Interest Rates and Market Fluctuations

As a seasoned loan originator, I tend to get a few questions asked of me repeatedly. Besides, "Do you think the housing market has hit a bottom?" I think the question brought up most is, "What do you think interest rates are going to do?" First, let me start by saying that no one really knows for sure what is going to happen to rates. However, if you watch the market closely, you can at least try to figure it out and be a little ahead of the curve when making a decision as to refinance, lock a loan in, etc. Here are a few things you can watch to get a good idea of what rates are doing and the direction they may be heading.

The yield on the 10-year treasury note is one of the largest market indicators showing the direction rates are heading. Click Here to see the 10 Year Treasury Note Yield Although, not directly tied the bond market, if the bond-yields are heading up, rates will more than likely follow.  Another good link is the FannieMae coupon: http://www.bloomberg.com/quote/MTGEFNCL:IND Rates are almost directly tied to this however, watching doesn't give you lot of time to react to a change because they usually have already been affected if a major rise or fall takes place in the coupon.

So, the next question is, what will make the treasure note yields change?  Please realize that the yield is another way of saying what interest rate you will get by purchasing a government bond.  When the economy is doing well, bond yields generally rise. People pull their money out of bonds and put them in stocks, or into their businesses which makes the government raise the yields to get people to invest back into bonds. Currently, the European debt crisis is having a significant impact on mortgage rates. As their news worsens, investors are more likely to buy US Treasuries instead of their European counterparts. Why? Because they feel the US is less likely to default on the debt which means less risk in US bonds.

One thing I often check is the weekly economic calendar.
Click here to see the economic calendar For example, if unemployment numbers are coming out on Friday and you expect a big drop in unemployment for whatever reason. It might be good enough news that people will pull their money out of bonds, put it in the stock market, and therefore, cause the yield to rise and more than likely make rates rise as well.

So, this just scratches the surface of all the various indicators of what rates may or may not do. In no way should you use this data to base any sort of financial decision on. It is simply meant for educational purposes only. If you have any questions, or would like to know more, feel free to contact me at 1-866-777-1865.

Why you might consider refinancing soon after buying a home

As you may have heard in the news, mortgage rates are plummeting, yet again.  Despite what has happened to the S&P United States credit rating many investors still feel like our bonds are a much safer investment than other places their money could be stored.  What does this mean for mortgages?  They realistically have hit one of their lowest points in history.  Check out what you can find with today's rates?

• 15 Year fixed loans as low as 3.5% with ZERO points*
• 30 Year Fixed loans as low as 4.0% with ZERO points*

What does this mean?  Not only is it the best time ever to buy, but if you have previously purchased a home in the last year and have a 4.75% or higher it is worth looking to see if you could save money by refinance.  There are even government programs for qualified individuals with credit scores as low as 620!!!  Please check out my website www.shawnkrumpe.com or contact me, Shawn Krumpe with PennyMac Loan Services at (916) 776-6484 for more details or if you have any questions.

*Rate examples are for conforming loans (< $417,000 and > $75,000) loans in California  with zero origination points, borrower FICO score of 740 or greater with a loan to value (LTV) of 75% or less on a single family owner-occupied residential property. Rates and APRs may vary depending on loan details including but not limited to points, loan amount, loan-to-value, borrower credit, income, expenses, property type, occupancy and geography.

Buying a Home in Yuba City

So you are you looking to move to Yuba City?  Yuba City has become a growing place to live as a more affordable and more rural alternative to Sacramento.

If you are simply looking to search homes in Yuba City you have come to the right place! Search Yuba City Homes For Sale HERE

Here are some quick facts about Yuba City.  As part of Sutter county the population as of 2010 was 43,209 with a 17% population change over the last ten years.  The climate is considered Mediterranean with mild winters with light rainfall.  The summers are usually dry and have very low humidity.  Evenings often stay cool due to the Delta breezes.

If you are looking to find out more about buying a home in Yuba City, please contact me today at (916) 776-6484!