January 5th Best Mortgage Interest Rates and Lock Recommendation
By: Freeman Liz
January 05, 2010
| Program | Rate | |
| 30 Year FRM | 5.02% | Unchanged |
| 15 Year FRM | 4.29% | Better by .01 |
| 5/1 Year ARM | 4.20% | Better by .02 |
| Jumbo 30 Year FRM | 6.27% | Better 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 *** DURABLE GOOD IMPROVEMENTS OFFSET BY SMALL STOCK LOSSES***
Mortgage-backed securities opened higher today, despite a higher-than-expected reading in Durable Sales. This is considered positive for the economy, and therefore negative for bonds and MBS. However, it's not a terrifically important report, and today's slight weakness in the stock market had more effect on?? mortgage interest rates than anything else. Look for rates to remain somewhat in limbo ahead of the biggie report -- the monthly Employment Situation Report, which could potentially blow interest rates up or sink them big time. Last months' report was so optimistic that interest rates drifted upward for the next four weeks! Stay tuned....
If closing in the next 60 days, 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.
