August 25th Best Mortgage Interest Rates and Lock Recommendation
By: Freeman Liz
August 26, 2010
| Program | Rate | |
| 30 Year FRM | 4.32% | Worse by .01 |
| 15 Year FRM | 3.73% | Better by .01 |
| 5/1 Year ARM | 3.45% | Unchanged |
| Jumbo 30 Year FRM | 5.56% | Better 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 DROP FOLLOWING NEW HOME SALES REPORT, THEN INCREASE ***
Following on the heels of yesterday's dreadful Existing Home Sales report, the New Home Sales Report added insult to injury. New home sales unexpectedly dove to the lowest level on record in July, dropping 12.4% for the month, the government reported. Economists had expected sales to nudge upward.However, by the end of the day, stocks were recovering, and some lenders began repricing for worse. Those that didn't may do so tomorrow morning.
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.
