Acadia National Mortgage, LLC

Mortgage Rates as of Friday Nov 28, 2008

30 Yr Fixed Rate 5.50%  0 Points  APR 5.521%

20 Yr Fixed Rate 5.375% 0 Points APR 5.403%

15 Yr Fixed Rate 5.25%  0 Points APR 5.285%

Maximum loan amount for conforming fixed rates is $417,000

3/1 ARM Loan @ 5.625% with .25 Points APR 4.85%

5/1 ARM Loan @ 5.875% with .25 Points APR 4.912%

7/1 ARM Loan @ 6.125% with .25 Points APR 4.974%

Maximum loan amount for ARM loans above is $500,000

APR's  Calculated using a loan amount of $225,000

 

Bucks County Pennsylvania Interest Rates March 4, 2008

The following rates and APR's are based on Conforming Loan Amounts and a Maximum Loan Amount of $417,000

APR's are based on a loan amount of $250,000 with 20% Down and No Mortgage Insurance

Below is the range for rates the last five business days.

30 yr Fixed has ranged from 5.875% to 6.125%   APR 5.899 to 6.135

7/1 ARM  5.75% & .25 Points APR 5.795%

5/1 ARM  5.50% & .25 Points APR 5.675%

3/1 ARM  5.00%  & 0 Points APR 5.084%

Bucks County Mortgage Interest Rates

Mortgage Interest Rates for the week of February 18th, 2008

The following rates and APR's are based on Conforming Loan Amounts and a Maximum Loan Amount of

$417,000 Jumbo Rates will be posted after 1:00 pm today

APR's are based on a loan amount of $250,000 with 20% Down and No Mortgage Insurance

30 yr Fixed has ranged from 5.875% to 6.25%   APR 5.899 to 6.275

7/1 ARM  5.125%  0 Points APR 5.085%

5/1 ARM  4.875% 0 Points APR 4.961%

3/1 ARM  4.625% 0 Points APR 4.839%

Mortgage Interest Rates for the week of February 18th, 2008

The following rates and APR's are based on Conforming Loan Amounts and a Maximum Loan Amount of

$417,000 Jumbo Rates will be posted after 1:00 pm today

APR's are based on a loan amount of $250,000 with 20% Down and No Mortgage Insurance

30 yr Fixed has ranged from 5.875% to 6.25%   APR 5.899 to 6.275

7/1 ARM  5.125%  0 Points APR 5.085%

5/1 ARM  4.875% 0 Points APR 4.961%

3/1 ARM  4.625% 0 Points APR 4.839%

Fed Lowers Rates - Mortgage "Rates" Rise????

The Federal Reserve has lowered the fed funds rate by 1.25% over the past four weeks or so. The prime rate has fallen in step as usual. So why have  mortgage interest rates steadily increased over the past two weeks?

The answer is somewhat simple. The "Bond Market" disagrees with the "Fed" on where Long Term interest rates are going.  The Federal Reserve bank is charged with maintaining "Stability of Price" within the economy. But they also act to keep the economy from sliding into a recession. There are a number of factors influencing both the Fed and the Bond Market these days. Remember, the bond market controls what happens to rates on 30 year mortgages, the Federal Reserve does not.

The Federal Reserve sees the numbers that reflect an inflationary environment. They watch these numbers very closely. They also see the risks to the housing industry, due to lower demand, the effects of increasing foreclosures, the sub prime mortgage debacle.  More recently, the numbers would indicate that a recession is possibly on the horizon. Many large financial institutions have incurred large losses due to sub prime mortgage write downs. The Fed's lowering interest rates will help these institutions as well as individual homeowners who have sub prime adjustable rate mortgages coming up for adjustment.

The bond market has had to deal with the aftermath and on going issue associated with the "Sub prime Mortgage Market".  There is virtually little to no liquidity in the markets to issue new mortgage backed bonds/securities these days. Just ask a lender for a quote on a 30 year fixed rate jumbo loan and you'll be shocked.

Historical spreads between conforming loan rates and jumbo rates has hovered at about .25 to .375% basis points higher for the jumbo. Today, that spread is close to 1.25 basis points. It is the clearest evidence that the market in which mortgage backed bonds operates, are not operating as usual.   

