Mortgage Rates: Lowest Mortgage Rates Remain Stable While Stock Market Slumps

Today’s lowest mortgage rates remain stable while the stock market slumps as investors react to the Standard and Poor’s downgrade of the U.S. that occurred on Friday.

As Treasury yields remain low, conforming mortgage rates should also continue to stay put. Current 30 year fixed mortgage rates are at 4.125%, 15 year fixed mortgage interest rates are at 3.500% and 5/1 ARM loan rates are at 2.750%. There is still opportunity for borrowers who have maintained good credit to lock in these low mortgage rates that are available with 0.7 to 1% origination fee. Lender approval is also contingent upon a borrower’s ability to provide the necessary documentation.

Current FHA mortgage rates also remain steady today. Today’s FHA 30 year fixed mortgage rates are at 4.000%, FHA 15 year fixed mortgage rates are at 3.500% and FHA 5/1 ARM loan rates are at 3.250%. With the mission of promoting home ownership, FHA mortgage loans continue to be consumer friendly with low down payment requirements and easier credit qualifying. FHA mortgages can also be combined with housing grants and approved gifts both used to make the transaction even more affordable. FHA does have various fees and the upfront mortgage insurance premium which tend to make FHA closing costs (APR) higher.

Increasing .125%, today’s jumbo 30 year fixed mortgage interest rates are at 4.750%. 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. Jumbo mortgage loans are considered risky and, therefore, borrowers must have excellent credit to receive these lowest jumbo mortgage rates with 0.7 to 1% origination point. Jumbo mortgages are necessary for mortgage financing in excess of the conforming loan limit, which is $417,000 to $729,750 depending on location.

Current Wells Fargo California 30 year fixed mortgage rates are at 4.375% (4.559% APR).

MBS prices (mortgage backed securities) are up +15/32 (FNMA 30 yr 4.0 at 102.30) which is higher than earlier pricing of +11/32. Mortgage rates move in the opposite direction of MBS prices. Late Friday, after markets closed, Standard and Poor’s downgraded the credit rating of the U.S. This action has has had a negative impact on the stock market, but has boosted bond markets as investors seek safety. Oil is also lower today. Fears of a double dip recession have increased as reports continue to show overall weakness in economic growth.

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.