Weekend Update from the Jeff Baxter Mortgage Team


We are offering a FREE buy down of the interest rate of ½% on new purchase mortgage applications accepted and locked THRU NOVEMBER 15TH!  Our current 30 year fixed rate on a conforming loan is 4.25% (4335% APR).  If a new purchaser locks that rate on a new application, we will buy the rate down for the first year to 3.75%.  In years 2 through 30, the rate goes back to 4.25%.  On a $300,000 mortgage, that’s a savings of $86 per month or $1,037.  What a great closing tool to get a buyer off the fence and make that offer.  There are some restrictions so give me a call.

Market Comment

Mortgage bond prices finished the week lower which pushed mortgage interest rates higher. Rates were slightly higher Monday morning in response to stronger than expected industrial production and capacity use data. Things were stable midweek after the producer price index and consumer price index reports showed no real inflation concerns. The ADP employment report was higher than expected which was not rate friendly. Stronger than expected ISM Index data Friday morning pressured rates a bit higher. Mortgage interest rates finished the week worse by approximately 1/4 of a discount point.

You can see an indication of our current rates here:  Baxter Rate Sheet

The Future

As I’ve come down from my sugar rush after Halloween, I realized we’re into the last 2 months of 2013.  What a wild year it’s been and 2014 is probably going to be another strange ride in the real estate sales and real estate finance worlds.  A lot of new issues are coming down the road at us including new rules on the “Ability to Repay – ATR”, “Qualified Mortgages -QM”, and “Qualified Residential Mortgages – QRM” to name a few.  And, how about changes to the federal flood insurance program, the elimination of the tax waiver on forgiven debt (think short sales), and a coming reduction in conventional loan limits.

We’ll keep you up-to-date with all the news and impacts in these communications, but always feel free to contact me if a question comes up about real estate finance that you want to discuss.  I’m here to help you build your business and I love doing that.

All the best for the weekend and don’t forget to turn back your clocks Saturday night!

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