Napa Mortgage News

Investors were split about whether yesterdays Fed statement would include significant changes in language in one or two areas.  It appears that it did not. The bond purchase program will decrease by another $10 billion per month to $15 billion and will conclude next month, as expected.  Fed officials kept the language, saying that the fed funds rate will remain near zero for a "considerable time" after the end of the bond purchase program.  Fed officials also continued to describe the labor market as containing "significant underutilization".  What hurt MBS prices the most was that Fed officials forecasted a faster pace of fed funds rate hikes over the next couple of years. Click on the DailyRateLockAdvisory for a recommendation on whether to lock or float your loan!  This information updates daily and sometimes several times a day when applicable.  Currently the 30 year fixed conforming and jumbo loans are in the high 3's to low 4's.  The 5/1 and 7/1 a.r.m.'s are still in the high 2's to low 3's and the FHA fixed around 3.75% with the 5/1 a.r.m. coming in at approximately 3%.