August 31st, 2009 Categories: Mortgage Update
Mortgage rates were volatile again last week but closed relatively unchanged as we move into September:
- FHA/VA below $417k and below – 5.5% with 0 points; 5% with 1 point
- FHA/VA above $417k to $729,750 for FHA and $812k for VA – 5.5% with .05 points
- Conventional conforming $417k and below – 5.25% with 0 points.
- Conforming plus from $417k to $719,750 – 5.625% with 0 point.
Folks are stepping up the intensity of their home search as the end to the 2009 First Time Buyer Tax Credit is now in sight. Remember, buyers must close by November 30 to take advantage of the credit. To be safe, I recommend the buyer be under contract by October 15 to insure closing on time.
No news yet on an extension of the tax credit but stay tuned as we move further into the year.
Bright spots -
- According to the S&P/Case-Shiller 20-city home price index, we’ve now gone two months with prices actually increasing.
- The ISM Manufacturing Index isexpected to tic over the 50-mark, indicating that manufacturing is finally expanding.
For a full report on mortgage rates, click here.
As always, thank to Rob Clark at Preferred Mortgage,