Mortgage Rate Update and Random Thoughts

Good morning and welcome to another fantastic Delmarva weekend.  The weather looks to be brisk, with some wind and plenty of sunny skies.  I missed sending out a post last Saturday (was playing in the Peasant’s Cup – one of the year’s “major” golf tournaments at my club), so here goes for this week.

Congress passed another short term extension of the National Federal Flood Insurance Program (NFIP) this past week, extending funding until November 18th.  At that time, it is expected that a 5 year extension will be put in place so that we can sell and finance property at the beach without concerns about obtaining flood insurance.

October 1st saw big changes in the USDA Rural Housing program, FHA loan limits, and VA funding fee changes.  Please be sure to get with your favorite lender and understand what changes took place.  A quick note for you:  Here are the new FHA loan limits in Delaware for the period from October 1 through December 31, 2011:

DE Kent County                       $ 271,050

DE New Castle County            $ 379,500

DE Sussex County                    $ 316,250 

Mortgage bond prices fell last week, which pushed mortgage interest rates higher.  The roller coaster ride of investor funds entering and exiting the stock and bond markets continues as economic uncertainty dominates trading.  The losses continued as foreign demand for US debt instruments waned.  Stocks were volatile but generally saw improvements on the week.  Retail sales rose a stronger than expected 1.1%.

The inflation data on the producer and consumer sides will be extremely important this week.  There is also a 30Y TIPS auctions Thursday.  The recent auctions have shown weak foreign demand, which generally does not bode well for lower rates so caution will be key.

Mortgage pricing worsened by about ¼ of a discount point this week, pushing our 0 point 30 year fixed conforming rate for purchases to 4.25%.

Here’s the link to my rate sheet online: Baxter Rate Sheet

Have a great weekend and never hesitate to contact me if you need something – hit the cell, send an email, pop a text, or contact me on Twitter or Facebook.  And, if you need to get a buyer pre-approved?  Just send them to my secure online application – Baxter Online Mortgage Application – Click on “Start Your Application”

And here’s an easy way to introduce me to clients when you make a referral.  Send them to my About.Me Profile: Click Here

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