Arkansas Mortgage Rates: Mortgage Rates in Arkansas Are Finally Stable Following Recent Increases
January 28, 2011 (FreeRateUpdate.com) – Last week mortgage backed securities prices dropped and slowing home construction in Arkansas abounded. As a result, mortgage rates increased slightly last week. This week, however, mortgage rates in Arkansas have remained relatively stable. Investor speculation with regards to re-pricing could cause another increase in mortgage rates in Arkansas in the near future.
In Arkansas, a 30-year fixed rate conforming mortgage has a mortgage rate of 4.625 percent. A 15-year fixed rate conforming mortgage has a rate of 3.875 percent. An Arkansas 5/1 adjustable rate mortgage has a mortgage rate of 3.125 percent. For well-qualified Arkansas borrowers these favorable mortgage rates are obtainable with only 0.7 to 1.0 origination points.
The FHA mortgage rates had increased slightly as well but, similar to conforming mortgage rates, they are currently stable. The FHA mortgage rate is 4.500 percent for an Arkansas 30-year fixed rate FHA mortgage loan. The FHA mortgage rate is 4.000 percent for an Arkansas 15-year fixed rate FHA mortgage. An FHA 5/1 adjustable rate mortgage loan is currently at 3.125 percent, which increased 0.125 percent over last week’s mortgage rate. Despite recent increases in the Arkansas FHA mortgage rates, an FHA mortgage loan is still a popular mortgage lending option amongst Arkansas borrowers. FHA loans have more favorable loan terms than conforming mortgage loans. Nevertheless, it is important to remember that FHA-insured mortgage loans have higher closing costs and additional expenses. Some additional fees that the Federal Housing Administration charges to Arkansas borrowers include upfront mortgage insurance premiums, annual mortgage insurance premiums, additional residential appraisals, and so on.
Arkansas borrowers that are well-qualified have a strong credit history with minimal missed and/or late payments. To qualify, Arkansas borrowers typically have a credit score of at least 580 (sometimes upwards of 620) and very reliable income sources, such as steady job with either consistent or increasing salary, and enough financial reserves to cover a down payment of a minimum of 10 percent, which is usually verified by bank statements provided by prospective Arkansas borrowers. The Federal Housing Administration is historically known to have more lenient qualifications. But, due to recent economic circumstances, the Federal Housing Administration has restricted underwriting standards and to qualify for an FHA home mortgage loan more closely resembles the standards of conforming mortgage loans.
Jumbo mortgage rates in Arkansas have also remained unchanged compared to last week’s jumbo mortgage rates. A 30-year Arkansas jumbo mortgage has a mortgage rate of 5.125 percent. A 15-year Arkansas jumbo mortgage has a mortgage rate of 4.750 percent. For an Arkansas 5/1 adjustable rate jumbo mortgage, the jumbo mortgage rate is 3.875 percent, which is stable as well. For a single family residence, the national conforming loan limit is $417,000 in most of the continental U.S and $729,750 for “high-cost” areas, such as Washington D.C. and New York. For a majority of the counties in Arkansas the conforming loan limit is $417,000.
As previously mentioned, home construction throughout the state of Arkansas has decreased recently. Last week the mortgage market experienced an increase in mortgage rates as a result. Homebuilders, subsequently, have a very pessimistic outlook of the recent future of home construction. Also, mortgage backed securities and mortgage rates have an inverse relationship, meaning they move in contrasting directions. Therefore, if prices of mortgage backed securities fall, then Arkansas mortgage rates will rise. Hence, as MBS prices dipped a bit today due to investors’ speculation regarding the Fed’s meeting, Arkansas mortgage rates are not expected to decrease in the near future.
Arkansas Mortgage Rates
Arkansas borrowers that are well-qualified have a strong credit history with minimal missed and/or late payments. To qualify, Arkansas borrowers typically have a credit score of at least 580 (sometimes upwards of 620) and very reliable income sources, such as steady job with either consistent or increasing salary, and enough financial reserves to cover a down payment of a minimum of 10 percent, which is usually verified by bank statements provided by prospective Arkansas borrowers. The Federal Housing Administration is historically known to have more lenient qualifications. But, due to recent economic circumstances, the Federal Housing Administration has restricted underwriting standards and to qualify for an FHA home mortgage loan more closely resembles the standards of conforming mortgage loans.
Jumbo mortgage rates in Arkansas have also remained unchanged compared to last week’s jumbo mortgage rates. A 30-year Arkansas jumbo mortgage has a mortgage rate of 5.125 percent. A 15-year Arkansas jumbo mortgage has a mortgage rate of 4.750 percent. For an Arkansas 5/1 adjustable rate jumbo mortgage, the jumbo mortgage rate is 3.875 percent, which is stable as well. For a single family residence, the national conforming loan limit is $417,000 in most of the continental U.S and $729,750 for “high-cost” areas, such as Washington D.C. and New York. For a majority of the counties in Arkansas the conforming loan limit is $417,000.
As previously mentioned, home construction throughout the state of Arkansas has decreased recently. Last week the mortgage market experienced an increase in mortgage rates as a result. Homebuilders, subsequently, have a very pessimistic outlook of the recent future of home construction. Also, mortgage backed securities and mortgage rates have an inverse relationship, meaning they move in contrasting directions. Therefore, if prices of mortgage backed securities fall, then Arkansas mortgage rates will rise. Hence, as MBS prices dipped a bit today due to investors’ speculation regarding the Fed’s meeting, Arkansas mortgage rates are not expected to decrease in the near future.
Arkansas Mortgage Rates