Mortgage rates took a turn in the upward trend last week. Mortgages rates are tied to the 10 year T bill. On 1/31/2011 the 10 Year Treasury sat at 3.34% and is currently at 3.65%. This was mainly due to strong economic growth, unemployment lowering to 9% and the civil unrest in Egypt. I have been advising my borrowers to lock in their historically low rates. I am currently quoting 4.875% on a 30 year fixed with an APR of 5.01%. The guidelines are standard conforming borrowers with a 740+ credit score and 20% down payment.
In my opinion the economic outlook is more of the same. Big business getting larger by merging with other "big business". The unemployment numbers are not telling the entire picture. The so called "99ers" which are folks that their unemployment benefits ran out but still do not have jobs are not counted in the unemployment numbers. This seems to be forgotten to some extent. The driving force of our economic future is small business.
I expect to see mortgage rates continue on an upward trend but I feel the "trend setters", are missing the big picture.
Core Mortgage Financial
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