| Program | Rate | |
| 30 Year FRM | 5.15% | Worse by .01% |
| 15 Year FRM | 4.31% | Better by .02% |
| 5/1 Year ARM | 3.88% | Worse by .02% |
| Jumbo 30 Year FRM | 5.67% | 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.
Mortgage rates hung in there virtually unchanged by the end of the day as the stock market charged ahead--although there were bumps during the day as the National Association of Realtors released their report showing much stronger sales of existing homes than expected. This caused stocks to hit '09 highs and mortgage-backed securities (MBS) to get clobbered in the marketplace--briefly.
Oil prices increased as well, and comments from Rederal Reserve Chairman Ben Bernanke added to optimism in equities and pressured the bond and MBS markets. At this point trends support a recovery, albeit a slow one. This is still inflationary, although inflation will probably not be a serious concern for some time. The anticipation of inflation could actually drive it, however, and if I were planning on closing a mortgage soon I wouldn't put my money on the public's sentiment. Therefore:
I would LOCK my mortgage rate if closing within 30 days; otherwise I'd 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.
