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August 27, 2012

August 27, 2012: Mortgage Rates retain 3/4 point improvement

by Rylan Stewart
Boats-and-Rock-41-1

Little has changed since we posted a rate update for Thursday, August 23 entitled Mortgage rates drop in the wake of poor jobs report, Fed minutes. At the time, we wrote: “After several straight weeks of cost increases, rates have plummeted, in some cases by 3/4 of a point. Minutes from the Fed’s latest meetings reveal that the FOMC is concerned about the strength of the economy and is seriously considering another round of Quantitative Easing (QE3), a step that has been resisted thus far. The price of U.S. government debt rose, dropping the yield of the 10-year Treasury and bringing mortgage rates down with it.”

For several weeks, mortgage interest rates had moved off lows and rose in cost, as equities climbed upward and improved employment and housing numbers flooded the news cycle. The Fed’s gloomy outlook of the economy and possible implementation of QE3 alarmed investors, who then moved back to U.S. debt – viewed as the “safe haven” bet for the uncertain future. (For more on the future outlook of mortgage rates see our rundown HERE).

The Dow rallied from its difficulties on Thursday with 100 point gains on Friday and then fell by 33 points on Monday, August 27 to begin the week. The yield of the 10-year Treasury (the historic 30-year mortgage rate tracker) fell by 0.0342 percent to 1.6534 percent.

30 year fixed –

Thursday, August 23:

3.250 percent (3.341. percent APR)

Today:

3.250 percent (3.341 APR)

Unchanged

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15 year fixed –

Thursday, August 23:

2.750 percent (2.791 percent APR)

Today:

2.750 percent (2.791 percent APR)

Unchanged

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30 year High Balance

Thursday, August 23:

3.375 percent (3.460 percent APR)

Today:

3.375  percent (3.460 percent APR)

Unchanged

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30 Year FHA

Thursday, August 23:

3.250 percent (3.4013 percent APR)

Today:

3.250  percent (4.013 percent APR)

Unchanged

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30 Year VA

Last week:

3.250 percent (3.239 percent APR)

Today:

3.250  percent (3.239 percent APR)

Unchanged


APR is subject to increase and terms subject to change. APRs may very depending on loan details such as points, loan amount and loan-to-value, your credit, property type and occupancy. Closed rate and APR assume a rate and term refinance of a single family detached owner-occupied primary residence, loan amount $417,000 ($561,200 for high balance), and a minimum FICO score of 760. Situations vary based on applicant.

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Central Coast Lending is a California mortgage brokerage based in San Luis Obispo County. With offices in San Luis Obispo, Morro Bay, Paso Robles, and Arroyo Grande, Central Coast Lending is the top source for Central Coast mortgage, real estate, and home loan needs. To see why using a broker offers lower rates and superior service, click HERE. For a free, easy online pre-qualification click HERE or call 805.543.LOAN to talk to one of our expert loan officers. Central Coast Lending: The Mortgage Experts.

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