August 26th Best Mortgage Interest Rates and Lock Recommendation
By: Freeman Liz
August 26, 2010
| Program | Rate | |
| 30 Year FRM | 4.34% | Worse by .02 |
| 15 Year FRM | 3.75% | Worse by .02 |
| 5/1 Year ARM | 3.48% | Worse by .03 |
| Jumbo 30 Year FRM | 5.56% | Unchanged |
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 *** NEW UNEMPLOYMENT CLAIMS DOWN, NOT GOOD FOR MORTGAGE RATES ***
The weekly unemployment figures indicated that 473,000 new claims for unemployment benefits were filed last week. This was lower than analysts' expected, which is bad news for bond and mortgage rates, but since it's only weekly data, it has not had much of an impact on this morning's trading. meanwhile, stocks dropped after an initial rally, and mortgage rates improved after worsening initially. Final pricing will probably depend on how the market receives today's Treasury auction of seven-year notes. Good demand could drop rates further, and a lackluster response would increase them.
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.
