Mortgage Rates Clinging to Lowest Levels

This past week, mortgage rates have been clinging to their lowest levels of 2011 with little to no movement happening. Freerateupdate.com's daily survey of wholesale and direct lenders show that, with the exception of jumbo 30 year fixed mortgage rates which decreased by .125%, all other mortgage rates continue to remain steady. Conforming 30 year fixed mortgage rates are at 4.375%, 15 year fixed mortgage rates are at 3.750% and 5/1 adjustable mortgage rates are at 3.000%. Available with 0.7 to 1% origination fee, these are the lowest conforming mortgage rates that can be obtained by borrowers who have maintained good credit and can produce the required documentation to receive lender approval.



FHA mortgage loans continue to be popular with borrowers who have less than perfect credit and little available cash for a normal down payment. With an FHA mortgage down payment requirement as low as 3.5%, borrowers don't mind paying higher FHA closing costs (APR) due to the upfront mortgage insurance premium and other various FHA fees. Current FHA 30 year fixed mortgage rates are at 4.250%, FHA 15 year fixed mortgage rates are at 4.000% and FHA 5/1 adjustable mortgage rates are at 3.375%.

Jumbo 30 year fixed mortgage rates are at 5.000%, down .125% from last week. Jumbo 15 year fixed mortgage rates are at 4.500% and jumbo 5/1 adjustable mortgage rates are at 3.625%. Well qualified high end borrowers in need of mortgage financing above the conforming loan limit, which is $417,000 to $729,750 depending on location, can obtain these low jumbo mortgage rates with 0.7 to 1% origination point.

Mortgage backed securities (MBS) prices have been moving very little in either direction which is keeping mortgage rates steady. Mortgage rates move in the opposite direction of MBS prices. Although unemployment claims decreased, reported existing home sales dropped in April leaving investors cautious. Current concerns over European debt has investors keeping a watchful eye for a weakening in any recovery.

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.