Today’s low mortgage rates are holding on, but are at risk of rising as positive economic news was released today giving optimistic investors hope for the future.
Pending homes sales dropped 1.3% in July as reported today by the National Association of Realtors. This drop was actually better than expected and better news than a year ago. Current 30 year fixed mortgage interest rates are at 3.875% and 15 year fixed mortgage rates are at 3.250%. 5/1 ARM loan rates are at 2.625%.
Low conforming mortgage rates continue to be beneficial for borrowers who are purchasing homes or refinancing existing mortgages. With good credit, borrowers can obtain these low mortgage rates with 0.7 to 1% origination point.
Remaining affordably below 4%, today’s FHA 30 year fixed mortgage rates are at 3.750% and FHA 15 year fixed mortgage interest rates are at 3.500%. FHA 5/1 ARM loan rates are at 2.750%. The majority of borrowers have chosen FHA mortgage loans in recent years because of the multiple benefits they offer. With a low down payment of 3.5%, a borrowers can have a minimum credit score of 580. This gives many more consumers the opportunity to become homeowners. FHA closing costs (APR) do tend to be higher than conforming mortgages because of the upfront mortgage insurance premium and other related FHA fees.
Still at attractive low levels, today’s jumbo 30 year fixed mortgage interest rates are at 4.750%, jumbo 15 year fixed mortgage interest rates are at 4.375% and jumbo 5/1 ARM loan rates are at 3.250%. Since jumbo mortgages are not government insured, they are considered riskier than conforming and FHA mortgage loans. Therefore, borrowers must have excellent credit to obtain these lowest jumbo mortgage rates with 0.7 to 1% origination fee.
Current California 30 year fixed mortgage rates are at 4.375% (4.559% APR).
This week will be busy for markets as the end of the month of August arrives along with the release of several key reports. Stocks are gaining today on the news that Consumer Spending increased in July. MBS prices (mortgage backed securities), which move mortgage rates in the opposite direction, are down -13/32. Everyone is relieved that Hurricane Irene did not produce the amount of damage that was expected. Investor optimism and a few good reports in the next few days could keep the stock market rallying and drive MBS prices further down. This could ultimately drive mortgage rates higher as the week progresses.
Original Article - FreeRateUpdate: By: Rosemary Rugnetta
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