|
Program |
APR |
Change |
|
30 Year FRM |
3.88% |
Better by 0.02 |
|
15 Year FRM |
3.33% |
Better by 0.01 |
|
5/1 Year ARM |
3.04% |
Better by 0.01 |
|
Jumbo 30-Year FRM |
4.11% |
Better by 0.01 |
Here is today's look at best mortgage rates provided by HSH.com, Mortgage News Daily and other sources. These do not include loan-level risk-based price adjustments imposed by Fannie Mae and Freddie Mac. Note that average mortgage rates are typically higher than the best mortgage rates, because average rates include surcharges for risks associated with property types, down payments and borrower credit scores. To be eligible for the best rates, borrowers need excellent credit with a score of 740 or better, a sizable down payment or equity amount of 20 to 25 percent and stable, adequate, verifiable income. In addition, the property must be located in a healthy, not declining market and must be conventionally built. Condominiums, manufactured homes and farms do not apply.
LOCK ALERT *** RATES FLAT FOLLOWING POSITIVE EMPLOYMENT NEWS ***
ADP released its monthly update on private sector employment, and it was a doozy. ADP showed an increase of 325,000 new jobs, which blew analysts' expectations right out of the water. It represents the largest monthly gain in a year. Despite this indicator of stronger economic growth, bonds -- including mortgage-backed securities prices -- did not tank as they normally would. (Lower prices would cause mortgage rates to rise sharply.)
Tomorrow, the U.S. Department of Labor releases December's Employment Situation Report. It's expected to show a slight increase in unemployment, from 8.6 percent to 8.7 percent. This would negate today's good news, which may explain why mortgage rates stayed flat.
If closing in the next 15 DAYS, I would LOCK my rate. 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.
