September 22nd Best Mortgage Rates and Lock Recommendation
By: Freeman Liz
September 23, 2010
| Program | Rate | |
| 30 Year FRM | 4.36% | Better by .04 |
| 15 Year FRM | 3.78% | Better by .02 |
| 5/1 Year ARM | 3.60% | Unchanged |
| Jumbo 30 Year FRM | 5.60% | Worse by .04 |
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 IMPROVE AFTER FED STATEMENT***
Mortgage rates improved late yesterday after the Fed released a statement asserting that the economic recovery will continue to be slow and bumpy, and that inflation remains below its targets. That statement kept investors nervous, and nervous investors keep bond yields high and interest rates low. So today's rate sheets reflect that. With no economic data due for release today, rates will probably stay attractive. Tomorrow brings exitsing home sales, weekly jobless claims, and leading indicators reports. These all have the potential to move mortgage rates.
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.
