March 12th Best Mortgage Interest Rates and Lock Recommendation
By: Liz Freeman
March 12th, 2010
| Program | Rate | |
| 30 Year FRM | 4.98% | Worse by .02 |
| 15 Year FRM | 4.32% | Worse by .02 |
| 5/1 Year ARM | 4.19% | Worse by .03 |
| Jumbo 30 Year FRM | 6.49% | Worse by .01 |
Here is today’s look at best mortgage rates, (which do not include discount points, origination points, or loan level risk based price adjustments) provided by Mortgage News Daily, Freddie Mac, and other sources. Note that Freddie Mac’s AVERAGE rates are typically higher than BEST rates, because average rates include surcharges for risks associated with property types, down payments, and credit scores. To be eligible for BEST rates, borrowers need spotless credit (740 score or better), a sizable down payment (20-25%) or equity amount, and stable, adequate, and documentable income. In addition, the property must be located in a healthy (not declining) market and must be conventionally built.
LOCK ALERT *** RATES INCREASE FOLLOWING RETAILS SALES REPORT***
Today’s rates increased following the release of the Commerce Department’s February retail sales data, which was more favorable than expected. The report showed that sales exceeded forecasts by a wide margin, increasing this morning’s mortgage rates by approximately .125 - .250 of a discount point. This was slightly offset by the University of Michigan’s Index of Consumer Sentiment, which at 72.5 was lower than forecast and is good news for mortgage rates.
If closing in the next 60 days, I would LOCK my rate; otherwise, I would FLOAT my rate. This is only an opinion–what I would do if I were closing a mortgage at this time. Your decision may depend on other factors such as the strength of your loan approval and your tolerance for risk, and must be made with those in mind.
Liz Freeman has more than a decade of mortgage lending experience. She writes about mortgage and finance issues and is a regular contributor to Mortgage News Daily.
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StumbleUponMarch 11th Best Mortgage Interest Rates and Lock Recommendation
By: Liz Freeman
March 11th, 2010
| Program | Rate | |
| 30 Year FRM | 4.93% | Unchanged |
| 15 Year FRM | 4.30% | Unchanged |
| 5/1 Year ARM | 4.14% | Better by .01 |
| Jumbo 30 Year FRM | 6.45% | Unchanged |
Here is today’s look at best mortgage rates, (which do not include discount points, origination points, or loan level risk based price adjustments) provided by Mortgage News Daily, Freddie Mac, and other sources. Note that Freddie Mac’s AVERAGE rates are typically higher than BEST rates, because average rates include surcharges for risks associated with property types, down payments, and credit scores. To be eligible for BEST rates, borrowers need spotless credit (740 score or better), a sizable down payment (20-25%) or equity amount, and stable, adequate, and documentable income. In addition, the property must be located in a healthy (not declining) market and must be conventionally built.
LOCK ALERT *** TREASURY AUCTIONS WENT WELL, LOOK FOR RATES TO DROP***
Today’s rates opened flat on slightly weaker than expected unemployment data and slightly stronger than expected trade balance figures. At 1pm EST, the Department of Treasury released the results of today’s $13 billion 30 year bond auction, and they were favorable for mortgage rates. Demand for US debt remains high. Prior to the auction, benchmark yields were rising and MBS prices were falling. Look for lower mortgage interest rates this afternoon.
If closing in the next 60 days, I would LOCK my rate; otherwise, I would FLOAT my rate. This is only an opinion–what I would do if I were closing a mortgage at this time. Your decision may depend on other factors such as the strength of your loan approval and your tolerance for risk, and must be made with those in mind.
Liz Freeman has more than a decade of mortgage lending experience. She writes about mortgage and finance issues and is a regular contributor to Mortgage News Daily.
