Mortgage Blog

Like any investors, the lenders are reviewing their
holding portfolios and rotate some loan programs
once in a while to balance their holdings to limit
their risks and maximize their profits.

The lenders financed lots of fixed loans in the 1st
half of 2009. And starting June 2009, they started
some ARMs, especially some high-balance ARMs. Those
ARMs have a little bit higher risk but the profit
margin is also higher(lenders like ARMs, if the
borrowers do not default). That's why we saw the
recent ARM rate around 4.5% to 4.625% for 5/1ARM.

Some of those ARM refis came from the refi ARMs with
higher rates, others from refi of the fixed 30 yr fixed.

When the lenders have the percentage of ARMs over the
limit, they will try to get more fixed rates soon.

We expect the lender will have some aggresive rates
on the fixed programs starting Oct. We should have
good rates on conforming 30 yr fixed and high-balance
30 yr fixed.

And we do have lenders offer good rates for 729k
loans starting Sep 8th. The best rate will be for
LTV 75% or less.

Enjoy the Labor day Weekend!