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04/25/08

from bankrate.com

Mortgage rates rose modestly across the board this week. The average 30-year fixed-rate mortgage rose 8 basis points, to 6.11 percent. A basis point is one-hundredth of a percentage point. The average 15-year fixed -- a popular option for refinancing -- increased by 5 basis points, to 5.7 percent. The average jumbo 30-year fixed moved up 2 basis points, to 7.34 percent.

Adjustable-rate mortgages also moved higher. The one-year adjustable-rate mortgage increased 10 basis points, to 6.55 percent. The popular 5/1 ARM -- which had dropped dramatically over the past month -- reversed its trend and moved 7 basis points higher, to 5.92 percent.

The Mortgage Bankers Association reported that mortgage application levels fell sharply for the week ending April 18. Activity sank a seasonally adjusted 14.2 percent from a week earlier. Refinancing was down 20.2 percent while applications for purchase fell 6.4 percent



FNMA has now posted the stimulus package guidelines for loans over 417K in high cost areas. You can review their new quidelines at https://www.efanniemae.com (use our link to the left)

These loans will be available primarily to borrowers with very good credit (ficos of 660 & above) and require full documentation. Fannie began accepting loans under these new guidelines on April 1st.


Local Market Conditions

Second trust lenders have pulled out of the market and private mortgage insurance (PMI) has become more creative. You can now pay mortgage insurance upfront or lender paid MI can be financed into the note rate.

Earlier this month, Fannie Mae and Freddie Mac included the Washington, D.C. area on their declining market list with lenders now requiring an additional 5% down.

The Washington Post has reported that lenders are freezing or decreasing current Home Equity Line of Credit loan limits already in place because of declining prices.

PMI companies are not longer insuring condos with 5% down payment, they are requiring a minimum of 10%.

Local Market News provided by Renee Komondy
Senior Loan Officer – Preferred Service Mortgage
703-674-7580  komondyr@prefmtg.com

First Savings Mortgage continues its reduced flat fee refinancing terms:

less than $500,000 - $1,000
$500,001 - $750,000 - $1,500
$750,001 - $1,000,000 - $2,000

contact Ken Byrne at 703.883.9582