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September 14, 2012

September 14: Mortgage rates drop slightly after Fed’s QE3 announcement

by Rylan Stewart

We have covered the Federal Open Market Committee’s Thursday announcement for another round of significant stimulus very closely. We gave a summary of the plan (HERE), a profile of reactions from around top analysts (HERE), and followed up with our own commentary about its effect for mortgage rates (HERE).

In brief summary: The Federal Reserve will purchase $40 billion per month in mortgage-backed securities, an action designed to stabilize the mortgage market, spur a real estate recovery, and keep a low interest rate environment. The Fed acted out of concern that the economy and labor market were not experiencing a strong enough recovery.

In response to all this, the Dow shot up over 200 points, and other major indexes made significant improvements as well. How have mortgage rates reacted to the Fed QE3 announcement? Most are unchanged, but a few at the lowest end made improvements. Click for a summary:

30 year fixed –

September 11:

3.250 percent (3.321 percent APR)

Today:

3.250 percent (3.301 APR)

- 0.020 percent APR

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15 year fixed –

September 11:

2.750 percent (2.773 percent APR)

Today:

2.750 percent (2.738 percent APR)

- 0.035 percent APR

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30 year High Balance -

September 11:

3.375 percent (3.440 percent APR)

Today:

3.375  percent (3.420 percent APR)

Unchanged

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30 Year FHA -

September 11:

3.250 percent (4.097 percent APR)

Today:

3.250  percent (4.097 percent APR)

Unchanged

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30 Year VA

September 11:

3.250 percent (3.251 percent APR)

Today:

3.250  percent (3.251 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, hassle-free online pre-qualification click HERE or call 805.543.LOAN to talk to one of our expert loan officers.

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