Here is today’s look at best mortgage rates, (which do not include discount points, origination points, or loan level risk based price adjustments) provided by Mortgage News Daily, Freddie Mac, and other sources. Note that Freddie Mac’s AVERAGE rates are typically higher than BEST rates, because average rates include surcharges for risks associated with property types, down payments, and credit scores. To be eligible for BEST rates, borrowers need spotless credit (740 score or better), a sizable down payment (20-25%) or equity amount, and stable, adequate, and documentable income. In addition, the property must be located in a healthy (not declining) market and must be conventionally built.

LOCK ALERT *** RATES DROP LIKE ROCKS DESPITE CONSUMER CONFIDENCE ***

The  Conference Board reported that its consumer confidence index rose to a reading of 53.5 in August, a strong increase from 51 in July. Economists were expecting the index to come in at 50, according to consensus estimates from Briefing.com. When these data come in higher than expected, interest rates are likely to increase as investors require higher yields on bonds and mortgage-backed securities to offset expected inflation. However, that hasn’t happened today. Instead, rates DECREASED substantially. Investors ran screaming from stocks and back to bonds and MBS when the Fed released minutes from its Aug. 10 meeting. The minutes raised concerns that the central bank may not take steps to support the faltering economic recovery unless conditions deteriorate significantly. Meanwhile, other happy news: The Case-Shiller index rose, indicating home prices nationwide increased 4.4% in the second quarter.

Liz Freeman has more than a decade of mortgage lending experience. She writes about mortgage and finance issues and is a regular contributor to Mortgage News Daily.

Here is today’s look at best mortgage rates, (which do not include discount points, origination points, or loan level risk based price adjustments) provided by Mortgage News Daily, Freddie Mac, and other sources. Note that Freddie Mac’s AVERAGE rates are typically higher than BEST rates, because average rates include surcharges for risks associated with property types, down payments, and credit scores. To be eligible for BEST rates, borrowers need spotless credit (740 score or better), a sizable down payment (20-25%) or equity amount, and stable, adequate, and documentable income. In addition, the property must be located in a healthy (not declining) market and must be conventionally built.

LOCK ALERT *** RATES IMPROVE ***

Rates corrected slightly after yesterday’s panicked mortgage-backed securities selloff. July’s Personal Income and Outlays report showed that income rose 0.2% as expected, while spending rose 0.4% last month (slightly higher than expected). The increase in spending offset much of the gain in the bond and MBS market, but mortgage rates did improve slightly.

Liz Freeman has more than a decade of mortgage lending experience. She writes about mortgage and finance issues and is a regular contributor to Mortgage News Daily.

Here is today’s look at best mortgage rates, (which do not include discount points, origination points, or loan level risk based price adjustments) provided by Mortgage News Daily, Freddie Mac, and other sources. Note that Freddie Mac’s AVERAGE rates are typically higher than BEST rates, because average rates include surcharges for risks associated with property types, down payments, and credit scores. To be eligible for BEST rates, borrowers need spotless credit (740 score or better), a sizable down payment (20-25%) or equity amount, and stable, adequate, and documentable income. In addition, the property must be located in a healthy (not declining) market and must be conventionally built.

LOCK ALERT *** RATES UP SHARPLY ***

Mortgage interest rates increased sharply following a speech by Ben Bernanke in which the Fed head indicated that should more monetary intervention be necessary to support the economy, he would not worry about inflationary consequences. This initially spooked investors and caused them to flee bond and mortgage-backed securities, which sent the yields for those vehicles up. Remember that as MBS prices decrease, yields increase, and when yields increase, so do mortgage rates. However, all this reaction was not due to hard data, only a speech. There will likely be a correction soon.

Liz Freeman has more than a decade of mortgage lending experience. She writes about mortgage and finance issues and is a regular contributor to Mortgage News Daily.

Here is today’s look at best mortgage rates, (which do not include discount points, origination points, or loan level risk based price adjustments) provided by Mortgage News Daily, Freddie Mac, and other sources. Note that Freddie Mac’s AVERAGE rates are typically higher than BEST rates, because average rates include surcharges for risks associated with property types, down payments, and credit scores. To be eligible for BEST rates, borrowers need spotless credit (740 score or better), a sizable down payment (20-25%) or equity amount, and stable, adequate, and documentable income. In addition, the property must be located in a healthy (not declining) market and must be conventionally built.

