December 24th Best Mortgage Interest Rates and Lock Recommendation

By: Liz Freeman
December 27th, 2009  

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 UP ON SLIGHT STOCK MARKET GAINS ***

Thursday’s bond market has opened lower after the release of mixed economic news and early stock gains.  Stocks are showing small gains with the Dow up 46 points and the Nasdaq up 10 points. The bond market is currently down 6/32, which will probably push this morning’s mortgage rates higher by approximately .125 of a discount point compared to yesterday’s morning rates.

The stock and bond markets will close early today ahead of the Christmas Day holiday and will remain closed Friday. They will reopen Monday morning for regular trading hours. There will be no update to this report tomorrow but Sunday’s weekly preview will be on schedule.

To all readers, I wish you and yours a happy and safe holiday season.

If closing in the next 7 days, I would LOCK ; 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.