September 23rd Best Mortgage Interest Rates and Lock Recommendation

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 DESPITE MIXED ECONOMIC DATA***

Two of three economic releases came in stronger than expected, which is generally not good for mortgage interest rates. The Conference Board's Leading Economic Indicators (LEI) for August showed a 0.3% increase in the index, well over the expected 0.1% increase. And the National Association of Realtors reported that home resales rose 7.6% last month, exceeding forecasts. However, these reports are considered less important than last week's unemployment figures from the Labor Department. They reported that 465,000 new claims for unemployment benefits were filed last week. This was a noticeable increase when analysts were expecting a small decline in claims, indicating continuing economic weakness, good for 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.