March 16th best Mortgage Interest Rates and Lock Recommendation

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 DROP ON NEWS FROM FED ***

The Fed i its notes at the conclusion of today's meeting reiterated the need for low rates for an "extended time" and stated that?? inflation is not a concern yet.?? Regarding the MBS Purchase Program, which is scheduled to end this month, they added what may be a door to extend the program if needed. Additionally, the Fed implied it is concerned about the health of housing, stating: "Housing starts have been flat at depressed levels."?? This adds some hope that the Fed may be willing to add funds to the MBS Purchase Program if mortgage rates move higher following their withdrawal at the end of March.

If closing in the next 30 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.