Today’s current mortgage rates (Texas)~are home loans going up?

July 23, 2008

Today’s current mortgage rates (Texas)~are home loans going up?

Texas Mortgage rates have been going up steadily since last Wednesday.  Today’s 30 year home loan is 6.75% and the 15 year mortgage rate (Texas) is 6.25%.  What’s going on with home loans?  Are they going up?

PHONE:  512-996-8194

30-Year Fixed Mortgage 6.750% 6.987%
20-Year Fixed Mortgage  6.750% 7.060%
15-Year Fixed Mortgage 6.250% 6.631%
5-Year ARM 6.375% 6.146%

Texas Jumbo Home Loans – Mortgages that exceed conforming loan limits $417,000 
30-Year Fixed 8.500% 8.671%
15-Year Fixed 8.000% 8.261%

Texas FHA – loan limits vary by county. 
30-Year Fixed 7.000% 7.794%

Free, no-obligation, quick– mortgage quote:  Texas Mortgage Refinance Application

Naturally, the above rates are based on one’s credit scores and the amount you borrow and the type of property you choose to buy (owner occupied or investment).  These rates reflect an owner-occupied home,  700 scores and 10% down.  

However, we offer 3% down loans or 80/15 for those who want to avoid PMI and only have 5% down.  

What’s going on with mortgage rates?  Most people know that mortgage rates tend to go up with positive news and down with negative economic news.  (Remember after 9-11 when rates went down to the 4% range? Why–because our economy took a major hit and rates followed.)

So why are mortgage rates going up in a market that most people describe as recessionary, don’t rates go down with bad news?  

Here’s my two cents.  This mortgage market is sorta like a teenage romance.   Up and down. 

On one hand news outlets constantly tell us we are in a recession even though current data technically does not support the term.  (See definition of a recession. http://en.wikipedia.org/wiki/Recession)

And yet, even though the market seems recessionary with gas prices, food prices, the weak dollar, there seems to always be some underlining economic strength somewhere.  Today’s market boost is coming from recent corporate earnings reports.

Rates have been going up because a lot of large companies have posted positive earnings reports.    And when there is positive economic news rates tend to go up.

For example,  ATT came out with their earnings report.   http://biz.yahoo.com/rb/080723/att.html.  Pepsi did too.  http://biz.yahoo.com/ap/080723/earns_pepsico.html.   So let’s all have a Pepsi and talk on our cell phones.    Maybe we can even download some old Cindy Crawford Pepsi commercials! 

Even Bank of America had “positive” economic news. http://www.chron.com/disp/story.mpl/business/5900245.html.    Funy note about Bank of America (who just acquired Countrywide Home loans).    They still made a ton of money 3.4 Billion.  (with a B) but were 41% less profitable than last year.   But analyst expected them to get killed, but they did better than expected.  And this “positive news” helped mtg rates to go up. 

By the way, don’t you hate it when last year you made 5.7 Billion and this year you only made 3.4 billion?!?   What’s a guy to do?   With all this bad news maybe the BofA CEO might need to give up some of his 7.4 million pay check.  Folks that’s 616,000 a month!  

It’s funny how the stock market game works.  Sometimes good news is good and sometimes bad news is good.   For example, if you expect your kid is going to make a D- on his math exam and he makes a C+ this is “good news”, right?  However, if you expect him to make an A+ and he makes and B+ this kids gets grounded?  So when the analyst expect a bank to report very negative news and they only report losing 41%, this is positive.  Even though really, it’s negative.    

I see rates moving up on the short term but will settle down to the 6.375 range after earnings report season. 

Even though rates are up if you are considering refinacing to get out of your PMI, have an ARM and want a fixed rate, or just want to consolidate your debt with a home equity loan call me, I don’t charge application fees.  And there’s never an obligation to talk to a licensed mortgage broker.  My phone is 512-996-8194.   

Since the market has tightened up considerably you may want to call us just to go over your credit report so when you are ready to buy you have the best credit score possible.    When you call I’ll send you a copy off your complete credit report, this may be the best $15 you spend all year.   Those free credit report places don’t give you your complete report but I will.

Texas Mortgage News:

http://biz.yahoo.com/ap/080723/congress_housing.html  (Bush drops opposition to housing bill)

 

 

Posted in 30 15 year fixed mortgage rates