As different facets of the economy continue to show slow improvement and there is an expectation of rising loan rates, current mortgage rates are still low despite speculation. FreeRateUpdate.com’s daily survey of wholesale and direct lenders show that conforming mortgage loans and FHA mortgage loans remain under 5% and jumbo mortgage loans are under 6%. These mortgage rates are still very attractive and very affordable when combined with current low home prices.
Current conforming 30 year fixed mortgage rates are at 4.750%, 15 year fixed mortgage rates are at 4.125% and 5/1 adjustable mortgage rates are at 3.250%. Conforming fixed rate mortgages offer consumers the security of mortgage payments that remain the same for the life of the loan. Available with 0.7 to 1% origination fee, these are the best mortgage rates accessible to borrowers who have maintained good credit and meet lender guidelines.
FHA fixed mortgage rates continue to be slightly below conforming fixed mortgage rates. FHA 30 year fixed mortgage rates are at 4.625% and FHA 15 year fixed mortgage rates are at 4.000%. FHA 5/1 adjustable mortgage rates are at 3.625% which is .375% above conforming ARM loan rates. FHA mortgage loans offer borrowers several benefits including a low down payment requirement. Easier credit qualifying guidelines continue to draw borrowers to FHA mortgage loans making them today’s most popular mortgage product. On the other hand, the disadvantages to FHA mortgage loans are the higher FHA closing costs (APR) borrowers must pay due to various FHA fees and the upfront mortgage insurance premium. Effective April 18th, FHA will also implement a .25% increase to the annual mortgage insurance premium for 30 year and 15 year mortgage loans.
Jumbo mortgage rates also continue to be very attractive for the high end borrower. Current jumbo 30 year fixed mortgage rates are at 5.500% and jumbo 15 year fixed mortgage rates are at 5.250%. Jumbo 5/1 adjustable mortgage rates are at 4.125%. Jumbo mortgage loans are used for financing above the conforming loan limit which is $427,000 and $729,250 depending on the property location. Borrowers with outstanding credit can still secure these low jumbo mortgage rates with 0.7 to 1% origination point.
MBS prices (mortgage backed securities) drive mortgage rates up and down, but rates go in the opposite direction of MBS prices. This past week, MBS price fluctuations resulted in a decrease of .125% for the conforming 30 year and 15 year fixed mortgage rates on Tuesday. This did not produce the same result for FHA mortgage loans which remained the same and jumbo 15 year mortgage rates which increased .250% to bring it to the current 5.250%. Following these changes, producer price index, consumer price index and housing starts were reported higher than expected which stabilized MBS prices and mortgage rates for the remainder of the week.
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.
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