Mortgage Rates: Low Mortgage Rates Sitting Tight After Preliminary Jobs Report

Low mortgage rates are sitting tight after a preliminary jobs report released from ADP showed that 91,000 jobs were added last month by private sector companies. The government’s complete employment data will be reported on Friday. Stocks increased today as investors reacted to this positive news.

Conforming mortgage loans are still the most desired and more so recently as they have had record low mortgage rates. Today’s 30 year fixed mortgage interest rates are at 3.875% and 15 year fixed mortgage rates are at 3.250%. 5/1 ARM loan rates are at 2.625%. Refinancing to a shorter term 15 year fixed mortgage loan can save borrowers a lot of money in interest over the course of the loan. In many cases, if the original mortgage rate was higher and for a longer term, the resulting monthly mortgage payment may actually be the same, but the mortgage will be paid off in half the time. With good credit and income that can be verified, borrowers can obtain these low mortgage rates with 0.7 to 1% origination point.

According to the Mortgage Banker’s Association, while total loan applications decreased last week, FHA mortgage loan applications increased. This should come as no surprise since FHA offers a low down payment of 3.5% which gives borrowers the opportunity to become homeowners even if they are low on cash. Current FHA 30 year fixed mortgage interest rates are at 3.750% and FHA 15 year fixed mortgage rates are at 3.500%. FHA 5/1 ARM loan rates are at 2.750%. Although FHA closing costs (APR) tend to be higher because of various FHA fees and the upfront mortgage insurance premium, borrowers can use approved gifts and housing grants to bring down those costs.

Jumbo mortgage rates have been changing only slightly back and forth for the past few weeks. Today’s jumbo 30 year fixed mortgage rates are at 4.625%, an increase of .125%. Jumbo 15 year fixed mortgage interest rates are at 4.375% and jumbo 5/1 ARM loan rates are at 3.250%, both remaining the same. Since jumbo mortgage loans are not government insured, they are usually considered risky. For that reason, borrowers must have excellent credit to receive lender approval for these lowest jumbo mortgage rates with 0.7 to 1% origination fee.

Current Wells Fargo California 30 year fixed mortgage rates are at 4.125% (4.307% APR).

MBS prices (mortgage backed securities) are down -3/32 (FNMA 30 yr 3.5 at 102.20) which is higher than earlier pricing of -4/32. MBS prices did hit a low of -10/32 this morning, which for a short time, put mortgage rates at risk of rising. Mortgage rates move in the opposite direction of MBS prices. The Institute of Supply Management, which measures the service sector work force minus manufacturing, reported that this sector saw an increase. Investors saw an opportunity to jump back into stocks on the current positive employment reports before turning their attention back to the Euro zone crisis in Greece.

FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders’ rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard .07 to 1% point origination fee.