Mortgage Rates Touched New Low Friday

Conventional fixed mortgage rates touched a new all time record low Friday. The 30-year fixed mortgage rate available to well-qualified consumers at 1 point origination dropped to 4.375%, from 4.5%. The 15-year fixed-rate also declined, from 4% to 3.875%. Mortgage rates have never been this low.

The decline in mortgage rates stemmed from a big increase in mortgage-backed securities prices Friday. MBS prices, which drive mortgage rates in the opposite direction, gained +21/32 (FNMA 30-yr 4.5 at 102.23) on less than spectacular jobs numbers and more European debt concerns, this time in Hungary. Typically when we see significant declines in stocks as we have lately, mortgage rates improve.

FHA mortgage rates continue to mirror those of conventional mortgages.

Jumbo mortgage rates are also down. Today's 30-year fixed jumbo loan rate for true jumbo loans exceeding conforming "high balance" county loan limits is 5.375%.

These rates are available to well-qualified consumers paying a standard .07 to 1 point origination as verified by FreeRateUpdate.com research of wholesale lenders' rate sheets.

Wells Fargo, the number one originator of residential mortgages in the US, is advertising a 30-year fixed-rate of 4.875% with an APR of 5.065% (source: Wells Fargo website).

Today's Mortgage Rates - available to well-qualified consumers paying a standard .07 to 1 point origination.

*30-yr fixed-rate - 4.375%

*15-yr fixed-rate - 4.000%

*1 ARM rate - 3.500%

*FHA 30-yr fixed-rate - 4.375%

*FHA 15-yr fixed-rate - 3.875%

*FHA 5/1 ARM rate - 3.500%

*VA 30-yr fixed-rate - 4.625%

*Jumbo 30-yr fixed-rate - 5.375%

*Jumbo Conforming 30-yr fixed-rate - 4.625%

FreeRateUpdate.com researches over 2 dozen wholesale lenders' rate sheets for brokers daily to determine the most accurate rates available to well-qualified borrowers at a standard origination fee of about 1 point. These rates are commonly referred to as "par rates" by loan officers.

Article published on Realty Times
Written by Ed Ferrara
June 8, 2010

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