Mortgage Rates: Low Mortgage Rates Push Existing Home Sales Higher
Low mortgage rates are pushing existing home sales higher as record high affordability continues to help potential home buyers. According to the National Association of Realtors, existing home sales rose 3.4% in April and are well above last year's numbers. Positive gains in employment, low home prices and record low mortgage rates are making homes more affordable and within reach of consumers who are now outnumbering investors in home purchases.
Still widely used for the purchase of a home, current conforming 30 year fixed mortgage rates are at 3.375%, 15 year fixed mortgage interest rates are at 2.750% and 5/1 ARM loan rates are at 2.125%. These are the lowest conforming mortgage rates available with 0.7 to 1% origination fee for borrowers who have maintained a history of good credit. Lenders will also verify employment, income and assets in order to consider an approval. Other documentation may also be necessary, but depends on the individual situation and lender's requirements. Existing borrowers who have conventional mortgages with Fannie Mae or Freddie Mac may be eligible for HARP 2.0, a refinance program that often does not require an appraisal and is available for loans sold prior to June 1, 2009. The best place to get information for a HARP refinance is online where a minimum of personal information is required and response times are quick. Many borrowers are finding this success with HARP online and have been able to refinance to lower mortgage rates in a short period of time.
Today's FHA 30 year fixed mortgage interest rates are at 3.125%, FHA 15 year fixed mortgage rates are at 2.625% and FHA 5/1 ARM loan rates are at 2.625%. FHA mortgage programs offer low down payment requirements which depend on credit scores. With credit scores as low as 580, the required down payment is 3.5% and 10% with scores between 500 and 580. Borrowers can receive gifts from family, friends and employers to use for the down payment, as well as, local housing grants or loans. While FHA mortgages have higher closing costs (APR) because of the upfront mortgage insurance premium and various FHA fees, these expenses can be added to the mortgage amount as long as the final loan to value meets FHA guidelines. The latest update to FHA is the FHA streamline refinance with no cash out which will begin closing mortgages on June 11th. This program does not require any verifications or appraisal and now has reduced upfront and annual mortgage insurance premiums. With millions of existing FHA borrowers eligible for this program, applying online with little personal information is the best way to quickly get in on this latest FHA program.
Current jumbo 30 year fixed mortgage rates are at 4.125% and jumbo 15 year fixed mortgage interest rates are at 3.125%. Jumbo 5/1 ARM loan rates are at 2.250%. In order to receive these lowest jumbo mortgage rates with 0.7 to 1% origination point, lenders require that borrowers have excellent credit. Other guidelines usually stipulate that borrowers have stable employment and income, as well as, substantial assets to cover the large down payment and additional months of reserves. Jumbo mortgage lenders have strict guidelines since these are considered private loans which are held by the lender.
Today's Wells Fargo California 30 year fixed mortgage rates are at 3.875% (4.051% APR).
MBS prices (mortgage backed securities) are down -4/32 (FNMA 30 yr 3.5 at 104.08). MBS prices affect mortgage rates which move in the opposite direction. Again today, markets are sluggish with stocks up slightly. No further economic news is scheduled for release. The Organization for Economic Cooperation and Development warned today that Europe's debt crisis presents a risk to the global economic recovery and that the potential for a severe recession is possible for the Euro-zone.
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.
