February 23rd Best Mortgage Interest Rates and Lock Recommendation
By: Freeman Liz
February 23, 2010
| Program | Rate | |
| 30 Year FRM | 4.99% | Better by .03 |
| 15 Year FRM | 4.33% | Better by .03 |
| 5/1 Year ARM | 4.26% | Better by .05 |
| Jumbo 30 Year FRM | 6.48% | 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 *** RATES IMPROVE ON HUGE DECLINE IN CONSUMER CONFIDENCE ***
The important Consumer Confidence Report surprised many today.?? After last month's reading of 55.9, economists were expecting 55.0 today. The release indicated a huge decline in consumer confidence at 46.0. This is a 10 month low and triggered a stock selloff and a bond and mortgage-backed securities rally. Probably a good time to lock if closing any time soon.
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.
