Fee and 720 credit score (660 score for FHA and VA loans). Some programs require slight adjustments for smaller loan amount
John™s team helps Austin area buyers plan their mortgage future. Check out his Austin mortgage blog.