So the Fed and Bond markets are moving in opposite directions. The Fed is lowering "Interest Rates" (Short Term) while the bond market is pushing rates up. Whether bond traders actually see serious inflation up the road or some force in the credit markets is inducing the massive selling over the past two weeks, rates on 30 year mortgages have risen almost 1 per cent age point in less than four weeks. Almost unprecedented and shocking for sure. We'll see if the selling abates as it seems bonds are way oversold, and if bond traders begin buying back their positions and rates begin to move back down. Very interesting stuff going on right now. The next four weeks should be very interesting for the "Bond Market", the Federal Reserve and long term mortgage interest rates.

The Federal Reserve has lowered the fed funds rate by 1.25% over the past four weeks or so. The prime rate has fallen in step as usual. So why have  mortgage interest rates steadily increased over the past two weeks?

The answer is somewhat simple. The "Bond Market" disagrees with the "Fed" on where Long Term interest rates are going.  The Federal Reserve bank is charged with maintaining "Stability of Price" within the economy. But they also act to keep the economy from sliding into a recession. There are a number of factors influencing both the Fed and the Bond Market these days. Remember, the bond market controls what happens to rates on 30 year mortgages, the Federal Reserve does not.

The Federal Reserve sees the numbers that reflect an inflationary environment. They watch these numbers very closely. They also see the risks to the housing industry, due to lower demand, the effects of increasing foreclosures, the sub prime mortgage debacle.  More recently, the numbers would indicate that a recession is possibly on the horizon. Many large financial institutions have incurred large losses due to sub prime mortgage write downs. The Fed's lowering interest rates will help these institutions as well as individual homeowners who have sub prime adjustable rate mortgages coming up for adjustment.

The bond market has had to deal with the aftermath and on going issue associated with the "Sub prime Mortgage Market".  There is virtually little to no liquidity in the markets to issue new mortgage backed bonds/securities these days. Just ask a lender for a quote on a 30 year fixed rate jumbo loan and you'll be shocked.

Historical spreads between conforming loan rates and jumbo rates has hovered at about .25 to .375% basis points higher for the jumbo. Today, that spread is close to 1.25 basis points. It is the clearest evidence that the market in which mortgage backed bonds operates, are not operating as usual.   

So the Fed and Bond markets are moving in opposite directions. The Fed is lowering "Interest Rates" (Short Term) while the bond market is pushing rates up. Whether bond traders actually see serious inflation up the road or some force in the credit markets is inducing the massive selling over the past two weeks, rates on 30 year mortgages have risen almost 1 per cent age point in less than four weeks. Almost unprecedented and shocking for sure. We'll see if the selling abates as it seems bonds are way oversold, and if bond traders begin buying back their positions and rates begin to move back down. Very interesting stuff going on right now. The next four weeks should be very interesting for the "Bond Market", the Federal Reserve and long term mortgage interest rates.

Volatility The Norm These Days

U.S. Bond and Stock markets continue to swing back and forth fighting for investor dollars and some clarity  as to the direction of inflation and the US economy. This week has been very busy with a great deal of economic data affecting both bonds and stocks leading to the volatility we have experienced. Bonds have been selling off leading to a gradual rise in interest rates.

Bucks County Pennsylvania Mortgage Interest Rates

Mortgage Interest Rates for the week of January 28th, 2008

The following rates and APR's are based on Conforming Loan Amounts and a Maximum Loan Amount of

$417,000 Jumbo Rates will be posted after 1:00 pm today

APR's are based on a loan amount of $250,000 with 20% Down and No Mortgage Insurance

30 yr Fixed has ranged from 5.5% to 5.625%   APR 5.528 to 5.649

7/1 ARM  5.125%  0 Points APR 5.085%

5/1 ARM  4.875% 0 Points APR 4.961%

3/1 ARM  4.625% 0 Points APR 4.839%

Mortgage Interest Rates

Action by the US Federal Reserve Bank helped push bond prices up and interest rates down today. 30 Yr Fixed rates now hover around 5.5% to 5.375% depending on credit score, purpose of loan, and loan to value will all affect the final interest rate.