LOCK ALERT *** NEW UNEMPLOYMENT CLAIMS DOWN, NOT GOOD FOR MORTGAGE RATES ***

The weekly unemployment figures indicated that 473,000 new claims for unemployment benefits were filed last week. This was lower than analysts’ expected, which is bad news for bond and mortgage rates, but since it’s only weekly data, it has not had much of an impact on this morning’s trading. meanwhile, stocks dropped after an initial rally, and mortgage rates improved after worsening initially. Final pricing will probably depend on how the market receives today’s Treasury auction of seven-year notes. Good demand could drop rates further, and a lackluster response would increase them.

Liz Freeman has more than a decade of mortgage lending experience. She writes about mortgage and finance issues and is a regular contributor to Mortgage News Daily.

Here is today’s look at best mortgage rates, (which do not include discount points, origination points, or loan level risk based price adjustments) provided by Mortgage News Daily, Freddie Mac, and other sources. Note that Freddie Mac’s AVERAGE rates are typically higher than BEST rates, because average rates include surcharges for risks associated with property types, down payments, and credit scores. To be eligible for BEST rates, borrowers need spotless credit (740 score or better), a sizable down payment (20-25%) or equity amount, and stable, adequate, and documentable income. In addition, the property must be located in a healthy (not declining) market and must be conventionally built.

LOCK ALERT *** RATES DROP FOLLOWING NEW HOME SALES REPORT, THEN INCREASE ***

Following on the heels of yesterday’s dreadful Existing Home Sales report, the New Home Sales Report added insult to injury. New home sales unexpectedly dove to the lowest level on record in July, dropping 12.4% for the month, the government reported. Economists had expected sales to nudge upward.However, by the end of the day, stocks were recovering, and some lenders began repricing for worse. Those that didn’t may do so tomorrow morning.

Liz Freeman has more than a decade of mortgage lending experience. She writes about mortgage and finance issues and is a regular contributor to Mortgage News Daily.

Here is today’s look at best mortgage rates, (which do not include discount points, origination points, or loan level risk based price adjustments) provided by Mortgage News Daily, Freddie Mac, and other sources. Note that Freddie Mac’s AVERAGE rates are typically higher than BEST rates, because average rates include surcharges for risks associated with property types, down payments, and credit scores. To be eligible for BEST rates, borrowers need spotless credit (740 score or better), a sizable down payment (20-25%) or equity amount, and stable, adequate, and documentable income. In addition, the property must be located in a healthy (not declining) market and must be conventionally built.

LOCK ALERT *** RATES DROP FOLLOWING HOME SALE REPORT ***

The national Association of Realtors Existing Home sales report was full or terrible news. Home sales fell by a record 27.2% in July, putting yearly sales at  just 3.83 million. This was very short of already low expectations.Why is this so important? Most feel that real estate was largely responsible for the country’s economic woes, and that only a real estate recovery can bring about a broad-based economic recovery. And when the economy falters, interest rates decline.

Liz Freeman has more than a decade of mortgage lending experience. She writes about mortgage and finance issues and is a regular contributor to Mortgage News Daily.

Here is today’s look at best mortgage rates, (which do not include discount points, origination points, or loan level risk based price adjustments) provided by Mortgage News Daily, Freddie Mac, and other sources. Note that Freddie Mac’s AVERAGE rates are typically higher than BEST rates, because average rates include surcharges for risks associated with property types, down payments, and credit scores. To be eligible for BEST rates, borrowers need spotless credit (740 score or better), a sizable down payment (20-25%) or equity amount, and stable, adequate, and documentable income. In addition, the property must be located in a healthy (not declining) market and must be conventionally built.

LOCK ALERT *** NO MAJOR ECONOMIC DATA TODAY, RATES DRIVEN BY STOCKS ***

Mortgage rates worsened early in the day as stocks roared. Equities got an early lift after Hewlett-Packard Co. bid 33 percent more than rival Dell Inc. for a data storage provider, but the gains faded quickly. The Dow Jones industrial average was up as much as 91 points in early trading but turned mixed for much of the day. A slump in the final half-hour of trading left the Dow with a loss of 39 points.In the end, mortgage interest rates were nearly unchanged.

Liz Freeman has more than a decade of mortgage lending experience. She writes about mortgage and finance issues and is a regular contributor to Mortgage News Daily.

