|30 Year FRM||4.39%||Worse by .05|
|15 Year FRM||3.78%||Worse by .03|
|5/1 Year ARM||3.53%||Worse by .05|
|Jumbo 30 Year FRM||5.59%||Worse by .03|
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 UP SHARPLY ***
Mortgage interest rates increased sharply following a speech by Ben Bernanke in which the Fed head indicated that should more monetary intervention be necessary to support the economy, he would not worry about inflationary consequences. This initially spooked investors and caused them to flee bond and mortgage-backed securities, which sent the yields for those vehicles up. Remember that as MBS prices decrease, yields increase, and when yields increase, so do mortgage rates. However, all this reaction was not due to hard data, only a speech. There will likely be a correction soon.
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.