Conforming, FHA, and Jumbo Mortgage Interest Rates Unchanged by Today’s Economic Data
By: Ed Ferrara
LOS ANGELES, CA — Feb. 17 (FreeRateUpdate.com) – A slew of economic data released today did little to mortgage-backed securities prices, which effect mortgage rates, this morning. MBS prices are down slightly -6/32 (FNMA 30-yr 4.5 at 100.30), not nearly enough to change mortgage interest rates for the worse. Mortgage rates for conforming and FHA loans move opposite MBS prices. Data released today was mixed. January Housing Starts rose 3% to an annual 
rate of 591K units, the highest level in six months. Building Permits, fell 5%. The Dow is up again today, just over 30 points. The benchmark 10 year treasury yield, used by mortgage professionals and economists to forecast mortgage rates, is up +0.04 and at 3.70 as of 9:58 AM PST.
Mortgage rates today at par are unchanged. There’s a chance lenders adjust their rate sheets for the worse, making closing costs slightly higher.
The current conforming 30 year fixed rate at par is still 4.75%. The current 15 year fixed rate rate at par is 4.25%, still. The current 5/1 ARM rate at par is 3.75%, also unchanged.
Current FHA mortgage rates are the same as conforming mortgage rates except for the FHA 15 year fixed rate, which is 4.50%. Due to PMI and other fees charged by the FHA, FHA loans are far more expensive than con conforming mortgages. The up to $8,000 home buyer tax credit is applicable toward closing costs.
The current jumbo 30 year fixed rate at par is still 5.75%.
A par rate is what a qualified consumer should receive with a standard .07 to 1 point in origination on any given day. Par rates are typically at least 1/4 percent below national averages reported by Bankrate.com and Freddie Mac. Less savvy borrowers often receive rates 1/4 percent higher than what they are well qualified for because they are not aware of the day’s par rates. The banks make huge profits on this. Par rates, not national averages, are what consumers should shoot for. Par rates are the industry standard for all mortgage industry professionals who widely consider national averages inaccurate.
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