June 16th Best Mortgage Interest Rates and Lock Recommendation
By: Freeman Liz
June 16, 2010
| Program | Rate | ?? |
| 30 Year FRM | 4.76% | Worse by .02 |
| 15 Year FRM | 4.12% | Worse by .01 |
| 5/1 Year ARM | 3.76% | Worse by .01 |
| Jumbo 30 Year FRM | 6.41% | Worse 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 ***??STOCKS RALLY, RATES INCREASE??***
A mixed bag of economic reports pointed first to economic recovery, then to economic slowdown, but none of the releases was considered terribly influential in the mortgage market. The overall message, though, was that inflation is not yet a concern, and rates stayed relatively flat. Stocks did rally and mortgage rates did increase slightly as a result. Floating a mortgage rate seems increasingly risky as Europe settles down and the US contiues its slow march out of recession.
If closing in the next??45 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.
