Mortgage Rates: Low Mortgage Rates Remain In Place Ahead of Heavy Week of Housing Data
Current low mortgage rates remain in place ahead of a heavy week of housing data releases. Existing home sales, new home sales, home prices and pending home sales will all be released this week giving a clearer picture of both the real estate and mortgage markets.
Mortgage rates are at a new record low since last week which is great news for consumers. Today's 30 year fixed mortgage interest rates are at 3.375%, 15 year fixed mortgage rates are at 2.750% and 5/1 ARM loan rates are at 2.125%. With good credit and the necessary qualifications, borrowers can obtain these low mortgage rates with 0.7 to 1% origination point. Employment, income and assets must be documented so that the information can be verified by the lender. For those interested in making a home purchase, home affordability is at a record high when combining low home prices and low mortgage rates. For those who are current homeowners, but are now underwater, Harp 2.0 is available and often does not require an appraisal. Mortgages must be with Fannie Mae or Freddie Mac and dated prior to June 1, 2009. A quick online inquiry will help you find out if you are eligible to refinance for Harp or possibly another mortgage program.
Current FHA 30 year fixed mortgage rates are at 3.125% and FHA 15 year fixed mortgage rates are at 2.625%. FHA 5/1 ARM loan rates are at 2.625%. For those looking for a low down payment, FHA mortgages are available with this option. With FHA mortgages, borrowers can also use gifts and housing grants or loans to help with the down payment, as long as they meet approval guidelines. FHA does have higher closing costs (APR) because they charge an upfront mortgage insurance premium and other FHA fees, but these charges can be added to the mortgage provided the loan to value meets FHA guidelines. In just a few weeks, FHA's streamline refinance with no cash out will be in force for existing FHA borrowers who have mortgages that were endorsed prior to June 1, 2009. This program is expected to draw millions of FHA borrowers because it offers refinancing to record low FHA mortgage rates with no documentation or appraisal and lower upfront and annual mortgage insurance premiums.
Today's jumbo 30 year fixed mortgage interest rates are at 4.125%, jumbo 15 year fixed mortgage rates are at 3.125% and jumbo 5/1 ARM loan rates are at 2.250%. Borrowers must have excellent credit in order to obtain these lowest jumbo mortgage rates with 0.7 to 1% origination fee. Jumbo mortgages are required for financing above the conforming and FHA loan limits. Stricter guidelines are in place since jumbo mortgages are not government insured or sold to Fannie Mae or Freddie Mac. Considered private loans, lenders may require substantial assets to cover larger down payment requirements and additional months of reserves.
Current Wells Fargo California 30 year fixed mortgage interest rates are at 3.625% (3.799% APR).
MBS prices (mortgage backed securities) are up +1/32 (FNMA 30 yr 3.5 at 104.14) which is the same as earlier pricing. Mortgage rates, which move in the opposite direction of MBS prices, are stable. There is little activity today as markets remain quiet. The G8 meeting has been taking place this weekend. While G8 leaders confirm their support for Greece to remain in the European Union, there are no agreements on measures to ease Europe's continuing financial troubles. Stocks are up slightly as there is no U.S. economic data being released today.
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 0.7 to 1% point origination fee.
