Mortgage Rates under 3.75% for the first time since WW II.

Rates had tested the 3.75% mark 4 previous times but just could not breach below this mark until today.  For the first time since WWII, 30 year fixed rate mortgages reached the 3.625% mark and there are signs that 3.50% could be the next milestone.

Rates moved lower this morning on employment news that showed that job creation may be once again slowing.  Non-farm payrolls increased by 115,000 in April which is okay and was somewhat expected but it is a far cry from the 200,000+ number shown in February.  Despite the unemployment rate dropping to 8.1%, its lowest level since 2009, Wall Street is having fears that the “recovery” may be slowing down once again.  The 10 year treasury once again fell below the 1.90% mark and is now standing at 1.87% as of this report.  If the 10 year can move below the 1.75% mark, look for 30 year fixed rates to land around 3.5%.

Purchase activity in the metro Atlanta Area has picked up quite a bit over the past two weeks with the hot purchase range being in the $150K to $250K range.  Despite the recent rise in the FHA Mortgage Insurance Premium and up front Mortgage Insurance, FHA continues to be the hot product.

Worth Taking A Look AT….FNMA 7 year ARM is currently running in the 2.625% range…If you know you won’t be in the home for 7 years, this is an option to consider.

FNMA 20yr Fixed

3.500%

0.00 points

FNMA 30YR Fixed

3.625%

0.00 points

FNMA 15 YR Fixed

2.875%

0.25points

Jumbo 30 Yr Fixed

4.375%

.25 points

7 Year FNMA ARM

2.625%

0.25 points

5 Year FNMA ARM

2.375%

.25 points

FHA 30YR Fixed

3.750%

NO Origination FEE

0.00 points

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