Mortgage Market Conditions Report By Jerry Merrick of BB&T Bank.
3/7/12
3/7/12
Mortgage Bonds opened the day lower, and remain in negative territory after some “OK” economic data hit the wires. The ADP Private Payroll report increased in February from the January reading, signaling that the labor market is modestly improving.
Unit Labor Costs (or expenses per worker) increased more than double expectations, due in part to a sizable jump in wages. In fact…over the past six months, wages have grown by amounts not seen since early 2007. This is something I will be closely watching, as increases in wages can lead to “wage-based inflation.”
In the short-term, I am recommending a Locking bias due to the recent downward trend that is developing in Mortgage Bond prices. If anything changes, I will get back to you.
The following rates are for purchase loans with a 45 day rate lock:
30 Year Fixed Conforming: 3.875% with 0 points
30 Year Fixed Jumbo : 4.500% with 0 points
15 Year Fixed Conforming: 3.000% with 0 points
5/1 ARM Conforming: 2.500% with 0 points
5/1 ARM Jumbo : 2.875% with 0 points
10/1 ARM Conforming : 3.000 with 0 points
10/1 ARM Jumbo : 3.375% with 0 points
With so many variables affecting the market, it's more important than ever to have an advice - based strategy when structuring your loan, and I appreciate you trusting me with this role.
Jerry Merrick
Deep Creek Lake's #1 Lender
Vice President
BB&T Mortgage
Mortgage Loan Consultant
Office: (301) 387-3219
Cell: (301) 616-0037
Email: JMerrick@BBandT.com
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