Houston Mortgage Rates Currently Calm…
There hasn’t been a whole lot of movement in Houston mortgage rates the past few days. Considering the fact that an average, “vanilla” 30 year fixed loan for a Houston refinance or purchase loan is sitting in the low to mid 5 percent range, the market is still ripe for anyone looking to get a new mortgage in Houston, no matter what the reason. With no major economic reports due out today and the Treasury auctions taking a break this week, we don’t expect to see any major swings in mortgage rates. But you can never be sure and if you’re ready to make a move, it’s always a good idea to lock in your rate now rather than sweating it out hoping to get a lower rate that, in effect, will probably save you the equivalent of some pocket change every month.
One thing to keep an eye on this week is that many financial sector companies will be announcing their quarterly earnings numbers. At least one well respected Wall Street analyst, Meredith Whitney, is currently making statements about the financial sector in general that are fairly positive. Part of the ‘good news’ according to her is that for mortgage servicers, loan modifications are actually helping them more than the typical mortgage refinance route that many homeowners would go through to improve their rates. This is because through a modification, the servicer not only retains the loan in their portfolio rather than giving it up and losing money on an up-front release premium, but they also extend the duration of the loan.
Oh, and if you’re wondering why Meredith Whitney is well respected, one reason might be that she was one who made early and accurate predictions about the troubles and eventual demise of many of the financial companies. Hopefully is she got it right back then with the negative sentiment, she’ll get it right again this time with a more positive sentiment.
