FreeRateUpdate.com sees rush of homebuyers with signed purchase contracts
By: Ed Ferrara | May 2nd, 2010
May 2, 2010 (FreeRateUpdate.com) – FreeRateUpdate.com saw a rush of homebuyers with signed purchase contracts last week, the majority likely moving to beat the Apr. 30th deadline for the homebuyer tax-credit. For the first time in 2 years, the number of consumers requesting a rate with a signed purchase purchase contract in hand, exceeded those refinancing their home. Based on what we’ve seen coming through FreeRate, we’ve got to expect April home sales data will be quite impressive. FHA loans remain most popular with homebuyers, because of the 3.5% minimum down-payment.
FHA mortgage rates today are excellent, actually available at rates just below those of conforming mortgages. Well-qualified consumers paying a standard .07 to 1 point origination can actually obtain a 30-year fixed FHA loan at 4.75% today, an 1/8 below conforming. Despite the lower note rate, MI and other FHA fees drive costs up; therefore, APR on an FHA loan is typically much higher.
As those who signed agreements last week continue to secure financing it’s likely the percentage of borrowers requesting rates with signed purchase contracts remains elevated.
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