Mortgage Rates: Low Mortgage Rates Continue to be the Norm for Now
Posted on August 25th, 2011
Low mortgage rates continue to be the norm, at least for now, giving borrowers a good opportunity to save some money. As the economy remains sluggish with no clear direction of where it is heading, the flight to safe investments should keep mortgage rates at affordable levels.
Todays 30 year fixed mortgage rates are at 3.875%, 15 year fixed mortgage interest rates are at 3.250% and 5/1 ARM loan rates are at 2.625%. At historic lows below 4%, these conforming mortgage rates are available with 0.7 to 1% origination point to borrowers who have good credit. Borrowers should also expect to provide any documentation that is necessary to receive lender approval.
With FHA mortgage rates also below 4%, more borrowers are apt to take advantage of FHA benefits, especially those whose credit is less than perfect. Current FHA 30 year fixed mortgage rates are at 3.750%, FHA 15 year fixed mortgage interest rates are at 3.500% and FHA 5/1 ARM loan rates are at 2.750%. With FHA mortgage loans, a low down payment of 3.5% is required as long as the credit score is at least 580. FHA mortgages will even accept gifts and housing grants to help reduce the overall transaction. FHA mortgages do have higher closing costs (APR) which are due to the upfront mortgage insurance premium and other FHA fees.
Jumbo mortgages are required for financing above the conforming loan limit. Current low jumbo mortgage rates have been a big benefit for high end borrowers looking to upgrade. Todays jumbo 30 year fixed mortgage interest rates are at 4.750% and jumbo 15 year fixed mortgage rates are at 4.375%. Jumbo 5/1 ARM loan rates are at 3.250%. While not government insured and considered risky, borrowers need excellent credit in order to obtain these low jumbo mortgage rates with 0.7 to 1% origination fee.
Current Wells Fargo California 30 year fixed mortgage interest rates are at 4.375% (4.559% APR).
Bernankes long awaited speech finally occurred today, although somewhat disappointing to some investors. If necessary and appropriate, further monetary stimulus action will be taken by the Fed at the September meeting. Data released today included Gross Domestic Product which increased 1% in the spring of this year. MBS prices (mortgage backed securities) are up +12/32 as investors are playing it safe after Bernankes speech. Mortgage rates move in the opposite direction of MBS prices. Stocks are also up slightly today.
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 fee.