30-year fixed mortgage rates are now at 4% for well-qualified borrowers who pay .07 to 1 point origination shows FreeRateUpdate.com research of wholesale lenders' interest rate sheets. 15-year fixed mortgage rates are at 3.5%. Both fixed mortgage rates, which continue to decline, are at all time record low levels.
FHA mortgage rates remain at similar levels to conforming rates. FHA 30-year fixed loan rates are at 4%; however, APR on an FHA loan at 4% is quite higher than that of a conforming mortgage at the same note rate. Why? MI at 2.25% of the amount financed and other FHA fees drive up closing costs.
Jumbo mortgage rates, which have declined significantly in recent weeks, are also at all time record lows. Today's 30-year fixed jumbo loan rate is 5.125%.
Mortgage-backed securities prices, which drive mortgage rates in the opposite direction, continue to do well amid ongoing uncertainty in the economy. MBS prices rose again to begin this week, stabilizing rates at their current levels.
Despite rates being amazingly low, purchase applications remain weak. Refinance applications on the other hand have spiked and are at a 15 month high.
Published: August 25, 2010 by Ed Ferrara
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