Hello All,
Wanted to give a quick update on how the inflation data (CPI) is impacting market this morning. CPI data came in lower than forecasted and the market has taken that to signal that inflation may be moving in the right direction which is good thing for rates. If you’re interested in some further light reading on the subject:
https://www.reuters.com/markets/us/view-us-march-cpi-comes-cool-side-2023-04-12/
The net result to rates so far this morning has not resulted in much change, but it is quite significant in the sense that we clear a hurdle that “might” have significantly raised rates. Rates are currently at:
Program | Rates | |
| 0 points | 1 point |
30 yr | 5.99 | 5.75 |
15 yr | 5.99 | 5.5 |
Jumbo 30 | 6.25 | 6 |
VA | 5.75 | 5.5 |
FHA | 5.75 | 5.5 |
10/6 Arm | 6.25 | 5.25 |
Note: these rates are for informational purposes only, Rates will vary with specific financial information of both borrower and property.
I do also want to highlight the 1 point buydown option on the 10/6 ARM. This would be a niche offering but is 10 yrs fixed rate at 5.25% so might be something of high appeal to the right customer. Moreover, buydowns right now have been yielding some very appealing options (breakeven in very low number of months…meaning the monthly savings divided by the cost of the buydown pays off quickly…I have seen several instances in the 2 month area in the last few weeks). I mention this because when buydowns breakeven are this low it rarely makes sense to not take advantage of. Of course I’ll be happy to have these conversations with your clients but wanted to put on your radar also.
Hope everyone is enjoying there day. Anything I can do to assist let me know.
Sincerely,
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