February 24th, 2009
Weekly Mortgage Roundup Feb. 24
Mortgage rates have become closely tied to the overall financial and economic health due reliance on the housing market. Mortgages are typically one of the largest investments and in order to provide as much information as possible we are beginning a weekly roundup of all things mortgage. Please post comments with questions or topics you’d like to see covered and we’ll do our best to answer them. So without further ado, here’s the inaugural edition.
There has not been much movement in the mortgage rates from last week to this week. Overall, mortgage rates dipped slightly based on a survey of nationwide lenders. The benchmark 30-year rate dipped from 5.16% to 5.04% with .7 points. Similarly, the 15-year, 5/1 ARM and 1 Year ARM are down slightly compared to last week’s numbers. You can check out this week’s and previous week’s rates at Freddie Mac.
Rates have stabilized as the industry is awaiting the details of the Obama administration’s housing plan. Investors have been buying Treasury bonds, but staying away from mortgage bonds. Most inventors seem to be waiting to get the specifics of President Obama’s foreclosure prevention plan before buying additional bonds.
Another change in the mortgage industry is the limits of jumbo conforming loans. Previously, the jumbo loan size was limited to $625,500. The new economic stimulus law raises the limits to $729,750 in the metro areas with the most expensive housing. This is the full list of counties and their new jumbo limits.
As discussed previously, a new $8,000 tax credit has been offered to 1st time home buyers that purchase this year. It is important to note that this is a full credit, not a tax deduction. This new benefits is extremely beneficial; Uncle Sam is essentially putting back $8,000 into your pocket if purchase a home. If you have been contemplating getting into the market; low interest rates, a surplus of available homes and $8,000 back is very enticing.
