1) Where are Rates?
On their way up. The EuroZone news that came out that they think they have solved the Greece debt issues has cause the stock market to rise over 500 points in the last 2 days. That sort of positive progression in the stock market almost always has a negative effect on mortgage rates. Today in particular mortgage rates have really climbed up.
2) Where are they going?
Over the last 10 days they have been on a climb. I think they will continue to creep higher. That could change as the Euro plan is digested and they find the glitches in it or any more news comes out – say Italy. But for now the news is positive and with our positive GDP news as well that is going to put pressure to push rates higher.
3) New Government Program – the extension of HARP
The HARP Program – Home Affordable Refinance Program – expansion was announced this week. The program has been in place for a while now, but it was just announced that it will no longer cap the loan to value at 125% of appraised value, but have it limitless and waive the need for an appraisal. This will open up the market for a lot of people, especially here in AZ who are more than 25% underwater to be able to take advantage of the low rates. The full effects of the expansion will not be in the market till the end of December, but keep checking back as we get more updates about it.