CONSUMER WARNING:  FHA Loans To Become Much More Expensive
Starting with FHA Case Numbers pulled on or after June 3rd, 2013, FHA will dramatically raise the costs of FHA Mortgage Insurance, making these loans much more expensive.  Find out details by asking the MLO who sent you this commentary about FHA Mortgagee Letter 2013-04.

Last Week's Mortage Rates Recap
Last week saw rates continue to increase, as forecasted. Even when rates stabilized, we continued to see an errosion to rebate, the funds that the consumer receives towards closing costs in the form of a lender credit. Friday saw the most volatility with the MBS market rising immediately after the jobs report, only to fall back to where it started for the day and seeing some lenders issue repriced rates for the worse.




This Week's Mortgage Rates Forecast
Risks Favor: LOCKING
This week the risks still favor locking, with the technicals in MBS not showing any signs of a reversal. The RSI (Relative Strength Indicator) does not forecast a correction, and we hang perilously at the Support Level of 103.25 as we did most of last week. While we feel the market SHOULD be correcting, we are just not seeing it yet. Consumers who choose to try and wait it out, trying to achieve the best rates that we have seen in the past, will likely pay for that mistake. All technical indicators point to locking in interest rates before we see continued rate erosion. How we end the week will be especially important. Again, we must emphasize that consumers need to see the risks for trying to obtain better rates are much higher than the potential rewards they may see. All technical and fundamental indicators point to locking in rates as soon as possible until we see a reversal.