Mortgage Rates Today: Home Mortgage Rates Continue to Show Improvement

Over the past week, mortgage rates continued to show improvement with a decrease of .125% for conforming 15 year fixed mortgage rates and 5/1 ARM loan rates. Freerateupdate.com's daily survey of wholesale and direct lenders show that 30 year fixed mortgage rates are at 4.750%, 15 year fixed mortgage rates are at 3.875% and 5/1 adjustable mortgage rates are at 3.125%. Conforming fixed rate mortgage loans continue to be popular with borrowers who want the security of a set monthly mortgage payment for the life of loan and are available with 0.7 to 1% origination fee to those with good credit.

Remaining unchanged, FHA 30 year fixed mortgage rates are at 4.500% and FHA 15 year fixed mortgage rates are at 4.000%. FHA 5/1 ARM loan rates are at 3.500% which is a decrease of .125%. FHA fixed mortgage rates continue to be competitive with conforming fixed mortgage rates, although FHA mortgage loans offer several benefits to borrowers including a low down payment requirement and easier credit qualifying. Borrowers must pay higher FHA closing costs (APR) because FHA charges an upfront mortgage insurance premium and other various fees. Jumbo mortgage rates saw no changes over the past week.

Jumbo 30 year fixed mortgage rates are at 5.375%, jumbo 15 year fixed mortgage rates are at 5.250% and jumbo 5/1 ARM loan rates are at 3.875%. Jumbo mortgage loans are required for mortgage financing above the conforming loan limit which is $417,000 to $729,250 depending on the property location. Available with 0.7 to 1% origination point, these are the best jumbo mortgage rates offered to well qualified borrowers.

MBS prices (mortgage backed prices) affect mortgage rates which move in the opposite direction. MBS price movements continue to be unpredictable and not necessarily dependent on the economic data reported. This past week's reports included an increase in private sector jobs, a decrease in weekly jobless claims and a lower unemployment rate. Although mortgage rates are down, MBA reported weekly purchase and refinance activity down. Regardless of economic reports released, the tensions in the Middle East continue to be driving the emotions of investors and causing market volatility.

FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders' rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard .07 to 1 point origination.

Current California Mortgage Rates


Written by Ed Ferrara
March 9, 2011

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