With relatively few significant U.S. economic data scheduled to be released this week, we predict that mainly news and rumors from the Eurozone will impact markets. This means that mortgage rates may stay near record-low levels or even plummet deeper, unless some sort of plan for the resolution of the EU debt crisis gets outlined.
According to news from Europe, there’s an increasing chance that Spain might need a full bailout. Some regions regions have already requested financial assistance from the government, and there’s a growing concern that others may follow.
In line with this, mortgage-backed securities (MBS) were rallying this morning, pushing interest rates down for the 30-year FRM. Again, we may see mortgage rates tumbling today to new-record lows. As for the rest of the week, things will pick up in the second half of the week, as the upcoming reports on New Home Sales and Durable Goods will be released on Wednesday, with Initial Jobless Claims and Consumer Sentiment reports being scheduled for a release on Thursday and Friday.
Most U.S. top lenders are beginning the new week by offering some very attractive mortgage packages, similarly to last week. For instance, Wells Fargo (NYSE:WFC) has the 30-year FRM lined up at a rate of 3.625% with an APR yielding to 3.799%. The 15-year fixed rate version of this type of mortgage can be locked in for as low as 2.875% and an APR variable of 3.182%.
Regarding other type of deals, Wells Fargo’s 30-year fixed FHA loan remained largely unchanged at 3.375% and carries an annual percentage rate of 4.410%.
For some potential refinancers the 5-year ARM might be a more suitable option, as this loan is being advertised at a rate of 2.250% and bears an APR variable of 3.153% as of today.
The value across a number of home mortgage loans have been quite consistent at PNC Bank (NYSE:PNC) over the course of the last few weeks. This Monday, the 30-year fixed rate mortgage represents a fairly good option for those who are looking to refinance their existing loans, as this deal is available at a rate of 3.625% and has a competitive APR in the form of 3.641%. Currently, the starting rate on the also popular 15-year fixed rate loan is 3.000% and an APR of 2.971%.
Moving on to see today’s mortgage rates at Chase (NYSE:JPM), most packages remained unchanged and are still offering excellent alternatives for those who are considering to take out a new debt. The standard 30-year fixed refinance loan opens at 3.750% and comes with an annual percentage rate of 3.821%. On the other hand, the 15-year FRM can be snapped up for as little as 3.000% plus an APR variable of 3.107%.
There haven’t been much changes regarding adjustable rate loans, with the 7/1 ARM starting at 2.625% and an APR of 3.067%, while the 5/1 version ARM demands only 2.375% and has an APR sum of 3.068% as of Monday.