Current mortgage rates are steady with the 30 year fixed conforming mortgage rate holding at near an all time low this afternoon, 4.625%. Prices of Residential Mortgage Backed Securities which move opposite mortgage rates are up today slightly. The benchmark 10 year treasury yield, used to forecast current mortgage rates, is also up slightly and at 3.364% at closing. The down is up over 132 points today on a variety of economic data including multiple reports pointing to an improving housing market. Existing home sales jumped a whopping 10% in October from September fueled by lower mortgage rates and the tax credit. Another positive bit of data, inventory is down to 7 months the lowest level since February 2007.
Current Mortgage Rates – 30 Year Fixed Mortgages
The current 30 year fixed mortgage rate is 4.625% threatening to set an all time historic low this week. Any positive move in the secondary mortgage rate market will push rates to 4.5%. The last time 30 year fixed mortgage rates were this low they jumped a 1/4% in a single afternoon. Currently Mortgage Backed Securities prices indicate a medium risk level for mortgage rates to move upward.
Other Current Mortgage Rates – 15 Year Fixed, 5/1 ARM
The current 5/1 ARM rate remains 3.75%. 5/1 ARM loans are not recommended for anyone staying in the home or loan for more than 5 years. Why? After the initial 5 year fixed period the loan becomes adjustable with a rate based off an index and margin. Adjustable rates can be as high as 10% in the right economic environment. The current 15 year fixed mortgage rate remains 4.25%. We haven’t seen too much fluctuation in 15 year fixed mortgage rates.
Current FHA Mortgage Rates
The current FHA 30 year fixed rate is 4.75%. Most big banks are pushing 5% in their advertisements; however, our research of wholesale mortgage lender’s rate sheets shows 4.75% is indeed available and being offered by a handful of wholesale lenders. FHA mortgage rates have steadily declined with conforming mortgage rates. The current FHA 15 year fixed rate is 4.5%, a 1/4% higher than that of conforming mortgages.
