April 22nd Best Mortgage Interest Rates and Lock Recommendation
By: Freeman Liz
April 22, 2010
| Program | Rate | |
| 30 Year FRM | 4.97% | Worse by .01 |
| 15 Year FRM | 4.32% | Worse by .02 |
| 5/1 Year ARM | 4.05% | Worse by .01 |
| Jumbo 30 Year FRM | 6.58% | 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.
LOCK ALERT *** RATES BACK UP AFTER TREASURY ANNOUNCEMENT ***
The Treasury Dept announced next week's debt auction will include $44 billion 2-year notes, $42 billion 5-year notes, $32 billion 7-year notes, and $11billion 5-year TIPS notes -- totaling $129 billion. This is $1 billion more than expected, and the added supply of debt on the market has pushed bond and MBS yields (and therefore mortgage rates) higher today. Yesterday's gains are wiped out once again today.
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.
