Mortgage rates soar

Mortgage rates have been rising steadily over the last few weeks and if ever there was a time to “lock in” your rate then that it is NOW.

With current CPI, PPI and Unemployment reports being surprising optimistic and the belief on Wall Street that “the worst is over” the rates on the 10yr Treasury have started to sky rocket. This in turn is forcing mortgage rates to move up by more than a full % point in the last 4 weeks.

There has never been a better time for a qualified buyer or a homeowner looking to refinance than right now. it is my belief that rates will continue to increase over the year (they always do in the Summer anyway) additionally I believe that inflation will continue to rise through the year which will also have a negative on interest rates on mortgages, credit cards, car loans . . . everything.

Interested in purchasing a home or refinancing out of your high rate or adjustable rate mortgage, then please contact Joe Sloboda @ (954) 557-4653 if you have questions on how I may help you – or you can email me at jsloboda@hgmortgage.net  Visit my website at www.fastneasyhomeloan.com

see a recent article from CnnMoney below that really puts this into perspective

Mortgage rates soar
30-year fixed jumps to 5.65%; ARMs mostly higher.

By Julianne Pepitone, CNNMoney.com
June 4, 2009: 4:24 PM ET

NEW YORK (CNNMoney.com) — Home mortgage rates jumped in the most recent week, with the average 30-year fixed rate rising to 5.65%, according to a report released Thursday.
The 30-year fixed rose from 5.45% last week, according to a weekly national survey from Bankrate.com.

“Mortgage rates posted another strong move higher this week, as the focus among bond investors has shifted to concerns about budget deficits and inflation,” the report said.
Mortgage rates move in tandem with Treasury yields. In particular, the 30-year fixed mortgage rate tracks the benchmark 10-year Treasury yield.

“The Federal Reserve, with more than $1 trillion remaining in their stated mortgage- and government-bond buyback program, could accelerate or possibly increase those purchases in an effort to bring rates lower,” the report said.

A separate Wednesday report showed U.S. mortgage applications fell last week, reflecting a plunge in demand for home refinancing loans. A report last week showed the largest quarter-over-quarter increase in troubled mortgages since record-keeping began in 1972.
Even as mortgage rates continue to rise, they still remain much lower than last year, when the average 30-year fixed mortgage rate was 6.52%, according to Bankrate.com.

To translate the difference in mortgage rate into dollars for a homeowner, consider a $200,000 loan. At 6.52%, the monthly payment would come out to $1,266.77, or $112 higher than the $1,154.47 monthly payment at 5.65%.

Other rates: The average 15-year fixed rate mortgage jumped to 5.06% from 4.86% the week prior.

The average jumbo 30-year fixed rate ticked up to 6.68 % from 6.6%. Loans are considered “jumbo” when they are too large to be purchased or guaranteed by Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500). They have higher rates than smaller “conforming” loans, which do have guarantees.

Adjustable-rate mortgages were mixed, the report said, with the average 1-year ARM slipping to 5.01% and the 5-year ARM jumping to 5.2%.

re-posted by Joseph Sloboda