Congratulations to the Dow Jones industrial Average! As of Thursday, March 14th, the Dow had been on a nine-day winning streak, its’ longest since 1996. The Dow has been attracting a significant amount of money flow, some of which has been coming from the bond Market. As a result, bond prices have decreased causing mortgage interest rates to rise. Mortgage rates continue to be great, with 30 year mortgage programs still under 4.00%, and 15 year programs still under 3.00%.
Although the markets seem to have brushed off the effects of sequestration, the federal deficit and budget discussions dominate the financial news. There is renewed discussion concerning the home mortgage interest deduction, and we expect there to be significant debate surrounding the subject.
The 2nd quarter will also see an increase to FHA Mortgage Insurance. Monthly mortgage insurance rates on conforming loans will increase for al case numbers assigned on or after April 01, 2013. Furthermore, mortgage insurance will be reduced, but not eliminated, on FHA Loans that receive case numbers on or after June 03, 2013