November 30th Best Mortgage Interest Rates and Lock Recommendation
By: Freeman Liz
November 30, 2009
| Program | Rate | |
| 30 Year FRM | 4.72% | Better by .03 |
| 15 Year FRM | 4.03% | Better by .02 |
| 5/1 Year ARM | 3.82% | Better by .01 |
| Jumbo 30 Year FRM | 5.87% | Worse by .02 |
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.
*** STOCKS STUMBLE, RATES IMPROVE *** ADVISE LOCKING *** With no economic data scheduled for release today, interest rates will largely be driven by the performance of the stock market. This morning, equities are trading lower, and bond yields have dropped too--good for mortgage rates.
There will be a number of reports this week than could push mortgage interest rates.?? The Institute for Supply Management (ISM) posts November's manufacturing index?? tomorrow morning. The index measures manufacturers' confidence in the economy and can measurably impact?? mortgage rates. Analysts expect a decline from October's 55.7.?? A weaker reading than the expected 54.8 would be good news for the bond and mortgage-backed securities (MBS) markets.
Overall, the most important report is Friday's?? monthly employment figures, but we may also see sizable movement in rates tomorrow. If Friday's Employment report is more favorable than expected, rates could spike higher.
With rates at the lower end of their range and at their lowest in months, there is little reason to gamble with floating. The upside is so small and the downside so large.?? 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.
