|Written by J. Wallace Jr.|
|Friday, 05 August 2011 15:45|
VA Loan Mortgage rates fall sharply yesterday to historic lows back up today
VA Loan Mortgage rates dropped yesterday to 60 year lows amid signs of a slowing economy.
A 30 year fixed rate mortgage VA Loan averaged 4.29 percent this week, down from 4.45 percent last week, according to CurrentVALoanRates.com Latest from The Business Journals Fannie spanks Bank of America with growing mortgage repurchases Fannie Mae needs another .1 billion in aid as more loans sour Fannie Mae needs another .1 billion in aid as more loans sour.
A 15 year fixed rate mortgage VA Loan fell to a record low of 3.44 percent, down from 3.56 percent last week.
A one-year, adjustable rate mortgage VA rose from last week’s record low of 2.65 percent to 2.55 percent this week.
“Treasury bond yields fell markedly after signs the economy was weaker than what markets had previously thought, allowing fixed-rate mortgages to follow this year,” says Paul Green, Veteran Loan Administrations chief economist.
The government estimated second quarter gross domestic product at a weak annualized pace of 1.3 percent, and consumer spending fell 0.2 percent in June, the first decline since fall 2009.There are signs that the housing market is firming. A report Thursday by The VA Hotline Inc in California showed nationwide housing prices have risen 4.1 percent in the last three months.
Why did VA Loan Rates raise today because of the Jobs Data?
VA Home loan borrowing costs for refinancing and VA Loan Purchases moved higher today after a better than expected jobs report this morning. The one week winning streak that led VA Loan mortgage rates back into historically low territory came to an end as a result. While economic growth seems to have stalled, this data tells us the economy isn't in free fall mode.
Consumer borrowing costs moved significantly lower every day this week that which is before today when a small portion of positive progress was given back. Considering the size and speed of the mortgage rate rally, this reversal wasn't so bad. It still pushed borrowing costs higher though. If you locked your VA loan yesterday, you were one of the lucky ones that took advantage of the best mortgage rates since early November 2010. If not get your paperwork in and lock in NOW.
CURRENT VA LOAN MARKET: Today 30 year fixed VA loan mortgage rate is 4.250%. Not many lenders are willing to offer 4.00% but 4.125% is available if you're willing to pay additional closing costs. Yesterday however 8/04/2011 rates were at 4.00% VA Loan 30 year fixed. Fewer lenders willing to quote 3.875% (includes additional closing costs). 15 year fixed conventional loans are still best priced at 3.75% and we're still seeing aggressive quotes at 3.625%. Five year VA Loan Adjustable Rate mortgage are still best priced at 3.25%. Adjustable Rate mortgage and 15 year quotes seem to have bottomed out.
VA LOAN GUIDANCE: VA Loan News outlook finally came true this week. And although borrowing costs rose today, we still believe mortgage rates have room to rally further, especially when considering that lenders have been slow to pass along gains this week. Recovering today's losses may take a few days or even weeks and the environment could get stressful, but our economic outlook remains supportive of a return to historic lows. So get your paperwork in and lock in your VA loan rate TODAY
CAUTION: VA Loan News guidance is speculative in nature. We don't have a crystal ball, we can't predict the future, and we can only share our outlook. Making the following considerations extra important.