Daily Mortgage Rates and Lock Recommendations
By: Freeman Liz
April 16, 2009
| Program | Rate |
| 30 Year FRM | 4.62% Worse by .04% |
| 15 Year FRM | 4.55% Worse by .03% |
| 5/1 Year ARM | 3.98% Worse by .03% |
| Jumbo 30 Year FRM | 4.90% Worse by .01% |
Here is today's look at best mortgage rates, provided by Mortgage News Daily, Freddie Mac,and other sources. Note that today's BEST rates may include points and differ from national average rates for several reasons. 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.
Yesterday, mortgage backed securities (MBS) moved very little.This stability should allow lenders to offer par 30 year conventional mortgages at only slightly worse pricing, ranging from 4.625% to 4.875% depending on individual borrower risk profile characteristics. Today's Housing Starts data was worse than expected (good for mortgage rates), but an optimistic stock market has counter-punched that data.
THEREFORE:
Under current conditions, I would LOCK my rate if closing within 30 days; otherwise I would FLOAT my mortgage 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.