So, where is the money?

An article in Mortgage News Daily claims that even though the program has funding, loan applications are still being accepted “subject to the availability of funds and Congressional authority to charge a 3.5 percent guarantee fee for purchase loans and a 2.25 percent guarantee fee for refinance loans.” That little disclaimer is keeping lenders from jumping back into the program because buyback responsibility for early defaults on those mortgages would fall on them. And right now, that’s a risk few mortgage will take.

So, just call another lender, right? Maybe not. Just anyone at any old mortgage lending company can’t so a USDA loan. Originating these mortgages requires special knowledge and training, and only a small percentage of loan professionals have it. Also, many lenders opt out of dealing with rural housing loans because they don’t market to rural areas or don’t want to involve themselves in the risk of underwriting these mortgages. So, when comparing mortgage quotes, ask about USDA rural housing mortgages. Checking online is helpful, because you may need to check with a number of companies before you find one that offers the program.

Low-income direct program does not go through private lender

Another USDA rural housing mortgage program doesn’t involve lenders at all, and still has money to lend. The mortgages made by the USDA directly to the borrowers at subsidized mortgage interest rates. While the guaranteed program was halted for a few months until its funding was re-established, the low-income Rural Development loan continued to be offered because it still had money to lend. This is a great program for those who meets its income eligibility requirements and buy homes in rural areas.

Here is today’s look at best mortgage rates, (which do not include discount points, origination points, or loan level risk based price adjustments) provided by Mortgage News Daily, Freddie Mac, and other sources. Note that Freddie Mac’s AVERAGE rates are typically higher than BEST rates, because average rates include surcharges for risks associated with property types, down payments, and credit scores. To be eligible for BEST rates, borrowers need spotless credit (740 score or better), a sizable down payment (20-25%) or equity amount, and stable, adequate, and documentable income. In addition, the property must be located in a healthy (not declining) market and must be conventionally built.

LOCK ALERT *** MORTGAGE PRICING IMPROVES AGAIN! BEWARE VOLATILITY AHEAD ***

The bond market is gaining from the uncertainty in the stock market. Investors have little definitive data to go on (indicators were mixed earlier this week, remember?) and the uncertainty has them fleeing into the arms of mortgage-backed securities, bonds, and other safe havens. The markets seem to be saying that the long-term economic future seems uncertain at best, and bleak at worst. However, if you are thinking short-term, as in,”I have to close a mortgage,” you should lock in your rate. The potential downside exceeds the potential upside for floating at this time.

If closing in the next 30 days, I would LOCK my rate; otherwise, I would FLOAT my rate. This is only an opinion–what I would do if I were closing a mortgage at this time. Your decision may depend on other factors such as the strength of your loan approval and your tolerance for risk, and must be made with those in mind.

Liz Freeman has more than a decade of mortgage lending experience. She writes about mortgage and finance issues and is a regular contributor to Mortgage News Daily.

Here is today’s look at best mortgage rates, (which do not include discount points, origination points, or loan level risk based price adjustments) provided by Mortgage News Daily, Freddie Mac, and other sources. Note that Freddie Mac’s AVERAGE rates are typically higher than BEST rates, because average rates include surcharges for risks associated with property types, down payments, and credit scores. To be eligible for BEST rates, borrowers need spotless credit (740 score or better), a sizable down payment (20-25%) or equity amount, and stable, adequate, and documentable income. In addition, the property must be located in a healthy (not declining) market and must be conventionally built.

LOCK ALERT *** MORTGAGE PRICING IMPROVES AFTER 2 BAD DAYS OF INCREASES ***

Unemployment data was the big headline as initial jobless claims (500,000) came in much higher than expected (476,000), pointing to continuing weakness in the US economy.  And typically, what’s bad news for the economy is good news for mortgage rates.  Following the release of this data, stock market futures moved much lower and interest rates began to rally after moving higher overnight.

If closing in the next 30 days, I would LOCK my rate; otherwise, I would FLOAT my rate. This is only an opinion–what I would do if I were closing a mortgage at this time. Your decision may depend on other factors such as the strength of your loan approval and your tolerance for risk, and must be made with those in mind.

Liz Freeman has more than a decade of mortgage lending experience. She writes about mortgage and finance issues and is a regular contributor to Mortgage News Daily.